Hungary Infrastructure Report

Published 04 June 2015

  • 70 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Hungary Infrastructure Report

BMI View : Strong economic growth will be supportive of construction sector growth, with the energy and transport sectors being the key growth drivers. However, BMI cautions that the recent EU probe into cartel allegations in road construction could see some of the vital EU funding withdrawn, which places significant downside to our forecast.

Hungary's construction sector is booming off the back of strong public investment and EU funding and BMI expects the construction sector to grow by 7.2% in 2015 and a further 1.6% in 2016. Strong growth in Hungary's construction sector is not expected to be long term as we expect a rising fiscal deficit to necessitate a draw back in public investment. It is also likely that there will be a slowdown in spending in 2015, as the government enforces spending cuts. Between 2016 and 2024, we expect construction sector real growth to average 3% per year.

Key Trends And Developments

  • The European Commission has suspended EUR451mn (approximately 0.5% of GDP) in development funding after finding irregularities in the procedure for project selection during the 2007-2013 budget cycle. EU structural funding has been and will continue to be a key driver of investment and economic growth in Hungary.

  • The Hungarian government has halted the construction of the M4 motorway's section connecting Abony and Fegyvernek over suspected cartel activity. In April 2015 The European commission had raised issues pertaining to alleged cartel activity. The government is now launching a one-month investigation into the matter and has ordered National Infrastructure Development Corporation (NIF) to stop construction immediately. The internal supervision department at the Prime Minister's Office will inspect the case and find out how the NIF carried out its public procurement application for the project.

  • Hungary's budget deficit came in at 2.6% of GDP in 2014, a slight deterioration from 2013 but well below expectations of 2.9%. The better...

Table of Contents

BMI Industry View
7
SWOT
8
Infrastructure SWOT
8
Industry Forecast
9
Construction And Infrastructure Forecast Scenario
9
Table: Construction And Infrastructure Industry Data (Hungary 2013-2018)
9
Table: Construction And Infrastructure Industry Data (Hungary 2019-2024)
10
Transport Infrastructure - Outlook And Overview
15
Table: Transport Infrastructure Industry Data (Hungary 2013-2018)
15
Table: Transport Infrastructure Industry Data (Hungary 2019-2024)
16
Table: Major Projects - Transport
22
Energy And Utilities Infrastructure - Outlook And Overview
25
Table: Energy And Utilities Infrastructure Data (Hungary 2013-2018)
25
Table: Energy And Utilities Infrastructure Data (Hungary 2019-2024)
26
Table: Major Projects - Energy And Utilities
32
Residential/NonResidential Building - Outlook And Overview
35
Table: Residential and Non-Residential Building Industry Data (Hungary 2013-2018)
35
Table: Residential and Non-Residential Building Industry Data (Hungary 2019-2024)
35
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
EU Funding To Spur Growth In CEE
41
Table: Central And Eastern Europe Risk/Reward Index
48
Market Overview
49
Competitive Landscape
49
Table: EQS Data
49
Company Profile
50
Strabag Hungary
50
Vegyepszer
55
K-SZ Building & Construction
57
Global Industry Overview
59
Project Risk Index: Robust Financing Establishes Outperformer Status
59
Table: Project Risk Index - Top 10 Markets
59
Table: Project Risk Index - Financing Risk, SSA Top 5
60
Table: Project Risk Index - Construction Risk, Asia-Pacific Top 5
61
Table: Project Risk Index - Operation Risk, Developed Markets Top 5
62
Methodology
63
Industry Forecast Methodology
63
Sector-Specific Methodology
64
Risk/Reward Index Methodology
68
Sector-Specific Methodology
69
Table: Infrastructure Risk/Reward Index Indicators
69
Table: Weighting Of Indicators
70

The Hungary Infrastructure Report features BMI Research'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 national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

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 Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

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 company 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.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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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