Russia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)

Russia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)

Summary

GlobalData’s Construction in Russia - Key Trends and Opportunities to 2028 (Q4 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

The growth of the Russian construction industry is expected to slow in real terms, from 6.6% in 2023 to 2.4% in 2024 and further to 0.4% in 2025, due to high inflation, interest rates, and the effects of escalating Western sanctions. The increasing western sanctions and rising defense spending due to the war in Ukraine is expected to build pressure on the construction industry in 2025, as defense spending accounts for most of the total national budget. Several energy and industrial construction companies are expected to face challenges in the coming quarters, with some projects being scaled back due to the high cost of borrowing and elevated interest rates. In December 2024, the European Union (EU) imposed new sanctions on Russia, blacklisting 52 oil transport ships from its ports and placing trade restrictions on 32 companies associated with Russia's military-industrial complex. Earlier, in September 2024, Novatek, a Russian natural gas producer, announced the suspension of the development of the Murmansk Liquefied Natural Gas (LNG) plant and the Obskoye LNG project in the Arctic port of Sabetta.

However, public and private sector investments in infrastructure and residential projects will drive the industry’s output in the coming quarters.

Over the remainder of the forecast period, the construction sector is expected to grow at an annual average growth rate of 2.2% between 2026 and 2028, supported by increasing investments in oil and gas, transport infrastructure, and renewable energy projects. Under the airport infrastructure modernization program, the Russian government plans to invest RUB381 billion ($4.3 billion) for the upgradation and modernization of 129 airfields across the country 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 our 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 business strategies using GlobalData's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors