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2023

India Bitumen Market

India Bitumen Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and End-Use Industry : Opportunity Analysis and Industry Forecast, 2023-2032

MC : Advanced Materials

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Author's: Sushant moon and Yash Doshi | Eswara Prasad
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India Bitumen Market Outlook - 2032

The India bitumen market attained $4.6 billion in 2022 and is projected to reach $6.8 billion by 2032, growing at a CAGR of 4.0% from 2023 to 2032.

Bitumen is an oil-based substance and semi-solid hydrocarbon product produced by removing the lighter fractions (such as liquid petroleum gas, petrol, and diesel) from heavy crude oil during the refining process. Composition of bitumen includes carbon (87-92%), hydrogen (6-8%), sulfur (~5%), nitrogen (1%), and oxygen (1%). It possesses physical properties such as adhesion, water resistance, hardness, and viscosity.

Bitumen is highly viscous, i.e., it has a thick and sticky consistency. This property allows it to bind aggregates together and form a cohesive mixture in road construction. The viscosity of bitumen can be modified by heating or adding certain additives to achieve the desired flow characteristics. Bitumen has excellent waterproofing properties. It forms a barrier that prevents water penetration, making it ideal for roofing materials and waterproofing membranes.

India Bitumen Market

Its ability to resist water damage helps protect structures from moisture-related issues. Bitumen exhibits strong adhesive properties, enabling it to bond various materials together. It is commonly used as an adhesive in the construction industry for applications such as asphalt pavement, pavement repairs, and in the production of asphalt shingles. Bitumen is known for its durability and long lifespan. It has excellent resistance to wear, and tear caused by traffic loads, making it suitable for high-traffic areas. 

Petroleum-derived is non-renewable and not a sustainable product. There has been extensive research toward developing a sustainable substitute for asphalt as a result of consumers growing awareness of the detrimental effects that some petroleum products have on the environment and human health. Bio-asphalt is a non-petroleum-based binder made from biomass, such as molasses, starch, trees, cellulose, and natural latex as well as other sustainable sources.
Increase in road construction activities fuels the demand for bitumen. Bitumen is processed into asphalt for road construction. Asphalt is a mixture of rock aggregates and bitumen. Bitumen serves as a binding agent and improves 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. In addition, India’s recent passed budget includes expenditure on development of National Highways, including projects relating to expressways, two-lane widening of highways, under the National Highways Development Project, six-lane widening of crowded stretches of the Golden Quadrilateral, a special program for the development of road connectivity in Naxal affected areas, development of Vijayawada—Ranchi road, and for providing last mile connectivity, which is anticipated to drive the growth of the India bitumen market. Furthermore, bitumen adhesive is widely used in the construction industry for roofs.

It is a cold applied adhesive for bonding bituminous roofing felts to asphalt, felt, metal, and concrete. Bitumen adhesive possesses physical properties such as toughness, flexibility, and forms adhesive and cohesive film and provides good UV resistance. 

Growth in construction industry due to rapid urbanization and launch of government initiatives such as “Housing for All” that includes construction of houses for urban poor is expected to drive the growth of the bitumen market across the country. However, human health & environmental issues associated with bitumen, fluctuation in international crude oil prices, and increase in use of an alternative for bitumen such as concrete in roadway construction application restrain the growth of the market in this region. 

The India bitumen market is segmented into type, end-use industry, and region. The types covered are paving grade bitumen, oxidized bitumen, polymer modified bitumen, bitumen emulsions and others. By end-use industry, the market is classified into road construction, waterproofing, and others. 

India Bitumen Market
By Type
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Paving Grade Bitumen is the most lucrative segment

In 2022, the paving grade bitumen segment was the largest revenue generator, and is anticipated to grow at a CAGR of 3.7% during the forecast period. Rapid urbanization and population growth, particularly in emerging economies, have led to a significant increase in infrastructure development. Governments are investing in the construction and expansion of roads, highways, airports, and other transportation networks to meet the growing demand for efficient transportation. Paving grade bitumen is a crucial component in road construction, and the surge in infrastructure projects has resulted in increased demand for bitumen.   

India Bitumen Market
By End-use Industry
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Road Construction is projected as the most lucrative segment.

By end use industry, the road construction segment dominated the global market in 2022, and is anticipated to grow at a CAGR of 4.2% during forecast period. The Indian government has prioritized infrastructure development as a key driver of economic growth. The development of an efficient and well-connected road network is crucial for improving connectivity, facilitating trade, and enhancing regional integration. The government's flagship programs, such as Bharatmala Pariyojana and Pradhan Mantri Gram Sadak Yojana, focus on expanding and upgrading the road infrastructure across the country. 

India's growing economy and industrial sectors require a well-developed transportation network to facilitate the movement of goods and services. Road connectivity plays a crucial role in supporting industrial growth, attracting investments, and promoting trade within the country. In addition, India's rapid urbanization and population growth have led to increased demand for transportation infrastructure. The rise in urban centers, along with the need to connect rural areas, has prompted investments in new roads, expressways, and bypasses to ease traffic congestion and improve connectivity. 

