Hungary - Country Commercial Guide
Safety and Security

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2022-11-25


The safety and security equipment market, including the defense-related technology market, has become a leading sector for U.S. exporters in the Hungarian market. The number of companies has been shrinking but their combined annual revenue has been increasing.   There were 4,150 companies operating in the Hungarian safety and security industry in 2021 – both locally based small and medium sized enterprises (SME) as well as multinational subsidiaries – employing approximately 64,000 people and contributing 17.5% to the national GDP. (Central Statistics Office)

The domestic market is dominated by imported equipment, especially in the high-tech end of security and technology solutions used by Hungarian military and law enforcement organizations.  Typically, physical security services are provided by local companies due to local standards and licensing requirements. The market for fire safety and security alarm systems is one of the best organized segments within the industry.

Foreign companies are active in the supply of security equipment.  Perimeter and site security systems, video-surveillance, screening and image analyzation equipment, access control systems and fire protection systems are frequently imported from French, German, Italian, American, Israeli, Japanese, Chinese and Taiwanese companies.

The following systems have local production: data protection, optical registration devices, systems for technical safety of buildings, signal receiving equipment, and cryptographic security units. There are several local developers of biometric identification systems, biometric access control, and time and attendance systems.

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Airport security, manufacturing site and warehouse protection are the most developing segments in the sector.  Both the Budapest International Airport and Debrecen International Airport have initiated security-related development projects, including passenger and cargo screening that require implementation of additional airport security equipment (and upgrades for existing equipment) at border crossing points.  The 2nd phase of BUD Cargo City to be developed between 2022-2024 also requires additional physical security solutions.  X-ray cargo screening systems are also being implemented at land border crossing points and railroads.

Security technology for property protection at manufacturing and industrial facilities and warehouses as well as public areas also present opportunities for innovative solutions.  In recent years, the security and building automation market – thanks to increased real estate developments - saw an annual increase of 4.2%. There was a 3.9% increase in the anti-intrusion equipment segment, while the CCTV component increased by 5.4% in 2020. 

Within the anti-intrusion sector, access control remains an important and highly competitive area.  The industry is migrating toward IP and integrated solutions.  The trend is to move away from proprietary technology towards open systems that allow the integration of multiple applications.  Other drivers include the growth of time and attendance applications, the demand for smart card and optical card systems, the need to reduce fraud, and increasingly an acceptance of biometric systems.  Training for integrators and installers is essential to effectively meet end-user needs.

An increasing number of private properties have security and alarm systems installed.  Opportunities exist for private security operators – such as security guard service companies – to provide technology and services to private citizens.  Examples of public-private collaboration include municipalities and private security service companies that utilize public security cameras and CCTV systems installed by banks, hypermarkets, retail shops and in public places to survey areas and provide services to businesses or private citizens, all in cooperation with the municipal police.

Within the safety arena, potential opportunities exist in CBRN protection, particularly for new, advanced sensors that reveal chemical agents and provide more effective protection.  In terms of investments in this niche market, minor cuts have been seen in the budgets of the responsible agencies. While public sector spending will remain less than expected, continued opportunities exist among well-funded organizations, banks, and government agencies such as the Counter Terrorism Center, Disaster Management Center, the National Police, and the SWAT.

Equipment with the greatest sales potential include:

•      Advanced video surveillance monitoring solutions

•      Platform/sensor land border surveillance and detection systems

•      Automated home protection solutions

•      Screening and X-Ray systems for airports, customs, and public facilities (office buildings, logistic centers, warehouses)

•      Access control and alarm systems

•      CCTVs, Security cameras for multiple functions such as retail shops, large facilities and public areas

•      Wireless security solutions

•      General security supplies (such as window foils, transportation security products, personal safety products)

Hungarian users have high consideration for innovative, sophisticated security products and solutions.  Strong after-sales service, maintenance, adequate and timely supply of spare parts and training are all essential to success.

U.S. Embassy - U.S. Commercial Service
Csilla Viragos, Commercial Specialist
Budapest, Hungary
Tel:  +36 1 475 4250