Market Trends of ireland data center Industry
Increase in search engines and social media sites boost the market demand
- The total number of smartphone users in the country was 3.73 million in 2022, and it is expected to witness a CAGR of 1.78% during the forecast period to reach 4.19 million users by 2029.
- In 2024, Ireland's share of monthly active smartphone users is projected to reach 74.85% of the total population. This would be an increase of above 3% from 71.8% in 2018. Ireland's internet penetration rate stood at 99% of the total population at the start of 2022 with the emergence of 5G. A majority of internet users in Ireland utilize smartphones to use search engines, check their email, and visit social media sites at least weekly. Since the COVID-19 pandemic, more people have been shifting to contactless services. This is the case across almost all age groups, regions, and social classes. Only 47% of people over 55 stated that they used contactless payment frequently before the COVID-19 pandemic. However, 81% of them have used it more frequently since the pandemic.
- With the growth of the user base of smartphones, there has been an overall positive market demand for data centers. The penetration rate has been positive with regard to usage for e-commerce, media and entertainment, and the banking payment sector, due to which a large chunk of data is being gathered. Smartphones necessitate real-time processing due to generating large chunks of data. This mostly requires data centers for storage. Overall, there is a major requirement for extra racks, which is expected to increase with the increasing number of smartphone users. As smartphone users rose, the number of racks in data centers increased from around 32,000 in 2017 to 132,000 in 2022. This trend is expected to continue during the forecast period.
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Surge in FTTx cables and strong broadband connectivity is boosting the data center market
- Although copper is adequate for a voice signal, it provides very limited bandwidth. Fiber provides standardized performance up to 10 Gbps and beyond. In Ireland, during the forecast period, the growth of copper connections is expected to be 16.37%, while FTTx is projected to record a growth of 36.86%. With regard to hyperscale data centers, many fiber-optic cable makers have changed their construction in a way that allows them to pack thousands of optical fibers into one cable. In Ireland, there is an increasing adoption of FTTx cables.
- Ireland has six main fiber broadband providers: Digiweb, Eir, Pure Telecom, Sky, Virgin Media, and Vodafone. All Irish providers can offer speeds of a maximum of up to 1,000 Mbps to certain areas with "Fibre-to-the-Home" connections from SIRO broadband, a joint venture from ESB and Vodafone that brings 100% fiber broadband to homes in Ireland, using the existing electricity network.
- Ireland’s broadband speeds are improving Y-o-Y. In terms of broadband speed, Ireland ranked 36th out of 220 countries and territories worldwide in 2022, a jump from 44th place in 2021 and 51st place the year before. The COVID-19 pandemic highlighted the need for widely available and reliable digital connectivity, leading to major investments. In January 2022, Eircom Limited (Eir) and InfraVia Capital Partners announced the formation of a new joint venture, Fibre Networks Ireland Limited, to build wholesale fiber-to-the-home (FTTH) networks across the Republic of Ireland. Overall, fiber cables and strong broadband connectivity across the country are expected to support data centers during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increase in 5G adoption and surfing on internet leads to the market growth demand
- Increase for fiber rollout in Dublin is boosting the market demand
- Surge in mobile phone and adoption of OTT, social media usage increases the demand for the market
