Bitumen Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Bitumen Market is Segmented by Product Type (Paving Grade, Hard Grade, Oxidized Grade, Bitumen Emulsions, Polymer Modified Bitumen, and Other Product Types), Application (Road Construction, Waterproofing, Adhesives, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers the market size and forecasts in volume (kilo metric ton) for all the above segments.

Market Snapshot

Bitumen Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: <4 %

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Market Overview

The bitumen market was estimated at over 100 million metric ton in 2020, and the market is projected to register a CAGR of less than 4% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. 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.

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.

Scope of the Report

Bitumen is a dark brown to black viscous liquid or solid material, which consists of heavier hydrocarbons and their derivatives. Bitumen is mainly obtained from petroleum refinery facilities, where the bottom products of the distillation columns are further processed with units such as solvent deasphalter, oxidizer, blender, and others to produce a fine grade of bitumen. The bitumen market is segmented by product type, application, and geography. By product type, the market is segmented into paving grade, hard grade, oxidized grade, bitumen emulsions, polymer modified bitumen, and other product types. By application, the market is segmented into road construction, waterproofing, adhesives, and other applications. The report also covers the market size and forecasts for the bitumen market in 17 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo metric ton).

By Product Type
Paving Grade
Hard Grade
Oxidized Grade
Bitumen Emulsions
Polymer Modified Bitumen
Other Product Types
By Application
Road Construction
Waterproofing
Adhesives
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key 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.

Roadways are one of the key sectors that determine a country’s economic growth. Roads, airport runways, and parking decks are essential services that drive economic activity by channelizing trade and mobility. Massive investments are required that help in the modernization and maintenance of these systems.

In 2019, the US new highway and street construction sector was valued at about USD 97.56 billion, and it is estimated to reach about USD 107.74 billion by 2024, with a CAGR of about 2%, which is likely to stimulate the demand in the bitumen market.

Globally, the infrastructure sector is experiencing stable growth as a result of increased government spending to promote local infrastructure. In keeping pace with the growing economic activity and shifting demographic trends, spending on infrastructure activities is largely driven by developing economies in comparison to developed economies.

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.

India’s recently passed budget includes expenditure on the development of National Highways, including Delhi-Mumbai, Ahmedabad-Dholera, and Amritsar-Jamnagar expressways, which are scheduled for completion by March 2023. Additionally, 19 other projects are to be completed by March 2025, which is expected to increase the demand for bitumen in the coming years.

As these sectors have the potential to fetch larger investments in the near future, the governments of developing economies (such as China and India) are taking initiatives by floating tenders, reflecting opportunities in building infrastructure essential for the growth of a specific sector. Furthermore, the emergence of megacities in both emerging and developed markets, which reflects the shifting economic and demographic trends, will create an enormous need for new infrastructure.

Owing to all these factors, the bitumen market is likely to grow globally during the forecast period.

Bitumen Market Revenue Share

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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.

Besides this, significant development of rail and road infrastructure by the Chinese government to withstand the growing industrial and service sectors has resulted in the significant growth of the Chinese construction industry in recent years. As the construction industry is dominated by state-owned enterprises, increased government spending is boosting the industry in the country.

Meanwhile in Guizhou Province, China Gezhouba Group Road & Bridge has won a package of works for the construction of two highway projects. The firm is expected to work on the new highway connecting Nayong with Qinglong as well as the highway between Liuzhi and Anlong. The two projects are worth a total of around USD 8.68 billion. China Gezhouba Group Road & Bridge’s share of the contracts is worth an estimated USD1.27 billion.

Moreover, to contain the growing greenhouse gas predicaments in China’s major cities, the country’s national climate commitment calls for 50% of all new buildings constructed by 2020 to be certified as green buildings, while its 13th Five-year Plan prioritizes building efficiency. Following these commitments, the country’s green building sector is expected to increase from 5% to 28% by 2030, representing a USD 12.9 trillion investment opportunity. This is expected to propel the market during the forecast period.

India has the second-largest road network in the world in terms of length covered with a value of 5.89 million kilometers, and the Indian roads sector is likely to account for 18% of the capital expenditure over FY 2019-25, 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.

In 2020, the government launched the work for the strategic 14.15 kilometers-long Zojila tunnel, which will provide all-year connectivity between Srinagar valley and Leh. Many national highway projects and road projects under Pradhan Mantri Gram Sadak Yojana have been started by the Indian government, like the National Highway project of Kerala with a value of USD 2.67 billion, etc., which is expected 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 Growth Rate By Region

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Competitive Landscape

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, China Petroleum & Chemical Corporation, BP PLC, Royal Dutch Shell PLC, and Nynas AB, among others.

Recent Developments

In September 2020, Gulf Petrochem, headquartered in the United Arab Emirates, acquired the Speciality Bitumen Plant of Royal Dutch Shell located at Vadodara, India, to meet the demand for different packages such 200 Kg MS drums, 200 Kg MS Reconditioned drums, 200 Kg HDPE drums, and bulk in tankers.

In March 2020, Puma Energy acquired the bitumen business of BP Australia, which led to enhancing the company’s product portfolio.

In December 2019, Vitol acquired the remaining 50% of VALT, its bitumen joint venture, from Sargeant Marine to become the sole owner of this bitumen business to integrate this business with the company’s core trading operations.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Road Construction and Repair Activities

      2. 4.1.2 Demand from Commercial and Domestic Building Constructions

    2. 4.2 Restraints

      1. 4.2.1 Environmental Concerns

      2. 4.2.2 Unfavorable Conditions Arising due to the Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Paving Grade

      2. 5.1.2 Hard Grade

      3. 5.1.3 Oxidized Grade

      4. 5.1.4 Bitumen Emulsions

      5. 5.1.5 Polymer Modified Bitumen

      6. 5.1.6 Other Product Types

    2. 5.2 By Application

      1. 5.2.1 Road Construction

      2. 5.2.2 Waterproofing

      3. 5.2.3 Adhesives

      4. 5.2.4 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 ASEAN Countries

        6. 5.3.1.6 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Russia

        6. 5.3.3.6 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ATDM CO. LTD

      2. 6.4.2 Bouygues

      3. 6.4.3 BP PLC

      4. 6.4.4 BMI Group

      5. 6.4.5 China Petroleum & Chemical Corporation

      6. 6.4.6 ENEOS Corporation

      7. 6.4.7 Exxon Mobil Corporation

      8. 6.4.8 Indian Oil Corporation Ltd

      9. 6.4.9 KRATON CORPORATION

      10. 6.4.10 Marathon Petroleum Corporation

      11. 6.4.11 Nynas AB

      12. 6.4.12 Royal Dutch Shell PLC

      13. 6.4.13 Suncor Energy Inc.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Technological Development of Bitumen Processing to Improve Road Infrastructure Quality

**Subject to Availability

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Frequently Asked Questions

The Bitumen Market market is studied from 2016 - 2026.

The Bitumen Market is growing at a CAGR of <4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Exxon Mobil Corporation, Royal Dutch Shell Plc, bp p.l.c., Nynas AB, China Petroleum & Chemical Corporation (SINOPEC) are the major companies operating in Bitumen Market.

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