How is Iran Bitumen Market influenced?

It is obviously clear that the global asphalt market is affected due to the growing demand for road infrastructure development worldwide.

A survey done concluded that the global Bitumen market size was worth around USD 240 million in 2022 and is predicted to grow to around USD 350 million by 2030. And the main development in road construction is expected to be driven by Asia Pacific. Rapid urbanization in emerging nations has increased infrastructure activities in these regions.

Also, according to another study, the global bitumen market was valued at USD 55.0 billion in 2022, growing at a CAGR of 5% from 2023 to 2032. The market is expected to reach USD 89.5 billion by 2032. Because of their expanding use in various applications such as highways, waterproofing, insulation, and adhesives.

So, Bitumen Market is world’s most profitable market pushed by a rising extensive infrastructure development, urbanization, and increased construction activities across the region.

Also other applications of Bitumen in different industries such as building construction industry, insulation and coating has emerged new highly demanded markets for this product. Meanwhile, there have been new developments in Bitumen product which created new derivations of this product which encounters high use and application globally.  Some of these recent developments are illustrated below.

 

Recent Development in world Bitumen which impacts higher demand :

Praj Industries, an Indian engineering corporation developed a novel process for generating bio-bitumen based on lignin in May 2021. This was yet another big step forward for the company in developing cutting-edge innovation for bitumen production. The technique converts unprocessed phenol into bio-bitumen, reducing reliance on bitumen from fossil fuels while providing an environmentally sustainable answer.

Nypol RE, a novel polymer-modified bitumen containing some biogenic elements that enhance service life while having a low environmental impact, was introduced by NYNAS AB in November 2022.

In 2019, Shell introduced a new bitumen solution to lessen the harmful effects of paving and asphalt production on local air quality. It could reduce pollution of numerous particles and gases in asphalt mix during production and paving by 40%.

In May 2021, ExxonMobil’s bitumen-producing unit in Singapore will reopen. The factory has a bitumen production capability of 100,000-120,000 tonnes per month.

Market Dynamics:

Bitumen is primarily used in road building due to its numerous benefits and features. Bitumen is manufactured with several specific properties already built in. The construction of roads generates a lot of revenue for businesses in the bitumen sector. Bitumen is used as a raw material in adaptable road construction, which frequently uses bitumen in road construction. Bitumen is less expensive to install than concrete or other similar materials. Loose rocks, on the other hand, enhance road noise and hasten tyre wear on bitumen pavements. The main profit of Businesses in the bitumen are from road construction.

Restraints influencing Bitumen Market:

First, variable oil and petrochemical prices may impact bitumen market rate patterns during the forecast period.

Second, Production techniques and stringent environmental regulations also limit the future expansion of the bitumen market.

Third, the drop in oil prices has direct impact on the reduction of raw material supply, which usually results in rate volatility in Bitumen market, limiting market growth over the entire forecast period.

Above mentioned items are the main restraints affecting Bitumen Market.

New Opportunities for Bitumen Market Expansion:

Bitumen is commonly applied in different surfaces as a chemical component in various products, including black paint and solvent. When mixed with chemicals, bitumen improves the efficiency of varnishes and paints and makes waterproof compounds viscous. Furthermore, emulsifiers use chemically modified bitumen as a candy-coated component. When mixed with biological amides or amines, bitumen improves bonding strength, and when combined with wood ash and lime, it makes excellent and smooth road surfaces.

Regional segmentation analysis on Bitumen Market:

The Asia-Pacific region controlled the majority of the global market during recent years. China is the largest economy in Asia-Pacific, and its growth rate is high annually.

India has the world’s second-largest road network, covering 5.89 million kilometres (km). This road network moves 64.5% of all commodities in the country and handles 90% of the passenger traffic in India. Road transit has significantly expanded, and according to their future development plans, the need for bitumen is increasing.

Also South Korea has smashed a record by doubling the length of motorways recorded in 1999, according to the Ministry of Land, Infrastructure, and Transport. In 2021, the country motorways had a total length of around 4,866 kilometres.

Asia Pacific Region Bitumen Market Share in 2022 – 51%

Bitumen Application Segment Analysis

The study on Bitumen segment Analysis concluded that totally the application segment is divided into road construction, waterproofing, airport runways, piping, and industrial bitumen.

While, the road construction segment dominates the market on the top, with a market share of around 42% in 2022.

This is mainly because Road connectivity is the most critical aspect of every industrialized economy and country. This aspect has led to market expansion because of the increased demand for roads in emerging economies. We all know that effective transportation systems in nations such as India, China, and the United States will stimulate Bitumen dramatic demand in the near future.

For the purpose of gathering more specific data and conclusion on this topic, there is a need for future specific market analysis based on real data from export ministries of main countries from each continent near in future.

Written and Gathered by : Pars Bitumen Company