Real estate

The size of residential premises in Russia as of 2008 amounted to some 3 billion sq.m. Total industrial enterprises in Russia - 4,674,896, Hospitals – about 25100, Pre-school educational institutions – 46200, secondary special education institutions – 61000.

Potential, trend forecast: Decrease of the number of public medical institutions and unsatisfactory quality of public medical aid will boost further development of paid medical services and, consequently, the construction of a large number of private medical clinics.

Skating rinks, stadiums, sports centers, etc. are constructed using the funds allocated from the federal- and local budgets under Dedicated Federal Program Development of Physical Education and Sports in the RF for 2006-2015.

Sewerage equipment

The extent of provision of Russian cities and town with public amenities is fairly good: 84% are fitted with central cold water supply system, 72% are fitted with hot water supply system, and 84% are fitted with sewage system. The buildings' water supply systems have more than 130 million items of water supply items, 400 thousand pumping units and 230 thousand water heaters. The length of indoor pipelines is 810 thousand km, and the length of outdoor pipelines is 316 thousand km.

Climatic equipment

The size of climatic equipment market in Russia is nearing $1 billion. 12-15% of the total European sales of climatic equipment are done in Russia.

Experts expect further sales growth in the centralized air conditioning system sector, with a focus on large- and medium equipment (according to the data as of 2008). This trend is supported both by economic (growth of large-scale capital construction) and by social/technical factors (duly qualified personnel have been trained to develop and service such systems). Also, the market is expected to enter the "professional" stage where the market will be occupied by large companies offering the whole spectrum of services: design — delivery — installation — maintenance.

Heating Equipment

Total length of heating networks in Russia is 257 thousand km. Yet, pipelines with expired service make about 80% of the national heating networks. In 2006, heating network replacement pace did not exceed 0.5-1% of the total length (instead of the normal pace of 4-5% of the total length a year). Each unit of residential area in Russia is using, for heating, 2-3 time more energy than in Europe, and this is explained by absolutely unsatisfactory condition of the Russian heating systems rather than by harsh climate. Yet, it would be wrong to attribute all of these problems solely to the centralized heating (CH). In Russia, CH uses a very wide range of heaters. There include radiators made from cast iron (about 53% of the radiators in use), steel, aluminium alloys, and bimetallic types. Annual growth of sales of such products is about 15%.

Self-contained heat supply sources: In most cases, modern individual housing industry calls for installation of individual heat supply system, because it is difficult to integrate such houses in a centralized utility infrastructure. Procurement and installation costs make 20-30%, and the costs directly associated with heating equipment make 10-15% of entire construction costs.

Renewable energy sources

The current share of non-traditional energy sources in the total national energy sources used makes less than 1%. Compare this figure with the fact that this is the world’s fastest-growing energy source, making 13.5% of the world energy sales.

According to the Resolution issued by Chairman of Government in January 2009, renewable energy sources — wind power industry, solar energy, tidal energy, geothermal energy, small hydro-energy and biomass energy — have been approved as the major RES development industries of the national policy for the period until 2020.

Refrigerating equipment

The capacity of refrigerating equipment market in Russia was equal to about $1 billion.

The experts believe that the construction of new cold stores and chambers and refurbishment of the existing cold stores and chambers is the most promising field. Most of the experts presume that one of the reasons for the growing demand for industrial refrigerating equipment is an utmost depreciation of old, Soviet-era storage systems. According to the experts, the most promising regions for construction of industrial refrigerators in the not-too-far future include Moscow region, St. Petersburg region and Krasnodar krai.

Based on the growth of the Russian retail market size (20% a year), specialist expect growing sales of refrigerating equipment for this industry too.

As far as the industrial sector is concerned, experts expect that the market will be developing toward the use of natural coolants such as ammonia and carbon dioxide. Regarding the commercial sector, experts expect a further growth of demand for Freon-based equipment.

Sanitary

The entire market of plumbing fixtures can be conditionally divided into several segments subject to the functional applications: faience items (35%), mixers (25%), bathtubs (24%) and shower cabins (19%). The development of plumbing fixture market is largely conditioned by two factors: depreciation of obsolete equipment and growth of personal income. 80% of plumbing fixtures procured are used for replacement of obsolete fixtures in the existing residential areas, and 20% are used for installation in newly constructed houses. Most of plumbing fixtures are purchased by individuals. Domestic fixtures make just a little more than one half of the entire fixtures used. Yet, the ratio of imported and domestic plumbing fixtures is estimated by the experts as 80% / 20%. Many operators attribute the peaks in the sales of plumbing fixtures to the beginning or the end of construction season. High growth rate of plumbing fixture market is conditioned, in the first place, by the growing housing construction in almost every region of Russia. Besides, growth of both the domestic production and the import testified to a steady demand in all Russian regions. According to the forecasts, the share of Moscow region in the size of plumbing fixture market will be smoothly decreasing every year (according to the data as of August 2008). Experts also believe that the annual growth rate of plumbing fixture market in the next 5-10 years will remain at 20-30%, provided that personal income and construction growth rate come back to pre-crisis level. The share of domestic plumbing products is expected to grow to 25-30% of the total size of the market.

Water filters

Russian market of household water filters within the range from $125 million to $250 million. Others speak about $150 million (data as of 2007).

82% of the Russians use tap water for drinking. More than 70% of the families in Moscow and in St. Petersburg have filters. In the regions this index is much lower, with only about 15% of the Russians using household water filters. The highest index among the regions is demonstrated by the Central Federal District — 26% of people in this region use filters.

Today, the most promising channel for distribution of household filters is the cooperation with household equipment retail chains.

Analysis of changes in the period reviewed: According to the specialists, the domestic market of all types of water filters (both for drinking purposes and for other purposes) was growing by more than 20% a year (according to data as of 2008). The market was distinctly dominated by domestic water filters, especially in the segment of jug-type filters.

Potential, forecast of growth in Russia: The forecasts insist that the world market of household filters will double by 2015. According to the experts, the Russian market, too, has a large potential in view of the low level of presence of this type of products in the Russian families. This market is expected to be growing significantly in the next years, primarily through regional sales.