Bitumen is a valuable commodity used in various construction applications across Africa such as road constructions, waterproofing, and insulation. It is primarily used in road construction activities for functions like binding aggregate particles to provide load-bearing characteristics in pavements and road surfaces. Countries across Africa are significantly investing in upgrading and expanding their road infrastructure to support economic and social development. Governments are undertaking large construction projects such as highways, bridges, and tunnels to boost intra-regional trade and connectivity.
The global Africa Bitumen Market is estimated to be valued at US$ 3.5 billion in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
This has increased the demand for constructing residential and commercial infrastructure as well as transportation networks. According to the Africa Construction Trends Report 2022, the total construction spend in Africa is expected to grow at a CAGR of 7% from 2022-2025. Countries are allocating increased budgets for expanding road, rail, and port infrastructure to support economic growth. This rising construction spend will drive the demand for bitumen in construction applications like roads, buildings, and highways across Africa.
Expanding intra-Africa trade: African countries are actively working to deepen regional economic integration through initiatives like the African Continental Free Trade Agreement. This is expected to boost intra-Africa trade exponentially. An efficient transportation network is crucial for facilitating the movement of goods across borders. Governments are investing heavily in upgrading border crossings, roads, rail lines, and ports to support expanded trade. This will augment the consumption of bitumen for road construction activities in Africa over the forecast period.
Segment Analysis
The Africa Bitumen market is dominated by the road construction segment. Approximately 75% of the bitumen demand in Africa comes from road construction activities. With rising infrastructure development and construction of new roads and highways across major countries, the road construction segment is expected to continue dominating the market over the forecast period. The waterproofing segment is another fast growing segment and accounts for around 15% share in the market. Growing construction activities are driving the demand for waterproofing membranes and compounds made from bitumen for various applications such as basement waterproofing and roofing.
PEST Analysis
Political: Many African countries are investing heavily in road and energy infrastructure development under various government initiatives. Supportive policies around public private partnerships are boosting infrastructure spending.
Economic: Steady economic growth rates in major Africa economies are increasing spending on transportation and construction activities. Rise in intra-Africa trade is enhancing connectivity needs.
Social: Rapid urbanization is driving the need for better roads and transportation facilities. Increasing standards of living are also supporting construction of new residential and commercial infrastructure.
Technological: Various new technologies are being adopted to produce modified and advanced grades of bitumen for different applications including road construction, waterproofing and other purposes.
Key Takeaways
The Global Africa Bitumen Market Size is expected to witness high growth over the forecast period of 2022-2030.
Regional analysis: Southern Africa region currently holds nearly 30% share of the total Africa bitumen demand led by strong road construction activities in countries like South Africa. East Africa is projected to be the fastest growing regional market with a CAGR of over 25% driven by ongoing infrastructure development projects underway in Ethiopia, Kenya and Rwanda.
Key players operating in the Africa bitumen market are Shell Bitumen, VALERO, Exxon Mobil, Bharat Petroleum and Sonatrach Petroleum Company.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
