Market Trends of Hungary Road Freight Transport Industry
This section covers the major market trends shaping the Hungary Road Freight Transport Market according to our research experts:
Domestic road freight transport witness higher growth rate through the forecast period
The domestic road freight industry (in terms of volume) has been increasing steadily with some fluctuations. The domestic road freight volume in Hungary decreased slightly in 2019 and stood at around 166 million tons.
The industrial manufacturing, automotive sectors are key sectors contributing to domestic road freight volumes. Besides, the key drivers of domestic road freight sector include growth in construction and ecommerce sectors.
The share of own accounts transport in domestic road freight is relatively more when compared to international road freight market. Around 30% of domestic road freight volume is carried by own transport vehicles.
The agriculture sector, food and beverages sector also account for significant share of road freight industry, they together account for around 40 million tons.
Strong automotive industry driving the growth of road freight transport sector
The industrial production is one of the major contributors of Hungarian economy and the automotive industry is one of the major sectors. The strong automotive industry is one of the key driving factor for the country's road freight transport sector and a lot of companies are engaged in automotive transportation.
Hungary is one of the most exposed economies to the automotive industry. The sector has become a critical engine of industrial production in Hungary. The automotive industry brings about around 3 to 4% of GDP and accounts for around 20% of exports.
In the past few years, the companies in the industry have managed to increase their output significantly almost every year, mainly due to lasting export demand. According to industry sources, the automotive industry's share of the manufacturing output was around 28%.
International car manufacturers (mainly Germans) see a great expansion opportunity in Hungary due to a combination of relatively low wages, good infrastructure, and substantial public subsidies offered by the government.
The growing investments in the sector also support the growth of the sector. For instance, in Dec 2019, companies from South Korea have announced investment of over EUR 200 million in Hungary's automotive sector.
