exports

German-speaking countries a valuable market for Irish firms

These days, Ireland is thriving when it comes to exports. In 2021, Irish exports topped €29 billion and included everything from high-tech construction solutions to industry-leading dairy products. It wasn’t always like that, however.

 

When Enterprise Ireland’s predecessor, Corás Tráchtála, first opened an office in Dusseldorf in 1962, live cattle and sewing machines were Ireland’s main exports to Germany with total exports amounting to £5m in Irish punts.

 

As the office marks its 60th anniversary in 2022, things have changed somewhat. Indigenous Irish companies exported almost €2 billion to the German-speaking region of which €1.4 billion went to Germany in 2021, despite the pandemic.

 

“This German result represented an increase of 17% on the previous year and was driven primarily by sales in high-tech construction, ICT, life sciences and industrial products and services,” says Manus Rooney, Germany/Austria/Switzerland Country Manager, Enterprise Ireland.

 

“We have really seen an incredible performance by Irish companies in Germany in the past 12 to 18 months, particularly given the pandemic and supply chain issues.”

German customers prize innovation

In large part, that is due to the highly innovative products and services on offer from Irish firms. German customers appreciate and put value on innovation, so are willing to pay for it. This approach, combined with the size of the German market, makes it a stable, resilient and reliable place to do business.

 

Among the Irish firms thriving in Germany are medical device firm Aerogen, in-car connectivity leaders Cubic Telecom and the food ordering software company Flipdish, along with Ireland’s Eye knitwear and EI Electronics, a market leader in smoke alarms here.

 

“Not only are Irish firms doing great business in Germany, but they employ approximately 30,000 people there, showing that Irish firms are not just exporting to this market, but also creating true partnership and value here,” says Rooney.

European funding offers a further boost

Of course, the skyrocketing success of Irish exporters in Germany over recent decades is also due to the dismantling of trade barriers. Back in 1962, ambitious Irish firms had to contend with import quotas and currency risks, whereas free trade and a shared currency has eased cross-border sales.

 

The EU is also enabling even further opportunity across Europe with its €750 billion NextGenerationEU plan, which seeks to build a more resilient Europe.

 

Making use of its share of this funding, Germany has committed €25.6 billion in grants for recovery and resilience projects, with 42 percent going to climate initiatives and 52 percent funding digital transformation. It is funding the digitalisation of hospitals to the tune of €3 billion, for example.

 

“Irish companies can directly and indirectly access this funding, by tendering directly for projects, by partnering with German companies or by supplying German companies that are carrying out funded projects,” says Rooney. “This is really an exceptional opportunity.”

Construction firms look to Germany

There is also significant opportunity for Irish firms in Germany when it comes to high-tech construction, such as that of pharmaceutical facilities and data centres, especially when it comes to specialisms such as energy management, design and planning services, and construction.

 

Ireland has huge expertise and reputation in this area and our track record offers the chance to be involved in large German capital projects. Intel, for example, is investing €17 billion in the construction of a new plant in Magdeburg, which is set to get underway in 2023.

Understand the Germany market

Companies that take a strategic approach and spend time to research a market are more likely to thrive as exporters, says Rooney.

 

Germany isn’t a market for opportunistic sales, however, he adds. German customers like to deal with suppliers who are committed to the market, which means staff with German-language skills and cultural appreciation, regular visits and a physical presence if possible.

 

While sales cycles can be long, the process is worthwhile given the opportunity of long-term value offered to those selling into Germany.

 

“Remember that Germany is an export champion,” says Rooney, “so exports to Germany mean global exports.”

Consider Austria and Switzerland

Enterprise Ireland’s office in Germany covers the German-speaking region, which includes Austria and Switzerland, markets which have their own particular characteristics.

 

Many of those have found Switzerland an excellent export market, both in its own right and to act as a springboard into Germany. Swiss clients are more likely to look externally for suppliers initially and Irish companies have built a strong reputation there for quality, reliability and value, especially in ICT, engineering and life sciences.

 

“That credibility then stands to Irish firms when they seek to expand in the other German-speaking markets,” explains Rooney.

 

“Austria, meanwhile, provides specific opportunities in certain industrial sectors and construction,” he adds. “Overall, the region offers a number of options and routes to start or scale your export business.”

Japan

Irish firms winning big in Japan and Singapore

Asia is resolutely open for business for Irish companies. That was the clear lesson learned during Taoiseach Micheál Martin’s visit to Japan and Singapore last month.

 

While pandemic-related restrictions on tourists remain in some countries, business travellers are welcome to visit these rapidly growing export markets and join the ranks of leading Irish companies successfully winning in the region, such as Kingspan, Morgan McKinley and ICON PLC.

 

A G7 country and the world’s third largest economy, Japan is home to 125m people, so the market presents significant ongoing opportunities for Irish exporters, says Neil Cooney, Director, Japan, Enterprise Ireland.

 

“In fact, the recent Enterprise Ireland Annual Business Review for 2021, confirmed that exports from Enterprise Ireland-backed companies to Japan increased to record levels last year,” he says. “They reached an all-time high of €277m, which represented an increase of 11.1 percent on the previous year.“

 

There are approximately 200 Enterprise Ireland-supported client companies regularly exporting to Japan, with more than 50 local presences established to support their growth in the market and employing up to 2,000 people in Japan.

Japan seeks green and digital innovation

Digital transformation is a core focus for Japan, meaning the government and private sector there are keen to discover innovative solutions in this area.

 

As in so many other markets around the world, sustainability is also high on the agenda there, with digital and data-driven green solutions in high demand. This adds to the opportunities for well-established firms in life sciences, fintech, software, and advanced manufacturing.

 

The Taoiseach led the Irish delegation on the visit to the region in July and was warmly welcomed by Prime Minister of Japan Fumio Kishida in Tokyo. During the visit, both countries signed a joint declaration on economic collaboration and co-operation, entitled “Taking Forward Partnership with Shared Ambition”.

 

While in Japan, the Taoiseach hosted roundtables with Enterprise Ireland client companies to recognise significant market milestones and achievements.

“These included a new office opening in Japan for energy tech firm GridBeyond, a new partnership for infrastructure automation specialists Ubiqube with Japanese firm Alaxala and ICON PLC’s major acquisition in Japan and plans to scale in the market,” says Cooney.

Singapore an ideal launching pad for Southeast Asia

From Japan, the Taoiseach travelled to Singapore, where he met Prime Minister of Singapore Lee Hsien Loong and the Deputy Prime Minister and Minister for Finance Lawrence Wong.

 

Exports to Southeast Asia rose by 8% to €392m in 2021, with Singapore accounting for €116million of that and seeing a rise in exports from Irish companies of 10 percent on the previous year.

 

“While Singapore is a relatively small island nation of 5m people, English is widely spoken there making it an ideal launching pad for Irish companies to enter the massive trading bloc of Southeast Asia,” says Kevin Ryan, Director, ASEAN, Enterprise Ireland.

 

This region is home to over 682 million people and includes huge markets such as Indonesia (273m people), Vietnam (97m people) and Thailand (70m people).

 

“Fintech, regtech, pharma and health tech are key sectors in Singapore, along with high-tech construction, education and food, while agritech is also a huge opportunity as you go further into Southeast Asia,” explains Ryan.

