Bitumen Market Size, Share & Trend Analysis Report By Application (Roadways, Waterproofing, Adhesives, Insulation), By Region (North America, Europe), And Segment Forecasts, 2016 – 2024
The global bitumen market size was USD 66.10 billion in 2015 and is expected to witness significant growth over the next eight years owing to increasing use in various applications including roadways, waterproofing, insulation, and adhesives. Rapid urbanization in emerging markets has contributed to rising infrastructure activities. This has resulted in an increasing demand for the product.
The asphalt (bitumen) binder is an essential element in various roadways applications on account of its higher strength, durability, and resilience. Concrete contains a small percentage of asphalt which is acting as a binder to enhance its resistance characteristics, which is expected to boost demand over the forecast period.
Growing demand for infrastructure on account of growing the population, improving the standard of living is projected to bolster bitumen market growth over the forecast period. Increasing awareness about climate changes, along with global warming will drive roofing requirements which in turn is supposed to drive product demand over the next eight years.
Declining oil prices has resulted in tight raw material supply and caused price fluctuation and volatility in the market, which will restrain industry expansion over the forecast period. The long supply chain is a key feature owing to bitumen being a strong product to handle. This feature is being challenged as large contractors have begun directly selling to the refineries.
Roadways were the largest application segment in 2015, estimated at USD 39.29 billion. Road connectivity is the most crucial feature of any developed economy. This factor has resulted in market expansion on account of the growing need for roads in emerging economies. The efficient transportation system in various countries including India, China, and the U.S. will stimulate product demand in the near future.
Rising demand for paving applications across different regions of the world especially in the Asia Pacific and the Middle East will promote product growth over the next eight years. Growing modern construction systems having waterproofed flat roofs will stimulate the product demand over the forecast period.
The bituminous adhesive is used in cold-applied bonding, surfacing, interplay, and sealing. Cold-applied bonding is used to stick roofing felts on asbestos and tiles including railway carriages and roofs on trains. This is likely to propel the demand for adhesives, which in turn is expected to boost the market growth.
The insulation segment is projected to grow at a CAGR of 1.7% from 2016 to 2024 due to the growing demand for bitumen in sealants and electric cable protection. The steady growth in the segment is directly related to the bitumen market growth over the coming years.
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