April 23, 2024

Africa Bitumen Market is Estimated to Witness High Growth Owing to Rapid Infrastructural Developments

It is commonly used for making asphalt for roads, buildings and other construction applications. The product is known for its excellent water resistance, adhesion properties and high durability, making it suitable for applications in highway and road construction. The Africa bitumen market is dominated by countries like South Africa, Egypt, Nigeria and Algeria due to high infrastructural activities.

The Global Africa Bitumen Market is estimated to be valued at US$ 563.19 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Africa Bitumen Market Size are CV Sciences, Inc., Medical Marijuana, Inc., AXIM-Biotechnologies, Inc., Charlotte’s Web, Endoca, Isodiol International Inc., Elixinol, Folium Biosciences, NuLeaf Naturals, LLC, Cannoid, LLC, among others. With rising investments in road infrastructure projects across the region, there exists significant opportunities for market players to leverage new construction contracts. Countries like Morocco, Kenya, Ethiopia are witnessing high economic growth rates with the governments focusing on transport infrastructure development which will further drive the Africa bitumen consumption. Owing to strong raw material availability and expanding production facilities, key companies are eyeing new regional markets like West and Central Africa for business expansion in the coming years.

Market drivers

Rapid infrastructure development projects across East, West and North African nations is a key growth driver for the regional bitumen market. As per African Development Bank estimates, Africa requires over $130 billion per year in infrastructure investment in power, road and rail networks to meet development targets. This high public expenditure toward road construction and rehabilitation activities will boost bitumen demand. Favorable government policies and initiatives toward improving regional connectivity through road networks will further support the market growth over the forecast period.

PEST Analysis

Political: The political landscape in Africa is dynamic, with evolving regulatory environments related to bitumen production and trade across different nations on the continent. Stability of governance structures can influence investment decisions in the sector.

Economic: Factors like GDP growth rates, demand from infrastructure development, global oil and commodity prices determine the purchase ability of African customers and profitability of bitumen producers. Fluctuations in macroeconomic conditions impact market size.

Social: Bitumen finds wide usage in road construction and real estate projects, driven by rising income levels, urbanization trends and social spending on education, healthcare etc. Changes in demographics and lifestyles change consumption patterns over time.

Technological: Advanced bitumen extraction and production techniques help lower costs and improve quality. Investments in new equipment and R&D boost competitiveness. Use of additives enhances performance of bituminous products.

Geographical regions

The Africa bitumen market is concentrated in North Africa and Southern African regions in terms of value sales. Countries like Nigeria, South Africa, Egypt, Angola and Algeria account for substantial demand owing to their industrial development and large road infrastructure projects underway.

Fastest growing region

East Africa is projected to be the fastest growing region for the Africa bitumen market between 2024-2030. This can be attributed to rising government expenditures on road construction as economies in Ethiopia, Kenya and other nations expand rapidly. Investments in port, airport and energy projects also drive the need for bituminous binders in the region.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it