The Digital Society and Economy Index (DESI) published in 2021 showed Ireland ranking as the fifth most advanced digital economy in the EU, figures that had significantly increased from previous years and are still climbing. Statistics in that year also showed that the country was continuing to maintain high scores when it came to the use of e-commerce by SMEs.

In short, the digital economy in Dublin is booming and it is not confined to Dublin SEO companies.  The city is rapidly becoming a major hub for technology companies. This growth in the technology sector is driven by several factors; government investment, a workforce that is young and well educated and a business environment that is supportive. The digital economy in Dublin is playing an increasingly important role, and the expectation is that it will continue to grow in the coming years. It’s clear that the digital economy in Ireland is something many other countries should be looking at closely to see what’s driving this and what the future looks like for those who want to get involved.

The most recent figures, which cover the year 2023 and were published in January of this year indicate that Ireland is now ranking first when it comes to Digital Public Services at 100% and are also making great progress in a number of other areas of Digital Public Services. The boom in SEO and other digital services in Dublin particularly has played a significant role in helping them to achieve these figures. 

However, whilst this is all indicative of Ireland’s exceptional prowess within the digital economy, the DESI results also indicated that there were some areas that could benefit from acceleration; in particular the area of Digital Health records, where Ireland does not perform particularly well.

How large is Ireland’s digital economy?

Technology Ireland believes that the digital economy in Ireland stands at around €50 billion. This puts it at around 13% of its total GDP. There are currently just over 1,000 digital companies in operation in Ireland including some very well-known, major US MNEs.

Within Ireland there is also a rather substantial SME community which is made up of digital technology companies, both indigenous and international. The Irish ICT market is worth €19 billion and has witnessed sustained demand in recent years as digital solutions and technologies have continued to play an important role in all areas of the economy. As part of the EU 2023 Digital Decade Ireland Country Report the country has also had measured advancements of its national digital initiatives which are helping to support the EU successful digital transformation goals that have been set and that it is hoped will be met by 2030.

The incentives that Dublin has to offer

When it comes to the growth of the digital ecosystem in Dublin, as mentioned, the government is playing a major supporting role. With heavy investment being made into the digital infrastructure for data centres and broadband, the government is keen for this upward trend of a booming digital economy to continue. They have also introduced a range of initiatives designed to attract and then retain tech companies to the area including a generous 12.5% corporate tax rate.

The workforce in Dublin is young and well-educated and this is incredibly attractive to tech companies looking to expand or even relocate. There is also a strong pool of talent within the city concentrated in areas such as computer science, engineering and data analytics. This more localised workforce offers many companies a ready made pool of potential employees without the need to look further afield; something which has the potential to bring relocation fees and add to their costs.

It isn’t just this assistance from the government or the workforce in Dublin that is attractive to tech companies, however. The business environment in Dublin is an incredibly supportive one with a significant number of incubators and co-working spaces available. There is also a strong network of venture capitalists and angel investors. There can be no doubt that the digital economy is has had a significant impact on the economy of Dublin in the past, and will continue to do so. It is creating jobs, boosting productivity and of course driving innovations. It also helps to attract other businesses to Dublin and also boost tourism.

Which companies are helping the booming Dublin digital economy?

Chief amongst the digital giants who have chosen to make Dublin the home of their EU considerations are big names like Google, Amazon and Facebook. All of these U.S businesses have seized the opportunities that are available to them within Dublin and have made their Dublin based centres a thriving player in the digital economy. However they are not the only ones making waves on the digital landscape of Dublin. Those Irish companies making significant contributions to the digital transformation of the country include:

•     Stripe – A global fintech company with Dublin headquarters. The company is revolutionising online payments with its platform that is developer-friendly. Their platform enables all sizes of business to accept payments and manage their online workloads seamlessly.
•     Intercom – Also headquartered in Dublin, the company offers a customer communication platform that assist businesses in building stronger relationships with customers. The platform offers tools for messaging, support, and engagement across a range of channels.
•     Workhuman – A leading provider when it comes to employee recognition and rewards solutions, Workhuman promotes employee engagement whilst fostering a positive workplace culture via its platform.
•     Manna – An innovative drone delivery company. Manna stand at the forefront of revolutionising last-mile delivery solutions with their drone technology. They offer a faster and more sustainable delivery option.
•     LetsGetChecked – This is a health-tech company that offers at-home health testing as well as virtual consultations. They make healthcare more accessible and convenient.

Conclusion

There is no doubt that the digital economy in Dublin is booming, and the city is well-positioned for this trend to continue to grow over the next decade. Thanks to the support of the government, the young and well-educated workforce and the supportive business environment, success in Dublin in the digital sector seems set to continue its upward trajectory. It is expected that the role of the digital economy in the economy of Dublin will continue to help drive both growth and prosperity across the city for a long time to come.