by Bitumen has several applications across various sectors such as road construction, waterproofing, and industrial applications. It is used as a binder for pavements, flooring, and roofing applications. The steady growth of the construction sector across Africa due to rapid urbanization and rising infrastructure investments is driving the demand for bitumen in the region. The road network expansion plans by several governments in countries such as South Africa, Nigeria, and Angola are contributing to the increasing bitumen consumption. Moreover, the ongoing modernization of existing road networks is boosting bitumen adoption.
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 key trends:
One of the key trends in the Africa bitumen market is the shift towards modified bitumen. Conventional bitumen has limitations such as lack of adequate flexibility at very low temperatures and reduced durability. Modified bitumen helps overcome these limitations. Growing infrastructure development projects in countries experiencing extreme weather conditions are driving demand for modified bitumen. Another major trend is the use of recycled bitumen. The waste bitumen from reclaimed asphalt pavement can be recycled and reused, thus reducing waste. Countries such as South Africa have implemented policies promoting the reuse of recycled bitumen. Moreover, the growing adoption of performance-grade bitumen across construction projects is expected to support market growth over the forecast period. Performance-grade bitumen exhibit higher resistance to permanent deformation and provide longer pavement life.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants in the Global Africa Bitumen Market Size is moderate. The operators require large initial investments and technology know-how which poses challenges for new companies. However, the demand for bitumen in infrastructure projects provides opportunities.
Bargaining power of buyers: The bargaining power of buyers in the Africa bitumen market is high. The buyers have a wide range of suppliers to choose from and can negotiate for better prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While raw material costs are significant, bitumen producers have established relationships with suppliers to ensure steady supply.
Threat of new substitutes: The threat of substitutes is low. There are limited alternatives to bitumen for uses such as road construction and roofing.
Competitive rivalry: The competition in the Africa bitumen market is high due to the presence of a considerable number of regional and international players. Companies compete on pricing, product quality, and supply network.
Key Takeaways:
The global Africa bitumen market is expected to witness high growth over the forecast period. 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: South Africa accounted for over 30% of Africa’s bitumen market share in 2023. Robust investments in road, rail and airport projects drive bitumen consumption. Nigeria and Kenya are emerging hotspots with expanding industries and populations. Increasing private participation complements government spending on infrastructure.
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, Organovo Holdings, Inc., and Tara Biosystems. Players are enhancing production capacities and distribution networks to benefit from opportunities in high growth countries. Supply agreements with national road authorities provide a competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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