Bitumen Market Expected to Reach $75.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Bitumen Market," The bitumen market was valued at $53.67 billion in 2022, and is estimated to reach $75.3 billion by 2032, growing at a CAGR of 3.5% from 2023 to 2032.

Bitumen is a mixture of viscous, highly sticky, and black organic liquids, which is soluble in carbon disulfide and primarily consists of condensed polycyclic aromatic hydrocarbons. It is a crucial component of asphalt, which is used to build roads, streets, and other parts of infrastructure. One of the primary applications of bitumen is in road construction. It is used as a binder in asphalt concrete, which is a mixture of bitumen, aggregates (such as stone, sand, and gravel), and filler materials. Bitumen acts as a glue, holding the aggregates together and forming a durable and flexible road surface. It provides strength, water resistance, and durability to the pavement, enabling it to withstand heavy traffic loads and various weather conditions.

Bitumen is an important material that enables the design and engineering of asphalt-based streets, runways, motorways, highways, coastal protection, canal linings, driveways, airports, reservoirs, footpaths cycle paths, parking areas as well as sports and play areas. The infrastructure development programs initiated by the Government of India such as the Bharatmala project; Golden Quadrangle project; and the construction of various industrial and economic corridors such as the Delhi-Mumbai Industrial Corridor, Bengaluru-Mumbai Economic Corridor, Chennai-Bengaluru Economic Corridor, Vizag-Chennai Industrial Corridor, and Amritsar-Kolkata Industrial Corridor during the construction of highways and expressways drive the demand for bitumen.

In addition, government initiatives such as Pradhan Mantri Gram Sadak Yojana which includes the provision of good all-weather road connectivity to unconnected villages of the country are anticipated to drive the growth of the bitumen market. Moreover, bitumen is widely used in waterproofing the roof of the building. Therefore, government initiatives such as the “Smart City Mission” and Pradhan Mantri Awas Yojana (PMAY) that include the construction of houses in urban and rural areas boost market growth. Significant development in the Indian construction industry along with industrial development across the country is expected to drive the growth of the bitumen industry in the coming years.

Bitumen is commonly used to create waterproof membranes. These membranes are applied to various surfaces, such as roofs, basements, foundations, and concrete structures, to prevent water penetration. Bitumen membranes are highly effective in sealing joints, cracks, and gaps, providing a durable and watertight barrier. Bituminous membranes and films are highly employed in waterproofing basements, bridges, underground structures, and other infrastructures. According to Sika AG, one of the prime manufacturers, approximately 60% of the flat roof market is dominated by asphalt technologies. This is projected to boost bitumen market growth. The construction sector is a major driver for the increased demand for bitumen in waterproofing.

Bitumen is used in various construction projects, including residential buildings, commercial complexes, industrial structures, and infrastructure projects. It is used to create waterproof membranes, sealants, and coatings to protect buildings from water ingress and ensure durability. Rapid urbanization and population growth have led to the construction of high-rise buildings, apartments, and urban complexes. Waterproofing is essential in these structures to protect against water leakage, especially in areas prone to heavy rainfall or high water tables. Bitumen-based waterproofing products, such as membranes and coatings, provide effective solutions for these applications.

However, growth in health & environmental concerns over the production and usage of bitumen, human health & environmental issues associated with bitumen, unsettled crude oil prices, and a rise in usage of an alternative for bitumen is expected to restrain the growth of the market. Moreover, the development of bio-based bitumen and EME binders is expected to provide growth opportunities for the market in the near future.

By type, the bitumen market is segmented into paving-grade bitumen, oxidized bitumen, polymer-modified bitumen, and bitumen emulsions. Paving grade bitumen has garnered a higher market share during the forecast period, owing to growth in its demand and usage in road construction activities.

By end-user industry, the market is segmented into road construction, waterproofing, and others. Road construction is further classified into airports & runways and highways & expressways. The road construction segment is expected to garner a higher market share during the forecast period, owing to a rise in infrastructural development activities across the globe.

By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is projected to garner the highest market share during the forecast period due to growing construction and infrastructural development activities across Asia-Pacific.

Major players operating in the bitumen market are Asphalt & Bitumen West Co., RAHA Bitumen, Inc., Exxon Mobil Corporation, Royal Dutch Shell, Sinopec, NYNAS AB, GOIL PLC, TOTAL ENERGIES, Gazprom and Hindustan Petroleum Corporation Limited.

The market players have adopted expansion, merger, and acquisition as their key strategies to gain an edge in the competitive market. The other players operating in the bitumen industry include Indian Oil Corporation Ltd., 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.

Key Findings Of The Study:

• The road construction segment is expected to garner the highest share in 2022.
• The Asia-Pacific market is expected to grow at the fastest CAGR of 3.8% during the forecast period.
• The paving grade bitumen segment is expected to exhibit a share of over 65% during the forecast period.