India Bitumen Market Research, 2033
The India bitumen market attained $4.2 billion in 2023 and is projected to reach $6.6 billion by 2033, growing at a CAGR of 4.1% from 2024 to 2033.
Bitumen is an oil-based substance and semi-solid hydrocarbon product produced by removing the lighter fractions (such as liquid petroleum gas, petrol, and diesel) from heavy crude oil during the refining process. Composition of bitumen includes carbon (87-92%), hydrogen (6-8%), sulfur (~5%), nitrogen (1%), and oxygen (1%). It possesses physical properties such as adhesion, water resistance, hardness, and viscosity.
Bitumen is highly viscous, i.e., it has a thick and sticky consistency. This property allows it to bind aggregates together and form a cohesive mixture in road construction. The viscosity of bitumen can be modified by heating or adding certain additives to achieve the desired flow characteristics. Bitumen has excellent waterproofing properties. It forms a barrier that prevents water penetration, making it ideal for roofing materials and waterproofing membranes.
Its ability to resist water damage helps protect structures from moisture-related issues. Bitumen exhibits strong adhesive properties, enabling it to bond various materials together. It is commonly used as an adhesive in the construction industry for applications such as asphalt pavement, pavement repairs, and in the production of asphalt shingles. Bitumen is known for its durability and long lifespan. It has excellent resistance to wear, and tear caused by traffic loads, making it suitable for high-traffic areas.
Petroleum-derived is non-renewable and not a sustainable product. There has been extensive research toward developing a sustainable substitute for asphalt as a result of consumers growing awareness of the detrimental effects that some petroleum products have on the environment and human health. Bio-asphalt is a non-petroleum-based binder made from biomass, such as molasses, starch, trees, cellulose, and natural latex as well as other sustainable sources.
Increase in road construction activities fuels the demand for bitumen. Bitumen is processed into asphalt for road construction. Asphalt is a mixture of rock aggregates and bitumen. Bitumen serves as a binding agent and improves the stability of asphalt. Depending on the type of bitumen or composition of the mixture used, asphalt roads can be made suitable for regions with different climatic conditions or various levels of operational demands.
Asphalt is also used for airport runways, parking decks, and working areas in ports. In addition, India’s recent passed budget includes expenditure on development of National Highways, including projects relating to expressways, two-lane widening of highways, under the National Highways Development Project, six-lane widening of crowded stretches of the Golden Quadrilateral, a special program for the development of road connectivity in Naxal affected areas, development of Vijayawada—Ranchi road, and for providing last mile connectivity, which is anticipated to drive the growth of the India bitumen market. Furthermore, bitumen adhesive is widely used in the construction industry for roofs. It is a cold applied adhesive for bonding bituminous roofing felts to asphalt, felt, metal, and concrete. Bitumen adhesive possesses physical properties such as toughness, flexibility, and forms adhesive and cohesive film and provides good UV resistance.
Growth in construction industry due to rapid urbanization and launch of government initiatives such as “Housing for All” that includes construction of houses for urban poor is expected to drive the growth of the bitumen market across the country. However, human health & environmental issues associated with bitumen, fluctuation in international crude oil prices, and increase in use of an alternative for bitumen such as concrete in roadway construction application restrain the growth of the market in this region.
India Bitumen Market, by Type
In 2023, the paving grade bitumen segment accounted for the largest revenue share of 62.3% and is projected to grow at a CAGR of 73.9% during the forecast period. Rapid urbanization and population growth, particularly in emerging economies, have led to a significant increase in infrastructure development. Governments are investing in the construction and expansion of roads, highways, airports, and other transportation networks to meet the growing demand for efficient transportation. Paving grade bitumen is a crucial component in road construction, and the surge in infrastructure projects has resulted in increased demand for bitumen. Urban renewal initiatives, aimed at improving and revitalizing urban areas, often involve upgrading and expanding existing road networks. These projects include the reconstruction of roads, street widening, and the implementation of new traffic management systems. Paving grade bitumen is essential in such urban renewal projects, thus driving the demand for paving grade bitumen.
