Digital Business Ireland (DBI), the country’s largest representative body for digital and online businesses, has today issued a major new report on supporting the further growth of digital commerce in Ireland. The report, titled ‘Taking Digital Commerce in Ireland to the Next Level’ includes and an economic assessment which estimates that doubling the average level of digital investment by Irish SMEs could add €8.3 billion to the Irish economy.
Digital commerce in Ireland is booming, driven by Irish consumers, with Ireland among the European leaders in terms of online purchasing. This level of consumer demand offers a real and tangible opportunity for businesses in Ireland. In 2024, 37.9% of small enterprises were engaged in digital commerce (CSO) – the second highest in Europe – yet many SMEs have still not reached the level of digital maturity required to compete effectively.
The report argues that businesses should be seeking, on an ongoing basis, to upscale their digital maturity and enhance their digital commerce capabilities. The report also sets-out a new Digital Maturity Model for Ireland that cover five levels: Foundational, Operational, Embedded, Transformational, Exploratory.
Following the publication of the report, Victor Timon, Chair of Digital Business Ireland, said: “The reality of digital transition is that it is a task that is never completed. The tempo of change never slows. For all the progress we have made as an economy, the accelerating pace of digital innovation and the unprecedented opportunities offered by AI means there is always new ground to travel and there is always another level to be reached. Digital Business Ireland’s core message is that all businesses should be striving and supported to move up to the next level of digital maturity. But to achieve this there needs to be transformative uplift in business investment in digital transition in Ireland.”
The report recognises that government and state enterprise agencies including Enterprise Ireland, Fáilte Ireland and the Local Enterprise Offices have played a vitally important role in supporting businesses on their digital journey. However, the report comes against the backdrop of data which shows that while 74% of Irish SMEs have reached a basic level of digital intensity, only 39% have achieved an advanced level (EU Digital Decade). At the same time, the percentage of Irish SMEs investing in digital transition is falling (ESRI).
The report identifies a number of recommendations for future business supports from both Government and industry. Among the key recommendations are:
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The introduction of a second, higher-value tier of the Grow Digital Voucher to support businesses in Ireland to invest in next-level digital commerce capabilities, building on the discontinued Enterprise Ireland Online Retail Scheme.
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The introduction of targeted tax measures, such as Accelerated Tax Credits, to incentivise ongoing business investment in next-level digital commerce capabilities.
While the Grow Digital Voucher represents an important measure to support Irish SMEs at the Foundational and Emerging levels of digital maturity with meeting the costs of digital transition, the current €5,000 grant limit is not sufficient to incentivise SMEs to invest in the types of technologies and capabilities set out in the report.
Feedback to Digital Business Ireland from its member companies and partners has indicated that the previous Enterprise Ireland Online Retail Scheme had proven effective and that a similar scheme should be reintroduced to help business to meet the costs of ongoing investment in upscaling their digital retailing capabilities. Digital Business Ireland also believes tax measures could prove an accessible and effective fiscal approach to incentivising and unlocking business investment in digital transition and the adoption of AI.
The report also discusses how digital advertising is essential to the success of digital commerce, offering businesses, especially SMEs, an accessible and cost-efficient means of reaching interested consumer and growing their sales. The report recommends that the Irish Government actively champion policy positions at an EU level which seek to preserve and strengthen the ability of business in Ireland to use personalised ads. The report also recommends that Government conduct an assessment of the value of digital advertising to the Irish economy and jobs.
The report sets out a number of case studies of Irish-owned brands and retailers who have developed their digital commerce presence with the support of digital agencies who members of DBI:
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Golden Discs – supported by Truffle Hog
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Elephant Living – supported by Core Optimisation
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Lily O’Briens – supported by All human
The report also includes a case study of the Strategic Banking Corporation of Ireland (SBCI) who are a DBI partner and who are playing a leading role in supporting Irish businesses seeking to access finance to invest in digital transition.
To read the report in full, please visit: https://www.digitalbusinessireland.ie/digital-commerce-report-2026/