Generative AI - Hungary

The AI market in Hungary is witnessing a remarkable growth rate due to factors like growing adoption of digital technologies, increasing health awareness, and the convenience of online services. This has led to the rapid expansion of the Generative AI market, with extraordinary growth expected in the coming years.

Customer preferences: In Hungary, there has been a growing interest in Generative AI as a solution for businesses looking to streamline their operations and improve efficiency. This trend is driven by the country's rapidly evolving tech landscape and the increasing demand for automation in various industries. Additionally, with the rise of remote work and virtual collaboration, there is a growing need for AI-powered tools that can enhance productivity and reduce manual tasks. This shift towards AI adoption is also influenced by the country's tech-savvy and highly educated population, who are more open to embracing new technologies. As a result, the Generative AI Market within the Artificial Intelligence Market is expected to witness significant growth in Hungary in the coming years.

Trends in the market: In Hungary, the Generative AI market within the Artificial Intelligence market is experiencing a surge in demand for automated customer service solutions. This trend is driven by the increasing adoption of chatbots by businesses to improve their customer engagement and reduce operational costs. Additionally, there is a growing interest in using Generative AI for content creation and personalization in the media and advertising industry. These trends indicate a shift towards more efficient and personalized customer interactions, which can lead to improved customer satisfaction and increased revenue for businesses. However, it also raises concerns about potential job displacement and the need for upskilling employees to adapt to the changing landscape of AI-driven customer service.

Local special circumstances: In Hungary, the Generative AI market is experiencing significant growth due to the country's strong focus on technology and innovation. With a highly educated workforce and government support for research and development, Hungary is becoming a hub for AI startups and companies. Additionally, the country's location in Central Europe allows for easy access to other European markets, making it an attractive location for international partnerships. However, strict data protection laws and regulations may pose challenges for companies operating in the Generative AI market in Hungary, requiring them to adapt their strategies to meet local requirements.

Underlying macroeconomic factors: The Generative AI Market within the Artificial Intelligence Market in Hungary is heavily impacted by macroeconomic factors such as technological advancements, government support, and investment in infrastructure. Countries with favorable policies and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the growing demand for AI solutions across various industries and the increasing adoption of automation to improve efficiency are driving the market in Hungary. The country's strong economic health and stable fiscal policies also contribute to the growth of the Generative AI Market in Hungary.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

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. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. 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. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.