Software - Hungary

Hungary

The Software market in Hungary is set to achieve a remarkable revenue of US$922.70m by 2024.
The dominant player in this market segment is Enterprise Software , which is expected to reach a market volume of US$382.20m in the same year.
The projected annual growth rate (CAGR 2024-2029) is estimated at 5.45%, resulting in a market volume of US$1,203.00m by 2029.
When compared globally, United States is anticipated to generate the highest revenue of US$363.40bn in 2024.
Hungary's software market is experiencing a surge in demand for innovative mobile applications, driving growth in the technology sector.

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Analyst Opinion

Hungary, a country known for its thermal baths and paprika, is also making strides in the software market.

Customer preferences: Hungarian customers have a strong preference for software that is user-friendly and customizable. They also value software that is affordable and provides good value for money. In addition, there is a growing demand for software that can be accessed from multiple devices and locations.

Trends in the market: The software market in Hungary is experiencing growth due to several factors. One of the key drivers is the increasing adoption of cloud-based software solutions. This trend is being fueled by the need for businesses to be more agile and flexible, as well as the growing availability of high-speed internet connections.Another trend in the Hungarian software market is the rise of mobile applications. With the increasing use of smartphones and tablets, there is a growing demand for apps that can be used on these devices. This trend is particularly evident in the gaming and entertainment sectors.

Local special circumstances: Hungary has a highly skilled workforce in the technology sector, which has helped to drive the development of the software market. In addition, the country has a number of government initiatives aimed at promoting innovation and entrepreneurship, which has created a favorable environment for software startups.

Underlying macroeconomic factors: The Hungarian economy has been growing steadily in recent years, which has helped to fuel demand for software solutions. In addition, the country has a relatively low cost of living compared to other countries in the region, which has made it an attractive location for software development and outsourcing. However, there are also challenges facing the Hungarian economy, including a shortage of skilled labor in certain sectors and a high rate of emigration.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.