by Bitumen is a vital material used in road construction for its excellent binding and waterproofing properties. It helps assemble the many elements of a road into a durable yet flexible infrastructure. The rising requirements for bitumen from road construction companies have accelerated the growth of the Africa bitumen market. Key applications include construction of highways, streets, and paved roads in residential and commercial areas.
The global Africa Bitumen Market is estimated to be valued at US$ 16 Billion in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The trend of rising road infrastructure development across Africa is a major driver behind the growth of the bitumen market in the region. Governments are undertaking extensive road construction activities to facilitate better transportation networks and regional connectivity. This is attracting huge investments towards constructing inter-state highways, urban roads and expressways. For example, Nigeria’s Federal Roads Maintenance Agency plans to rehabilitate and construct over 13,000km of roads across 36 states over the next 3 years, requiring massive bitumen consumption. Similarly, Ethiopia has earmarked $11 billion for upgrading and expanding its national road network by 2023. Such large-scale road projects will continue stimulating demand for bitumen in the Africa market over the coming years.
SWOT Analysis
Strength: Presence of vast oil reserves provide abundant availability of crude oil feedstock for bitumen production. Weakness: Underdeveloped transportation & road infrastructure in many African countries limits the demand for bitumen. Opportunity: Growing construction activities in emerging economies of Africa for buildings, roads, and other infrastructure projects is expected to drive the market. Threats: Political unrest and conflicts in some parts of Africa can disrupt bitumen production and distribution.
Key Takeaways
The Global Africa Bitumen Market Size is expected to witness high growth.
Regional analysis: Africa dominates the bitumen market with regional share of over 60%. East Africa region is projected to grow at the fastest pace attributed to rising oil & gas exploration activities and government initiatives for infrastructure development in countries like Kenya, Tanzania, and Ethiopia. South Africa accounts for the largest bitumen consumption in Africa due to well-established road construction sector and availability of crude oil resources.
Key players operating in the Africa Bitumen Market are Royal Dutch Shell, BP PLC, TOTAL, Chevron, ExxonMobil, Sinopec, Equinox Minerals, Valero Energy, Nynas, Irving Oil. There is moderate degree of competition among these players owing to presence of large number of regional domestic manufacturers. The industry playersare focusing on tapping opportunities arising from ongoing road construction projects acrossmajor African countries.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
