Africa Bitumen Market is Estimated to Witness High Growth Owing to Opportunity in Infrastructure Development
Bitumen is a kind of petroleum product that is produced from crude oil through fractional distillation. Bitumen is commonly used in road construction as a binder in asphalt concrete and other pavement applications. The need for infrastructure development and growing road networks across African countries is propelling the demand for bitumen in the region.
The global Africa Bitumen Market is estimated to be valued at US$ 488.88 Mn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity in infrastructure development is expected to drive the growth of the Africa bitumen market over the forecast period. There is significant government focus as well as investments toward the development of road and transportation infrastructure across major African countries. Various development initiatives such as the Program for Infrastructure Development in Africa (PIDA), and sustainable development goals that focus on enhancing regional integration and interconnectivity through infrastructure development are boosting the road construction activities. This is increasing the consumption of bitumen for applications such as pavement and road construction. With ongoing and future infrastructure projects, the demand for bitumen is estimated to witness a substantial rise in the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Global Africa Bitumen Market Size is moderate as it requires large capital investments and technical expertise. However, raw material availability and growing infrastructure development support new players.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. The presence of several construction companies gives buyers leverage to negotiate on prices. Substitute availability also impacts buyer power.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major suppliers include oil refineries and suppliers have access to supply from Middle Eastern countries. However, established buyer relationships reduce individual supplier power.
Threat of new substitutes: The threat of substitutes is moderate as materials like concrete and recycled materials are being increasingly used in road construction and real estate. However, the durability and chemical properties support bitumen’s dominance.
Competitive rivalry: The competitive rivalry is high due to the presence of global and regional players competing on pricing, quality and innovation.
SWOT Analysis
Strengths: Bitumen has excellent waterproofing and binding properties. Rising road infrastructure expansion and building construction drive the market.
Weaknesses: Raw material price fluctuations impact operation costs. Limited local manufacturing capacities increase reliance on imports.
Opportunities: Growing population and urbanization spur the demand for new housing and road projects. Government initiatives to boost investor confidence support the sector.
Threats: Economic slowdowns lower investment in development activities. Strict environmental norms increase treatment and disposal costs.
Key Takeaways
The Africa bitumen market is expected to witness high growth over the forecast period supported by the rising construction activities in major economies. Rapid urbanization and government investments in road infrastructure projects will propel bitumen consumption. The global Africa Bitumen Market is estimated to be valued at US$ 488.88 Mn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030.
Regional analysis: The Central and West Africa regions dominate bitumen consumption led by Nigeria, Angola, and South Africa. East Africa is projected to showcase the fastest growth led by Ethiopia, Sudan, and Uganda undertaking infrastructure expansion projects.
Key players: Key players operating in the Africa bitumen market are AxoSim Technologies LLC., BICO Group AB(Visikol), CN Bio Innovations Limited, Elveflow, Emulate, Inc., Insphero AG, Mimetas B.V., Nortis Inc., Organovo Holdings, Inc., and Tara Biosystems. Key players are focusing on expanding manufacturing facilities, product innovation, and collaborations.
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