Africa Bitumen Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.41 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Bitumen Market Analysis
The Africa Bitumen Market is estimated to reach 2.85 million tons by the end of this year and is projected to reach 3.54 million tons in the next five years, registering a CAGR of 4.41% during the forecast period.
- The COVID-19 pandemic has affected several industries negatively. The lockdown in most African countries caused disruptions in production, as well as industrial activities, and restrictions in freight transportation, disturbed the supply chain. However, the conditions started recovering in 2021, restoring the market's growth trajectory.
- Over the short term, growing road construction projects in major economies like South Africa and Egypt and increasing consumption of bitumen in waterproofing applications are major factors driving the growth of the market studied.
- However, the environmental concerns associated with bitumen and the usage of concrete for road construction are likely to restrain the growth of the studied market.
- Nevertheless, research on development of High-Performance Bitumen Products will likely create lucrative growth opportunities for the global market.
South Africa represents the largest market over the forecast period due to the increasing consumption in expressway constructions.
Africa Bitumen Market Trends
Road Construction Industry to Dominate the Market
- The majority of bitumen consumed is processed into asphalt for road construction. Asphalt is a mixture of rock aggregates and bitumen. Bitumen serves as a binding agent and thus, is responsible for the stability of asphalt.
- Depending on the type of bitumen or composition of the mixture used, asphalt roads can be made suitable for regions with different climatic conditions or various levels of operational demands. Asphalt is also used for airport runways, parking decks, and working areas in ports.
- Roadways are one of the key sectors that determine a country's economic growth. Roads, airport runways, and parking decks are essential services that drive economic activity by channelizing trade and mobility. Massive investments are required that help in the modernization and maintenance of these systems.
- The infrastructure activities are expected to increase significantly, especially in the transportation sector, owing to increasing urbanization and shifting focus toward developing the secondary sector in African countries.
- In November 2022, Tanzania started the construction of a key stretch of road and a bridge which is of major significance for East Africa as this stretch provides a missing link in the 225.3 km multinational Arusha-Holili/Taveta-Voi road that links Northern Tanzania to the Kenyan port city of Mombasa. The project will connect the 1,800 km Northern Corridor to the 3,100 km Central Corridor that originates at Tanzania's capital and port city, Dar es Salaam.
- In February 2022, Tanzania National Roads Agency (Tanroads) and Japan International Cooperation Agency (JICA) signed a USD 168.6 million contract to finance the Arusha-Holili Road Improvement Project. The phase of the Arusha-Holili/Taveta-Voi road is slated for completion in 2027.
- According to the Ministry of Planning and Economic Development, Egypt, the number of national and strategic road projects in the 2023 fiscal year's plan includes 45 projects in Egypt, with the inclusion of the construction of 10 transverse axes on the Nile and the establishment of 18 overpasses.
- Moreover, the Trans-West African Coastal Highway, which is a transnational highway project, will link 12 West African coastal nations, from Mauritania in the north-west of the region to Nigeria in the east, with feeder roads already existing to two landlocked countries, Mali and Burkina Faso. According to African Union (AU), the length of the route is 4,560 km of which 83% or 3,777 km has been completed.
- With such transport development projects in the pipeline, the demand for bitumen is expected to be the largest for road construction projects.
South Africa to Dominate the Regional Market
- The construction industry in South Africa is one of the largest and the most developed on the African continent. In 2022, the construction industry in South Africa contributed an added value of ZAR 107 billion (~USD 5.9 billion) to the country's gross domestic product (GDP).
- According to Statistic South Africa, the value of building plans passed by larger municipalities in South Africa for 2022 was ZAR 117.4 billion (~USD 6.29 billion), representing a 7.7% rise over the previous year.
- Moreover, residential buildings accounted for the major share of investment with ZAR 62.2 billion (~USD 3.33 billion), followed by additions and alterations in both residential and non-residential buildings with ZAR 33.1 billion (~USD 1.77 billion), and non-residential with ZAR 22.1 billion (~USD 1.18 billion).
- Out of the total value passed by the government, ZAR 67.8 billion(~USD 3.63 billion) value of buildings was reported to be completed in 2022, representing a 14.3% increase over 2021. This indicates the growing emphasis on construction activities in the country.
- In the road construction department, in November 2022, a fully evaluated and monitored paving trial on a portion of the M7/P82 near Pinetown, approximately 20 km inland of the coastal city of Durban was carried out using recycled waste and modified bitumen. The trial section was located on the M7/P82 between the Hans Dettman Highway overpass and the Thistle Road underpass and spans 172 m.
- The M7 is a strategic route in eThekwini Metropolitan Municipality that primarily links Durban Harbour with the N3 Durban-Johannesburg National Route, and the usage of recycled waste with modified bitumen will pave the way for other such projects.
- In February 2023, the South African National Roads Agency Limited (Sanral) announced an investment more than ZAR 60 billion (~USD 3.21 billion) on road infrastructure projects in the Eastern Cape over the next five years.
