Bitumen Market-By Product Type, By Application (Road Construction, Roofing and Others); &By Geography - Forecast 2024-2030

Bitumen Market Overview

Bitumen Market is forecast to reach $ 154.57 billion by 2030, after growing at a CAGR of 3.56% during 2024-2030. Bitumen is widely used as a binding organic material, made from the by-products of refined crude oil and soluble in carbon disulfide. It is a crucial component of the asphalt, which is used to build roads, streets, and other parts of the infrastructure. The global demand for bitumen is rising due to the growing usage of bitumen in road construction, as it is easy to produce, non-toxic, and reusable. The bitumen industry is witnessing significant growth, driven by a surge in road construction activities across the globe. The versatility of bitumen in surfacing and paving applications contributes to its extensive usage in infrastructure development. The market trend reflects a rapid expansion in road construction projects, where bitumen proves to be an essential material. The ease of production and the environmentally friendly aspects of bitumen further enhance its appeal in the construction sector. As urbanization and infrastructure development continue to rise, the demand for bitumen is expected to maintain its upward trajectory, with the industry positioned as a crucial player in the global construction landscape. Additionally, the recyclability of bitumen aligns with sustainability goals, further fueling its adoption in modern construction practices. Overall, the bitumen industry is poised for sustained growth, driven by the increasing demand for robust and reliable road infrastructure and also worldwide Rapid growth in road construction activities with significant usage of bitumen for surfacing and paving purposes is a major growth factor for the bitumen industry during the forecast period.

Report Coverage

The report: “Bitumen Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Bitumen Market.
By Production: Penetration Grade Bitumen, Hard Grade Bitumen, Oxidation Grade Bitumen, Polymer Modified Bitumen, Modified Bitumen, and High-Performance Polymer Modified 
By Application: Road Construction, Roofing, Airport and Piping, Industrial Asphalts (Coloured Asphalts, Road Asphalts, Waterproof Asphalts)
By End Users: Construction, Oil and Gas, and Chemical Industry, Others
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina, and others), Europe (Germany, UK, France, Italy, Spain, and Others), APAC (China, Japan India, SK, Australia and Others), and RoW (Middle East and Africa)

Key Takeaways

• Asia Pacific dominated the bitumen market with a share of more than 38% during the forecast period. The Asia-Pacific region has traditionally been a significant consumer of bitumen, driven by extensive infrastructure development in countries like China and India. 
• Bitumen is widely used as a chemical additive in several applications such as black paints and solvents. Being a chemical additive bitumen helps in improving the efficiency of paints and coatings, and also improves the viscosity of waterproofing agents.
• Advancements in the production technologies of bitumen such as polymer-modified bitumen is projected to expand the overall market.

Bitumen Market Segment Analysis - By Product Type

The polymer polymer-modified bitumen segment held a significant share of the bitumen market in 2023. Polymer-modified bitumen is widely adopted for road development, construction, and building because of its superior durability and quality. Different types of materials such as thermoplastic elastomers such as rubber and styrene polymers, thermoplastic polymers such as polyethylene, ethylene copolymers, and polypropylene and thermosetting polymer resins are added to bitumen to alter its characteristics. Chemical or mechanical addition of these polymers in trace amount increases the elasticity and tensile strength multiple times, thus increasing its fatigue life. Though PMB is an innovation in the bitumen market, it will take a substantial period to increase its share in the market.

Bitumen Market Segment Analysis - By Application

The road construction segment held a significant share of the bitumen market in 2030. Road development is the most prevalent use of bitumen, whereas asphalt concrete is produced by directly applying bitumen as a binder. It includes the application of bitumen in development as well as repair works of roads and pavements, including high-speed roads, motorways, flyovers, airport runways, and platforms. Other than the construction sector, the product is among the major raw materials used in manufacturing various industrial products, such as roofing material, adhesives, insulation, and sealing as it provides various attributes such as varying hardness, adhesion, high viscosity, ductility, and waterproofing to the structure.

Bitumen Market Segment Analysis - By Geography

Asia Pacific dominated the bitumen market with a share of more than 38% during the forecast period. In various countries such as China and India, high investments are being made for industrial growth and infrastructure development. Furthermore, expansion of the construction sector, especially in Asia Pacific is anticipated to drive the steel grating market during the forecast period. For instance, India's construction industry is projected to hit $1.4 trillion by 2025, with cities anticipated to contribute 70% to the country's GDP by 2030. Urbanization and economic development are key factors propelling this growth. Moreover, the growing population in countries like China and India, coupled with an excellent standard of living has significantly given rise to traffic globally which is leading to the construction of some flyovers and heavy-duty roads along with the extension of the existing roadways. The growing number of property renovation projects and modern construction systems especially in North America and Europe having waterproofed flat roofs will further stimulate the product demand in these regions.

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Bitumen Market Drivers

Increasing usage of bitumen in waterproofing application

Bitumen is widely used as a waterproofing agent on the roofs of commercial and residential buildings due to its highly sticky and viscous nature. To protect roof decks from rain before roofing or installation, bituminous waterproofing is done as it protects the roof from seepage and water leakage. It also provides an extra barrier in the case of water penetration or blow-offs and hence widely used by the construction industry which is a major growth factor of the bitumen market. 

Increasing Automotive Sales and Transportation Driving the Demand for Bitumen Market

The transportation sector, particularly the automotive industry, significantly relies on bitumen for road construction and maintenance. With increasing automotive sales and a growing emphasis on enhancing transportation networks, the demand for bitumen in the market is poised to rise. Bitumen's vital role in providing durable and high-quality road surfaces makes it a crucial component for infrastructure development, aligning with the expanding needs of a burgeoning transportation sector. This escalating demand underscores the pivotal position of bitumen in supporting the evolution and efficiency of modern transportation networks.

Bitumen Market Challenges

Strict environment regulations

Strict environmental regulations towards applications and manufacturing processes hinder the bitumen market growth in future years. For instance, the industry is strongly controlled by the occupational exposure limit. In Australia, China, Belgium, and France the limit is confined to 5mg/m3. As the product is obtained from petrochemicals and crude oil, it follows the same price dynamics as crude oil and showed similar sluggish growth in the recent past. Wavering oil and petrochemical prices over the forecast period can affect the price trends in the bitumen market. Nevertheless, bio-based bitumen emergence is analyzed to create new growth opportunities for industry players.

Bitumen Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the bitumen market. Major top 10 companies in the bitumen market are Indian Oil Corporation, TotalEnergies, Royal Dutch Shell, RAHABitumen, Inc, Nynas, Exxon Mobil, Rosneft Deutschland GmbH, Cepsa, MOL Group, Asphalt & Bitumen West Co, among others.

Recent Development:

• In April 2023, Suncor Energy successfully acquired TotalEnergies' Canadian operations for $5.5 billion, with potential additional payments of up to $600 million. This strategic transaction encompasses the remaining 31.23% working interest in Fort Hills and a 50% working interest in Surmont. The deal adds 135,000 barrels per day of bitumen production capacity and 2.1 billion barrels of reserves to Suncor's portfolio, ensuring a strengthened position in the energy sector.
• August 2023, Nypol RE, an innovative polymer-modified bitumen enriched with biogenic materials, enhances pavement durability, extending its lifespan. This groundbreaking solution not only increases longevity but also contributes to sustainability by reducing environmental impact, marking a significant advancement in road construction technology.

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