Hungary Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Hungary Telecom Market size is estimated at USD 3.33 billion in 2024, and is expected to reach USD 5.89 billion by 2029, growing at a CAGR of 12.03% during the forecast period (2024-2029).

Key Highlights

• The telecom market in Hungary is experiencing significant growth, fuelled by increasing internet penetration and the widespread adoption of IoT technologies.
• The rapid adoption of digital technologies, expanding 4G and 5G networks, and rising internet penetration fuel Hungary's telecom market growth. Government initiatives, alongside substantial investments by telecom operators in fiber-optic networks, are bolstering connectivity in the country. For instance, Hungary's digitalization strategy is set to overhaul its digital infrastructure, economy, and societal frameworks. By 2030, the strategy targets a 95% coverage of households with gigabit networks, aims to digitalize more than 30% of business processes, and envisions 90% of residents utilizing e-government services.
• Also, the telecom market in Hungary is witnessing growth, bolstered by the rising adoption of IoT and smart city initiatives. Also, the increased demand for mobile data services, propelled by remote work, online education, and entertainment, is a key driver of market expansion. Hungary's increasing demand for digital services, from mobile banking to e-commerce and OTT streaming, underscores the robust, high-speed internet requirement. This surge in demand is propelling Hungary's telecom infrastructure into a phase of both modernization and expansion, ultimately elevating service standards and fuelling market growth.
• Moreover, social media's rising popularity drives data consumption, prompting telecom firms to roll out increasingly competitive data packages. This enhancing service quality attracts a larger user base and bolsters the average revenue per user (ARPU), spurring market growth. According to StatCounter, as of May 2024, around 93% of the population in Hungary used Facebook, whereas in October 2023, around 91.19% of the population in Hungary used Facebook. This indicates a significant increase in overall social media usage among the population of Hungary, driving market growth opportunities significantly.
• The market is witnessing various strategic product launches and innovations. For instance, in November 2023, Yettel Hungary, a mobile and fixed broadband operator, made a significant step by launching Hungary's first 5G standalone (5G SA) network, setting a new standard for its clientele. After a successful trial with researchers and engineers at the University of Obuda, home and office 5G fixed wireless customers are set to become the first beneficiaries of this advanced 5G SA network service.
• However, Hungary's telecom market needs to improve its growth due to challenges like infrastructure gaps in rural areas, intricate regulatory frameworks, economic disparities impacting affordability, and escalating competition leading to price pressures. Collectively, these challenges pose a substantial threat to the market's overall expansion.

Hungary Telecom Market Trends

Growing Internet Penetration in Hungary

• Urbanization and an expanding middle class in Hungary fuel a surge in the demand for internet services. The country is also witnessing a momentum in infrastructure development, largely propelled by public-private partnerships. Also, a push for enhanced education and digital literacy is spurring greater internet adoption, enabling many Hungarians to leverage digital platforms for education, work, and entertainment.
• According to the Hungarian Central Statistical Office, in 2023, internet usage in Hungary surged, with a staggering 92.5% of the population online. Also, the fixed broadband internet data traffic peaked in Q1 2023, with downloads reaching around 1.75 thousand petabytes by Q3 2023.
• Several factors are propelling the growth of internet adoption in Hungary. These include the rising affordability and accessibility of broadband services, government initiatives to enhance digital infrastructure and the pervasive use of smartphones. Notably, educational campaigns advocating digital literacy have further bolstered this trend. The COVID-19 pandemic accelerated the adoption of online services and remote work, leading to a surge in internet usage. Investments in high-speed technologies like fiber optics and 5G networks have bolstered connectivity, widening internet access to a broader demographic.
• According to Eurostat, in 2023, Hungary saw a 2.3% rise in rural households accessing the internet, marking a 2.65% increase from the previous year. This surge propelled the share of rural households with internet access to a record high of 89.1% in 2023, showcasing a consistent upward trend in recent years.
• Also, in November 2023, Hungary accomplished its broadband development project, achieving nationwide deployment of superfast internet. This milestone translates to nearly 97% of Hungarian households enjoying access to advanced network connectivity. The Governmental Information-Technology Development Agency (KIFÜ) implemented the project (Hungary’s broadband development project), which received over HUF 3 billion (USD 8.4 million) in non-refundable EU funding.

Rising Demand for OTT and Pay TV Services

• The Hungarian telecom market is growing, propelled by rising demand for pay TV and over-the-top (OTT) services. With a shift from conventional cable TV to digital and streaming services, telecom companies are broadening their portfolios to cater to this evolving consumer preference.
• Telecom providers in Hungary are capitalizing on a rising consumer trend. They are bundling high-speed internet with OTT and pay TV services. This strategic move enhances customer value and propels the growth of digital entertainment, solidifying the telecom market's position in Hungary.
• Platforms such as Netflix, Amazon Prime, and local services are driving a surge in demand for OTT services, leading to a notable uptick in internet usage. Consequently, telecom firms are intensifying their investments in broadband infrastructure. Their goal is to cater to the escalating streaming demand and improve internet services' quality, enriching the digital experience. According to the Hungarian Central Statistical Office, in 2023, fixed broadband internet connections were present in 90% of connected households in Hungary, while mobile broadband connections were available in around 89%.
• In September 2023, NAGRA, a subsidiary of the Kudelski Group and a global provider of content protection and media solutions, was chosen by the Hungarian broadband and TV service provider 4iG. This selection, made in collaboration with 4iG's subsidiaries - Vodafone Hungary, DIGI Hungary, and Antenna Hungaria designates NAGRA as the primary system integrator and solution partner. Their goal is to spearhead the transition towards an advanced, multi-device TV service, enhancing the viewing experience for 4iG's clientele.
• The increasing internet penetration in Hungarian households is propelling the growth of over-the-top (OTT) and pay TV services. This surge is primarily attributed to the enhanced streaming capabilities made possible by a more reliable broadband infrastructure. As a result, a larger demographic now has access to high-definition content in Hungary, consequently driving up the demand for streaming services. According to Eurostat, in 2023, Hungary saw a consistent rate of internet access among households, hovering at approximately 92.73%. This figure marks a peak for the country in terms of household internet penetration.

Hungary Telecom Industry Overview

The Hungarian telecom market is moderately competitive due to the presence of significant players like AT&T Inc., Yettel Hungary, and Magyar Telekom. Market players are bolstering their portfolios and striving for enduring competitive edges through strategic partnerships and product innovations.

February 2024: Amdocs, a software and services provider for communications and media firms, announced that Magyar Telekom, a telecom operator in Hungary, selected the Amdocs Policy, the next-gen solution, to revamp its Policy and Charging Control operations, and capture the opportunities for the 5G landscape.

February 2024: The 4iG Group and Elisa Polystar signed a collaboration pact to deploy automated network management and enhance the customer experience monitoring system. Vodafone Hungary would be the initial stage for implementing the innovative solution in this collaboration.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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