by The Africa Bitumen Market is estimated to be valued at US$ 418.71 Mn in 2022 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.
Market Overview:
Bitumen is a sticky, black and highly viscous liquid or semi-solid form of petroleum. It is a thick, dark brown or black cement-like material that is highly viscous, tacky and adhesive in nature. Bitumen is used for paving roads as it provides flexibility, adhesion and waterproofing. Rapid urbanization coupled with economic growth in African countries is boosting infrastructure development including roads, highways and expressways. This is estimated to significantly drive the demand for bitumen in the region over the forecast period. Moreover, rising consumption of bitumen in waterproofing applications such as roof sealing and construction of dams is also propelling the Africa bitumen market growth.
Market Dynamics:
Road infrastructure development is one of the major drivers boosting the Africa bitumen market growth. According to World Bank, African countries need to spend around US$ 170 billion per year to close the infrastructure gap, including spending US$ 93 billion on transport infrastructure. Several African governments have undertaken initiatives to improve road connectivity. For instance, Morocco plans to invest over US$ 8.2 billion for the construction and upgrading of over 4,300 km of highways by 2022. Similarly, South Africa’s Expanded Public Works Program aims to construct and rehabilitate over 300,000 km of road networks by 2030. Moreover, growing construction activities in residential and commercial sectors are also fueling the consumption of bitumen for applications such as waterproofing of buildings. However, volatility in crude oil prices leads to fluctuation in bitumen prices which may hamper the market growth.
Segment Analysis
The Africa bitumen market is segmented by application into road construction and waterproofing. The road construction segment dominates the market due to increasing infrastructure development activities across the region. The African governments are investing heavily in developing road infrastructure projects such as highways, railways, airports, etc. which has boosted the consumption of bitumen in road construction applications over the years.
PEST Analysis
Political: Africa contains several developing economies and political stability is a concern in some countries. However, governments are promoting infrastructure development through various policies and initiatives.
Economic: The economic growth in major African countries has been robust over the past decade. This is positively impacting the infrastructure and construction industries.
Social: Rapid urbanization and growing population are driving the need for new housing, roads and transport infrastructure. Affordability of bitumen products can also impact its market.
Technological: New bitumen technologies allow use of modified bitumen for various applications. Advancements in road construction techniques are boosting the efficiency.
Key Takeaways
The Africa bitumen market is expected to witness high growth, exhibiting a CAGR of 5.3% over the forecast period, due to increasing government investments in road and transport infrastructure projects. The East Africa region dominates the market and is expected to maintain its lead, supported by economic growth and rising construction spending in countries like Ethiopia, Kenya and Tanzania.
Regional analysis
The East Africa region accounted for the largest market share in 2020 led by Ethiopia, Kenya and Tanzania. The governments of these countries are strongly focused on improving connectivity through road, rail and other infrastructure development projects. Favorable economic conditions along with access to ports and trade routes makes infrastructure building a top priority.
Key players
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. Major players are focusing on strategic partnerships and supply contracts with governments to strengthen their positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
