Bitumen Market - Growth, Trends, and Forecasts (2023 - 2028)

The bitumen market was estimated at over 100 million metric ton in 2020, and the market is projected to register a CAGR of more than 4 % during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020 and it recorded positive growth rate in 2021 . According to the International Monetary Fund (IMF) projections, the global GDP growth was projected to be -4.9% in 2020. However, in 2021, global growth is projected at 5.4%. Moreover, the performance of the construction sector is projected to be affected moderately due to the impact on the liquidity of money as a result of affected income of a relatively larger section of the society, which is expected to affect the market studied. Declining investments in the road and building construction segment led to a decrease in the consumption of bitumen in applications like road construction, waterproofing of building roof and basement, sealant, filler, and adhesive, which in turn, negatively impacted the bitumen market.

Key Highlights

• Over the short term, increasing road construction and repair activities and increasing demand for bitumen as filler, adhesive, and sealant from the commercial and domestic building construction sectors are expected to drive the bitumen market's growth. For instance, several major infrastructure construction investments are also noticed in Middle Eastern countries, where about 1,069 road projects were underway as of February 2020, which is likely to enhance the market demand for road construction and repair activities.
• Increasing environmental concerns regarding bitumen and unfavorable conditions arising due to the impact of COVID-19 are hindering the market's growth.
• R&D on bitumen processing to improve road infrastructure and development of high-performance bitumen products like shell cariphalte, shell mexphalte, and others are likely to create opportunities for the market in the coming years.
• The Asia-Pacific region is expected to dominate the market, and it is also likely to witness the highest CAGR during the forecast period. Robust growth in construction activities in the Asia-Pacific region is also expected to drive the market growth in the forecast period.

Bitumen Market Trends

Increasing Demand Due to Increasing Road Construction Activities

• Most of the bitumen consumed is processed into asphalt for road construction. Asphalt is a mixture of rock aggregates and bitumen. Bitumen serves as a binding agent and is responsible for the stability of asphalt.
• Depending on the type of bitumen or composition of the mixture used, asphalt roads can be made suitable for regions with different climatic conditions or various levels of operational demands. Asphalt is also used for airport runways, parking decks, and working areas in ports.
• In developing economies in Asia-Pacific, infrastructure activities are expected to increase significantly, especially in the transportation sector, owing to increasing urbanization and shifting focus toward developing secondary sectors in these countries. Furthermore, increasing economic prosperity is driving the infrastructure financing toward consumer sectors, including transportation and manufacturing, which provide and distribute raw materials for consumer goods.
• In 2021, 13,298 kms of highway was constructed across India. In June 2021, the Ministry of Road Transport and Highways constructed 2,284 kms of national highways compared with 1,681 kms in June 2020.
• Under NIP, India has an investment budget of USD 1400 billion on infrastructure 19% on roads & highways. India's recently passed budget to develop seveal industrial corridors which includes Delhi-Mumbai Industrial Corridor, Amritsa-Kolkatta Industrial Corridor, Vizag-Chennai Industrial Corridor, Bengaluru-Chennai Industrial Corridor and Bengaluru-Mumbai Industrial Corridor.These projects excepted to completed by March 2025, which are expected to increase the demand for bitumen in the coming years.
• Owing to all these factors, the bitumen market is likely to grow globally during the forecast period.

The Asia-Pacific Region is Expected to Dominate the Market

• The Asia-Pacific region dominated the global market share. In Asia-Pacific, China is the largest economy, and the growth in the country remains high, but it is gradually diminishing as the population is aging and the economy is rebalancing from investment to consumption, manufacturing to services, and external to internal demand.
• While the residential sector is enjoying a strong recovery, the results for the office, retail, and logistics sectors have been mixed. The office markets in Tier 1 cities (including Beijing, Shanghai, and Shenzhen) generally remain healthy and continue to enjoy strong demand for office space, driven by the information technology (IT) and finance sectors.
• India has the second-largest road network in the world, spanning a total of 5.89 million kilometres (kms). This road network transports 64.5% of all goods in the country and 90% of India's total passenger traffic uses road network to commute. Road transportation has gradually increased over the years, which in turn, stimulates the demand for bitumen.
• In 2020, the total length of national highways in India was around 1,34,400 kilometers, and the aim is to add another 60,000 kilometers by 2025, which is likely to stimulate the demand in the bitumen market in the country.
• The major upcoming projects in the country that are likely to increase the demand for bitumen are the Delhi-Mumbai Industrial Corridor, Bharatmala Project, Gujarat International Finance Tec-City (GIFT), Smart City Kochi, and Navi Mumbai International Airport.
• Under Phase-I of Bharatmala Pariyojana, the Ministry has approved implementation of 34,800 km of national highways in 5 years with an outlay of Rs. 5,35,000 crore (US$ 76.55 billion). Under this scheme, 22 greenfield projects (8,000 kms length) are being constructed; this is worth Rs. 3.26 lakh crore (US$ 43.94 billion). These projects are excepted to stimulate the demand for bitumen.
• Due to all such factors, the market for bitumen in the region is expected to have rapid growth during the forecast period.

Bitumen Market Competitive Analysis

The bitumen market is fragmented with no major players having a dominant share in the market. Some of the major players in the market include Exxon Mobil Corporation, Royal Dutch Shell PLC, BP PLC, Nynas AB, and China Petroleum & Chemical Corporation, among others.

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• The market estimate (ME) sheet in Excel format
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