Global Bitumen Market - Segmented by Product Type, Application, and Geography - Growth, Trends and Forecast (2018 - 2023)
The bitumen market is expected to witness a CAGR of 4% during the forecast period of 2018—2023, driven by the increasing road construction projects, and other domestic & commercial projects, mostly in the Asia-Pacific region. Besides this, the demand for bitumen from the adhesives industry to produce bituminous adhesives, used for waterproofing, flooring, etc., is expected to generate further demand in the bitumen market in the coming years.
Increasing Road Construction Projects Driving the Market
Asphalt bitumen is widely used as the binding organic material, which is made from the by-products of refined crude oil. Asphalt bitumen is used in road construction as it is easy to produce, reusable, non-toxic, and a strong binder. The road construction sector has been witnessing a strong growth, mostly in Asia-Pacific and Europe, which has been driving the demand in the bitumen market. In Europe, the road building market is expected to have a strong growth up to 2019. In Asia-Pacific, emerging countries, like India, Japan, Indonesia, Vietnam, Philippines, etc., are expected to witness an increase in the demand for bitumen during the forecast period, owing to the numerous government initiatives in the region for developing and improving public infrastructure.
Road Construction to Dominate the Market
By application, road construction is expected to dominate the market demand for bitumen. Recently, China has come up with China's Belt and Road Initiative (also known as New Silk Road), which aims to connect Asia, Europe, and the Middle East & Africa with a vast logistics and transport network, using roads, airports, railway tracks, ports, pipelines, transnational electric grids, and even fiber optic lines. Besides this, the government has been investing substantially in infrastructure development, which is expected to make road construction a dominant segment among its applications.
Asia-Pacific - A Potential Market
Asia-Pacific is projected to dominate the bitumen market, globally during the forecast period, owing to the booming construction industry and increasing public infrastructure projects in the region. India in its 2018 budget, allotted INR 21,453.42 crore out of INR 71,000 crore budgetary allocation to the Highways Ministry for work under the road wing. It includes expenditure on development of National Highways, including projects relating to expressways, two-laning of highways, under the National Highways Development Project, six-laning of crowded stretches of the Golden Quadrilateral, a special programme for the development of road connectivity in Naxal affected areas, development of Vijaywada—Ranchi road, and for providing last mile connectivity. In February 2018, Philippines and Japan signed a YEN 9.4 billion loan for the construction of the third phase of a road project in Bulacan. China, on the other hand, is developing New Silk Road, for which the country has already built railway lines between Addis Ababa & Djibouti, Nairobi & Mombasa, and is likely to start projects in Uganda, Rwanda, and the Democratic Republic of Congo in the near future. With such development projects, the demand for bitumen is expected to be the largest in the Asia-Pacific region, followed by Europe.
Key Developments in the Market
March 2018: Sadbhav Infrastructure received INR 934 crore highway project from National Highways Authority of India (NHAI) in Karnataka. The project involves widening of Tumkur—Shivamogga on NH 206 under the National Highways Development Project phase IV.
Major players are Chevron Texaco Corporation, British Petroleum, China Petroleum and Chemical Corporation, Royal Dutch Shell PLC, and Exxon Mobil Corporation, amongst others.
Reason to Purchase the Report
Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis.
To understand the dominating product type in the bitumen market.
Identify the countries expected to witness the fastest growth during the forecast period.
Identify the latest developments, market shares, and strategies employed by the major market players.
3-month analyst support along with the Market Estimate sheet (in Excel).
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