Bitumen Market Size, Share & Industry Analysis, By Type (Paving, Oxidized, Cutback, Emulsion, and Polymer Modified) By Application (Roadways, Waterproofing, and Others), and Regional Forecast, 2024-2032

The global bitumen market size was USD 56.30 billion in 2023 and is projected to grow from USD 58.43 billion in 2024 to USD 77.98 billion in 2032 at a CAGR of 3.8% during the forecast period. Asia Pacific dominated the bitumen market with a market share of 37.03% in 2023. Moreover, the bitumen market in the U.S. is projected to grow significantly, reaching an estimated value of USD 16.53 billion by 2032, driven by the ongoing infrastructure projects, including road construction, highways, bridges, and airports.

The global market is projected to grow significantly, owing to the rapid growth in demand from the construction sector. It also called asphalt, is a petroleum based product obtained through the distillation of crude oils. The distillation process removes the lighter crude oil components, which leaves the heavier components like asphalt at the bottom. It also occurs naturally in tar pits that are basically asphalt pools. Asphalt is composed of complex hydrocarbons and inorganic elements such as iron, Sulphur, calcium, and others. It is employed in road construction and paving, adhesive & sealants, waterproofing and other applications.

The COVID-19 pandemic caused a decline in the market due to lower construction activity and transportation problems. However, as economies gradually reopened and infrastructure investment resumed, the market recovered. Increased government spending on infrastructure and a comeback in construction projects drove demand for bitumen, resulting in a market bounce despite continued obstacles and uncertainty.

Bitumen Market Trends

Increasing Adoption of Bio-asphalt To Influence Market Growth

Bitumen is a petroleum-based product normally employed in the construction industry as a binder for pavements. However, petroleum-derived is non-renewable and not a sustainable product. Due to the increasing awareness in consumers regarding the degrading effects of certain petroleum products on the environment and human health, there has been significant research in finding a sustainable alternative for asphalt. Bio-asphalt is a non-petroleum-based binder derived from sustainable sources like biomass, including molasses, starch, trees, cellulose, lignin, and natural latex. The similar behavior and enhanced properties of bio-asphalt are driving the demand for bio-asphalt in the market.

Steady Demand from Road Maintenance and Repair to Create Growth Opportunities

One significant opportunity in the market derives from the ongoing demand for road maintenance and repair. The global transportation network is subjected to tremendous wear and tear, and keeping roads in good condition is crucial for the safety and efficient movement of goods and people. The continual requirement for road maintenance generates a steady and predictable demand for bitumen. Road construction and repair projects are spread out throughout areas and often occur, providing bitumen suppliers with steady business possibilities throughout the year instead of major infrastructure projects, which may be concentrated in bursts of activity.

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Bitumen Market Growth Factors

Increasing Road Construction Activities to Propel Market Growth

Bitumen is widely used in paving and road construction owing to its exceptional properties and advantages over other pavement construction materials. They have unique and innate properties that allow them to be used as raw material in road construction and pavements. Ongoing road construction projects, such as the Indian government’s Bharatmala Pariyojana project launched recently, will foster the market growth. Under this project, the Ministry of Road Transport and Highways has sanctioned the implementation of 34800 km of national highways in the upcoming five years. Twenty-two Greenfield projects are to be constructed under this scheme. Additionally, in October 2020, the nine national highway projects to increase the connectivity of Tripura were initiated with a total length of 262 km. This is expected to fuel the bitumen market share.

Growing Demand for Bitumen Products from Waterproofing Application to Influence Growth

Product types such as roof, primer, paint, coating, sealants & adhesives and others are in high demand owing to their exceptional properties. Asphalt waterproofing sheets are used in waterproofing applications. Bituminous membranes and films are highly employed in waterproofing basements, bridges, underground structures, and other infrastructures. According to Sika AG, one of the prime manufacturers, approximately 60% of the flat roof market is dominated by asphalt technologies. This is projected to boost bitumen market growth.

