The global bitumen market is fragmented. The market is also very competitive on account of the growing number of regional players in the market, states a new report by Transparency Market Research (TMR). Companies such as Shell, Valero Energy Corporation, Imperial Oil Limited, and Petróleos Mexicanos (PEMEX) are integrated and have their presence across the three stages of the value chain. Players are focusing on catering to the demands from various sectors such as roofing and paving. This is because the demand for bitumen from roofing and paving segments has increased. Some of the other players operating in this market include: British Petroleum, Villas Austria GmbH, NuStar Energy, Indian Oil Corporation, China Petroleum and Chemical Corporation, ChevronTexaco Corporation, Nynas AB, Bau Holding Vermögensverwaltung AG, JX Nippon Oil & Energy Corporation, Bouygues S.A., and Marathon Oil Company.
According to TMR, the global bitumen market will be worth US$93.38 bn by the end of 2020. The bitumen market is predicted to reach 129,673.2 kilo tons in terms of volume, by the end of the forecast period, says the lead analyst of this report. Road construction led in the market in the past holding a massive 80% of the total market shares. On the basis of geography, North America led in the market in the past and will continue to hold significant shares of the market in the coming years. However, it is Asia Pacific, which will see the fastest growth in the bitumen market. The region’s rapid industrialization is estimated to be the key factor driving the demand for bitumen. On the basis of product, the market was led by the PMB segment. The PMB segment will also witness the fastest growth during the forecast period. The use of PMB for waterproofing will be the main driving factor for this segment.
Development of Roadways to Boost Demand for Bitumen
One of the main factors boosting the growth of the global bitumen market is the increasing use of bitumen in the construction of roadways worldwide. The surge in the development of roadways and similar other construction projects will drive the demand for bitumen during the forecast period. Polymer modified bitumen, due to its benefits is high in demand. These benefits include, high skid resistance, high porosity, and low noise. As these three properties are most sought after in the roadways sector, the demand for PMB will fuel, and this in turn will push the growth of the global bitumen market.
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Environmental Hazards Associated with Bitumen to Hamper Demand
One of the factors hampering the growth of this market is the increasing concerns about environment. “As there is a high degree of environmental hazards associated with the use of bitumen, its demand is expected to be affected adversely,” says a TMR analyst. A decline in the price of oil has decreased the supply of raw materials and also resulted in the fluctuation of price, making the market volatile. This will adversely affect the growth of the bitumen market in the forecast period. The long supply chain of bitumen will also pose a challenge for this market. As bitumen is a strong product, handling it is very difficult and contractors thus prefer to directly sell it to the refineries.
The information presented in this review is based on a Transparency Market Research report, titled, “Bitumen Market (Product – Paving Bitumen, Oxidized Bitumen, Cutback Bitumen, Bitumen Emulsion, Polymer Modified Bitumen, and Bitumen Formed Due to Addition of Zinc and Copper; Application – Roadways, Waterproofing, Adhesives, Insulation, Decorative, and Industrial) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2020.”
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