Asia Pacific Bitumen Industry Size to Hit USD 60 Billion by 2027
Tags: Asia Pacific, Asia, Market, Analysis, Bitumen

Asia Pacific Bitumen Industry Size to Hit USD 60 Billion by 2027 Abhigmi Dec 20, 2021·3 min read

On account of mounting product adoption, Asia Pacific Bitumen industry is estimated to observe a commendable growth by registering a substantial valuation of over USD 60 billion by 2027. Significant expansion of construction and infrastructure industry in Asia Pacific is propelling the demand for efficient construction materials in the region. One such material is Bitumen, which is a complex hydrocarbon and is largely used for road construction. It finds extensive application as a binder in road construction materials such as stones, aggregates, etc. Its superior natural properties make it useful in waterproofing and adhesives industries also.

As several countries in Asia Pacific are making hefty investments towards building the state-of-the-art transport infrastructure in order to increase the connectivity and facilitate trade activities, the need for proper roads is gradually expanding.

Speaking of which, rising public and private investments in road infrastructure across the regional emerging economies is fueling the product demand considerably.

Elaborating further on bitumen’s application in road construction, the product is being increasingly used to construct durable pavements. Pavements are designed, engineered and constructed for extreme climatic conditions and for sustaining heavy-duty traffic. Addition of polymer to bitumen changes its characteristics to make it more elastomeric, flexible and strong.

Apart from its application in road construction, bitumen is also used for manufacturing adhesives. For instance, cold adhesives consist of bitumen, solvents, fillers, fibers and stabilizers. Adhesives when bonded with modified bitumen after solvent evaporation helps in forming solvent weld.

Growing demand for adhesives in regional end-use industries is positively influencing the industry landscape. Besides, rapidly increasing population in APAC and rising income levels will complement the product adoption in waterproofing and adhesive applications. Considering these factors, adhesives segment is anticipated to record a robust CAGR of 4.3% through 2027.

With regards to the type of bitumen, polymer modified bitumen is gaining immense popularity in the industry. This bitumen grade consists of polymers added to the conventional bitumen. It is used in various end-use applications owing to its excellent properties such as extra strength, high cohesiveness, resistance to fatigue, deformations and stripping. In addition, polymer modified bitumen has better low-temperature sensitivity as compared to the traditional products, making it preferable for pavement applications. With wide product applications, polymer modified bitumen segment is projected to record a lucrative CAGR of 5.6% through 2027.

Besides the above-mentioned factors and wide product applications in numerous industries, consistent efforts undertaken by various prominent industry players such as Royal Dutch Shell, Exxon Mobil Corporation, Total S.A., and Valero Energy Corporation are also providing lucrative opportunities for the industry growth. These companies are investing in research activities and development of innovative products to gain a competitive advantage in the Asia Pacific bitumen market.

Citing an instance, in 2017, Indian Oil Corporation Limited announced the launch of its high-performance bitumen product named DURAPAVE. Reportedly, the DURAPAVE brand covers wide range of bitumen products like Polymer Modified Bitumen (PMB), Crumb Rubber Modified Bitumen (CRMB), bitumen of different viscosity-grades, and bitumen emulsions. This product launch apparently helped the company in catering to the rising regional demand and strengthening its presence in the Asia Pacific bitumen market.

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