Bitumen Global Market Report 2024

The bitumen market size has grown steadily in recent years. It will grow from $53.66 billion in 2023 to $56.23 billion in 2024 at a compound annual growth rate (CAGR) of 4.8%. The growth observed during the historic period can be attributed to several factors, including robust infrastructure development initiatives, the demand for paving and roofing materials, increasing needs within the transportation industry, ongoing research and development efforts focused on bitumen modifications, and growing considerations for environmental sustainability. These factors collectively contributed to the expansion of the bitumen market during the historical period.

The bitumen market size is expected to see steady growth in the next few years. It will grow to $66.29 billion in 2028 at a compound annual growth rate (CAGR) of 4.2%. The anticipated growth in the forecast period can be attributed to several key factors, including an increased focus on sustainable asphalt solutions, the implementation of smart city initiatives, the development of renewable energy infrastructure, a rise in global construction activities, and innovative approaches such as bitumen-based carbon capture. Major trends expected in the forecast period include the adoption of high-performance pavements, advancements in roofing materials utilizing bitumen, the promotion of bitumen recycling and reuse practices, the application of nano and micro bitumen technologies for enhanced performance, and the integration of digital solutions in bitumen production processes. These trends reflect the industry's response to evolving challenges and opportunities, emphasizing performance, sustainability, and technological innovation in the bitumen sector.

The projected rise in road construction activities stands as a driving force behind the anticipated growth of the bitumen market in the coming years. Road construction encompasses a spectrum of tasks involved in creating, enhancing, and upkeeping roadways and highways. Bitumen, functioning as a binding agent, plays a pivotal role in these activities by offering waterproofing, flexibility, weather resistance, skid resistance, and facilitating ease in both construction and maintenance. Notably, in November 2022, as highlighted by Global Australia Highlights, the Australian government allocated a substantial budget of $12.04 billion (A$17.9 billion) over ten years for significant infrastructure projects across the country, which includes substantial investments in road and rail projects. Additionally, between 2021 and 2025, the estimated total investment in major public infrastructure is projected to surpass $146.72 billion (A$218 billion). Furthermore, the United States' passage of the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) in November 2021 signifies a significant step toward enhancing the country's infrastructure. Over the subsequent decade, the IIJA aims to invest $550 billion in improving roads, bridges, airports, railroads, extending clean drinking water access, broadband internet, and ensuring environmental justice. Thus, the burgeoning road construction activities are a key driving factor behind the bitumen market's expansion.

The anticipated rapid pace of industrialization is poised to be a significant catalyst propelling the growth of the bitumen market moving forward. Industrialization denotes the transition of an economy or society from primarily agrarian and craft-based activities towards a more industrial and manufacturing-oriented structure. Bitumen, revered for its versatile and durable properties, assumes a critical role across various applications in industrialization, including road construction, waterproofing, and industrial processes. This usage contributes substantially to infrastructure development while ensuring the endurance and dependability of essential industrial assets. For instance, in August 2023, Eurostat reported a 0.5% increase in industrial production in the euro area and a 0.4% rise in the EU, comparing June 2023 to May 2023. Consequently, the projected rapid industrialization is expected to drive the growth trajectory of the bitumen market.

The adoption of bio-based bitumen development emerges as a significant trend garnering attention and momentum within the bitumen market. Companies operating in this sector are actively engaged in innovating new products to maintain their market presence. An illustrative instance involves Praj Industries, an India-based engineering solutions company, which introduced a distinctive method in May 2021 for producing bio-bitumen utilizing lignin. This pioneering approach involves the conversion of unprocessed phenol into bio-bitumen, presenting an environmentally sustainable alternative to fossil fuel-derived bitumen. Bio-bitumen holds considerable potential as a road construction material, offering the dual benefit of reducing CO2 emissions while fostering growth within the bioeconomy. This technological advancement not only solidifies our position as a global leader but also underscores our unwavering dedication to innovation and technological progression within the industrial biotech domain. The creation of this innovative process for deriving bio-bitumen from unprocessed phenol represents a significant leap forward in bitumen production, promising a reduced dependence on fossil fuel-derived sources and offering an environmentally friendly solution. This noteworthy development underscores the continuous efforts to enhance bitumen production through innovative and environmentally conscious technologies.

Leading enterprises operating within the bitumen market are pioneering product innovations, particularly high-tech bitumen binders, aimed at ramping up the production of advanced bitumen products to gain a competitive edge. High-tech bitumen binders encompass advanced formulations of bituminous materials characterized by superior performance attributes, including heightened durability. For instance, in April 2021, Gazprom Neft, a Russia-based petroleum refinery company, inaugurated a high-tech bitumen-binders production complex in Russia. This facility is poised to manufacture approximately 120,000 metric tons of polymer-bitumen binders (PBBs) annually. This strategic move reinforces the company's commitment to innovation and signifies its intent to meet market demands by offering advanced and high-quality bitumen binders.

In March 2022, DL Chemical Co., Ltd., a South Korea-based chemicals company, completed the acquisition of Kraton Corporation for $2.5 billion. This strategic move enhances DL Chemical's position on a global scale, fortifying its manufacturing capabilities, financial robustness, and competitive edge within the specialty chemicals sector. Kraton Corporation, a US-based company specializing in the development, manufacturing, and marketing of specialty polymers and bio-based chemicals, is now an integral part of DL Chemical's portfolio, contributing to its overall growth and industry leadership.

Major companies operating in the bitumen market report are Sinopec Corporation, ExxonMobil Corporation, Royal Dutch Shell plc, Total Energies SE, BP plc, ConocoPhillips Co, PJSC Rosneft Oil Company, Cenovus Energy Inc., Bouygues Group, Imperial Oil Limited, Suncor Energy Inc., MOL Group, Nynas AB, Gazprom-Neft, Teck Resources Limited, Indian Oil Corporation Ltd., Syncrude Canada Ltd., MEG Energy Corp, Stolt-Nielsen Limited, Soprema Group, NuStar Energy L.P, Athabasca Oil Corporation, NIS Group, Compania Espanola de Petroleos SA (CEPSA), CertainTeed Corp., Asphalt Materials Inc., The Richmond Group, Karnak Corp., Sunshinen Oilsands Ltd., GOYAL Group of Companies.

Asia-Pacific was the largest region in the bitumen market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bitumen market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the bitumen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary products derived from bitumen include paving grade, hard grade, oxidized grade, bitumen emulsions, polymer-modified bitumen, and others. Paving grade, a specific type of bitumen or asphalt, is commonly utilized in road construction and paving projects. Its applications extend to roadways, waterproofing, adhesives, insulation, and various other uses across non-residential, residential, and other end-user sectors.

The bitumen market research report is one of a series of new reports that provides bitumen market statistics, including bitumen industry global market size, regional shares, competitors with a bitumen market share, detailed bitumen market segments, market trends and opportunities, and any further data you may need to thrive in the bitumen industry. This bitumen market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The bitumen market consists of sales of bitumen paints and coatings, polymer-modified bitumen, cutback bitumen, bitumen emulsions and others. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.