Boston, MA -- (SBWire) -- 06/26/2013 --Hungarian information technology (IT) spending has continued to increase despite a difficult economic environment. The IT market has not, however, been immune, and the recession in 2012 and 2013 has proved a drag on spending growth as households and enterprises delay spending. We downgraded our forecast for 2013 in the Q3 2013 update as a result of domestic economic weakness and the potential impact of the ongoing eurozone crisis. Deferred investments will add to positive medium-term growth drivers to boost spending growth from 2014. Household spending on hardware has potential over the medium term, with PC penetration relatively low in Hungary - particularly for mobile PC devices such as notebooks and tablets. Meanwhile, other medium-term drivers of spending include EU funds for informatisation of public administration, adoption of cloud computing and enterprise software investments.
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Headline Expenditure Projections
Computer Hardware Sales: HUF261bn in 2012 to HUF271bn in 2013, an increase of 6.3% in local currency terms. The hardware market has medium-term growth potential as a result of Hungary's relatively low PC penetration, but, in the short term, demand will be held back by household deleveraging and low business confidence.
Software Sales: HUF159bn in 2012 to HUF172bn in 2013, an increase of 8% in local currency terms. Upgrades to Windows 8 and enterprise software investments are supportive of spending but business confidence is vulnerable to further economic weakness.
IT Services Sales: HUF216bn in 2012 to HUF233bn in 2013, an increase of 7.9% in local currency terms. Greater utilisation of outsourcing and cloud computing services will be means of improving competitiveness to drive growth in services spending.
Key Trends And Developments
The availability of lower cost tablets running Google's Android OS is expected to form the basis of steep increases in penetration over the coming years. Previously the price of tablets limited sales to mass market Hungarian consumers. However, the arrival of lower cost devices is occurring alongside a recovery in household consumption during H213 and 2014, which should see adoption accelerate. Hungary has a relatively low penetration of tablets and netbooks compared to regional peers, a gap BMI expects to narrow over the medium term as tablets become more widely available in retail outlets and via subsidies from telecoms operators when purchased with wireless data services.
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Hungary Information Technology Report Q3 2013 - New Market Research Report
Recently published research from Business Monitor International, "Hungary Information Technology Report Q3 2013", is now available at Fast Market Research