Bitumen is a semi-solid form of petroleum that is highly sticky and can be used for adhesion purposes. It is often used as a binder and waterproofing agent in road construction activities. As a binding agent, bitumen provides high durability and longevity to pavements and roads. Thus, bitumen has wide usage in construction of highways, streets, parking lots and pathways. Being water resistant, bitumen prevents damage caused by water and moisture. It also protects roads from oxidation and weathering.
Market key trends:
One of the key trends in the Africa Bitumen Market is growing state investments in infrastructure development projects. Several African countries are investing heavily in upgrading and building road, transport and energy infrastructure. For instance, South Africa’s government has planned investments of over $100 billion by 2030 for public infrastructure and transport projects. Similarly, Nigeria announced investments of $11 billion for various road projects between 2022-2023. The rising construction of highways and transportation networks is fueling the demand for bitumen in pavement construction in the region. Furthermore, growing spending on rural infrastructure is also boosting the uptake of bitumen in non-urban areas.
The global Africa Bitumen Market Share is estimated to be valued at US$ 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.
Threat of new entrants: Africa has a moderate threat of new entrants in the bitumen market due to the high capital requirement for equipment and technology needed for the manufacturing and distribution of bitumen.
Bargaining power of buyers: Bargaining power of buyers is moderate as bitumen has limited substitutes and demand depends on infrastructural development projects.
Bargaining power of suppliers: The bargaining power of suppliers is high due to the presence of a few global players controlling the majority of supply.
The threat of new substitutes: Threat of new substitutes is low as bitumen has well-established applications and no major substitute offers similar functional characteristics.
Competitive rivalry: Intense competition exists among existing players to tap growth opportunities.
The global Africa bitumen market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing infrastructural development projects across Africa. The market size for African bitumen was valued at US$ 488.88 Mn in 2023.
The Africa bitumen market is dominated by the South African region owing to extensive road construction activities. Countries like Nigeria and Egypt are also anticipated to witness fastest growth in demand for bitumen due to the growing economy and investments in the development of road networks connecting remote regions.
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. Exxon Mobil Corporation is the leading player owing to its integrated refining and supply chain capabilities.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it