The Hungary ICT Market size is estimated at USD 31.59 billion in 2024, and is expected to reach USD 54.23 billion by 2029, growing at a CAGR of 11.41% during the forecast period (2024-2029).
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Key Highlights
- ICT encompasses a spectrum of technological tools that facilitate the transmission and processing of information. It is an amalgamation of information, communication, and technology, hence the acronym ICT. Increasing demand for digitization and scalable IT infrastructure is anticipated to drive the market's growth in Hungary.
- Businesses across industries are embracing digital transformation and enhancing their resilience, driving the demand for ICT solutions that enable automation, data analytics, and e-commerce. Furthermore, the highlighted importance of telehealth led to increased adoption of virtual consultations, remote patient monitoring, and e-health services, providing opportunities for health-tech startups to innovate new solutions.
- According to the International Trade Administration (ITA), Hungary's software development sector plays a pivotal role in the nation's economy, accounting for approximately 6% of its GDP. Moreover, Hungary stands out in the region for its substantial outsourcing activities, boasting a workforce of 80,100 IT specialists.
- Moreover, the government is actively involved in enhancing the country's digital strategy. It has the strategy to make Hungary one of the top ten countries in the European Union in terms of digital economic and social development by 2030. Hungary is witnessing rapid adoption of cloud computing across different sectors. According to StackScale, enterprise adoption of cloud computing in Hungary surged, more than doubling from 18% in 2018 to 45% by 2023.
- In 2024, the upcoming launch of Hungary's first satellite not only marks a significant milestone but also paves the way for a host of sales opportunities. These opportunities span from the satellite itself to the associated launch services, offering a diverse range of products, services, and solutions.
Hungary ICT Market Trends
Rapid Development of 5G Network across the Nation
- Hungary is witnessing an increase in internet users and a rising amount of data generated. In 2023, the Hungarian Central Statistical Office reported that 92.5% of Hungary's population were internet users, a notable increase from 85.8% in 2019.
- According to Ookla, Hungary's median country speeds have witnessed a surge from 44.14 Mbps in April 2023 to 52.49 Mbps in April 2024. Such a rise in speed for mobile internet is expected to boost the demand for high-speed internet services such as 5G.
- Household internet access in Hungary is witnessing constant growth. According to Eurostat, in 2023, Hungary saw a consistent rate of internet access among households, hovering at approximately 92.73%. Such trends are expected to boost the need for 5G services, accelerating the market’s growth.
- In November 2023, the Hungarian mobile operator Yettel made history by unveiling Hungary's first 5G standalone network. Yettel announced that its 5G infrastructure blankets the nation, boasting an impressive 700 operational base stations, each now powered by the standalone network.
- In September 2023, the Government of Hungary and Magyar Telekom inked a memorandum of understanding, solidifying their commitment to Hungary's digital transformation. Magyar Telekom's primary goal is to cater to specific industrial firms, providing them with cutting-edge automated solutions based on 4G/5G technology.
Retail and E-commerce Sectors Expected to Drive Growth
- Driven by the increasing demand for robust surveillance, the retail and e-commerce sector commands a substantial market share. This surge is further fueled by a heightened adoption of artificial intelligence, which bolsters productivity, boosts ROI, and refines user experiences. AI aids in inventory management, ensuring accuracy and streamlining supply chains.
- Retail companies are fostering stronger customer bonds, empowering them to infuse digital elements into every facet of their operations, from sales and support to merchandising and finance. They rely heavily on data, analytics, and artificial intelligence to decipher customer behavior and identify avenues for growth.
- The retail sector is in the midst of a digital transformation. This involves adopting new technologies and harnessing big data analytics to better grasp consumer behavior. Such insights empower retailers to enhance personalized client engagement.
- Retail sales in Hungary witnessed an increasing trend over the last few years. According to the Hungarian Central Statistical Office, in 2023, sales from retail trade reached HUF 18.09 trillion (USD 48.94 billion), up from around HUF 16.76 trillion (USD 45.34 billion).
- Moreover, there is an upsurge in online shopping. The share of online shoppers grew significantly between 2019 and 2023. It has grown from 54.4% in 2019 to 79% in 2023. This growth trend is expected to increase the demand for e-commerce over the forecast period.
Hungary ICT Industry Overview
The Hungarian ICT market is highly competitive, owing to the presence of several global players. These players are focusing on further expanding their client base across the country and are adopting both organic and inorganic growth strategies. The companies are leveraging strategic collaborative initiatives, acquisitions, and product launches to increase market share and profitability.- May 2024: IBM partnered with Salesforce, merging IBM's Watson AI and Data Platform with Salesforce's Einstein Platform. This collaboration aims to offer customers enhanced flexibility in deploying AI and data solutions, empowering teams to seamlessly make data-driven decisions within their workflow.
- February 2024: Cisco partnered with NVIDIA and announced plans to deliver AI infrastructure solutions for data centers that are easy to deploy and manage. These solutions will enable the massive computing power that enterprises need to succeed in the AI era.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET INSIGHTS
5 MARKET DYNAMICS
6 KEY TECHNOLOGY INVESTMENTS
7 MARKET SEGMENTATION
8 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- IBM Corporation
- Tata Consultancy Services
- Cognizant Technology Solutions
- SAP SE
- Oracle Corporation
- Microsoft Corporation
- Genpact
- DruIT
- Telefonaktiebolaget LM Ericsson
- BlitzBrain
Methodology
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