The Africa bitumen market was valued at US$ 418.71 million in 2020, according to Africa Bitumen Market Report, by Product Type (Paving Grade, Oxidized Grade, Bitumen Emulsions, Polymer Modified Bitumen, and Others), by Application (Roadways, Waterproofing, Adhesive, Insulation, and Others (Footwear, Pillows, etc.)), and by Country (South Africa, Nigeria, Ghana, Senegal, Guinea, and Rest of Africa), published by Coherent Market Insights
The Africa bitumen market was valued at US$ 418.71 million in terms of value in 2020 and is estimated to exhibit a CAGR of 5.3% during the forecast period (2021 to 2028). Bitumen is a mixture of organic liquid, which is highly sticky, black, viscous, and entirely soluble in carbon disulfide. The paving grade bitumen is largely used for road construction activities, especially for surfacing and paving. This increasing usage can be attributed to its cost-effective nature as compared to other alternatives such as cement or concrete.
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Browse 50 market data tables* and 45 figures* on “Africa Bitumen Market” - Forecast to 2028.
Key Trends and Analysis of the Africa Bitumen Market:
- One of the rising trends includes the Surging adoption of bitumen in the production of waterproof paper. The paper industry uses bitumen for the production of waterproof papers. Waterproof paper is reinforced with bitumen and is used as a waterproof liner for cases and pallets and for packing fragile and permeable objects. This paper has properties such as smooth surface and moisture resistance on coming in contact with bitumen. Also, as it does not break easily, bitumen-reinforced waterproof paper is majorly used in heavy-duty export packaging across railway and air transport
- The growth of construction industry in Africa will drive the growth for bitumen market in the forecast period. For example, according to Statistics South Africa, the construction industry across Africa is expected to grow at 2.3% from 2018 to 2019. Ethiopia is estimated to witness the highest growth of around 12.3% across the construction sector in the near future. Moreover, the implementation of favorable policies prepared by governing authorities for the promotion of infrastructure development is projected to augment the market growth in the near future.
- For its application in the infrastructure development sector, bitumen manufacturers must comply with government regulations. These regulations are majorly enforced to ensure the rightful usage of bitumen in proportionate quantity for increasing the shell life of road. Majority of the international bitumen standards are published by different governing bodies such as CEN (European Committee for Standardization), ASTM (American Society for Testing and Materials), SABS (South African Standard Organization), AASHTO (American Association of State Highway and Transportation Officials), and AS (Standards Australia).
- The bitumen roads are also affected by extreme climatic conditions. For instance, in cold weather, bitumen roads develop cracks. While in hot weather, these roads soften due to heat exposure, thereby increasing the possibility of road deformity.
- Thus, a shift from the adoption of bitumen to concrete and cement in roadway construction is being foreseen for the past few years. The usage of cement and concrete provides enhanced road strength and helps in curtailing the maintenance costs. Thus, such alternatives are projected to hinder demand for bitumen over the forecast period.
- On the basis of application, roadways segment dominated the Africa bitumen market in 2020 with around 83.3% of market share, in terms of revenue, followed by waterproofing. The growth is attributed to the rising constructional activities coupled with increasing government initiatives for road development across the Africa.
- Key players operating in the Africa bitumen market include 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.
- These players are constantly engaged in product launches in order to gain competitive advantage over other players. For instance, in March 2019, Royal Dutch Shell Plc. launched a new bitumen product, named Shell Bitumen FreshAir, which helps in reducing the emissions of specific gases and particulates from asphalt mixtures during production and paving by an average of 40% when compared to conventional bitumen.
Africa Bitumen Market - Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 had negative effects on the Africa bitumen market. The imposition of lockdown and restrictions over travel of construction workers have curbed the number of ongoing construction activities across Africa, which is expected to drive demand for bitumen. Also, the infrastructure industry has seen disturbance across the roadway construction sector. This can be attributed to several factors such as lack of availability of skilled laborers, nationwide lockdown, sealed international border, and shortage of funds for infrastructure development due to shifting priority towards the healthcare sector. Furthermore, due to economic and political instability, fluctuating prices of crude oil and petroleum majorly affected the bitumen market across Africa.
By Product Type
- Paving Grade
- Oxidized Grade
- Bitumen Emulsions
- Polymer Modified Bitumen
- Others (Footwear, Pillows, etc.)
- South Africa
- Rest of Africa