 

During the visit, nine Irish companies participated in contract signings in Singapore. These included PM Group, which is supporting a first-of-its-kind vaccine plant in Singapore, along with ICDL, Intuition Publishing, Know Your Customer, NUIG, CurrencyFair (Zai), Aero Inspection, Ubiqube and Mackin EHS.

Understanding local market norms

To operate in Japan and Southeast Asia, Irish exporters need to expect they will have to operate differently than they may do in other export markets in Europe or North America. They will need to be respectful of local business norms and cultural nuances, for example. The Enterprise Ireland teams on the ground regularly provide local support and advice on this front.

 

It’s also vital to have sufficient financial resources to commit to the market, win business and be highly responsive to customers. To make any headway, Irish firms typically find they need to set up a direct market presence and hire locally.

 

This effort pays off, however, for Irish firms that gain traction in the region. At least 300 Irish companies are exporting to Southeast Asia, while about 200 are active in Japan, with 50 or so of those having a local presence.

 

“For any companies interested in exporting to APAC markets, there’s one key question – are you world class in what you do? Those who can confidently answer that they are should talk to Enterprise Ireland to assess potential opportunities in the region,” says Cooney.

 

With Enterprise Ireland offices in Tokyo and Singapore, our teams are available to support Irish enterprises to start, scale and grow in the region. Learn more about the opportunities for Irish firms in Japan and Singapore.

UK Education

UK Education Sector Procurement Report

UK Education

The sector is a complex mix of organisations with differing levels of autonomy and financial control, with local authorities playing a key role. Therefore, the purpose of this report is to explain the structures and governance to make it easier to understand for companies that wish to target products and services to this sector and how the sector procures goods and services. Education spending is the second largest element of public service spending in the UK, representing about £99 billion in 20/21, second only to health spend.

Read the report here.

UK Local Authority Update Report

 

The new report extended the research to look at the specific opportunities available to Irish companies by taking a closer look at the investment plans, budget priorities and organisational changes within authorities.

This document is based on detailed research, combined with our experience, knowledge and personal contacts. It endeavours to provide an up-to-date insight into the sector, taking account of the effects of the pandemic and budget priorities to help Irish companies identify relevant opportunities and target the
right authorities rather than taking a blanket approach.

Read the report here.

India offers huge export potential to Irish firms

India offers huge export potential to Irish firms

Whether they’re in aviation or agritech, education or healthcare, or indeed innovating in any sector, export-focussed Irish firms should take the time to examine the vast opportunities offered by India.

 

“Irish companies can’t really afford to ignore a tech-savvy, increasingly English-speaking market of this size,” says Ross Curran, Director, India and South Asia at Enterprise Ireland. “India should be on the agenda of any Irish firm keen to expand internationally.”

 

This is indeed a huge market, with a population of more than 1.4 billion, meaning it will soon be the most populous in the world. It also has a rapidly growing middle class of 300m people, meaning it’s well on the way to becoming the third largest consumer market in the world by 2025, as forecast by Boston Consulting Group.

 

It has also been among the fastest growing economies in the world in recent years, with a growth rate of over 7% forecast this year. “It’s also a young country,” says Curran. “More than half the population is under 30 and this has led to a ‘demographic dividend’, which happens when economic growth follows an increase in the size of the working population.”

Understanding the opportunity for Irish firms

Exports to India by Enterprise Ireland client companies topped €145m in 2021. While exports from Ireland to India have been growing in recent years, that figure still represents a fraction of the true opportunity for Irish firms.

 

This was clearly evident at the recent India Ireland Business Seminar in Dublin, when Indian business leaders, corporate executives and academics joined Enterprise Ireland client companies and universities to discuss potential collaboration and partnership opportunities.

 

“India is a dynamic and technologically advanced market,” says Curran. “It has the world’s most affordable data, for example, and this has underpinned a huge digital transformation in recent years.”

 

Aviation, agritech, construction, education, edtech, healthcare, ICT, and pharmaceuticals offer particular potential for Irish companies, he adds, pointing out that Indian clients in any sector will welcome any innovative digital solutions.

Government pushes for digital transformation

Indian government investment programmes such as the US$18 billion (€17.7 billion) Digital India initiative, for example, are also driving digital transformation and economic growth.

 

This is creating clear opportunities for Irish firms in IT services (hardware and software), fintech, shared service centres, knowledge services, data analytics, mobile and wireless services, business process management and IT consulting.

 

The Indian government is also investing US$7.5 billion in smart cities initiatives across 100 cities over five years. This points to further tangible opportunities for Irish firms with expertise in Internet of Things, artificial intelligence and cleantech, as well as energy infrastructure and management.

Shared language and cultural connections

Ireland and India are quite similar culturally, and there is already a 50,000-strong community of Indian-born people in Ireland, many of whom have come here to work for Irish companies.

 

“At Enterprise Ireland, we have seen many Indian graduates begin their career working here in Ireland before returning to India to open the Irish company’s India office,” says Curran.

 

While Hindi is the official language of India and there are 22 other regional languages, English is the predominant language of business, making India more accessible for Irish firms than any other markets.

 

“While people in business tend to speak English, localisation is key,” adds Curran. “Even the biggest brands in the world must do things differently when they go to India. They have to adapt to local cultural norms, traditions and preferences. McDonalds, for example, had to devise alternatives to standard menu items it sells in other countries.”

Tailoring your offer to the market

Pricing in this value-focused market deserves special consideration, which means sales prices typically need to be significantly lower than in more familiar markets. The sheer scale of India, however, means that developing a bespoke market entry strategy is worth the effort.

 

Furthermore, this is a diverse and complex market. It’s a democracy, but the process of liberalising the economy only began gaining momentum in the 1990s. Those business reforms are still ongoing and some sectors remain protected. There can also be challenges in the form of red tape and administrative burden in some sectors.

 

The complexity and scale of the Indian marketplace means it is vital for Irish companies considering India as an export market to work with Enterprise Ireland from the earliest stages.

 

“Our market advisors can be the gateway to local knowledge and expert advice, which can help your company to determine if your offering would be suited to the Indian market,” explains Curran. “We can also help to identify local partners and distributors, a key success factor in India.”

 

From our Enterprise Ireland office in Mumbai, our team is always available to support Irish companies interested in building their presence in India with local market knowledge and expertise. Learn more about the opportunities for Irish firms in India. 

happy employee

Irish talent tech firms boost global engagement and productivity

In this era of widespread remote working, employee engagement and wellbeing matter more than ever. Isolated workers need to feel a sense of community and get support from their employers in line with their company’s values.

Companies around the world are looking to Irish talent tech companies for cutting-edge digital solutions to enable streamlined, effective work by HR departments, managers and employees. From wellbeing apps to performance management tools, Irish companies are exporting best-in-class products to businesses in dozens of countries.

Most are also focused on integrating with the existing technologies used by companies, meaning those in charge of IT budgets can maximise their legacy investments. Discover how five of the best in Irish talent tech are meeting the needs of a global client base.

 

1. Workvivo: Engaging employees with a highly social experience

Cork-based Workvivo is an enterprise social network, designed to enable organisations to engage as well as communicate with their employee communities.

“We took activities such as posting, liking and sharing content to an activity feed, which people are used to on social media apps outside the workplace, but developed them in a business context, enabling people to more easily engage with one another and with their company.” says Pete Rawlinson, Chief Marketing Officer at Workvivo.

 

Describe your business

“Disengagement was an issue for as many as 70% of businesses before the pandemic,” he adds. “One-to-one communication tools such as email or messaging facilitate communication but don’t do anything to provide that sense of community and culture.”

“People  need to feel part of something, especially when they are working remotely.” Pete Rawlinson, CMO at Workvivo

Since the pandemic spread, Workvivo has seen a significant increase in enquiries. “Companies are seeing that many remote workers can feel isolated. Our platform helps bring employees together through a highly social experience. We see customers using the platform to host activities such as quizzes and competitions that really help create that important sense of community….and fun!”

Woodies found that its Workvivo activity went up when its workers were furloughed due to Covid-19. “These were mainly employees with no work email account or company device, but they wanted to stay engaged,” says Rawlinson.

Workvivo has sought to ensure it can integrate with existing communication tools such as Slack, Zoom and Workday, and also includes built-in engagement analysis through pulse surveys, he says, adding that many customers report higher levels of employee satisfaction and engagement than before they implemented the platform. “Higher engagement typically leads to increases in talent retention and acquisition,” he said.

Established three years ago, Workvivo now has customers in 35 countries with over 150,000 users on the platform. The company is headquartered in Cork, Ireland and has recently opened an office in Sacramento, California. Having recently secured $16m (€14.2m) in Series A funding, it is now focused on expanding its US client base and accelerating its product development plans.

 

2. Frankli: automating continuous performance management

While performance review cycles can strike dread into both managers and employees, Frankli aims to make performance management easier and more intuitive with its end-to-end platform.

“Our product allows managers to have much more meaningful conversations with people and support their development,” says Noel Dykes, founder and CEO of Frankli. “This approach is transformative and agile — we don’t set out to be a once-a-year annual cycle of goal-setting and meetings.”

A software engineer by background, Dykes worked as a consultancy practice manager in New Zealand and saw first-hand that younger employees were particularly keen on continuous feedback and recognition. “People want to be truly connected to the work,” he says. “They want to understand their purpose. Why are they there? What is the company they are working for trying to achieve?”

He adds that purpose-driven organisations will thrive, especially as remote working opens up a global marketplace.

“Managers are going to become coaches, rather than engaging in direct management in the office where they can see employees and know what they are working on. From now on, they will have to trust people and give them much more autonomy.”

Within Frankli, managers can set up regular recurring one-to-one meetings with their team members, setting priorities, agreeing action items and supporting accountability on both sides. The software suggests recommended talking points, based on insights from organisational psychology. Employees can also contribute comments and suggestions.

The product also enables businesses to offer more tailored learning and development opportunities, including a two-sided mentor marketplace tool.

Frankli has customers of all sizes in Ireland, the UK, Poland and New Zealand. While its core focus is midsize companies looking to scale, it already supports workforces of as many as 70,000 employees.

 

3. Empeal: personalised employee wellbeing at scale

While many employee wellbeing platforms work on a one-to-many scale, says Sohini De, founder of data-driven start-up Empeal, her business aims to deliver 1:1 wellbeing support at scale.

“If someone is having trouble with sleep, perhaps not doing too much exercise, eating unhealthy food or generally falling into bad habits, they can go through the programme on our system,” she explains.

“They start by completing interactive questionnaires and we can also integrate data from their wearable devices. They could be given a personalised programme to improve their sleep hygiene, for example. If they continue to have problems, their case is escalated to a sleep expert.”

With users in Ireland and India, Empeal is now focused on expanding those markets and pushing into both the UAE and the UK, So far, it has seen engagement rates of 60% on average, which De says is high for a wellbeing app. “We have also seen very encouraging results in terms of people achieving their health goals,” she says.

In addition to helping employees improve their wellbeing, Empeal also provides anonymised aggregate data to employers to enable them make better decisions, improve staff retention rates and attract more talent.

To help companies navigate the coronavirus crisis, Empeal produced a free toolkit of resources and also made its community-level module free. “We were finding a lot of employers were asking, ‘How can we take care of our people at this time?’ — they were very concerned about how everyone in remote locations was coping not in touch with their workplace or workmates,” says De.

 

“The community engagement part of the platform, which includes fun challenges and community boards, helps employees feel connected and it’s very simple to roll out for HR teams.” Sohini De, Empeal founder

 

4. Peptalk: building community through connection and wellbeing

The three founders of workplace wellbeing platform Peptalk — all former sports stars — know more than most the value of wellbeing when it comes to performance.

“We had all been involved in high performance sports,” says CEO James Brogan, an all-Ireland winner himself and a cousin of Dublin GAA legend Bernard Brogan, another of the co-founders along with Michelle Fogarty, who represented Ireland at taekwondo. “We had seen that to get the best out of people, their lives need to be in balance. What you do off the pitch is as important as what you do on it.”

Peptalk aims to help companies build sustainable high performance cultures through its community-driven employee experience platform. The product includes an insights tool, management toolkits, an employee app and a real-time measurement dashboard.

“We’re helping organisations with those off-the-pitch activities. We’re helping humans to be better at what they do, to have more energy, and to be more focused and resilient,” says Brogan.

He adds that the Covid-19 crisis has exacerbated the issue of work-life balance: “Senior leaders have seen a different side to their staff. They’re now acutely aware that, unless people have proper support, they won’t be able to work to the best of their ability.”

During the crisis, Peptalk has seen increased engagement from existing clients, while also doubling its usual number of demos to potential customers.

Set up in late 2016, Peptalk has users in 10 countries, including Mondelez, McDonald’s and Paypal. “This is a global challenge faced by multinationals. We offer one solution that works across an organisation, so there is no sense of disconnection with different offices doing different things,” says Brogan.

With serious plans to scale further, Peptalk expects to close out its current funding round later in 2020. “This is the time for us to get out and support as many organisations as we can,” says Brogan. “It’s a challenging time and the need has never been greater for the type of services we offer.”

 

5. Wrkit: easy to implement and clinically-backed 

Founded two decades ago, Wrkit was originally a group benefits scheme, which evolved into an employee discount scheme. While users can still access thousands of discounts on holidays, food, clothes and other products, Wrkit has expanded to offer other services, including a learning portal with 4,500 personal and professional courses, a recognition portal and a wellbeing portal called Powr.

“POWR stands for Positive Occupational Wellness Resources, offering tools such as meditation, breathing exercises and reflective journaling” explains Jason Brennan, Wrkit’s Director of Wellbeing and Leadership.

“The big differentiator between Powr and similar apps is that it offers 430 clinically based behavioural plans put together by psychologists,” says Brennan. “These are based on six paths — mind, sleep, work, life, food and active. When users answer the questionnaires for these paths, they are given a personalised plan.”

“POWR users begin by finding out how they score clinically in the 6 areas of wellbeing and are instantly provided with personalised clinically based plans to improve engagement and growth in each area. During covid for example we saw a huge up take in the activity, work and life plans, helping not only users but employers by feeding back what is happening in real time with their anonymised and aggregated dashboard.”

Wrkit is based in Dublin, but also has offices in London and Massachusetts. Its clients include multinationals such as KPMG, FedEx and Boston Scientific. Its internet-based application can be launched quickly as it requires no specific IT infrastructure, says Brennan.

“All we need to launch is the list of employee ID numbers, and we provide lots of webinars and video tutorials to help staff engage with the tool, which is of course completely confidential.”

When Covid-19 struck, Wrkit quickly found demand rose. “We launched to 60 companies in eight weeks,” says Brennan. “We also quickly created a Coping with Covid portal to help users.”

place based services

UK Market Analysis of ‘Place’ Based Services – Waste Collection, Treatment and Street Cleansing

 

This report provides details of how local authorities work and where Enterprise Ireland’s client companies should focus efforts to win work and develop a sustainable profitable foothold in the UK. The report focuses on two specific areas:
• Understanding the UK local authority landscape, including the types of local authorities, the roles and responsibilities of elected Members and officers and how they fit in with the decision-making process of procuring the type of ‘place based’ services offered by Enterprise Ireland client companies.
• Undertaking market analysis to identify the local authority procurement horizon/ pipeline for ‘place’ based services, focussing on waste collection, treatment and street cleansing services.

Read the report here.

Equity Matters Webinar 3 – The Deal Part 1

Watch On-Demand Webinar Now

The third part of the Equity Matters webinar series examines terms relating to investment economics such as term sheets, company valuation, investor fees and insurances.

Watch the entire series of Equity Matters here.

Data Centres

Data Centres in Southern Europe: significant growth means great opportunities for Irish construction companies

 

Ireland has been a major destination for data centre development since the 90s, when US tech giants all started to base their data centres on the island, attracted by skilled workforce, climate, advanced infrastructure, and a low tax rate. This also created a platform for Irish construction companies to work on major data centre projects both domestically and abroad.

 

All European markets have experienced a boom in data centre ventures. Today this is particularly apparent in Spain and Italy, with both Madrid and Milan fast becoming major destinations in Europe for the development of data centres.

 

“Milan and Madrid have been considered part of the so-called European data centre secondary market, but nowadays this definition should be considered somehow dated, due to the faster growth in terms of capacity of these two markets compared the FLAP-D (Frankfurt, London, Amsterdam, Frankfurt, Paris, and Dublin)”, says Roberto Bettuzzi, Senior Market Advisor, Italy, at Enterprise Ireland. “It’s also worth noting that the two markets are complementing each other rather than competing”.

 

Growth in Spain

Currently, there are 80 active data centres in Spain, with a total of 113MW. The largest area of capacity is in Madrid and its surrounds; and current pipeline predicts capacity to increase fivefold across 14 projects. Barcelona is also experiencing growth in the sector, with projects totalling 110MW capacity in the pipeline.

 

According to Spanish business newspaper Cinco Días, the expected investment in the data centre sector in Spain is $6.837 billion until 2026. Reflecting the growing relevance of the local market, the Spanish Data Centre Association (SPAINDC) was set up in October 2021.

 

Several hyperscale and co-location operators are developing centre centres in Spain – or planning to. The list includes Amazon, Microsoft, Meta & IBM, Digital Realty and Equinix. Google has launched a cloud region in Spain with Telefonica. This led several Irish general contractors and subcontractors to bid and win contracts to work in many of these projects.

 

Growth in Italy

Italy is also enjoying strong growth. Lombardy is the most developed Italian region in the data centre sector, sustained by the strong financial sector located in Milan and high demand for cloud services from business and consumer sectors.

 

Currently, there are approximately 120 data centres in Italy, with a capacity of 151MW, and an additional 33MW under construction that should cover the growing demand. New developments are set to boost the capacity by more than 60%.

 

The area around Milan sees a higher concentration. Microsoft, AWS, Data4, Equinix and Vantage all have data centre projects either announced or under completion. The latest to join was Google, who recently announced the launch of Milano Cloud Region, in partnership with national telco operator TIM. Among local players, the company Aruba is expanding its 200,000sqm campus near Bergamo, while RaiWay announced their plan to build a network of 20 edge data centres across the country.

 

Many large Irish companies are already operating in Italy, including General Contractors like Mercury and Kirby Engineering, and suppliers like Brodeen Fabrication. “Irish companies have long-term experience in working with tech giants in the design, build, and fit out of data centres,” says Roberto, “and therefore when those clients enter into a new market like Italy, they tend to bring that cluster of successful Irish companies in too.”

 

A prosperous future

With such growth forecasted over the next few years in both countries, there’s plenty of room for more ambitious Irish businesses to enter the sector.

 

“For over two decades, thanks to their expertise, Irish construction companies continuously won significant contracts outside Ireland. Now, with the adoption of cloud services booming in both Italy and Spain and operators investing to meet the increasing demand, Irish companies are here to seize the opportunities,” explains Roberto.”


“2020 saw a boom in projects and 2021 confirmed the trend. 2022 sees a consolidation of the ecosystem, with the creation of local data centre associations and the hosting of prominent events related to the sector.

 

Enterprise Ireland’s active role

In May 2022, Enterprise Ireland led a trade mission to Madrid, bringing 13 companies in the high-tech construction sector to participate in the Madrid Platform, where the client had one-to-one meetings with Spanish and Latin American buyers in the construction sector. Besides, on the same days, EI Madrid co-hosted a networking event together with SPAINDC Association.

 

“The event was extremely successful,” says María Jiménez, Market Advisor for Spain and Portugal at Enterprise Ireland. “During the week the Irish client companies had the opportunity to network with all major players in the sector. We are already seeing real results from the event.”

 

Similar events are coming to Italy too. In May 2022, Milan hosted DCN – Data Centre Nation, the first business-oriented data centre event of its kind in the country. The huge success of the event proved how needed was such a platform where the players can meet, network, and build relationships. “In 2023 the event is set to get be even bigger” commented Roberto “and EI Milan is in a dialogue with the DCN organizers to get a more active role in this valuable networking event”.

 

Southern Europe is a location that Irish tech-construction companies should keep on their radar.

 

If you are interested in finding out more about the data centre opportunities in Italy and Spain, please contact Roberto Bettuzzi, Senior Market Advisor in Italy roberto.bettuzzi@enterprise-ireland.com, or María Jiménez, Market Advisor in Spain and Portugal Maria.Jimenez@enterprise-ireland.com

Construction

EU initiatives helps Europe’s construction sector build a sustainable future

Summary

  • NextGenerationEUrepresents an opportunity for Irish companies to break into new markets or scale their presence in existing markets.
  • EU member states are united in the push for a carbon-neutral Europe by 2050, which requires huge investment in sustainable construction and retrofitting.
  • Click or scroll down for more information about the sustainable construction market in:

Sustainability is the future of construction. Since the 2015 Paris Agreement (or COP 21), countries around the world have been striving to change how they operate with a view to keeping global warming at 2C or lower. In many countries, the decarbonisation of construction comes second only to renewable energy as the sector where most impact can be had.

Concrete and cement alone account for as much as 8 percent of global CO2 emissions, while the construction industry is also a heavy consumer of energy and other resources and generates huge levels of waste. Furthermore, existing building stocks across the region emit carbon and need to be retrofitted to operate sustainably.

The push for a carbon neutral 2050

Through the €806.9 billion Recovery and Resiliency Facility (RRF), which aims to help Europe recover from the pandemic and future-proof its economy and society, the European Union also hopes to achieve its Green Deal target of climate neutrality by 2050.

“We are all on the same page in Europe,” says Alix Derigny, Market Advisor Construction & Sustainable Build at Enterprise Ireland in France, “because every state has set greenhouse gas emission-reduction targets. The EU and national governments are putting in place grants to raise ambitions, and consumers are expecting day-to-day life to be greener.”

