Russia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q2 2024)

Russia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q2 2024)

Summary

GlobalData’s Construction in Russia - Key Trends and Opportunities to 2028 (Q2 2024) 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.

GlobalData expects a real terms growth in the Russian construction industry to slow from 6.6% in 2023 to 1.8% in 2024, owing to decline in oil and gas revenues, rising Western sanctions, and lack of skilled workers. In June 2024, the European Union (EU) adopted the 14th package of sanctions against Russia, aimed at reducing the country’s ability to wage war against Ukraine. Some of the sanctions as part of the package include prohibition of all future investments in Liquefied Natural Gas (LNG) projects under construction in Russia, prohibition on importing Russian LNG into terminals which are connected to the EU gas pipeline network, extension of bans on exporting specific industrial goods and technology to Russia, asset freezes and travel bans on 116 additional individuals and entities responsible for undermining Ukraine’s sovereignty, prohibiting EU political parties from receiving Russian state funding, and strengthening transport restrictions. In June 2024, the Russian state-owned energy company Gazprom reported that it is expected to take at least a decade to recover from the gas sales lost due to the Ukraine war. The sanctions have hindered Gazprom's ability to expand its export capacity, as it lacks access to western-made turbines essential for pipeline infrastructure and has led to a net loss of RUB606.3 billion ($6.9 billion) in 2023.

During the remainder of the forecast period, the Russian construction industry is expected to register an annual average growth of 2.8% from 2025 to 2028, supported by government investments in transport, residential and renewable energy projects. As part of the President’s pre-election promises, the government announced a plan in February 2024 to invest RUB10 trillion ($109.9 billion) for the development of infrastructure in the country by 2030. Of the total, RUB4.5 trillion ($51.2 billion) will be invested in modernising public infrastructure such as housing, RUB1 trillion ($11.4 billion) for the construction and maintenance of hospitals, RUB400 billion ($4.6 billion) for the construction of educational university campuses, and RUB250 billion ($2.8 billion) for the construction of airport infrastructure. In April 2024, the government announced the ’Moscow Transport Development Program’, which involves construction of transportation infrastructure in Mosco by 2030. The program will involve construction of 48 new metro stations, 88km of extended metro lines, 10.3km of new tram lines, four new depots, and development of a Central Transport Hub by 2030.

Scope

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

• Historical (2019-2023) and forecast (2024-2028) 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.