- Some of the notable projects under construction include:
- Upgrading of R63 Section 13 from Fort Beaufort to Alice
- Upgrading of the R67 from Swart Kei river to Komani (formerly Queenstown)
- The construction of the N2 Wild Coast Road Msikaba Bridge and,
- The construction of the N2 Breidbach and Belstone interchanges.
- Sanral has already invested over ZAR 8 billion (~USD 430 million) on road construction projects in the Eastern Cape in 2022.
- Courtesy of the rapid development projects in road and infrastructure in the country, the demand for bitumen is expected to grow significantly in the coming years.
Africa Bitumen Industry Overview
The Africa Bitumen Market is partially fragmented in nature. The major players (not in any particular order) include GOIL Company Limited, Shell Plc, BP PLC, Exxon Mobil Corporation, and Wabeco Petroleum Limited, among others.
Africa Bitumen Market Leaders
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GOIL Company Limited
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Shell Plc
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Wabeco Petroleum Limited
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BP PLC
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Exxon Mobil Corporation
*Disclaimer: Major Players sorted in no particular order
Africa Bitumen Market News
- March 2022: FFS Refiners and Rubis Asphalt South Africa reached an agreement wherein FFS Refiners will provide Rubis with reliable and safe bitumen storage and handling under a 12-month agreement, which includes the rental of 4700 cubic meters of tank storage at FFS Refiners' facility in the Port of Cape Town.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Increasing Demand for Waterproofing Applications
- 4.1.2 Growing Roadways Network in Africa
- 4.1.3 Other Drivers
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4.2 Restraints
- 4.2.1 Environmental Concerns Regarding the Usage of Bitumen
- 4.2.2 Concrete as a Substitute for Bitumen in Road Construction
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 Product Type
- 5.1.1 Paving Grade
- 5.1.2 Hard Grade
- 5.1.3 Oxidized Grade
- 5.1.4 Bitumen Emulsions
- 5.1.5 Polymer Modified Bitumen
- 5.1.6 Other Product Types (Cutback Bitumen and Crystal Bitumen)
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5.2 Application
- 5.2.1 Road Construction
- 5.2.2 Waterproofing
- 5.2.3 Adhesives
- 5.2.4 Other Applications (Coating and Canal Lining)
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5.3 Geography
- 5.3.1 South Africa
- 5.3.2 Egypt
- 5.3.3 Algeria
- 5.3.4 Nigeria
- 5.3.5 Morocco
- 5.3.6 Rest of Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Merger & Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Bouygues
- 6.4.2 BP PLC
- 6.4.3 Exxon Mobil Corporation
- 6.4.4 Icopal ApS
- 6.4.5 Indian Oil Corporation Ltd
- 6.4.6 GOIL Company Limited
- 6.4.7 KRATON CORPORATION
- 6.4.8 RAHA Bitumen, Inc.
- 6.4.9 Richmond Group
- 6.4.10 Shell Plc
- 6.4.11 Tiger Bitumen
- 6.4.12 Tekfalt Binders (Pty) Ltd
- 6.4.13 Wabeco Petroleum Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Research on Development of High-Performance Bitumen Products
- 7.2 Other Opportunities
Africa Bitumen Industry Segmentation
Bitumen is a black or dark brown non-crystalline soil or viscous material having adhesive properties. It is derived from petroleum crude either naturally or through refinery processes. Bitumen is commonly used as a binder in the construction of roads, runways, and platforms, and for waterproofing and adhesive applications in residential and commercial construction.
The Africa Bitumen Market is segmented by product type, application, and geography. By product type, the market is segmented into Paving Grade, Hard Grade, Oxidized Grade, Bitumen Emulsions, Polymer Modified Bitumen, and Other Product Types (Cutback Bitumen and Crystal Bitumen). By application type, the market is segmented into Road Construction, Waterproofing, Adhesives, and Other Applications (Coating and Canal Lining).
The report also covers the market size and forecasts for the Africa Bitumen Market in 5 countries across the African region. For each segment, the market sizing and forecasts are provided on the basis of volume (tons).
| Product Type | Paving Grade |
| Hard Grade | |
| Oxidized Grade | |
| Bitumen Emulsions | |
| Polymer Modified Bitumen | |
| Other Product Types (Cutback Bitumen and Crystal Bitumen) | |
| Application | Road Construction |
| Waterproofing | |
| Adhesives | |
| Other Applications (Coating and Canal Lining) | |
| Geography | South Africa |
| Egypt | |
| Algeria | |
| Nigeria | |
| Morocco | |
| Rest of Africa |
Frequently Asked Questions
What is the current Africa Bitumen Market size?
The Africa Bitumen Market is projected to register a CAGR of 4.41% during the forecast period (2024-2029)
Who are the key players in Africa Bitumen Market ?
GOIL Company Limited, Shell Plc, Wabeco Petroleum Limited, BP PLC and Exxon Mobil Corporation are the major companies operating in the Africa Bitumen Market .
What years does this Africa Bitumen Market cover?
The report covers the Africa Bitumen Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Bitumen Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa Bitumen Market Industry Report
Statistics for the 2024 Africa Bitumen market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Bitumen analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
