New InterTradeIreland research highlights €4.3 billion opportunity to grow all-island services trade
Cross-border services trade has more than quadrupled in the last decade, with strong opportunities identified for SMEs in construction, technology, financial services and life sciences.
Businesses across the island of Ireland could benefit from a significant growth opportunity of up to €4.3 billion (£3.7 billion) in cross-border services trade, according to new research published by InterTradeIreland.
Against a challenging global backdrop, cross-border services trade is one of the clearest positive economic stories on the island. The All-Island Tradeable Services Report, prepared for Oxford Economics, found that services trade between Northern Ireland and Ireland has surged in the last decade from around £800 million in 2011 to an estimated £5.3 billion in 2024.
While cross-border trade is often associated with the movement of goods, services trade is becoming an increasingly important part of the all-island economy. It includes everything from architects and engineers working on projects across the border, to technology firms, financial services providers, consultants, healthcare specialists and cybersecurity companies serving clients in another jurisdiction. Today, services account for around a quarter of all trade between Northern Ireland and Ireland.
The report identifies the clear potential for further growth. An indicative assessment carried out as part of the research suggests that more targeted measures to help businesses overcome barriers to cross-border trade could unlock up to €4.3 billion (£3.7 billion) in additional services activity over time. Many of the sectors identified in the report align with economic priorities, including construction, financial services, fintech, cybersecurity, professional services and life sciences. These are sectors that support innovation, productivity and high-value employment across the island.
Margaret Hearty, Chief Executive, InterTradeIreland, said:
This research shows that the cross-border services trade is already a major contributor to economic growth across the island. At InterTradeIreland we are proud of our track record helping cross-border trade reach an all-time high but we know that there is still significant untapped potential.
While businesses told us that trading across the border is generally easier than many people think, some smaller firms can still face challenges in understanding regulatory requirements.
Through initiatives such as our Trade Hub, we are helping to remove those barriers by providing clear, practical guidance and access to expertise. Our opportunity now is ensuring that even more SMEs focused on tradeable services can take advantage of the opportunities that exist across both jurisdictions.
While businesses generally view trading across the border as straightforward compared with many international markets the research found that practical challenges can still hold some firms back. Unlike goods trade where the practical steps involved in cross-border trade are often well understood, services businesses can face a more complex regulatory environment. While these issues are often more manageable than businesses expect, the research found that these challenges are usually felt most acutely by smaller firms.
Reflecting on the opportunity for SMEs in the tradeable services sector, Economy Minister Caoimhe Archibald says:
This report demonstrates the strength of the economic relationship between the North and South and underlines the increasingly important role that services trade plays in supporting jobs, productivity and growth. It is particularly encouraging to see Northern businesses performing strongly in the Irish market and building a significant services export base across a wide range of sectors.
While businesses generally view cross-border trading as achievable, smaller firms can face some challenges. The report provides a practical roadmap for addressing those barriers and ensuring that businesses of all sizes, and in all regions, can benefit from the opportunities that greater cross-border collaboration presents.
Highlighting the economic growth underlined by the report, Enterprise Minister, Peter Burke TD commented:
This report shines a light on a significant and often under-recognised success story in the all-island economy. Services trade between Ireland and Northern Ireland has expanded rapidly over the past decade, demonstrating the strength of commercial relationships that are helping businesses innovate, grow and compete internationally.
What is particularly striking is the scale of the opportunity that remains. The report identifies strong potential in sectors such as construction services, financial services, technology and life sciences, where businesses can benefit from deeper collaboration, stronger cluster development and access to new markets. As we continue to support indigenous enterprise, this research provides valuable evidence on where future growth can come from and how targeted interventions can help businesses realise that potential.
To help unlock this potential, the report sets out 15 recommendations focused on
Increasing visibility of business and procurement opportunities across both jurisdictions.
Strengthening cross-border networks, partnerships and sector clusters to help firms identify new customers and markets.
Improving the evidence base and data available to businesses, policymakers and economic stakeholders.
Among the recommendations are proposals to develop an AI-assisted business support tool, strengthen business matchmaking and networking initiatives, and establish an all-island services monitor to track emerging trends and opportunities.
The findings were discussed at a stakeholder event hosted by InterTradeIreland, bringing together businesses, policymakers, economists and organisations from across the island. The event explored the opportunities for further growth in cross-border services trade and the practical steps needed to help more businesses access all-island markets.
For more information on InterTradeIreland and the supports they can offer businesses visit www.intertradeireland.com.
The full report is available via the link below.