“Similarly, the real estate and retail sectors are putting pressure on the construction sector to accelerate the ecological transition. This issue is driving all businesses in the sector, from sub-contractors to suppliers and materials manufacturers.”

In fact, at least 37% of spending in the national plans funded by the RRF must relate to climate goals. Much of that, in turn, is going to construction and infrastructure projects.

In the effort to build a truly climate-friendly, circular economy, where waste and carbon emissions are minimised or eliminated, building and renovation methods are crucial. Prefabrication, for example, can enhance efficiency and build speed, while minimising waste.

Across the board in Europe, governments are making use of this funding to enable the Green transition. From a construction perspective, this includes work around:

  • energy retrofitting of public and private buildings, including homes and business premises
  • enabling the circular economy, through the modernisation of recycling centres and other projects
  • building green infrastructure, such as rail and other transport infrastructure.

Where the opportunity lies for Irish construction firms

As the whole industry evolves to embrace innovation, be more flexible, efficient and sustainable, many opportunities are opening up for contractors, engineering and advisory companies. It’s worth bearing in mind that large contractors are now seeking to reduce emissions across their entire value chain and will seek vendors who can meet those standards.

Irish firms are already delivering demanding construction and related projects in more than 100 countries. Ireland has particular strength in sought-after capabilities such as:

  • designing and delivering advanced infrastructure across the data, pharma and energy sectors
  • developing and implementing innovative digital and data-driven solutions, such as digital twins
  • improving resource efficiencies

There are a number of key areas in which the construction sector across Europe, and indeed globally, will welcome the solutions Irish firms can provide. “Markets like France and Germany are mature markets with an engineering culture,” says Derigny.

“You need to be innovative or have something to reduce the customer’s carbon footprint, if you want to compete with domestic suppliers,” she adds. “If you can bring those solutions, you’ll find customers with a huge appetite for them.”

Specific areas of interest to European construction customers include:

  • energy efficiency
  • sustainable heating, ventilation and air conditioning (HVAC) systems
  • LEED certification
  • smart building solutions, including sensors, security and maintenance
  • 5G Technology (for IoT solutions)
  • technologies and material to reduce CO2 emissions
  • solar panels
  • AI-powered solutions
  • any other product or service that can help lead to Leadership in Energy and Environmental Design (LEED) certified buildings

Partners and planning vital to success

Typically, says Derigny, it makes sense for Irish firms to find partners in export markets, because it increases speed to market and reduces risk, but Enterprise Ireland can advise on a case-by-case basis.

Across Europe, as for any market at present, this sector is grappling with commodity price inflation, supply chain disruption and labour shortages. None of the markets below varies from that perspective, so it’s best to be prepared and consider how you can surmount these challenges so your market entry is not derailed by external factors.

Understand the 5G market opportunity for Irish firms

The strong Irish cluster of cybersecurity firms, for example, has clear opportunities across key European markets as do Irish firms specialising in Open RAN, a technology that facilitates the deployment of 5G. Other thriving areas where Enterprise Ireland has identified significant opportunities for Irish firms include IoT and smart cities.

Among the Irish firms specialising in 5G and connectivity products and services, and thriving in EU markets, are Open RAN radio infrastructure specialists Benetel or Aspire and core cellular network software company Druid Software.

Expert advisors in Enterprise Ireland’s network of offices across Europe, together with its Market Research Centre in Dublin, can support your business as it investigates market opportunities, including by making local introductions and helping you to build your network.

If you are not sure where to start your export journey, get in touch.

Market snapshots

France

The renovation sector is thriving in France as established building and energy firms seek innovative solutions to incorporate into their offerings.

The sustainable construction landscape in France

France aims to reduce energy consumption in the building sector by 28% by 2030 and to achieve a carbon-neutral building stock by 2050.

The building sector is a priority target for France’s Energy Transition Law, which came into force in 2015, and legislation also mandates high energy performance from any renovation works. Furthermore, any new building has had to be energy-efficient since 2012, with construction of ‘energy-plus’ homes expected to become the norm.

Major players such as GA Smart Building, Bouygues and Vinci have a strong culture of innovation. They are eager to scout and integrate innovative solutions into their products, so they can offer smart building solutions to their customers.

 Energy providers such as EDF, Engie and Total Direct Energie are always looking for innovative start-ups to develop partnerships.

Understand the construction opportunityin France

Overall, the booming housing renovation market is worth €40 billion in France or about a third of the overall construction sector.

France Relance, the national recovery and resilience plan provides substantial additional public funding for energy-saving works, with €5.8 billion allocated to energy retrofitting works. A further €7.0 billion is earmarked for green infrastructure and mobility, which will require significant building work.

President Macron has set the goal of renovating at least 700,000 homes a year for five years, relying on his flagship MaPrimeRénov’ grant. This covers works related to insulation, ventilation, heating and heating control systems.

The construction activity is now in total evolution towards energy renovation and the construction of more efficient buildings – BIM, sensors, maintenance, energy efficiency, safety & security.

Selling into France

Time and patience are needed to manage lengthy sales cycles and due diligence processes. If it is approached correctly, however, France can be a significant and lucrative market for innovative, leading-edge Irish companies.

Irish companies thriving in France include:

  • Kingspan, which anticipates turning over half a billion euro in France in 2022
  • Ecocem France, a concrete products joint venture with a French firm
  • Tricel, a wastewater treatment manufacturer
  • LED Group, which makes lighting fittings
  • Robeau, which makes water-saving systems

Key players in the market include:

  • material manufacturers
  • general contractors
  • wholesalers and DIY stores
  • Specialised distributors

Top tip

Being part of a local, on-the-ground network is important in the French market. Recruiting an in-market business developer or partnering with a local company will improve chances of success.

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Germany

Huge drive for energy-efficient building and renovation represents a significant opportunity for Irish firms prepared to commit to the German market.

The sustainable construction landscape in Germany

Germany is aiming to have a completely climate-neutral building stock by 2050, but as it stands, buildings there still account for a significant proportion of its total energy use and greenhouse gas emissions.

In total, there are nearly 22 million buildings in Germany, and three quarters of them were built before the first energy efficiency standards were introduced in 1978. That means despite Germany’s long-standing commitment to energy efficiency, there is still ample opportunity for companies who can support with retrofitting and refurbishment, or the construction of new low- or zero-carbon developments

Understand the sustainable construction opportunity in Germany

Of Germany’s total €28 billion national Recovery and Resilience Plan or Deutscher Aufbau- und Resilienzplan (DARP), 42% has been allocated to support climate objectives

It includes €2.5 billion for a large-scale renovation programme to radically improve the energy efficiency in residential buildings, while the government is making a further €6 billion available for the Federal Funding for Efficient Buildings Program.

Irish firms will find particular opportunity in the German market around:

  • energy management
  • HVAC systems
  • insulation
  • timber construction.

Customers for Irish firms would most typically be large companies in the residential construction sector, such as Vonovia SE, Strabag AG, Ed. Zublin AG and Bauer AG.

Selling into Germany

While the main opportunities and funding lie in the residential construction sector, this is a competitive market with numerous well-established domestic competitors. At a minimum, you’ll find a strong local partner to help you with language skills and making the most of their existing relationships on the ground.

