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The global bitumen market size was USD 49.45 billion in 2020. The market is projected to grow from USD 51.69 billion in 2021 to USD 67.14 billion in 2028 at a CAGR of 3.8% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 2.91% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
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.
COVID-19 Pandemic: Unavailability of Labor Caused Halt in Construction Projects
The construction sector suffered from the severe brunt of the COVID-19 pandemic. The immediate impact of the pandemic as all the parts of businesses, including production and supply, were halted immediately. Restrictions on traveling and compliance with the government norms caused a severe interruption in the business. During the initial phase of the pandemic, suppliers were unable to source raw material, whereas the contractors were unable to arrange the labor force. The construction sector has remained in flux due for the last few months but is expected to recover gradually.
The post COVID situation is showing positive signs of market recovery, such as decreasing unemployment. Regardless of the restarting of projects, the increased prices for products and raw materials indicate a strong revival of the economy.
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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.
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.
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.
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 2020 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.
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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 2020 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.
Asia Pacific Bitumen Market Size, 2020 (USD Billion)
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Asia Pacific dominated the global market in 2020 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.
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Latin America and Middle East & Africa are anticipated to record sluggish growth. Rapid industrialization and urbanization are leading the market towards growth.
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.
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.
Value (USD Billion) , Volume (Tons)
Type, Application and By Region
Fortune Business Insights says that the global market size was USD 49.45 billion in 2020 and is expected to reach USD 67.14 billion by 2028.
In 2020, the Asia Pacific market size stood at USD 18.24 billion.
Growing at a CAGR of 3.8%, the market will exhibit a steady growth rate during the forecast period (2021-2028).
The roadways segment is expected to be the leading segment in this market during the forecast period.
Growing demand from construction is expected to drive the market.
Exxon Mobil, Royal Dutch Shell, Indian Oil Corporation, Raha Bitumen, and Sinopec are major players in the global markets.
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