RESTRAINING FACTORS

Toxicity of Certain Chemicals Used In Bitumen Products May Hamper the Market

Various petroleum solvents are used in manufacturing products such as asphalt emulsions. Some of these solvents like kerosene are hazardous in nature and are toxic for humans. Additionally, working with hot asphalt can be dangerous as there are risks of acute and severe burns. This is expected to limit the growth of the market.

Bitumen Market Segmentation Analysis

By Type Analysis

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Paving Segment to Dominate Market Share Owing To the Better Performance

The market is segmented into oxidized, paving, cutback, emulsion and polymer modified. The paving grade segment is held the prime share in the market in 2023 owing to the high demand from the road construction industry. The oxidized and cutback segment is expected to show significant growth by the end of the forecast period. Polymer-modified is expected to grow considerably owing to its exceptional properties and advantages over cutback and oxidized asphalt.

By Application Analysis

Roadways Segment to Capture Fair Share Due To Increasing Road Construction

The market is segmented into roadways, waterproofing and others in terms of application. The roadways application segment dominated the market in 2023 and is expected to continue its dominance owing to the increasing road construction activities. The waterproofing segment is expected to contribute fairly to the market.

REGIONAL INSIGHTS

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Asia Pacific dominated the global market in 2023 and is expected to continue its dominance attributed to the various initiatives and schemes set up by governments to improve the public infrastructure. For instance, in September 2021, the Indian government announced road projects worth USD 13.8 billion to develop road infrastructure in Jammu & Kashmir. The improving socio-economic conditions and booming construction is the prime factor driving the market growth.

Europe is one of the key markets. High demand for emulsion and cutback from Europe is expected to boost the demand. Increasing construction activities and the adoption of asphalt films and sheets in waterproofing solutions are likely to drive market growth.

North American market is projected to grow noticeably. Due to the increasing awareness regarding the depletion of crude oil and petroleum reserves, there has been an increase in demand for bio-asphalt.

Latin America and Middle East & Africa are anticipated to record sluggish growth. Rapid industrialization and urbanization are leading the market towards growth.

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List of Key Companies in Bitumen Market

Leading Players Adopt Novel Strategies to Expand Market Presence

With a large number of global players, the market is consolidated in nature. Exxon Mobil, Royal Dutch Shell, Indian Oil Corporation, Raha Bitumen, and Sinopec are the key manufacturers.

Key players in the industry mostly operate solely on the product's value and functional features. Several large companies are establishing strategic partnerships to promote marketing and sales in order to increase their market share and get a competitive edge.

LIST OF KEY COMPANIES PROFILED

• Asphalt & Bitumen West Co. (Iran)


• Raha Bitumen (Iran)


• Asia Bitumen (Iran)


• Exxon Mobil (U.S.)


• Royal Dutch Shell (Netherlands)


• Sinopec (China)


• Nynas (Sweden)


• GOIL Ltd (Ghana)


• Total Energies (France)


• Gazprom Neft (Russia)


• Indian Oil Corporation (India)

KEY INDUSTRY DEVELOPMENTS

• May 2021 – In response to the market situation, the manufacturing facility of Exxon Mobil in Singapore restarted its production activities. The facility has a manufacturing capacity of 100000-120000 tons per month.


• March 2019- Royal Dutch Shell, a global manufacturer, introduced a green and sustainable asphalt product under the brand name FreshAir. This product is expected to lower the impact of the emissions released from asphalt production and road construction.

REPORT COVERAGE

An Infographic Representation of Bitumen Market

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The market research examined the industry in detail, looking at specific factors such as leading contenders, commodities, and raw materials. Moreover, the study explores significant industrial breakthroughs and provides insights into market trends. The research covers a wide range of variables that have contributed to the industry's growth in recent years, in addition to the points mentioned previously.

This research examined the industry's latest market fundamentals and opportunities, as well as historical data and revenue growth estimates at global, regional, and national and provincial level.

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Report Scope & Segmentation