by Market Overview:
Bitumen is a semi-solid form of petroleum that is primarily used for road construction. Being waterproof and adhesive in nature, bitumen is used for binding, waterproofing and joint sealing in road construction. It is used as a binding agent in asphalt concrete pavements and other construction applications.
Market key trends:
One of the major trends boosting the growth of this market is rising infrastructure development across the African region. Governments of various African countries are investing heavily in road construction projects which is fueling the demand for bitumen. For instance, Africa’s population is projected to double by 2050 which will increase the demand for housing, transport, communication infrastructures and thus drive the bitumen market growth. Growing transportation sector needing high quality road networks for movement of goods and services across cities and countries is expected to augment the market expansion during forecast period.
The global Africa Bitumen Market Share is estimated to be valued at US$ 488.88 Mn in 2023 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.
SWOT Analysis
Strength: Africa has large untapped reserves of bitumen. Countries like Nigeria and South Africa have significant bitumen deposits that can aid in boosting domestic supply.
Weakness: Most African countries lack technical expertise and funds required for bitumen extraction and processing. Infrastructure for bitumen transport and storage is also inadequate across many nations.
Opportunity: Growing road construction activities due to rising investments in transportation sector present an opportunity for expanded bitumen consumption. Rapid urbanization further drives the demand for road pavement works.
Threats: Volatility in crude oil prices affects the prices of bitumen. Additionally, political and economic instability in some parts of Africa poses challenges to businesses.
Key Takeaways
The global Africa Bitumen Market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing investments in road infrastructure development. Majority of African countries are investing heavily in road construction to boost connectivity and support economic growth. This drives the need for road pavement and repair works, benefiting bitumen consumption.
Regional analysis: Southern Africa dominates the Africa bitumen market, with countries such as South Africa, Nigeria, Angola, and others generating significant demand. Abundant resources, strategic focus on transportation infra expansion, and rapid economic development provide an impetus to bitumen usage in the region. Southern Africa accounted for over 35% of the total African demand in 2023.
Key players operating in the African 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 focused on tapping opportunities through capacity expansions and supply agreements with public sector road construction agencies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