The India bitumen market profiles leading players that include Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Ltd., Oil & Natural Gas Corporation Ltd., Total India, Tiki Tar Industries India Ltd., Agarwal Industries Corporation Ltd., Juno Bitumix Pvt Ltd., Universal Bituminous Industries Pvt. Ltd., and Swastik Tar Industries. Moreover, other players that are engaged in producing bitumen in India include Reliance Petroleum, Nayara Energy Limited, PS Polychem, Oberoi Refining Industry Pvt.ltd., Usha Refining Co., Bitumen Corporation (India) Private Ltd. (BITCOL), Jalnidhi, and others.  

The India Bitumen market report provides in-depth competitive analysis as well as profiles of these major players.   

Report Key Highlighters

  • The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
  • The India bitumen market is consolidated in nature among prominent companies such as Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Ltd., Oil & Natural Gas Corporation Ltd., and Total India.
  • The study contains qualitative information such as the market dynamics (drivers, restraints, challenges, and opportunities), key regulation analysis, pricing analysis, and Porter’s Five Force Analysis across India.
  • Latest trends in India bitumen market such as capacity of raw material suppliers, manufacturers,  public policies, and government initiatives are analyzed. 

More than 2,500 bitumen-related product literatures, industry releases, annual reports, and other such documents of key industry participants along with authentic industry journals and government websites have been reviewed for generating high-value industry insights for India bitumen market.

Key benefits for stakeholders

  • Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  • It outlines the current organic chemicals market trends and future estimations from 2022 to 2032 to understand the prevailing opportunities and potential investment pockets.
  • The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
  • The profiles of key players and their key strategic developments are enlisted in the report.

IMPACT OF COVID-19 ON THE INDIA BITUMEN MARKET

  • Reduced construction activity: During the pandemic, many construction projects were put on hold or delayed due to lockdown measures and labor shortages. This resulted in reduced demand for bitumen, as it is a key component used in road construction and infrastructure projects.
  • Disruption in the supply chain: Restrictions on movement and trade disruptions caused logistical challenges in transporting bitumen and related products. This led to delays in the supply chain and potential shortages, affecting the availability of bitumen in the market.

India Bitumen Market Report Highlights

Aspects Details
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By Type
  • Paving Grade Bitumen
  • Oxidized Bitumen
  • Polymer Modified Bitumen
  • Bitumen Emulsion
  • Others
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By End Use Industry
  • Road Construction
    • National Highways
    • State Highways
    • Rural Roads
    • Airport Runways
  • Waterproofing
  • Others
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By Region
  • North India 
  • East India 
  • Northeast India 
  • South India 
  • West India 
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Key Market Players

Swastik Tar Industries, Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd. (BPCL), Universal Bituminous Industries Pvt. Ltd., Tiki Tar Industries India Ltd., Total SA, Indian Oil Corporation Ltd., Juno Bitumix Pvt. Ltd., Oil & Natural Gas Corporation (ONGC), Agarwal Industrial Corporation Ltd.

Analyst Review

According to the CXOs of the leading companies, the India bitumen market has witnessed significant growth in the recent years, owing to increase in construction and infrastructural development activities initiated by the government in urban and rural areas of the country. Furthermore, increased road development activities such as construction of national highways & expressways and construction of economic and industrial corridors leads to a rise in demand for bitumen across the country. In addition, construction of new airports across the country under the scheme name “UDAN” to improve the air transport facilities is expected to fuel the demand for bitumen.

Moreover, bitumen adhesive is widely used in waterproofing roofs of houses. Therefore, government initiatives such as “smart city mission” and “Housing for All” have increased the construction activities across the urban and rural areas to provide houses to both urban and rural population of the country; thereby, boosting the market growth. The infrastructural development activities in Northeast states such as Assam, Arunachal Pradesh, and Mizoram also led to an increase in demand for bitumen for road construction activities. Various government schemes such as Pradhan Mantri Gram Sadak Yojana (PMGSY) that includes connectivity of villages to national highways by providing good all-weather roads and Pradhan Mantri Awas Yojana (PMAY) that includes providing houses to the poor people in rural area drive the growth of the bitumen market.

Author Name(s) : Sushant moon and Yash Doshi | Eswara Prasad
Frequently Asked Questions?

Increased road construction activities and increased demand for waterproofing applications are the major growth factors in the India bitumen market.

The India bitumen market attained $4.6 billion in 2022 and is projected to reach $6.8 billion by 2032, growing at a CAGR of 4.0% from 2023 to 2032.

Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Ltd., Oil & Natural Gas Corporation Ltd., Total India, Tiki Tar Industries India Ltd., Agarwal Industries Corporation Ltd., Juno Bitumix Pvt Ltd., Universal Bituminous Industries Pvt. Ltd., and Swastik Tar Industries are the most established players in the India bitumen market

Road construction, waterproofing, and others are the major end use industries of bitumen.

The India bitumen market is segmented into type and end-use industry. The types covered are paving grade bitumen, oxidized bitumen, polymer modified bitumen, bitumen emulsions and others. By end-use industry, the market is classified into road construction, waterproofing, and others.

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India Bitumen Market

Opportunity Analysis and Industry Forecast, 2023-2032