Irish companies have not had notable success in residential construction, but have gained far more ground in the specialist high-tech construction market, where their expertise in building data centres and pharmaceutical facility is valued.

 

German business culture is usually risk-averse and new entrants need to show a strong commitment to the market.

Top tip

Be as prepared and committed as you can. Germany isn’t a market for opportunistic sales. If possible, a physical presence there and regular visits to the market will mean you can take advantage of the long-lasting opportunity the German market offers.

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Italy

Opportunities abound for construction firms in Italy, where the government is committed to upgrading its building stock and overhauling its infrastructure.

The sustainable construction landscape in Italy

As Italy seeks to become carbon neutral by 2050, it is undertaking a huge public-private regeneration effort, largely driven by EU funding. With 30% of buildings in the country having historic or cultural value, there is extensive funding for sustainable restorations.

Urban regeneration projects alone are valued at €3.4bn, with €300m already spent in 2022.

Milan is a front runner, with 320 green buildings already certified and 4 ongoing major large-scale urban regeneration projects (Porta Nuova, Citylife, Uptown and MIND, the zero-carbon Milan Innovation District), where sustainability is a key driver of the projects.

 

Legislative changes and ongoing reform of the public administration will also help the country achieve its sustainability goals, especially as they should enable the construction industry to operate more efficiently.

Understand the sustainable construction opportunity in Italy

Within Italy’s €191 billion National Resilience and Recovery Plan or Piano Nazionale di Represa e Resilienza (PNRR), which is funded by the EU, €59.46 billion is devoted to the circular economy and introducing green initiatives. The government is adding a further €30 billion in grants.

Together, this spend will include:

  • €5bn on social housing, including the refurbishment of a fifth of public apartment buildings
  • €412m to refurbish judicial buildings
  • €800m to make 40,000 schools more energy efficient.

Furthermore, the PNRR also includes significant commitments around the refurbishment of infrastructure with:

  • €87bn going to construction (of which 30% will go to Lombardy, Sicily and Campania)
  • €31bn allocated to upgrade railways and ports

To encourage 50,000 or more building owners to refurbish and retrofit existing properties, the Italian government has also introduced the EcoBonus scheme. This is a €14 billion fiscal incentive aimed at improving the energy rating and efficiency of existing buildings. The scheme covers the full cost of green renovations and also incentivises homeowners by offering an extra 10% (through a tax deduction of up to €100,000 per home).

Selling into Italy

Take your time and be prepared. Invest in validating the market opportunity and building the right market entry strategy. Italian customers value strong relationships so it is worth spending time investing in building your network.

Typical customers include private construction consortiums, local contractor companies, local councils and suppliers.

Competition from local companies can be a challenge, especially if you are a first time exporter in the market. Irish firms typically find it useful to have a strong local partner in this competitive market, as this can help shorten the sales cycle, deal with the language barrier and navigate local bureaucracy.

Top tip

Direct relationships matter. Invest time in coming to the market and meeting your counterparts in person.

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Women Entrepreneurs and Raising Venture Capital Funding – Webinar

 

Hosted by Enterprise Ireland and the Irish Venture Capital Association, this webinar “Women Entrepreneurs and Raising Venture Capital (VC) Funding” focuses on encouraging women-led companies to seek venture capital finance.

The purpose of this webinar is to support companies in all sectors and at all stages of growth that are seeking venture capital finance. There is a specific focus on encouraging and enabling women entrepreneurs to successfully raise VC finance.

It includes panel discussions with women funders and founders, which identifies and provides examples of successful fundraising strategies.

Recognising the under-representation of women in this space, the webinar is targeted at women-founders and co-founders in all sectors and at all stages of growth.

It provides a roadmap for women founders on their investment journey who wish to develop their investment skills and network with other women funders and founders.

    EU initiatives enable Europe to get connected and harness the power of 5G

    Summary

    • NextGenerationEU represents an opportunity for Irish companies to break into new markets or scale their presence in existing markets
    • EU member states as part of their national priorities are supporting the rollout of high-speed 5G networks, which in turn is enabling extraordinary growth in cloud computing and other innovative products and services
    • Click or scroll down for more information about the 5G market in:

    As digitalisation and technological innovation rapidly become both more complex and more widespread, it’s increasingly critical for Europe to have reliable, superfast connectivity. The 5G mobile telecommunications standard not only enables real-time data transmission at scale, but also intelligent real-time networking of products, processes and industrial value creation chains

    And that is where opportunity lies, both around products and services that facilitate the rollout of 5G, but also in the more or less endless universe of products and services made possible by these hyperfast mobile networks.

    “In the end, 5G is only the connection,” says Raul Marigorta, a Senior Market Advisor for Enterprise Ireland in Spain, who specialises in telecoms and digital technologies. “It’s what we do with 5G that will prove most interesting, whether that is eHealth and remote healthcare, VR and AR in education, smart cities, private network, Internet of Things (IoT) or many other innovations.”

    The rapid rollout of 5G across European markets

    Following the auction of relevant spectrum, the rollout of 5G has kicked off in most EU markets. While there are more distinct differences between markets when it comes to other aspects of technological innovation, Marigorta explains that 5G is somewhat different.

    “Europe in general is quite homogeneous in the development of 5G. We don’t see many differences in the 5G rollout across countries like Italy, France, Germany, Spain, Belgium and the Netherlands. That is because most telecom operators in Europe are mature providers such as Deutsche Telekom, Telefónica, Orange and/ or Telecom Italia, who are well in sync when it comes to 5G.”

    How the EU is facilitating digital transformation

    Through the Next Generation funds administered through the Recovery and Resilience Facility, the European Commission is actively enabling EU member states to accelerate their digital transitions, including the rollout of 5G, which is a key area for investment.

    Of the €723.8 billion in loans and grants it is giving, at least 20% must be spent by member states on digitalisation, although in reality the Commission reports that at least 26% of this funding is going to digital transformation projects.

    Much of that funding, in turn, is going to 5G. In April 2022, for example, the European Commission approved €2 billion in funding for Italy’s 5G rollout.

    Driving SME digitalisation through cloud services

    In 2022, the growth of cloud services will outpace the growth of traditional IT solutions, says Gartner. This makes cloud computing one of the most influential changes in the IT market since the early days of digitisation.

    Infrastructure-as-a-service (IaaS) or cloud infrastructure services will grow tremendously in the coming years, as will platform-as-a-service (PaaS) and software-as-a-service (SaaS) cloud computing services. It’s the ongoing rollout of high speed 5G networks that makes this skyrocketing growth possible.

    “Enabling SMEs to benefit from cloud technology is a key focus of the Next Generation funding, and it’s an area where Irish firms have strong capabilities,” says Marigorta.

    “While Amazon Web Services, Microsoft Azure and Google Cloud dominate the cloud market, there is ample opportunity for Irish firms that can offer products and services to customise and facilitate access to the cloud for SMEs who may have thought they couldn’t use cloud technology,” he explains.

    SMEs are not interested in 5G as such, Marigorta points out, but in what this high speed connectivity can enable them to do. “5G is the highway that we need to facilitate cloud adoption by SMEs. If I am an SME owner, I don’t care what the underlying technology is as long as it works. I need to manage my accounting and my clients. I need to develop my operation quickly but in a quality way, and I need to do proper customer service.