By Type
Paving grade is the most lucrative segment
India Bitumen Market, by End-Use Industry
In 2023, the road construction segment accounted for the largest revenue share of 70.1% and is projected to grow at a CAGR of 4.2% during the forecast period. Rapid urbanization and population growth, particularly in emerging economies, have led to a significant increase in infrastructure development. Governments are investing in the construction and expansion of roads, highways, airports, and other transportation networks to meet the growing demand for efficient transportation. Paving grade bitumen is a crucial component in road construction, and the surge in infrastructure projects has resulted in increased demand for bitumen. Urban renewal initiatives, aimed at improving and revitalizing urban areas, often involve upgrading and expanding existing road networks. These projects include the reconstruction of roads, street widening, and the implementation of new traffic management systems. Paving grade bitumen is essential in such urban renewal projects, thus driving the demand for bitumen.
By End-use Industry
Road Construction is projected as the fastest growing country
The India bitumen market is segmented into type and end-use industry. By type, it is categorized into paving grade bitumen, oxidized bitumen, polymer modified bitumen, bitumen emulsions and others. By end-use industry, the market is classified into road construction, waterproofing, and others.
The major key players operating in the India bitumen market include Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Ltd., Oil & Natural Gas Corporation Ltd., Total India, Tiki Tar Industries India Ltd., Agarwal Industries Corporation Ltd., Juno Bitumix Pvt. Ltd., Universal Bituminous Industries Pvt. Ltd., and Swastik Tar Industries.
Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
Key benefits for stakeholders
- It outlines the current India bitumen market trends and future estimations from 2023 to 2033 to understand the prevailing opportunities and potential investment pockets.
- The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
- The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
- The profiles of key players and their key strategic developments are enlisted in the report.
India Bitumen Market Report Highlights
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Analyst Review
According to the CXOs of the leading companies, the India bitumen market has witnessed significant growth in the recent years, owing to increase in construction and infrastructural development activities initiated by the government in urban and rural areas of the country. Furthermore, increased road development activities such as construction of national highways & expressways and construction of economic and industrial corridors leads to a rise in demand for bitumen across the country. In addition, construction of new airports across the country under the scheme name “UDAN” to improve the air transport facilities is expected to fuel the demand for bitumen.
Moreover, bitumen adhesive is widely used in waterproofing roofs of houses. Therefore, government initiatives such as “smart city mission” and “Housing for All” have increased the construction activities across the urban and rural areas to provide houses to both urban and rural population of th country; thereby, boosting the market growth. The infrastructural development activities in Northeast states such as Assam, Arunachal Pradesh, and Mizoram also led to an increase in demand for bitumen for road construction activities. Various government schemes such as Pradhan Mantri Gram Sadak Yojana (PMGSY) that includes connectivity of villages to national highways may drive the growth of the bitumen market.
CXOs recognize that India’s infrastructure expansion, particularly through projects like Bharatmala Pariyojana and PM Gati Shakti, is the primary driver of bitumen demand. The Ministry of Road Transport and Highways (MoRTH) constructed 12,349 km of highways in FY 2023-24, marking the second-highest achievement to date. With the government's commitment to building 83,677 km of roads by 2025, the demand for bitumen is expected to grow rapidly in the next five years. CXOs are aligning business strategies to scale up production, secure supply chains, and explore sustainable alternatives like polymer-modified bitumen (PMB) to meet future requirements.
Increased road construction activities, increased demand for waterproofing applications, and import trends and domestic production are the key factors boosting the India bitumen market growth.
The India bitumen market attained $4.2 billion in 2023 and is projected to reach $6.6 billion by 2033, growing at a CAGR of 4.1% from 2024 to 2033.
Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Ltd., Oil & Natural Gas Corporation Ltd., Total India, Tiki Tar Industries India Ltd., Agarwal Industries Corporation Ltd., Juno Bitumix Pvt. Ltd., Universal Bituminous Industries Pvt. Ltd., and Swastik Tar Industries. are the leading players in India bitumen market.
Road construction is projected to increase the demand for India bitumen market.
The India bitumen market is segmented into type and end-use industry. By type, it is categorized into paving grade bitumen, oxidized bitumen, polymer modified bitumen, bitumen emulsions and others. By end-use industry, the market is classified into road construction, waterproofing, and others.
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