Digital and e-commerce trade by Irish firms expected to hit €17.8bn 

Digital Business Ireland chief Lorraine Higgins. She called for an increase in the Grow Digital Voucher scheme in the upcoming budget.

A new report looking at digital and e-commerce trade has predicted Irish e-commerce turnover will jump by 8% in 2026, rising from €16.5bn in 2025 to €17.8bn this year.

The analysis by Digital Business Ireland (DBI) forms part of the European E-commerce Report 2026, a continent-wide analysis of the sector. DBI is a member of Brussels-based Ecommerce Europe, and represents Irish businesses in the digital commerce sector. DBI is also a member of the Department of Enterprise’s Digital Advisory Forum.

The report said Ireland recorded €3,123 in business-to-consumer (B2C) e-commerce turnover per capita in 2025, ranking third in Europe behind Denmark and Estonia. The report said that 95% of Irish consumers aged 16–74 bought goods or services online in 2025 - the highest rate across the 38 European countries covered by the report.

Speaking ahead of next month's Budget, DBI founder Lorraine Higgins said projected growth of digital commerce in Ireland represents an opportunity for Irish businesses as AI reshapes digital commerce. She called for an increase in the Grow Digital Voucher scheme, which provides up to €5,000 to SMEs, covering 50% of eligible investment in digital tools, including areas such as AI, software, cybersecurity, and business systems. Ms Higgins said increasing the scheme would help Ireland keep pace with "increasingly sophisticated European and international competitors".

“The pace of change in digital commerce, particularly the rapid deployment of AI, is transforming how businesses operate and how consumers discover and buy products. With further growth projected in 2026, businesses in Ireland need to be equipped to capture that growth, and we need to give them the tools to do it now. Increasing the Grow Digital Voucher in Budget 2027 and providing the scale of support businesses need to invest in the next generation of digital and AI capabilities would be a good start," said Ms Higgins.

Ms Higgins said SMEs are increasingly investing in AI but levels of investment are modest and are not sufficient to bridge the gap with larger businesses. "Without targeted Government support and incentives, there is a risk that this divide will widen, limiting the ability of smaller firms to fully realise the benefits of AI and compete effectively."

Published annually, the European E-commerce Report provides a snapshot of online retail across 38 countries, tracking market growth, consumer behaviour, and trends shaping digital commerce. The 2026 report identifies AI as a major force reshaping digital commerce, with growing adoption across customer service, pricing, personalisation, and content creation. The report said consumers are also increasingly using AI tools when shopping online.