Bitumen Market Size Worth Over $66.92 billion by 2027
Published Date: June 29, 2021 Authors: Kiran Pulidindi, Hemant Pandey
According to a new research report by Global Market Insights Inc., the Bitumen Market size is forecast to exceed USD 66.92 billion by 2027 owing to the rapid adoption in various applications due to its properties such as cost-effectiveness, viscosity, durability, water, and corrosion resistance.
Bitumen is manufactured through the crude oil distillation process or found in deposits such as pitch lakes and oil sands. The application of bitumen is rapidly increasing in various applications such as roadways & waterproofing and others. With rapid industrialization and urbanization in developing economies, such as China, India, Middle East countries, and presence of huge production capability of bitumen in the region. The region is also dominated by a large number of small & medium scale bitumen manufacturers, especially in China.
Increasing construction project in developing countries including China, India, and Brazil are expected to spur the demand for bitumen. There is a shift in the market for bitumen, polymer modified bitumen market has grown hugely over the past five years. Roads in the Middle East are developing at a rapid pace owing to the increasing road connectivity, construction of multi-lane, dual-carriageway, and need for alternate highway facilities to cope with the high demand for road transportation.
Crude oil prices have seen major fluctuations in the past several years influenced by the OPEC. Production costs, natural disasters & calamities, demand & supply gaps, political instabilities, and wars are some of the major reasons resulting in oil price fluctuations. Price volatility in crude oil affects the manufacturing costs and supply of petrochemicals, causing constant price shifts in bitumen, resins, and others. These resins and other petrochemicals are further used as raw materials for varied purposes such as in the manufacturing processes of polymer modified bitumen. The constant shifting prices of these raw materials will result in volatile production costs, leading to price variations in finished goods.
Browse key industry insights spread across 224 pages with 161 market data tables & 27 figures & charts from the report, “Bitumen Market Size, By Product (Paving, Oxidized, Cutback, Emulsion, Polymer Modified), By Application (Roadways, Waterproofing, Adhesives, Insulation), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021-2027” in detail along with the table of contents:
Increasing consumption of oxidized based bitumen
The oxidized based bitumen segment is projected to grow at a CAGR of 4.8% through 2027. Oxidized bitumen is characterized by its rheological properties that are substantially modified by reaction with air at elevated temperatures. This process gives bitumen more elastic properties than its original formula. Oxidized bitumen has a rubbery consistency with a higher softening point, flexibility to cold, has no sag at high temperatures, and has good adhesion.
Oxidized asphalt can be used in various applications such as manufacturing of roofing felts with anti-slip layer compound and under carriage sealant in the automotive industry, sealant compound, electric cable joint protection, and many others. Blown asphalt can also be used in construction applications such as roofing, mastics, flooring, electrical, and pipe coatings. Some of the major advantages of oxidized bitumen that make it an ideal choice for construction are water resistant, highly flexible, and durable. It is expected to augment the overall bitumen market share in the near future.
Rising application of bitumen for waterproofing application
The waterproofing segment dominated the global bitumen market and is projected to grow at a CAGR of 4.6% through 2027. Bituminous waterproofing systems are designed to protect residential & commercial buildings. With the expanding global population along with the rising urbanization, the demand for new houses will rise in major cities and towns. Moreover, the growing uncertainties of weather & untimely rains will create a rising demand for roof waterproofing & wall insulation in new & old constructed buildings. This segment includes the use of viscous liquid bituminous compounds, flux, and oxidized bitumen for waterproofing & sealing activities. Bitumen-based waterproofing membrane is manufactured by modifying high-quality bitumen with plastomeric & elastomeric polymer additives.
Polymer-modified bitumen liquid is applied over bitumen sheets and felts to provide an additional protection and glaze. The layer helps in providing the necessary heat and chemical resistance, protecting the concrete structure within. It is expected that bitumen demand will increase in waterproofing application in the near future.
North America to exhibit a steady growth during the forecast period
The North America will hold the market share of over 20% and is projected to grow at a CAGR of 3.8% during the assessment period due to high demand for the maintenance and development of the biggest road networks, majority of which lies in North America. The U.S. has the longest span of roadway network in the globe with the overall road length beyond 6.85 million kilometers in 2019, almost two-thirds of roads constructed with paving based bitumen.
Some of the top players in the bitumen industry include ExxonMobil, Athabasca Oil Corporation, Royal Dutch Shell, TotalEnergies, Nynas, Valero Energy Corporation, Chevron Texaco Corporation, Indian Oil Corporation, Suncor Energy, China Petroleum and Chemical Corporation, Nustar energy, Bouygues, Villas Austria GmbH, Gazprom-Neft, and Marathon Oil Corporation, among others.
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