Market Trends of Hungary ICT Industry
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.
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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 18,092 billion (USD 48.94 billion), up from around HUF 16,761 billion (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.
