The Africa Bitumen Market is estimated to be valued at US$ 418.71 Mn in 2022 and is expected to exhibit a CAGR of 5.3% over the forecast period from 2021 to 2028, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Bitumen is a black or dark-colored semi-solid form of petroleum that is primarily used for paving and roofing applications. It provides waterproofing and adhesive properties when used in these applications. Bitumen is majorly used in road construction for pavement, footpaths, and highways. Other uses include waterproofing of basements and roofs. Rising infrastructure development projects along with growth in the construction industry are boosting the demand for bitumen in Africa.
Market Dynamics:
Infrastructure development has become one of the major focuses of African governments in recent years. Governments are investing heavily in building roads, highways, railways, airports and other infrastructure projects to support economic growth. According to the African Development Bank, average annual infrastructure investment in Africa is estimated to be around US$ 130 billion currently and needs to increase to US$ 170 billion by 2025. This rapid infrastructure development is creating significant demand for construction materials like bitumen. Additionally, urbanization is rising swiftly across Africa which is propelling growth of the construction industry. The growing construction of residential and commercial buildings also requires sizeable quantities of bitumen for applications such as waterproofing of basements and roofs. These factors are expected to propel the Africa bitumen market growth over the forecast period.
SWOT Analysis
Strength: The Africa bitumen market has significant deposits of bitumen in South Africa, Nigeria, and Algeria. Bitumen is a necessary raw material for road construction. Most countries in Africa have growing road infrastructure needs. Improved connectivity will aid intraregional trade.
Weakness: Africa has underdeveloped transportation infrastructure compared to other regions. Lack of adequate storage facilities and delays in projects increase costs. Political instability and regulatory hurdles in some countries pose challenges.
Opportunity: Governments are allocating more funds to modernize transportation networks. This is expected to fuel consumption. Growing construction industries and urbanization will augment demand. New extraction technologies can help monetize remote reserves.
Threats: Fluctuations in crude oil prices directly impact bitumen costs. Imports are vulnerable to trade wars and tariffs. Environmental regulations are becoming stricter regarding emissions. Natural disasters may disrupt supply chains.
Key Takeaways
The Africa bitumen market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing investments in road and highway construction projects across Africa. Road infrastructure plays a crucial role in strengthening intra-regional trade ties.
Regional analysis: The Africa bitumen market is dominated by South Africa, accounting for around 25% share in 2020. Algeria and Nigeria are other major consumers due to ample reserves and focus on upgrading transport networks. East Africa is forecast to expand at the fastest pace on plans to address infrastructure deficit.
Key players: 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. Players are investing in carbon capture technologies to boost supply from heavy oil deposits.
Read More:
https://www.ukwebwire.com/renewable-energy-from-africa-bitumen-market/
