Mechanical Engineering in Russia

Main article: Industrial production in Russia

Car production

Main article: Car production in Russia

Aviation industry

Main article: Aviation industry of Russia

Machine-tool construction

Main article: Machine tool building in Russia

Chronicle

2024

The first production of asynchronous traction motors for trains in Russia has been launched. ₽6,7 billion invested in it

On November 19, 2024, it became known that TMH-Electrotech opened in Novocherkassk the first production of asynchronous traction motors of four types for railway transport in Russia. The total investment in the project amounted to ₽6,7 billion. Read more here.

A plant for the production of components for road, drilling, quarry and logging equipment was built in the Moscow region

In the Moscow region, in the Dolgoprudny urban district, a new plant was built for the production of components for road, drilling, quarry and logging equipment. The project was implemented by UDT-Technika LLC as part of the regional import substitution support program "Earth for 1 ruble." This was reported by the press service of the Ministry of Investment, Industry and Science of the Moscow Region at the end of October 2024. Read more here.

In Kurgan for ₽1 billion launched a plant for the production of loaders

In mid-October 2024, the grand opening of a new loader plant took place in Kurgan. The company ITM Power Transmissions LLC, which is part of the Kurgandormash structure, is located on the territory of the former ZhBI-2 plant on Mashinostroiteley Avenue. The total investment in the project amounted to more than ₽1 billion. Read more here

Russian mechanical engineering has almost doubled production in three years

The volume of mechanical engineering in monetary terms in Russia in the first quarter of 2024 reached 560.1 billion rubles. This is almost double the result of three years ago. So, in the first quarter of 2021, an indicator of 295.2 billion rubles was recorded. Such data are given in the report of the Institute for Statistical Research and Economics of Knowledge of the Higher School of Economics, which was published on June 27, 2024.

It is noted that in connection with the formed geopolitical situation, the engineering industry received a powerful impetus for development. According to the results obtained during the study, more than 40% of enterprises in Russia have "very high" and "high" potential for implementing the process of producing import-substituting products. Nearly 60% of companies have a "high" and "medium" level of readiness for the use of new technologies, while more than 40% of industries funded projects for their implementation. About a third (31%) of companies faced the need to invest in technological development.

According to the results of the first quarter of 2024, the number of organizations specializing in the production of machinery and equipment reached 14.8 thousand. This is 2.5% more compared to the same period in 2023. The number of medium and large organizations in January 2024 compared to January 2021 rose by 11.5% and amounted to 882. During the same period, the number of large and medium-sized enterprises for the production of machines, machines and equipment for the processing of metals and other solid materials increased from 25 to 29.

According to estimates, in January-April 2024, a total of 18.6 thousand machines were produced in the Russian Federation. Of these, metal-cutting installations accounted for 15.5% (about 2.9 thousand pieces), woodworking - 13% (2.4 thousand), turning, boring and milling metal-cutting - 9.8% (1.8 thousand), machine tools for removing burrs, grinding, grinding or machine tools for other metal refinement - 6.6% (1.2 thousand), woodworking round-saw, ribbon and cutting machines - 6.1% (1.1 thousand). Most of all, "other metalworking machines" were produced - 3.4 thousand units, or 18.4%.^[1]

2023

The volume of production of videos for production lines in Russia for the year increased by 16.4% and reached 6 billion rubles

The volume of production of videos for production lines in Russia in 2023 increased by 16% and reached 6 billion rubles. This is evidenced by the data that the analytical agency "GuideMarket" published in October 2024.

According to the study, the rise in production of conveyor rollers indicates that the market continues to develop, but the growth rate is beginning to slow down. The main factors remain the further implementation of import substitution programs, as well as the modernization of existing production facilities, analysts add.

The volume of the Russian rail engineering market for the year reached ₽1 trillion

The Russian railway engineering market, including track equipment, service and spare parts, reached a volume of ₽1 trillion at the end of 2023. Analysts (they released their data in September 2024) predict tenfold growth by 2030.

According to Rollingstock Agency (RSA), the market for rail rolling stock in the period from 2024 to 2030 will exceed ₽7 trillion, and taking into account components and service, it can reach ₽10 trillion.

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Freepik

Managing partner and co-founder of RSA Alexander Polikarpov stressed: "The market for trunk diesel locomotives in 2024-2030 will amount to ₽450-510 billion, which includes the purchase of more than 2 thousand sections - about 300 sections annually."

Russian Railways plans to acquire up to 10 thousand locomotives by 2035. In the shunting locomotive segment, about 210 units are expected to be purchased annually, with a total volume of 1.4 thousand units worth ₽165 -185 billion until 2030.

Mikhail Burmistrov, director of Infoline Analytics, notes a steady demand for updating the fleet of shunting locomotives in industry. The emergence of an import-substituted TEM23 model with a KamAZ engine worth ₽100 million makes buying more profitable than renting.

In the passenger segment, annual deliveries of 700 locomotive traction cars and 1,000 units of motor-car rolling stock are predicted. The market size until 2030 is estimated at ₽650 -720 billion and ₽1,1 -1.2 trillion, respectively.

The tram market is also showing an excess of demand over supply. According to the RSA, the demand is more than 4 thousand units with a total value of ₽450 -480 billion. In the metro segment, demand is expected for 350 cars per year with a market volume of ₽440 -490 billion until 2030.

The successful implementation of forecasts depends on the introduction of long-term contracts and a reduction in the key rate to increase the attractiveness of leasing and investments in the development of the component base.^[2]

Decline in internal combustion engine production by 10.8% to 202.4 thousand units

The production of internal combustion engines in Russia decreased by 10.8% in 2023, amounting to 202.4 thousand units. The continued decline in production became known in November 2024 from official statistics.

According to Rosstat, the December engine output amounted to 17.1 thousand units, which demonstrates a decrease of 0.4% compared to December 2022 and 6.5% compared to November 2023. A decline in production is observed in all federal districts of the country.

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Freepik

The average annual rate of decline in production for the period 2017-2023 reached 5.8%. Production indicators decreased significantly after the peak value of 2021, when 341.7 thousand engines were produced.

The Central Federal District maintains its leadership in the industry, providing 47.5% of all-Russian production. The Volga Federal District follows it with a share of 46.6% of the total output over the past six years.

According to Rosstat, despite the reduction in production, engine prices continue to rise. The average cost in January 2023 reached ₽249,9 thousand per unit, an increase of 21.9% compared to January 2021. At the same time, there is an optimization of warehouse stocks: the volumes stored by manufacturers decreased by 53.1% by January 2022, amounting to 3.9 thousand units.

The decline in internal combustion engine production reflects general structural changes in the Russian automotive industry. In 2022, output decreased by 33.3% compared to the previous year, continuing negative dynamics in 2023.

The downward trend in the production of internal combustion engines is observed in all federal districts, which reflects large-scale changes in the structure of the automotive industry in Russia.^[3]

The volume of the Russian escalator market for the year increased by 22.2% to 605 units

In October 2024, it became known about the growth of the Russian market for escalators and moving pedestrian paths. At the end of 2023, the market volume increased by 22.2% compared to 2022, reaching 605 units of installed equipment.

According to the analytical company GuideMarket, this growth indicates the beginning of the market recovery after a serious decline in 2022. By comparison, in 2022, the market size was only 495 units, which is significantly lower than in 2019, when 1,039 units of equipment were installed.

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RBC

Experts note that the main factors that influenced the decline in market volumes in 2022 were restrictions on the import of equipment from abroad and the departure of many large players from the Russian market. However, already in 2023, positive trends were outlined, indicating a gradual exit of the industry from the crisis.

Analysts at GuideMarket predict that in the coming years the Russian market for escalators and moving tracks will show ambiguous dynamics. To further restore and develop the market, it is necessary to develop domestic production and support from the state, including subsidies and benefits for manufacturers.

Experts see new opportunities for market growth in the growing demand for the modernization of outdated equipment, the integration of digital technologies into escalators and moving paths, as well as in the expansion of the geography of equipment installation due to the development of infrastructure in remote areas of the country.

Despite the current challenges, the industry has good prospects for recovery and further growth. It is expected that the development of domestic production will reduce dependence on imports and create competitive products on the Russian market.

Experts also note the importance of introducing innovative technologies into the production of escalators and moving tracks. Integration of digital solutions can increase the efficiency and security of equipment, which will be an additional incentive for market growth in the future.^[4]

Bearing production in Russia increased by 29.5% to 114.4 million units

In 2023, 114.4 million bearings were produced in Russia. This is 29.5% more than in the previous year, when the volume of production of these products amounted to 88.4 million units. The main drivers of the industry are the high demand for such products and comprehensive measures of support from the state. Market trends are addressed in the BusinesStat survey published in mid-October 2024.

The study takes into account bearings of various types, including ball and roller. Significant players in the domestic market are Tek-Kom Production LLC, GPZ LLC, Emas-Turbo LLC, PJSC Pskov Mechanical Drive Plant and GPZ-77 LLC.

According to estimates, 92.3 million bearings were manufactured in Russia in 2019. In 2020, a 5.7% drop was recorded with a final result of 87.1 million units. The decrease in production was associated with both a decrease in demand for products and a reduction in capacity due to the COVID-19 pandemic and related restrictive measures. In 2021, the production of bearings recovered to the level of 2019, amounting to 93.9 million units, which is 7.8% more on an annualized basis.

In 2022, bearing production in Russia decreased by 5.8% and amounted to 88.4 million units. The decrease is mainly due to the departure from the Russian Federation of foreign companies, either directly engaged in the manufacture of products within the country, or which were their consumers. The most acute was the departure of manufacturers of cassette bearings used in car building. Manufacturers such as EPK-Brenko Bearing Company LLC, SKF LLC and Timken UWC LLC worked in partnership with Amsted Rail, SKF and Timken, respectively. Temporary deliveries of cassette bearings were replaced by Chinese companies. In 2023, the market returned to growth - including thanks to government support programs.^[5]

Bearing production for the year soared by 26.3% to 61.2 million units

In 2023, the production of ball and roller bearings in Russia reached 61.2 million units. This is 26.3% more than in the previous year, when 48.5 million products were manufactured. Such data are given in the review of the analytical agency "GuideMarket," published in early September 2024.

The study says that in 1990, 1.17 billion rolling bearings were produced in the USSR, which almost completely covered the needs of the country's domestic market. Products were also exported, occupying a significant niche in the global market. However, between 1990 and 2010, there was a multiple reduction in the production of machine-building products, which led to the cessation of the production of some types of bearings and a decrease in the quality of the rest. As a result, after 2000, the production of ball and roller bearings in Russia showed stable negative dynamics.

The situation began to change due to the serious deterioration of the international landscape of geopolitics and the instability of world markets. The successful implementation of the import substitution program makes Russia less dependent on external factors, as well as on measures taken by other states to curb the development of the national economy. Against this background, in 2022, the volume of production of ball and roller bearings in the Russian Federation rose by 16.3% compared to 2021.

The positive trend in demand for rolling bearings in Russia is explained by several key factors. Among them are the development of domestic engineering against the background of sanctions and import substitution in various sectors of the economy, an increase in the production of the military-industrial complex in connection with a special operation, as well as an increase in demand from the railway sector.^[6]

Notes