123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> General >> View Article

Bitumen Market - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026)

Profile Picture
By Author: Statzy Market Research
Total Articles: 840
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

The Global Bitumen Market was estimated at over 100 million tons in 2020 and the market is projected to register a CAGR of less than 4% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. According to International Monetary Fund (IMF) projections, the global GDP growth was projected to be -4.9% in 2020. However, in 2021 global growth is projected at 5.4%. Moreover, the performance of construction sector is projected to be affected moderately due to the impact on liquidity of money as a result of affected income of relatively larger section of the society, which is expected to affect the market studied. Declining investment in road and building construction segment led to a decrease in the consumption of bitumen in applications like road construction, waterproofing of building roof and basement, sealant, filler, and adhesive, which in turn negatively impacted the bitumen market.

- Over the short term, increasing road construction and repair activities and increasing demand of bitumen as filler, adhesive, and sealant from the commercial and domestic building construction sector ...
... are expected to drive the bitumen market's growth. For instance, several major infrastructure construction investments are also noticed in Middle Eastern countries, where about 1,069 road projects were underway as of February 2020, which is likely to enhance the market demand in road construction and repair activities.

- Increasing environmental concerns regarding bitumen and unfavorable conditions arising due to the impact of COVID-19 are hindering the market's growth.

- R&D on bitumen processing to improve road infrastructure and development of high-performance bitumen products like shell cariphalte, shell mexphalte, and others are likely to create opportunities for the market in the coming years.

- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period. Robust growth in construction activities in the Asia-Pacific region is also augmenting the growth of the market in the forecast period.

Key Market Trends

Increasing Demand Due to Increasing Road Construction Activities

For sample report please visit: www.statzyreports.com/report/sr496910/bitumen-market

- Most of the bitumen consumed is processed into asphalt for road construction. Asphalt is a mixture of rock aggregates and bitumen. Bitumen serves as a binding agent and thus, is responsible for the stability of asphalt.

- Depending on the type of bitumen or composition of the mixture used, asphalt roads can be made suitable for regions with different climatic conditions or various levels of operational demands. Asphalt is also used for airport runways, parking decks, and working areas in ports.

- Roadways are one of the key sectors that determine a country economic growth. Roads, airport runways, and parking decks are essential services that drive economic activity by channelizing trade and mobility. Massive investments are required that help in the modernization and maintenance of these systems.

- In 2019, the United States new highway and street construction sector was valued at about USD 97.56 billion and is estimated to reach about USD 107.74 billion by 2024, with a CAGR of about 2%, which is likely to stimulate the demand for the bitumen market.

- Globally, the infrastructure sector is experiencing stable growth, as a result of increased government spending to promote local infrastructure. In keeping pace with the growing economic activity and shifting demographic trends, spending on infrastructure activities is largely driven by developing economies in comparison to developed economies

- In developing economies in Asia-Pacific, infrastructure activities are expected to increase significantly, especially in the transportation sector, owing to increasing urbanization and shifting focus toward developing secondary sector in these countries. Furthermore, increasing economic prosperity is driving the infrastructure financing toward consumer sectors, including transportation and manufacturing, which provide and distribute raw materials for consumer goods.

- India's recently passed budget includes expenditure on the development of National Highways, including Delhi-Mumbai, Ahmedabad-Dholera, and Amritsar-Jamnagar expressways which are scheduled for completion by March 2023. Additionally, 19 other projects are to be completed by March 2025, which is expected to increase the demand of bitumen in the coming years.

- As these sectors have the potential to fetch larger investments in the near future, the governments of developing economies (such as China and India, among others) are taking initiatives by floating tenders reflecting opportunities in building infrastructure, essential for the growth of a specific sector. Furthermore, the emergence of megacities in both, emerging and developed markets, which reflects the shifting economic and demographic trends, will create an enormous need for new infrastructure.
- Owing to all these factors, the bitumen market is likely to grow globally during the forecast period.

Asia-Pacific Region is Expected to Dominate the Market

- Asia-Pacific region dominated the global market share. In Asia-Pacific, China is the largest economy, the growth in the country remains high, but is gradually diminishing, as the population is aging and the economy is rebalancing from investment to consumption, manufacturing to services, and external to internal demand.
- While the residential sector is enjoying a strong recovery, the results for the office, retail, and logistics sectors have been mixed. The office markets in Tier 1 cities (including Beijing, Shanghai, and Shenzhen) generally remain healthy and continue to enjoy strong demand for office space, driven by the information technology (IT) and finance sectors.

- Besides this, significant development of rail and road infrastructure by the Chinese government, to withstand the growing industrial and service sectors, has resulted in significant growth of the Chinese construction industry in recent years. As the construction industry is dominated by state-owned enterprises, increased government spending is boosting the industry in the country.

- Meanwhile in Guizhou Province, China Gezhouba Group Road & Bridge has won a package of works for the construction of two highway projects. The firm is expected to work on the new highway connecting Nayong with Qinglong as well as the highway between Liuzhi and Anlong. The two projects are worth a total of around USD 8.68 billion. China Gezhouba Group Road & Bridge's share of the contracts is worth an estimated USD1.27 billion.

- Moreover, to contain the growing greenhouse gas predicaments in China's major cities, the country's national climate commitment calls for 50% of all new buildings constructed by 2020 to be certified as green buildings, while its 13th Five-year Plan prioritizes building efficiency. Following these commitments, the country's green building sector is expected to increase from 5% to 28% by 2030, representing a USD 12.9 trillion investment opportunity. This is expected to propel the market during the forecast period.

- India has the second-largest road network in the world in terms of length covered with a value of 5.89 million kilometers and the Indian roads sector is likely to account for 18% of the capital expenditure over FY 2019-25, which in turn stimulates the demand for bitumen market.
- In 2020, the total length of national highways in India is currently around 1,34,400 kilometres and the aim is to add another 60,000 kilometres by 2025, which is likely to stimulate the demand of bitumen market in the country.
- The major upcoming projects in the country, which are likely to increase the demand for the bitumen market are The Delhi-Mumbai Industrial Corridor, Bharatmala Project, Gujarat International Finance Tec-City (GIFT), Smart City Kochi, and Navi Mumbai International Airport.

- In 2020, the government launched the work for the strategic 14.15 kilometres-long Zojila tunnel which will provide all-year connectivity between Srinagar valley and Leh. Many national highway projects and road projects under Pradhan Mantri Gram Sadak Yojana have been started by the Indian government like the National Highway project of Kerala with a value of USD 2.67 billion, etc., which is expected to stimulate the demand for bitumen.
‚Äč
- Due to all such factors, the market for bitumen in the region is expected to have rapid growth during the forecast period.

Competitive Landscape
The bitumen market is fragmented with no major players having a dominant share in the market. Some of the major players in the market include Exxon Mobil Corporation, China Petroleum & Chemical Corporation, bp p.l.c., Royal Dutch Shell Plc, and Nynas AB, among others.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

For sample report please visit: www.statzyreports.com/report/sr496910/bitumen-market

Contact Us:
Poojan Dogra
Public Relations Manager
Statzy Market Research
Email : info@statzyreports.com
(IN) - +918484035727
(US) - +1415-871-0483
Website : www.statzyreports.com

More About the Author

StatzyReports is the premier global market research and business reports company based in India. StatzyReports.com functions under Statzy Market Research. We offer our expertise globally in services related to market research, business strategy consulting, surveys or questionnaire, forecast and statistical data analysis. Our experience working with major business and customer driven companies enabled us to develop some of the best winning strategies for succeeding in various global markets. Our globally renowned experts mastered the art of perfection with their unique skillset and vast experience in research and data analytics.

Total Views: 193Word Count: 1353See All articles From Author

Add Comment

General Articles

1. Faqs Related To Windows 10 Updates
Author: Alice Martin

2. 5 Ways To Keep Kids Away From Materialistic Obsessions
Author: The Star Global School

3. Isyncevolution Seo Service In Ahmedabad
Author: iSyncEvolution

4. An Overview Of Microsoft 365
Author: Alice Martin

5. Online Assignment Help
Author: jdanial

6. What Are The Causes Behind Roof Damage?
Author: Adam Hughes

7. Global Bicycle Parts And Accessories Market - Competitive Analysis, Syndicated Research Report
Author: BHUSHAN

8. How Do Science Toys Help In Learning Complex Concepts?
Author: chandra

9. Global Graphene Market - 2019-2026
Author: Aishwarya Ulhas Jawlekar

10. Choose The Right Office Furniture For Yourself
Author: office master

11. Why Teach Robotics In Schols
Author: Technoxian

12. Global Systemic Inflammatory Response Syndrome Treatment Market
Author: Lumawant Godage

13. Global Air Cargo Security Equipment Market
Author: Lumawant Godage

14. Vashikaran Astrologer In Uttara Kannada | Vashikaran Specialist Pandit
Author: Vasudeva

15. Global Neryl Acetate Market 2021 By Manufacturers, Regions, Type And Application, Forecast To 2026
Author: Statzy Market Research

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: