Russia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Russia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

The construction industry in Russia is expected to remain weak in the initial part of the forecast period, registering annual declines of 2.6% in real terms in 2023 and 3.7% in 2024. This weakness is attributed to headwind caused by the Western sanctions, coupled with elevated inflation and interest rates, a growing budget deficit, subdued trade, falling government revenues, and an exodus of skilled workers. Moreover, a cap on Russian oil prices is also severely affecting the government’s main source of revenue, and this could impact the progress on public infrastructure projects. Some of the projects that will be affected by falling government revenues include the Orekhovo-Zuyevo bypass project, a second ring road around Saint Petersburg, a road to the south-west linking Yekaterinburg, Samara and Krasnodar, and the Meridian highway stretching from the Kazakh border to the Belarusian border, via Russia.

GlobalData estimates the Russian construction industry to register an annual average growth rate of 3.9% from 2025 to 2027, under a best-case scenario of the military conflict being short-lived, supported by government investment in infrastructure, residential, renewable energy, mining, and healthcare projects. The country is aiming to increase the share of wind and solar energy in the renewable energy mix from 1% in 2019 to 10% by 2040, by investing heavily in the renewable energy sector. In September 2022, the Russian state-owned nuclear firm Rosatom signed a wind project development agreement with the Government of Dagestan to build 315MW of power projects in Dagestan.

This report provides detailed market analysis, information and insights into the Russian construction industry, including -

• The Russian construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Russian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Russia. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Russia, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.