Market Overview:
Bitumen is a sticky, black and highly viscous liquid or semi-solid form of petroleum that is present in most crude oils and in some natural deposits. It is used for surfacing of roads, waterproofing of roofs and other surface applications. In road construction, bitumen is used as a binder to bind the aggregate materials together. It provides adhesiveness, waterproofing and durability to roads.
Market Dynamics:
The key driver fueling the growth of Africa bitumen market is rapid infrastructure development activities across various African countries. There is significant focus on road construction projects for better transportation and connectivity. According to World Bank, Africa’s infrastructure needs are estimated to be around $130–$170 billion a year, with a financing gap in the range of $68–$108 billion annually. Various funding initiatives from international organizations are aiding infrastructure development in Africa. For instance, China has committed to invest over $60 billion for infrastructure development projects under Belt and Road Initiative (BRI). Furthermore, rising construction of airports, seaports and rail networks where bitumen is extensively used for surfacing, will augment the market growth over the forecast period. However, fluctuations in crude oil prices which impacts the production cost of bitumen is a major challenge for market players.
The global Africa Bitumen Market Share is estimated to be valued at US$ 488.88 Mn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The Africa bitumen market is segmented based on product type into paving grade bitumen, oxidized bitumen, bitumen emulsions and cutback bitumen. Among these, the paving grade bitumen segment dominates the market and accounts for over 50% market share. This is because paving grade bitumen has wide applications in road construction activities across countries in Africa region.
PEST Analysis
Political: Stable government policies supporting infrastructure development projects is driving the Africa bitumen market growth. Economic: Growing economies and rising construction spending on roadways and highways is positively impacting the market. Social: Rising population and rapid urbanization is increasing the need for better road connectivity in the region. Technological: Novel technologies enabling cost-effective production and recycling of bitumen are boosting the market.
Key Takeaways
The global Africa bitumen market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing government investments in infrastructure development projects. The market size for 2023 is US$ 488.88 Mn.
Regional analysis: East Africa region dominates the Africa bitumen market and is expected to continue its dominance over the forecast period. This is attributed to increasing road construction activities in countries like Ethiopia, Kenya and Tanzania.
Key players operating in the Africa bitumen market are Exxon Mobil Corporation, Royal Dutch Shell Plc., RAHA Bitumen, Inc., Tekfalt Binders (Pty) Ltd., SprayPave, Indian Oil Corporation Ltd., GOIL Company Limited, Wabeco Petroleum Ltd., Tiger Bitumen, and Richmond Group. Royal Dutch Shell Plc. holds the highest market share of over 15% in the overall Africa bitumen market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
