Bitumen Market Analysis

Bitumen Market Analysis

Based on product, the paving bitumen will hold the largest market share of close to 60% in terms of value in 2027. Around 85% of all the bitumen manufactured is used as binder in asphalt concrete for roads, car parks, airport runways, and footways due to the sturdiness and ability to be repaired quickly. Bitumen penetration graded 60/70 derived from specially selected crude oils via carefully controlled refining processes and used as a paving grade bitumen. Typically, the making of asphalt concrete requires mixing of fine and coarse aggregates, such as gravel or crushed stone with asphalt, which work as the binding agent.
 

With rising number of automobile vehicles in the world, mostly in the developing economies of Latin America and Asia Pacific, the demand for road construction will witness a significant rise in the upcoming years. Global vehicle sales reached 77.62 million units in 2020 and is expected to reach 125.43 million units by the end of the forecast period, thus generating a need for broader and superior quality roads. Easy availability and low cost of paving grade bitumen will enhance the bitumen market value in road construction activities around the world. Owing to its versatile applications, the demand for paving based bitumen is expected to grow with a 4.2% CAGR over the forecast period.
 

Based on application, the global bitumen market is categorized into roadways, waterproofing, adhesives, insulation, and others. The roadways application segment accounted for the highest share in 2020 and generated revenue of over USD 41.69 billion in the same year. Road construction has the most extensive use of bitumen, where it is used as a binder to process asphalt concrete. This segment includes the application of bitumen in the repair works and new construction of roads and pavements including airport runways, motorways, flyovers, and platforms.
 

Increasing automotive traffic throughout the world driven by the increasing Purchase Power Parity (PPP) in the emerging economies will result in the demand for a more extensive road and highway network with multiple lanes to accommodate all cars during peak hours. Moreover, rapid urbanization and modernization will also increase the connectivity of rural & urban areas, thus boosting the demand for road development activities.
 

Asia Pacific will exceed USD 35 billion in 2027 driven by the growing application of bitumen products in various applications. The road & highway construction industry in APAC countries, such as China, India, and Australia, has been increasing rapidly and is driven by the growing automobile ownership and increasing urbanization in the region. The rise in freight and passenger road transportation in the country, followed by manufacturing activities will further propel road construction and development. Additionally, growing investment industrial sectors have significantly influenced the bitumen market revenue in the country.