Business Monitor International


Hungary Infrastructure Report

Published 27 May 2014

  • 73 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Hungary Infrastructure Report

BMI View : The re-election of the governing Fidesz party on April 6 augurs for broad policy continuity and has not altered out fundamental outlook for Hungary's construction sector over the next few years. We maintain our view that a recovery in the sector has taken hold amid a steady improvement in macroeconomic conditions and fixed asset investment in particular. We are forecasting real construction industry growth of 2.9% in 2014 and 2.1% in 2015.

We expect growth over the next few years to be subdued and we are forecasting average industry growth of 2.0% between 2014 and 2018, with the country's weak business environment remaining a key drag on industry growth. Persistent weakness in the residential and non-residential sectors will also weigh on the wider sector's growth prospects.

Key Trends And Developments

  • We expect to see broad policy continuity from the Hungarian government, that is to say the country's policy making will remain erratic, following an overwhelming victory for the governing centre-right Fidesz party in the April 6 general election. We do not expect to see any shift in the government's policy stance in the months or years ahead, with Prime Minister Viktor Orbán's programme of placing punitive taxes on publicly unpopular industries, such as banking, utilities and telecommunications, continuing to garner widespread support.

  • There has been a pick-up in construction activity in Hungary during the past few quarters, driven primarily by government efforts to use funds, allocated by the EU, for infrastructure development. The country risked losing the funding if it were not used before end-2013 and the start of the new funding cycle. This drive has been reflected in improving quarterly growth numbers for the construction sector, which saw real terms year-on-year increases of 5.8% and 7.2% in Q213 and Q313 respectively. One project to go ahead is the modernisation of infrastructure around Lake Balaton (a popular tourist resort) - announced...

Table of Contents

BMI Industry View
7
SWOT
9
Infrastructure SWOT
9
Industry Forecast
11
Construction And Infrastructure Forecast Scenario
11
Table: Construction And Infrastructure Industry Data (Hungary 2012-2017)
11
Table: Construction And Infrastructure Industry Data (Hungary 2018-2023)
12
Transport Infrastructure - Outlook And Overview
18
Table: Transport Infrastructure Industry Data (Hungary 2012-2017)
18
Table: Transport Infrastructure Industry Data (Hungary 2018-2023)
19
Table: Major Projects - Transport
24
Energy And Utilities Infrastructure - Outlook And Overview
27
Table: Energy And Utilities Infrastructure Data (Hungary 2012-2017)
27
Table: Energy And Utilities Infrastructure Data (Hungary 2018-2023)
28
Table: Major Projects - Energy And Utilities
33
Residential/NonResidential Building - Outlook And Overview
36
Table: Residential and Non-Residential Building Industry Data (Hungary 2012-2017)
36
Table: Residential and Non-Residential Building Industry Data (Hungary 2018-2023)
36
Table: Major Projects - Residential, Non-Residential Construction And Social Infrastructure
38
Industry Risk Reward Ratings
39
Hungary - Infrastructure Risk/Reward Ratings
39
Rewards
39
Risks
39
Central And Eastern Europe - Infrastructure Risk/Reward Ratings
40
Limited Access To Funding
45
Table: Central And Eastern Europe Risk Reward Ratings
46
Market Overview
47
Competitive Landscape
47
Table: EQS Data
47
Company Profile
49
Strabag Hungary
49
Vegyepszer
54
K-SZ Building & Construction
56
Global Industry Overview
58
Middle East/North Africa Presents Strongest Investment Profile
58
Methodology
64
Industry Forecast Methodology
64
Sector-Specific Methodology
65
Risk/Reward Rating Methodology
69
Sector-Specific Methodology
70
Table: Infrastructure Risk/Reward Rating Indicators
70
Table: Weighting Of Indicators
71

The Hungary Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Hungary Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Hungarian infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Hungary to test other views - a key input for successful budgetary and planning in the Hungarian infrastructure market.
  • Target business opportunities and risks in the Hungarian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Hungary.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.

These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).

Industry Trends

Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:

Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.

Building Materials Overview

The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.

Business Environment Rankings

BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry & Economic Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).

Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc