Increasing Road Construction Projects Driving the Market
Asphalt bitumen is widely used as the binding organic material, which is made from the by-products of refined crude oil. Asphalt bitumen is used in road construction as it is easy to produce, reusable, non-toxic, and a strong binder. The road construction sector has been witnessing a strong growth, mostly in Asia-Pacific and Europe, which has been driving the demand in the bitumen market. In Europe, the road building market is expected to have a strong growth up to 2019. In Asia-Pacific, emerging countries, like India, Japan, Indonesia, Vietnam, Philippines, etc., are expected to witness an increase in the demand for bitumen during the forecast period, owing to the numerous government initiatives in the region for developing and improving public infrastructure.
Road Construction to Dominate the Market
By application, road construction is expected to dominate the market demand for bitumen. Recently, China has come up with China's Belt and Road Initiative (also known as New Silk Road), which aims to connect Asia, Europe, and the Middle East & Africa with a vast logistics and transport network, using roads, airports, railway tracks, ports, pipelines, transnational electric grids, and even fiber optic lines. Besides this, the government has been investing substantially in infrastructure development, which is expected to make road construction a dominant segment among its applications.
Asia-Pacific - A Potential Market
Asia-Pacific is projected to dominate the bitumen market, globally during the forecast period, owing to the booming construction industry and increasing public infrastructure projects in the region. India in its 2018 budget, allotted INR 21,453.42 crore out of INR 71,000 crore budgetary allocation to the Highways Ministry for work under the road wing. It includes expenditure on development of National Highways, including projects relating to expressways, two-laning of highways, under the National Highways Development Project, six-laning of crowded stretches of the Golden Quadrilateral, a special programme for the development of road connectivity in Naxal affected areas, development of Vijaywada—Ranchi road, and for providing last mile connectivity. In February 2018, Philippines and Japan signed a YEN 9.4 billion loan for the construction of the third phase of a road project in Bulacan. China, on the other hand, is developing New Silk Road, for which the country has already built railway lines between Addis Ababa & Djibouti, Nairobi & Mombasa, and is likely to start projects in Uganda, Rwanda, and the Democratic Republic of Congo in the near future. With such development projects, the demand for bitumen is expected to be the largest in the Asia-Pacific region, followed by Europe.
Key Developments in the Market
March 2018: Sadbhav Infrastructure received INR 934 crore highway project from National Highways Authority of India (NHAI) in Karnataka. The project involves widening of Tumkur—Shivamogga on NH 206 under the National Highways Development Project phase IV.
Major players are Chevron Texaco Corporation, British Petroleum, China Petroleum and Chemical Corporation, Royal Dutch Shell PLC, and Exxon Mobil Corporation, amongst others.
Reason to Purchase the Report
- Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis.
- To understand the dominating product type in the bitumen market.
- Identify the countries expected to witness the fastest growth during the forecast period.
- Identify the latest developments, market shares, and strategies employed by the major market players.
- 3-month analyst support along with the Market Estimate sheet (in Excel).
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1.1 Research Phases
1.2 Study Deliverables
1.3 Scope of the Report
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Buyers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products
3.2.5 Degree of Competition
3.3 Feedstock Analysis
4. Market Dynamics
4.1.1 Increasing Road Construction and Repair Activities
4.1.2 Demand from Commercial and Domestic Building Constructions
4.2.1 Environmental Concerns
4.3.1 Robust Growth in Construction Activities in Asia-Pacific
5. Market Segmentation and Analysis
5.1 By Product Type
5.1.1 Paving Grade
5.1.2 Hard Grade
5.1.3 Oxidized Grade
5.1.4 Bitumen Emulsions
5.1.5 Polymer Modified Bitumen
5.2 By Application
5.2.1 Road Construction
6. Regional Market Analysis
6.1.4 Australia & New Zealand
6.1.5 South Korea
6.1.6 ASEAN Countries
6.1.7 Rest of Asia-Pacific
6.2.2 United Kingdom
6.2.6 Rest of Europe
6.3 North America
6.3.1 United States
6.3.4 Rest of North America
6.4 South America
6.4.3 Rest of South America
6.5 Middle East & Africa
6.5.2 Saudi Arabia
6.5.3 South Africa
6.5.5 Rest of Middle East & Africa
7. Competitive Landscape
7.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
7.2 Market Share Analysis**
7.3 Strategies Adopted by Major Players
8. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
8.1 Bouygues S.A.
8.2 British Petroleum
8.3 China Petroleum and Chemical Corporation
8.4 Exxon Mobil Corporation
8.5 Icopal Group
8.6 Indian Oil Corporation
8.7 JX Nippon Oil & Energy Corporation
8.8 Kraton Corporation
8.9 Marathon Oil Company
8.10 NuStar Energy
8.11 Nynas AB
8.12 Petroleos Mexicanos
8.13 Shell Bitumen
8.14 Suncor Energy Inc.
*List not Exhaustive
9. Future of the Market
**Subject to Availability in Public Domain
- Bouygues S.A.
- British Petroleum
- China Petroleum and Chemical Corporation
- Exxon Mobil Corporation
- Icopal Group
- Indian Oil Corporation
- JX Nippon Oil & Energy Corporation
- Kraton Corporation
- Marathon Oil Company
- NuStar Energy
- Nynas AB
- Petroleos Mexicanos
- Shell Bitumen
- Suncor Energy Inc.