The Russian Aerospace industry is capitalizing on innovation and modernization.

To keep up with its ambitious projects in all the segments of the industry, aircraft building, engine manufacturing, and space rocket construction. The Federal Space Program budget for 2016-2025 amounts to 1.3 trillion RUB (19.2 billion CHF), out of which 175 billion RUB for R&D and 25 billion RUB for capital investment were already granted.

Integrating the Russian aerospace supply chain became easier.

Roscosmos, the Russian space agency, is shifting to a horizontal organization. Its new management acknowledges the urgent need to involve private and innovative companies in the sector in order for it to strive and defend its position in the global value chain. This shift, along with the import replacement program, makes it possible for foreign SMEs to reach the Russian markets in the making.

Technology development will depend on the competitiveness of private companies.

From process management solutions to components manufacturing, there is a wide range of competencies that the Russian aerospace industry needs to integrate. These are necessary steps to form a reliable supply chain for the ambitious projects coming ahead.

The demand for composite materials, alloys, and components increases.

Currently, the aviation segment lacks suppliers and modern machine tools to meet their needs, whereas 35% of the wings of the new passenger aircraft MS-21 are made of composite materials.

Accourding to new laws the composition of foreign components in the satellite constellation has to be reduced to 10% by 2020.

In the space segment, the GLONASS-M satellite constellation is composed of 40% of foreign components, but according to new laws, it has to be reduced to 10% maximum by 2022.

Table of content

Industry overview
  • Macroeconomic
  • Clusters Mapping
Business Opportunities
  • SWOT Analysis of the Russian aerospace industry
  • Investments and Governmental support
  • Expertise and Know-How
Trends and Goals
  • Russian Aerospace Industry Tasks and Key Challenges
  • International Cooperation
Description of Major Clusters
  • Clusters in Central Russia
  • Clusters in the Volga Region
  • Clusters in Eastern Siberia and the Far East
Space Rocket Segment (rocket construction and satellites)
  • Value Chain
  • Main Players in the Sector
  • Federal Space Program
  • Understanding of the Russian space rocket segment
Aviation (aircraft and helicopter construction)
  • Value chain
  • Main Players in the Sector
  • Long term development priorities
Engine Construction (Aviation and Rocket engines)
  • Main Players in the sector
  • Long-term development perspectives
Roscosmos profile
  • Annex 1: List of Russian aerospace companies

The rocket building segment particularly needs to modernize its equipment.

Over 80% of the metal-cutting equipment has been in operation for more than 10 years. It concerns measurements tools, the design of manufacturing tooling (molds, stamps, fixtures, ancillary tools) and machinery for the thermal processing of components. The Samara Region, the country’s rocket-building hub, is considering a 1 billion RUB (15 million CHF) project to create a common machine tool manufacturing facility for its aerospace cluster.

Modernizing production equipment is particularly important for exports.

The demand for certain Russian products is increasing. For example, for additional contracts for 20 rocket engines to the 1 billion USD contract for 101 engines (RD-180 model) to be delivered by 2019. Large projects in the satellite communication market increase the need for production capacities, with 640 satellites to be produced and deployed by 2028 for navigation systems improvement.

"SCE Experts would like to thank the Swiss Samara Center for its Industrial Report on Russian Aerospace Industry. Prior to reading the market research, we had little insight on the Russian Aerospace market. After reading this very thorough report, I was enlightened with the high added-value information shared within. The quality of the structure and content of this study encouraged us to join the cohort traveling to Russia for the fact-finding mission in 2019. SCE Experts is now well informed and positioned in the Aeronautics sector to consider joint ventures and partnerships with the Russian Aerospace Industry. Once again, thank you for this excellent report".

Esther Mveng / Managing Director, S.C.E. Experts SA

OCTOBER 2018 – 51 pages

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