    “Technology is a key enabler for these classic SME needs, so there is huge space for agile new start-ups that can come up with smart ideas that make the most of fast connectivity and new technology. Irish companies are fantastic at doing this.”

    Understand the 5G market opportunity for Irish firms

    The strong Irish cluster of cybersecurity firms, for example, has clear opportunities across key European markets as do Irish firms specialising in Open RAN, a technology that facilitates the deployment of 5G. Other thriving areas where Enterprise Ireland has identified significant opportunities for Irish firms include IoT and smart cities.

    Among the Irish firms specialising in 5G and connectivity products and services, and thriving in EU markets, are Open RAN radio infrastructure specialists Benetel or Aspire and core cellular network software company Druid Software.

    Expert advisors in Enterprise Ireland’s network of offices across Europe, together with its Market Research Centre in Dublin, can support your business as it investigates market opportunities, including by making local introductions and helping you to build your network.

    If you are not sure where to start your export journey, get in touch.

    Market snapshots

    Belgium

    While Belgium has lagged in 5G connectivity, that is set to change completely by 2025. Meanwhile, uptake of private cloud and data services is strong.

    The 5G and connectivity landscape in Belgium

    Proximus, Orange Belgium and Telenet are the main mobile network operators (MNOs), with local private network provider CityMesh expected to become the fourth, following a recent auction of 5G spectrum band. There is limited 5G availability currently, with Proximus offering some pockets of coverage, but that is set to transform following the auction.

    The Belgian national strategy for broadband kicked off in April 2021 with full coverage planned for 2025. At present, 65% of the market has access to fibre broadband, with Proximus aiming to cover 70% of premises by 2028.

    Private cloud and data services are readily available in Belgium from providers such as Combell, with the country’s wide broadband coverage, fast download speeds and reliable networks making them possible.

    According to Statista, 64% of Belgian organisations used cloud solutions in 2018, while 43% of the Belgian population used cloud services in 2019. Both figures have likely grown since.

    Key stakeholders in Belgium

    • The Federal Public Service (FPS) Economy, particularly the new Broadband Unit in the Telecom department, which will implement the national broadband plan
    • The Broadband Competence Office, which oversees all competences in this area and supervises the implementation of the EU Connectivity Toolbox
    • Mobile network operators Proximus, Orange Belgium and Telenet (and CityMesh once it becomes one)

    Understand the 5G and connectivity opportunity in Belgium

    The EU is providing Belgium with €5.9 billion in recovery and resilience funding, and €480m of that is going towards supporting the digital transition. Quality goes a long way in Belgium and Irish companies have a solid reputation in the telecoms space.

    Both factors contribute to this market offering solid opportunities around 5G and connectivity for Irish firms with innovative or best-in-class solutions, especially around:

    • Open RAN
    • private networks
    • Internet of Things (IoT) services.

    Partnership with local firms or providing infrastructure, network or IoT services to incumbents may prove the best routes forward for many Irish firms. Cloud or data services providers should look to sell to systems integrators, solutions providers or value-added resellers in particular.

    Selling into Belgium

    Broadly speaking, Belgium ranks highly in innovation and is a good test market for companies looking to grow into the broader European markets by establishing a local presence or through trade.

    With high levels of English fluency, language is not necessarily a barrier to entry here, although it can be useful to have a local partner who speaks French and Flemish. Belgium is an open economy, but business relationships are based on trust, meaning sales cycles take longer than in the UK or the US.

    Committing to the market and finding the right market entry strategy can be the biggest challenge for Irish firms. Druid Software, for example, has found success in the market through partnering with Belgian MNO Proximus and others on a number of collaborative initiatives, including an AI-powered safety app for motorcyclists.

    Top tip

    Come to the market, attend the relevant trade shows, meet the right partners and establish strong relationships. Belgian partners are willing to engage, but in person works best!

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    France

    As France demands a cloud-first approach, 5G sites and antennas are multiplying rapidly there. That represents real opportunity for Irish firms.

    The 5G and connectivity landscape in France

    France Relance, the French government’s economic recovery plan, emphasises a cloud-first strategy for the public sector, while the government also announced a €1.8 billion support plan for cloud computing firms in 2021. Many French companies are also embracing the public cloud, despite lingering concerns over data privacy and sovereignty.

    Most people in France support the implementation of 5G, with around half of the population expecting to get a subscription, especially to download and swap large files or to use telehealth devices.

    Since the deployment of 5G in November 2020, sites and antennas have multiplied, and telcos have initiated the transition to the new generation of mobile phone standards. Marseille and Paris lead in terms of antennas, while 5G coverage remains unevenly distributed nationally.

    In March 2022, the French government announced new measures aimed at promoting access to 5G for manufacturers and vertical sectors. The government also wants to simplify access to the 2.6GHz spectrum to stimulate industrial 5G projects, while exploring potential access to the 3.8GHz and 4GHz bands.

    Understand the 5G and connectivity opportunity in France

    Having already funded 31 research and development (R&D) projects to the tune of €478m under the national 5G acceleration plan (launched in July 2021), the government is set to provide a further €47m to seven new projects under the plan.

    Irish firms can find particular opportunity in France around:

    • Private networks
    • Open RAN
    • IoT
    • Smart cities
    • Autonomous vehicles
    • eHealth

    Likewise, it’s worth targeting businesses engaged in:

    • Industry 4.0 or 5.0
    • 5G use cases
    • Health
    • Data centres.

    Selling into France

    There are opportunities for innovative products and services. Irish firm Benetel, for example, is providing French telco Orange with radio units for Open RAN development and testing.

    Flexibility in product development and collaboration is a real advantage for Irish firms, but be aware of the challenge around access to the 2.6GHz spectrum and enabling 5G private networks.

    The French market can be a long sales cycle and requires trust and reliability. It usually helps to have a base in-market, visit regularly, or work with a local partner. No matter what, patience and persistence is key.

    Top tip

    Work with French experts to overcome complexity around tech harmonisation and spectrum access in France. Alternatively, look to work with systems integrators and operators at the forefront of 5G private network deployment.

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    Germany

    Leading the way in spectrum allocation, Germany is focusing on the connectivity needs of industry, while also seeking to make 5G available to everyone.

    The 5G and connectivity landscape in Germany

    Germany leads Europe when it comes to 5G readiness, or the proportion of relevant spectrum already allocated. Industry needs are the priority, as Germany seeks to modernise production processes through broadband, wireless real-time communications.

    The Federal Republic has taken on a pioneering role in networks for local 5G applications (or campus networks), representing an important milestone for German industry

    Germany has also pushed to make sure the general population has access to 5G. Telekom says 40m people have been able to benefit from the 5G network since July 2020 and providers are aiming to offer 99% of the population a connection to 5G by 2025.

    Providers such as Telekom and Vodafone have already set up many 5G mobile base stations, meaning 5G is already available in some large German cities.

    To achieve high coverage with 5G, Telekom and Vodafone are also using Dynamic Spectrum Sharing (DSS), which makes use of existing 4G infrastructure for 5G, depending on demand and particularly outside of cities, where the 3.6GHz frequencies used exclusively for 5G are being used first.

    Understand the 5G and connectivity opportunity in Germany

    Any innovative or value-adding product or service that helps to enable industrial applications, products and services that harness 5G is likely to be of interest to German customers.

