HUNGARY FASTENER MARKET
GDP (million Dollars) – 197.813
GDP Per Capita (US Dollar) – 20.336
Growth Rate (%) – 3,73
Population – 9.727.000
Surface Area (km2) – 93.030
Capital – Budapest
With its size of 93 thousand square kilometres and its location at the border of Eastern and Western Europe, the country is an optimal choice for doing business by small and multinational companies. Located at the juncture of the 4 main European transport corridors, Hungary offers around 1,300 km motorway, an extensive railway network, and five airports. Hungary has excellent conditions to offer for knowledge-based industries. Hungary is among the world leaders in terms of Nobel Prize winners per capita, with well trained labour force, graduates fluent in various languages, and a spectacular track record in terms of IT and software development (from John Neumann to Charles Simonyi or from LogMeIn to Prezi). Hungary can capitalize on a few natural resources (bauxite, coal, and natural gas), as well as fertile soil, and natural thermal water reserves. The country‘s main manufactured exports include electric and electronic equipment, machinery, processed food, pharmaceuticals and chemicals.
INDUSTRY
The industrial sector constitutes one third of Hungary's gross national product, and the development and support of the manufacturing sector is one of the strategic policies of the Hungarian Government. In recent years, Hungary has hosted hundreds of new industrial investments. Hungary is among the 3 most attractive countries in Central Europe in terms of access to the supply market, labor market, universities and logistics facilities. The automotive, electronics, pharmaceutical and medical technology sectors that stand out in the manufacturing industry, as well as the information and communication technologies, energy, logistics, food and tourism sectors are important industries for investors.
AUTOMOTIVE
The industrial sector constitutes one third of Hungary's gross national product, and the development and support of the manufacturing sector is one of the strategic policies of the Hungarian Government. In recent years, Hungary has hosted hundreds of new industrial investments. Hungary is among the 3 most attractive countries in Central Europe in terms of access to the supply market, labor market, universities and logistics facilities. Both the automotive, electronics, pharmaceutical and medical technology sectors that stand out in the manufacturing sector, as well as the information and communication technologies, energy, logistics, food and tourism sectors are important sectors for investors. Continental, Hankook, Aptiv, Bosch, SK Innovation, Samsung, Valeo, Motherson, Mahle, BorgWarner, Denso are the other main companies operating in Hungary in this sector. The production of automotive parts is also particularly important for the country, as Hungary is a regional leader in engine production It also has important production bases in the fields such as tires, batteries, auto glass, steering systems, powertrains and automotive electronics, etc.
Automotive production is one of the main pillars of Hungary’s manufacturing sector. In recent years there has been a strong focus on innovation, as well as research and development in the automotive industry. The investment value in the constantly evolving automotive industry has exceeded one billion euros each year since 2011 and totaled 1.3 billion euros in 2020. As of 2021, the industrial production value of transport equipment totaled 9.4 trillion forints. Even though after World War II Hungary became one of the most significant producers and exporters of buses in Europe, in recent years, the Hungarian automotive production sector's focus has shifted towards the assembly of foreign automotive brands. Regarding motor vehicle manufacturing volume, 2020 brought an annual decrease of approximately 18 percent in the number of vehicles produced, totaling 406 thousand units.
There are four leading original transport equipment manufacturers operating in Hungary — namely Audi, Mercedes, Opel, and Suzuki. Of the aforementioned automotive companies, Audi was the most successful in 2021 in terms of revenue. It was followed by another German automobile manufacturer, Mercedes-Benz Manufacturing, with a revenue of 3.1 billion euros.
ELECTRONICS INDUSTRY
By its size, Hungary is the largest electronics producer among the new EU members, followed by the Czech Republic and Poland. Whereas the Czech Republic is more specialized in PC production, Hungary succeeded in facilitating the rapid growth of an electronics industry more dedicated to mobile handsets. Furthermore, Hungary accounts for an important share of European PC production and the country has a good position in Central and Eastern Europe production for consumer products (TVs and VCRs).
The electronics industry is one of the major industrial sectors of Hungary, accounting for about 22% of the manufacturing production. Hungary is the largest electronics maker in Central Europe and is responsible for about 26% of the entire regional manufactured electronics. This industry has directly employed about 115,000 people. Germany is its main trading partner, and most of its exports are sold to other European countries.
Major electronics manufacturers such as Flextronics, Samsung, Bosch, Foxconn, Jabil, Lenovo, Siemens, Alpsalpine, AVL, Schneider, Rosenberger, Videoton operate in Hungary.
