Market Overview:
Bitumen is a sticky, black and highly viscous liquid or semi-solid form of petroleum. It is used in road construction as a binder. As a binding agent, bitumen is used in surfacing materials for highways and pavements. It provides adhesiveness and elasticity to asphalt pavements. Africa's growing population centers and road infrastructure development projects have increased the demand for bitumen in the region. Market key trends: Increasing investment in road construction and infrastructure projects is a key trend fueling the growth of the Africa bitumen market during the forecast period. Governments across countries in Africa are investing significantly in road construction to improve connectivity between rural and urban areas as well as for transportation of goods and services across borders. For instance, the African Development Bank aims to invest over US$ 50 billion across transport infrastructure projects in Africa between 2020-2025. This growing investment in road infrastructure development projects is expected to drive the demand for bitumen as a key binding material in asphalt pavements over the next few years in the region. The global Africa Bitumen Market Share is estimated to be valued at US$ 488.88 Mn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Porter’s Analysis Threat of new entrants: Low barriers to entry such as low capital requirements. However, established players enjoy economies of scale. Bargaining power of buyers: Moderate bargaining power due to presence of many buyers in construction industry. Buyers can negotiate on price. Bargaining power of suppliers: Strong bargaining power as bitumen production needs specific equipment and operations. Few companies globally control supply. Threat of new substitutes: Low threat as bitumen has no cost-effective substitute for uses in road construction and waterproofing. Competitive rivalry: Intense competition between major bitumen suppliers. Players focus on expanding production capacities and customer base. SWOT Analysis Strengths: Growing construction activities in Africa boosting demand. Established supply chains of major players. Weaknesses: Dependency on crude oil prices affects profitability. Logistical challenges in remote areas. Opportunities: Increasing government investments in road projects. Emerging applications in polymer modified bitumen. Threats: Substitution risk from new alternative binding materials. Fluctuating crude oil prices impact costs. Key Takeaways The Africa bitumen market size is expected to reach US$ 824.73 Mn by 2030, expanding at a CAGR of 5.3% during the forecast period. Rise in infrastructure development projects for road construction is driving the market. Regional analysis: South Africa represented the largest market, valued at US$ US$ 123.94 Mn in 2023 due to extensive road network and upgrades. East Africa is expected to witness highest growth at 6.5% CAGR owing to ongoing transport infrastructure development. Key players: The Africa bitumen market is moderately concentrated. Key players include Exxon Mobil Corporation, Royal Dutch Shell Plc., RAHA Bitumen, Inc., Tekfalt Binders (Pty) Ltd., Indian Oil Corporation Ltd., GOIL Company Limited, Wabeco Petroleum Ltd., Tiger Bitumen, and Richmond Group. They are focusing on strategic partnerships and capacity expansion to meet growing demand. Read More: https://www.dailyprbulletin.com/the-new-avenue-for-africa-bitumen-market-trend-and-share-analysis/
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