Bitumen is a dense material that can take on a liquid or semi-solid state. It is dark brown, almost black. Bitumen frequently contains petroleum composites like asphaltene resin. The primary use of bitumen continues to be in constructing roads and pavements. The civil engineering industry uses bitumen more and more to make asphalt concrete. Roadways, airport runways, paved crossings, taxiways, freight yards, driveways, bridge decks, etc., are all built primarily with this material. The demand for bitumen is expected to increase during the forecast period due to expanding road networks, building new motorways, and repairing existing roads. Additionally, the bitumen market is anticipated to grow due to the rising demand for modified bitumen with new properties like improved elastic and tensile strength and fatigue life. Furthermore, using bitumen as adhesives in the furniture and wood industry, waterproofing applications, caulking compounds, acoustic blocks, and other construction materials will further boost bitumen sales.
The COVID-19 pandemic had a particularly negative impact on the building industry. The pandemic's initial effects included the immediate suspension of all corporate operations, including supply and output. The business was severely disrupted as a result of travel restrictions and adhering to regulations set forth by the government. Contractors could not organize the labor force during the early stages of the pandemic, while suppliers could not locate raw materials. The construction industry has been in flux for the past few months, but recovery is anticipated. Thereby limiting the expansion of the bitumen market.
Growing Use of Bio-asphalt Will Influence Market Development
Bitumen is a petroleum-based substance typically used in construction as a pavement binder. Petroleum-derived products, however, are not sustainable and cannot be renewed. There has been extensive research towards developing a sustainable substitute for asphalt due to consumers' growing awareness of the detrimental effects of petroleum products on the environment and human health. Bio-asphalt is a non-petroleum-based binder made from biomass, such as molasses, starch, trees, cellulose, natural latex, and other sustainable sources. The market demand for bio-asphalt is driven by its similar behavior and improved features.
Increased Usage of Bitumen Alternative in Variety of Applications to Restrict Market Growth
Several processes used to produce bitumen are hazardous to the environment, wildlife, and people's health. During its extraction and processing, sulfur dioxide, volatile organic compounds, and hydrogen sulfide are emitted into the atmosphere, harming the ecosystem. It also oxidizes quickly, making asphalt brittle and perhaps causing pavement or road breaking. As time passes, the availability of petroleum asphalt resources decreases, reducing the amount of asphalt binder. Furthermore, introducing environmental rules on drilling for new resources reduces the quantity of asphalt binder and pavement. These factors combine to reduce the number of asphalt binders produced, raising the material's price.
Based on type, the bitumen market is segmented into paving, oxidized, cutback, emulsion and polymer modified. The paving category dominated the market in 2021 due to this product's expanding use as a binder in asphalt concrete for various applications, including roads, runways, and parking lots. In addition, this segment's revenue is growing due to increased road construction, a rise in vehicle population worldwide, and the affordability of paving-grade bitumen.
Besides, the polymer-modified category is anticipated to grow significantly over the forecast period. Due to their superior quality and durability, polymer-modified bitumen is frequently used in the construction and building industries as well as for the development of roads. To change the properties of bitumen, various materials, including thermoplastic elastomers like rubber and styrene polymers, thermoplastic polymers like polyethylene, ethylene copolymers, and polypropylene, and thermosetting polymer resins are added.
By application, the market is segmented into roadways, waterproofing and others. The roadways category dominated the market in 2021. The most important aspect of any developed economy is its road connectivity. Due to the rising demand for roads in developing nations, this factor has caused the market to grow. In the near future, product demand will be boosted by effective transportation systems in many nations, including India, China, and the U.S.
Besides, the waterproofing category is anticipated to grow significantly over the forecast period. An increasing number of metals are coated with bitumen to prevent corrosion. This coating is also used to protect steel pipelines, iron concrete masonry, metal sheets, steel roofing panels, and water tanks. This is due to its many qualities, including waterproofing and the ability to withstand harsh chemicals and U.V. rays, which prevent rust on surfaces. As a result, these elements are anticipated to fuel this sector's revenue growth.
Asia Pacific is projected to hold the largest share of the bitumen market over the forecast period. China is the largest economy in the Asia-Pacific region. While its growth is still strong, it is slowing as the population ages, the economy transitions from manufacturing to services, from investment to consumption, and from external to domestic demand. The construction of flyovers and heavy-duty roadways, as well as the enlargement of existing highways, was required due to increased traffic worldwide due to the growing population in countries like China and India and their high standard of living.
On the other hand, the North American bitumen market is anticipated to grow significantly over the forecast period. The market is expected to grow due to major manufacturers' increasing efforts to develop new products through research and development (R&D) in this area. Additionally, several major manufacturers in this area and companies' major focus on enhancing their product portfolios to maintain their market share are driving revenue growth.
LIST OF KEY COMPANIES PROFILED:
- Asphalt & Bitumen West Co. (Tehran, Iran)
- Raha Bitumen (Esfahan, Iran)
- Asia Bitumen (Tehran, Iran)
- Exxon Mobil (Texas, U.S.)
- Royal Dutch Shell (Hague, Netherlands)
- Sinopec (Beijing, China)
- Nynas (Stockholm, Sweden)
- GOIL Ltd (Accra, Ghana)
- Total Energies (Courbevoie, France)
- Gazprom Neft (St. Petersburg, Russia)
- Indian Oil Corporation (New Delhi, India)
KEY INDUSTRY DEVELOPMENTS:
- May 2021: An exclusive method for producing bio-bitumen based on lignin was created by Praj Industries, an Indian engineering firm with operations in South Africa, North America, and LATAM. This represents yet another accomplishment for the business in terms of creating cutting-edge technology for its manufacturing.
- March 2019: The goal of Shell's new bitumen solution was to lessen the detrimental effects of paving and asphalt production on the local air quality. Rids Bitumen Fresh Air has been shown to reduce pollution of several particles and gases of asphalt mix during production and paving by 40%.
REPORT SCOPE AND SEGMENTATION
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Type, By Application, and By Geography|