    Particular opportunities for Irish companies include:

    Selling into Germany

    German business culture is usually risk-averse and new entrants need to show strong commitment to the market. As the market is still fragmented, any company seeking to sell in Germany needs to build a clear go-to-market plan and to identify in-market partners.

    This is a competitive market, so it’s vital to articulate a strong USP and be able to show how your offer brings significant commercial benefit.

    Bray-based Druid Software, for example, has brought its 5G Raemis platform to Germany where it is partnering with others on cutting-edge 5G projects, including one relating to smart factory research at the University of Kaiserslautern.

    Top tip

    Be as prepared and committed as you can. Germany isn’t a market for opportunistic sales. If possible, a physical presence there and constant visits to the market for trade shows and direct prospect visits are key for success. This ensures you can take advantage of the long-lasting opportunity the German market offers.

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    Italy

    Italy is vigorously pursuing digitalisation and cloud adoption, with significant funding for extensive infrastructure and service development.

    The 5G and connectivity landscape in Italy

    Italy was a front runner in the EU for the commercial launch of 5G services. All four MNOs (TIM, Vodafone Italia, Wind3 and Iliad) launched 5G networks between June 2019 and December 2020 and have since expanded their 5G services, offering aggressive pricing to capture share in this competitive market.

    This high-speed connectivity is vital to Italy’s efforts to accelerate:

    • digital skill-building across its population and workforce
    • the digitalisation of businesses
    • the offering of digital public services
    • the implementation of key e-government processes.

    In fact, migrating public administration to the cloud is one of the key drivers of the Italian recovery and resilience plan. Italy is now fourth in Europe in cloud adoption after the Nordics (Eurostat), with the market there worth €3.84 billion market in 2021, €2.89 billion of which related to public and hybrid cloud and €891m to virtual and hosted private cloud.

    Understand the 5G and connectivity opportunity in Italy

    Italy’s national recovery plan supports the digital transition with a €6.7 billion investment for the deployment of a 5G/fibre high capacity network. That should bring 5G to populated areas, schools and healthcare facilities, with widespread 1 Gbps connectivity by 2026.

    The EU Commission has also approved a €2 billion in Recovery and Resilience Facility (RRF) funding for Italy to roll out a high-performing 5G mobile network.

    To gain a foothold in the market, Irish companies with relevant offers should look to target:

    • Local telecom operators
    • Large system integrators
    • Local distributors or value-added resellers (VARs) for partnerships in the market.

    It’s also worth noting that growth in cloud adoption is being particularly driven by skyrocketing use of platform-as-a-service (PaaS), which was up 31% in 2021. Meanwhile, data centre automation is also a fast-growing area.

    Selling into Italy

    Take your time and be prepared. Invest in validating the market opportunity and building the right market entry strategy. Italian customers value strong relationships so it is worth spending time investing in building your network.

    Irish firms typically find it useful to have a strong local partner in this competitive market, as this can help shorten the sales cycle, deal with the language barrier and navigate local bureaucracy.

    Top tip

    Direct relationships matter. Invest time in coming to the market and meeting your counterparts in person.

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    Netherlands

    While opportunity abounds in this tech-savvy market, regulatory processes may slow down the growth of 5G.

    The 5G and connectivity landscape in the Netherlands

    The Dutch rank second in the world for online connectivity, with 98% of households having broadband connection and the country enjoying 95% 4G coverage. About 60% of the country is expected to have 5G services by 2030, with leading MNOs KPN and T-Mobile having launched commercial 5G services in July 2020.

    The regulator, the Netherlands Authority for Consumers and Markets (ACM) has been reluctant to set out a comprehensive 5G roadmap while the shape of the future consumer and industrial Internet of Things (IoT) solutions landscape, including security and value chain implications,  is still only sketchily defined. Progress will therefore be slow.

    ACM is also studying how well the cloud market is working for people and businesses in the Netherlands, where Amazon Web Services, Microsoft Azure and Google Cloud all operate, with Azure having 73% of the cloud computing marketing in 2020.

    The Netherlands is also home to the Amsterdam Internet Exchange (AMS-IX), one of the world’s leading digital data distributors.

    Understand the 5G and connectivity opportunity in the Netherlands

    While the Netherlands did not submit a recovery and resilience plan to the EU and, therefore, is not accessing any related funding, there are still plenty of opportunities in this vibrant, tech-savvy market. There is a keen appetite for cloud services, for example – the  Netherlands ranks fourth globally when it comes to public cloud expenditure.

    Opportunities for Irish companies include:

    • Selling into MNOs, such as T-mobile, Vodafone Ziggo and KPN, which are all open to putting in place contracts relating to innovation, Internet of Things and partnerships
    • Finding opportunities around Open RAN, which is being trialled by network operators since October 2020 and will be key in future
    • Providing cloud and data services through a system integrator/VAR.

    Selling into the Netherlands

    It’s vital to show commitment to the market and boots on the ground give a strong advantage. Take the time to develop a tailored market entry strategy, bearing in mind the market is competitive and being the cheapest won’t guarantee success. A quality service and the right network connections should do the trick.

    Top tip

    Come to the market, attend the relevant trade shows, meet the right partners and establish strong relationships. Dutch partners are willing to engage, but in person works best!

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    Spain

    As Spain seeks to bring ultrafast connectivity to everyone in the country, there is keen take-up of cloud services in business and industry.

    The 5G and connectivity landscape in Spain

    The Spain Digital 2025 Agenda supports EU connectivity objectives. It aims to extend ultrafast network coverage to the entire population (under the Plan for Connectivity and Digital Infrastructures) and prepare 100% of the radio spectrum for 5G by 2025 (following the Strategy to Promote 5G Technology).

    Spain is improving on digitalisation, but there is room to improve the uptake and use of  digital technologies, and information and communication (ICT) skills.

    The adoption rate of digital technologies by firms is close to the OECD average, but is below the best performing countries in Europe. There is keen and growing interest in cloud services, where Amazon Web Services, Microsoft Azure and Google Cloud are the main actors in the market.

    The private cloud remains the preferred option for security services (41%), communications (41%) and storage (40%). For its part, the public cloud is consolidated in areas such as the implementation and deployment of workstation services (52%).

    Understand the 5G and connectivity opportunity in Spain

    Under the EU Next Generation funding programme, Spain is receiving €4 billion to support fixed and 5G connectivity, data infrastructure and the related ecosystem. It is also getting €4.6 billion for the digitalisation of industry, SMEs and tourism and culture systems, along with investments in AI.

    Particular growth areas worth addressing include:

    • 5G
    • cybersecurity
    • AI
    • big data
    • open RAN
    • cloud security.

    While public sector bodies such as the central government, the regional governments and local councils are potential customers, the private sector (MNOs, system integrators and so on) are more dynamic and more accessible customers. Companies to target include Telefónica, Vodafone Spain, Orange, Más Móvil and Cellnex.

    Selling into Spain

    The most important factor when it comes to the market around 5G and connectivity in Spain is being committed to it, which includes dedicating people to this opportunity. Furthermore, the sales cycle tends to be long so you need adequate financing in place.

    Local competition is the main barrier to entry here, but there are openings for innovative offerings. Make sure you have local support in the market, so you overcome any language barrier and be mindful of cultural considerations. Bear in mind too that sales are heavily based on reputation and relationships.

    Top tip

    To succeed in Spain, you need to pursue a strategy of continuous and thorough follow up.

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