KPMG on Russia’s road infrastructure market prospects

Research by KPMG has revealed that the Russian road infrastructure market is growing by an average ten per cent per year. The market may total US$43.62 billion by 2020, compared with US$9.9 billion in 2007. According to analysts, only large federal road construction companies are able to achieve the highest profitability. However, such companies will have to reduce costs because contracts are becoming bigger and more complex and include construction of artificial structures, for example. Consolidation of co
December 5, 2013 Read time: 1 min
Research by 1981 KPMG has revealed that the Russian road infrastructure market is growing by an average ten per cent per year. The market may total US$43.62 billion by 2020, compared with US$9.9 billion in 2007. According to analysts, only large federal road construction companies are able to achieve the highest profitability. However, such companies will have to reduce costs because contracts are becoming bigger and more complex and include construction of artificial structures, for example. Consolidation of companies by means of mergers and acquisitions in order to expand geographic reach or to boost a market share is one of the main trends of the market.

According to KPMG, an average road construction tender value amounted to US$90 billion in 2012 against US$81 billion in 2011.

Related Content

  • February 2, 2012
    Financing the US road infrastructure – road user charging?
    In the US, the National Transportation Infrastructure Financing Commission's report to Congress will state that a national, distance-based charging is the only long-term solution to the country's infrastructure financing problems. The Commission's Chair, Rob Atkinson, talks to ITS International
    Read More
  • January 15, 2016
    Smart railways market ‘worth US$13.77 billion by 2020’
    According to new market research report by MarketsandMarkets, the smart railway market is predicted to grow from US$5.34 Billion in 2015 to US$13.77 Billion by 2020, at a CAGR of 20.8 per cent over the period. The smart railways concept includes the combination of advanced solutions and services of intelligent transportation with the information and communication technology. It facilitates the smart use of rail assets, from tracks to trains which will enable companies to meet the increasing consumer dema
    Read More
  • January 24, 2017
    Moody’s: Burden of infrastructure spending increasingly falling on US states
    Repairing or replacing aging transportation infrastructure, such as roads and bridges, will require US states to shoulder additional cost burdens since federal funding has stagnated over the last 20 years, Moody’s Investors Service says in a new report. States with large maintenance burdens and backlogs will face budgetary challenges in meeting these needs. US federal highway aid has seen little growth from fiscal 2009-15 and is projected to remain flat when adjusted for inflation through fiscal 2020. Th
    Read More
  • July 10, 2012
    Road fatalities in Germany increase sharply, reversing a 20-year trend
    According to Germany's Federal Statistics Office, Destatis, the number of people who died in road traffic accidents in Germany increased by 9.9 per cent to 4,009 in 2011 compared to 2010 - the first time in 20 years that the number of fatalities has risen. Paradoxically, the overall number of road traffic accidents registered by the police was down by 2.1 per cent (to 2.36 million in 2011) compared to 2010.
    Read More

Highlighted Content