Eco-friendly bitumen is an emerging market which is projected to follow an upward growth trend primarily driven by growing consumers' inclination towards sustainable construction. Eco-friendly bitumen is available in multiple forms in the market such as bio-based bitumen, recycled bitumen, and natural bitumen. Recycled bitumen registered the highest demand in the global eco-friendly bitumen market owing to increasing awareness regarding road pavements recycling and environmental benefits associated with the same.
The global Eco-Friendly Bitumen Market generated $109,784.64 in 2019 and is projected to reach the market value of $126,743.58 by 2025, while growing at a CAGR of 4.21% during the period 2020-2025.
Major growth driver for the global eco-friendly bitumen market is escalating highways and roadways construction activities across the world. Several economies have witnessed high growth in transportation infrastructure due to increasing vehicle sales, population, and urbanisation. In India, highway construction increased by a CAGR of 21.4% from the year 2016-19 (as per IBEF, November 2020 report) with the construction of 10,855 km of highways. Construction being the major application of eco-friendly bitumen, growing highways contrition is projected to remain the primary factor for uplifting product demand till 2025.
Despite having a positive growth prospect, global eco-friendly bitumen demand faced a major setback in 2020 due to declining construction activities in most parts of the world. Due to COVID 19 outbreak, various countries have witnessed a fall in construction activities in 2020 which has negatively impacted the demand of eco-friendly bitumen in the same year. For instance, Europe registered a decline of over 25% in construction activities in the April-May 2020 period. Such huge falls in the construction industry have a severe impact on eco-friendly bitumen demand in 2020. However, with the industry regaining its original pace, the eco-friendly bitumen demand is also forecasted to follow a significant growth trend in the near future.
Competitive Landscape -
The competitive landscape of the eco-friendly bitumen market comprises strategies adopted by key players to strengthen their market presence. The global eco-friendly bitumen market has witnessed partnerships, collaboration, joint ventures, new product launches, and some business expansion strategies by various industry players. The market is still in its emerging phase, and the investment in the market is less. However, the market has a high growth potential, and therefore, various construction companies are adopting measures to expand their product portfolios in green and sustainable bitumen alternatives. For instance, In July 2020, CEMEX launched an eco-friendly single asphalt solution for cycle lanes and footpaths, which eliminates the need for multi-layering surfaces. The product has achieved a carbon footprint reduction. Such measures are expected to increase awareness regarding sustainable construction materials in the industry while also positively influencing global eco-friendly bitumen market growth.
As the global construction industry is moving towards sustainable construction materials, companies are increasingly adopting strategies to strengthen their product portfolios in eco-friendly products by practising mergers, acquisitions, joint ventures, and various such techniques. Companies in the eco-friendly bitumen market have expressed a huge interest in collaborations and partnerships to widen their customer bases and strengthen their product portfolios. For instance, in October 2019, Shell Bitumen entered into a partnership with Tiki Tar for selling bitumen to customers in the pavement industry, including state and national highways in India.
Global eco-friendly bitumen market has a moderate competition due to the presence of less established brands in the market. However, with an increasing number of new entrants, the industry rivalry in the global eco-friendly bitumen market is poised to increase in coming years. key players in the market are Royal Dutch Shell, American Gilsonite Company and Kraton Corporation, among others.
Growth Drivers -
- Increasing Demand for Sustainable Roads
- Escalating global roadways and highways construction activities
- Stringent government regulations for reducing carbon footprints
- Increasing demand for reducing emissions from building and construction sector
Market Segmentation -
- By Source
- Recycled Bitumen
- Natural Bitumen
- By Grade
- Paving Grade Bitumen
- Oxidized Bitumen
- Hard Grade Bitumen
- Others (Polymer Modified Bitumen, Emulsion, etc.)
- Construction (Road Paving, Roofing, Buildings)
- Paints and Coatings
Key Eco-Friendly Bitumen Companies Profiled -
American Gilsonite Company, Agarwal Industrial Corporation Limited, Avello Bioenergy, Bharat Petroleum Corporation Ltd, Gilsonite CO., Jalnidhi Bitumen Specialties PVT. Ltd, and Royal Dutch Shell, among others.
Key Questions Answered in this Report:
- What are the current trends in the global bitumen industry regarding sustainability?
- How has the global bitumen market been impacted by the introduction of eco-friendly bitumen?
- What is the growth prospect of bio-based bitumen in road construction?
- Can the future of the construction industry be bio-based?
- Which are the major patents filed in the market?
- What is the role of the government regarding environmental issues and safety that is changing the landscape of the eco-friendly bitumen industry?
- Which bitumen source is expected to lead the eco-friendly bitumen market by 2025?
- What was the market value of the leading segments and sub-segments of the market in 2019, and how is the market estimated to grow during the forecast period 2020-2025?
- How is the industry expected to evolve during the forecast period 2020-2025?
- What are the key developmental strategies that are implemented by the key players to sustain in the competitive market?
- What are the key growth regions in the eco-friendly bitumen market?
- What are the major challenges inhibiting the growth of the eco-friendly bitumen market?
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