Go to mobile


16:23 26-06-2017
Mongolia to join construction of Asian Super Grid
16:04 26-06-2017
$50-million stock breeding complex to be built in Russian Far East
15:40 26-06-2017
Fast neuron reactors help to make atom “green” – Rosatom’s head
15:07 26-06-2017
New bridge across Ob River in Siberia to be funded from federal budget
14:45 26-06-2017
Austrian Strabag to build musical road in Hungary
14:09 26-06-2017
Company with Turkish capital to build first phase of Saratov airport
12:55 26-06-2017
Ismailov’s mall in Las Vegas seized for debts to Bank of Moscow
12:19 26-06-2017
Jewish community gets historic synagogue in Simferopol
11:49 26-06-2017
Sales of new buildings in USA grew by 3%
11:22 26-06-2017
Georgia completes construction of its largest nuclear power plant
10:39 26-06-2017
Using Nord Stream 2, Russia takes revenge on Ukraine - Poroshenko
09:50 26-06-2017
Russian billionaire’s company buys British Holland & Barrett
16:56 23-06-2017
Cabinet of Ministers allotted land plot for construction runway-3 in Sheremetievo
16:31 23-06-2017
KamAZ to invest €50m in production in Senegal
14:46 23-06-2017
Lukoil won a tender on supply of 2,700 tons of oil to Severstal enterprises
14:17 23-06-2017
President Putin to control pipeline mating at the Turkish Stream construction
13:37 23-06-2017
Reconstruction of Moscow conservatoire to be completed
13:26 23-06-2017
Thrill rides to be built in Moscow Luzhniki
12:54 23-06-2017
Unique green roofing to be built in Moscow during renovation
12:32 23-06-2017
The Chinese participating in Moscow Metro construction
11:16 23-06-2017
Grand fraud discovered at a business centre construction site in Krasnoyarsk
18:02 22-06-2017
Rostec to restore enterprise producing acoustic equipment
17:50 22-06-2017
Seven plants to open in Dubna special economic zone
17:35 22-06-2017
Putin heads for Anapa to control Turkish Stream pipeline link-up
17:12 22-06-2017
Heineken sells its brew-house in Belarus
16:53 22-06-2017
Tesla signs preliminary agreement on plant building in China
16:35 22-06-2017
Industrial warehouse in northern Moscow put on auction for $751,000
16:02 22-06-2017
China suggests project for Changchun – Vladivostok high-speed railway
15:33 22-06-2017
Europe’s gas demand exceeds Nord Stream 2 capacity, Wintershall says
14:56 22-06-2017
Poland to demolish 500 monuments to Soviet soldiers
All news


«    June 2017    »

Road construction market: companies are many, leaders take a back seat

logo russianconstruction.com
Road construction market: companies are many, leaders take a back seat

The results of the marketing research of one of the most competitive markets of the Russian economy 

According to the results of 2016, the decline rate of the Russian road construction market reached 6.3%, when compared with 2015, and the market volume decreased to 0.9 trn roubles (≈$15.6 bln).


It is a third less than the experts’ pre-crisis forecasts showed in 2013. On the whole, the decrease trend, having started in 2014, depicts the macroeconomic condition.

According to the analytical forecasts, in 2017 the market will show a slight growth (+4,3%), compared with 2016, and will float in the range of -5% to +5% in the coming two or three years.

The growth strategy of the majority of road construction companies is based on the optimisation of the interior business processes in order to minimise expenditures and to expand their geographical presence.

Market growth drivers

The key factor of the market growth is the dissatisfactory condition of the automobile transport infrastructure and the growth of freight traffic connected with the achieving of the peak of rail infrastructure capacity.

60% of federal roads do not meet the norms and regulations, whilst the share of regional roads not meeting the norms and regulations is over 80% in 13 areas of the RF, with 19% of bridges needing reconstruction. 

The growth and progressive development of the road construction market is to a large extent determined by the state policy of the country’s infrastructure development and appropriate budget financing. The main source of construction financing and automobile transportation infrastructure maintenance will be road funds. 

The biggest volume of road construction until 2018 will occur in the Central, Volga and Siberian Federal Districts of the RF. About a quarter of the financing will be targeted at new construction.

Road construction market: companies are many, leaders take a back seat

Rivalry on the market

The road construction market is one of the most competitive in the Russian economy. It could be called a classic example of a perfectly competitive market, of which there are few in Russia. More than 3,000 companies had worked in this niche market by December 1st, 2016.

The absolute leaders of the market are Mostotrest GC, IFSK ARKS, VAD Ltd., USK MOST, Volgomost, STROY-TREST, Avtoban and Sibmost. These companies cover about 20% of the whole Russian road construction market.

Despite the high level of rivalry, only a third of the companies present in this niche market use the positioning strategies for tuning out from competitors. However, the study of these strategies shows that about half of them are inefficient.

By December, 2016 only 2 out of 10 companies working in the road construction market managed to organise their marketing and advertising campaigns for increasing their orders’ portfolio efficiently.

The remaining 8 companies either do not have marketing and promotion at all or do it inefficiently (due to the expenditure of resources). The companies using marketing tools have a 10-fold larger share of the tenders won than those who prefer to do without them.

Common mistakes in the strategies of tuning out from competitors are typical for the Russian construction market and are connected with the focus on the quality of the fulfilled work, or excessive use of image-building commercial modules.

The companies which use the strategies of tuning out from competitors carefully pay attention to minimisation of the price for a customer and focus on such important factors as efficient project management (which determines the final cost of the project) and the opportunity (in fact, minimisation) of servicing the completed projects.


The results of the marketing study show that in 2017 the market will acquire the form necessary for the coming five years. In particular, large companies will start  to give way to smaller businesses and will have to focus on large regional and industrial-infrastructural projects.


With the use of marketing investigation materials by the Simple Analytics agency. 

Related publications