Digital sector may pump €6bn into economy by 2016
Research on the growing use of broadband services has projected that online spending by shoppers here will increase from €3.7bn this year to €5.7bn over the next four years, with the potential to create 18,000 jobs.
It also predicts Ireland’s internet economy will be worth €11.3bn by 2016 — the equivalent of 6% of GDP.
The report, Ireland’s Digital Future: Driving Economic Recovery, was carried out by Amárach Research on behalf of cable and internet provider, UPC.
It claims Irish consumers and businesses are “digital optimists” who look forward to accessing many new services which will enable them to work, shop, study, and share from their home.
Despite the recession, the report estimates that online shopping will account for 7% of all consumer spending by 2016.
UPC chief executive Dana Strong said the country’s transformation to a knowledge-based society and competitive economy was critically dependent on capacity to deliver a world-class digital infrastructure.
The report found that Ireland is on par or even ahead of other EU countries when it comes to several key measures of digital adoption. Almost 65% of Irish households have broadband — 2% below the EU average.
The survey of 1,000 adults showed that eight out of 10 people here now use the internet — up from just five in 10 in 2007.
Two-thirds of households have access to broadband services, with internet users spending on average of 2.6 hours each weekday online and longer at weekends.
Broadband emerged as the one service in the home that householders could not live without, ahead of electricity and television.
Almost a third of adults admitted using a computer, tablet, or smartphone while watching television.
Shopping and social networks are the most popular online activities, while a third of all adults use the internet at home for work purposes.
It’s not all bad news for traditional retailers as the survey showed eight out of 10 adults research products on the web before buying them in local shops.
However, six out of 10 research products in local shops before buying online.
The average monthly spend by Irish consumers who buy online is €116. The most popular items and services are travel and hotel bookings, clothing and footwear, books, and music.
Irish businesses are also highly enthusiastic about the advantages of improving digital technology, with a majority expecting to hire new staff over the next two years, particularly those with IT and digital skills.
The survey revealed that 62% of people believe future digital services will allow them to work from home for up to two days per week.
Launching the report, Pat Rabbitte, the communications minister, said it highlighted the growing awareness of the sector’s potential, while also underlining the need for Irish companies to transact business online.
He said the report’s finding that 44% of people believe their existing broadband speeds will be insufficient for their future online needs was already “out of date” due to yesterday’s successful sale of new licences to offer next generation mobile services.
What's your digital profile? Nice UPC online tool with @AmarachResearch data http://t.co/zCAYGGSe #digitalprofile
— Mark Nolan (@MARKN0LAN) November 15, 2012
