India Bitumen Market Expected to Reach $6.6 billion by 2033—Allied Market Research

According to a new report published by Allied Market Research, titled, "India Bitumen Market by type and end-use industry: India opportunity analysis and industry forecast, 2024–2033," 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 a mixture of viscous, highly sticky, and black organic liquids, which is soluble in carbon disulfide and primarily consists of condensed polycyclic aromatic hydrocarbons. It is a crucial component of asphalt, which is used to build roads, streets, and other parts of infrastructure. One of the primary applications of bitumen is in road construction. It is used as a binder in asphalt concrete, which is a mixture of bitumen, aggregates (such as stone, sand, and gravel), and filler materials. Bitumen acts as a glue, holding the aggregates together and forming a durable and flexible road surface. It provides strength, water resistance, and durability to the pavement, enabling it to withstand heavy traffic loads and various weather conditions.

Bitumen is an important material that enables design and engineering of the asphalt-based streets, runways, motorways, highways, coastal protection, canal linings, driveways, airport, reservoirs, and footpaths cycle paths, parking areas as well as sports and play areas.

The infrastructure development programs initiated by Government of India such as Bharatmala project; Golden Quadrangle project; and construction of various industrial and economic corridors such as Delhi-Mumbai Industrial Corridor, Bengaluru-Mumbai Economic Corridor, Chennai-Bengaluru Economic Corridor, Vizag-Chennai Industrial Corridor, and Amritsar-Kolkata Industrial Corridor for the construction of highways and expressways drive the demand for bitumen. In addition, government initiatives such as Pradhan Mantri Gram Sadak Yojana that includes provision of good all-weather road connectivity to unconnected villages of the country is anticipated to drive the growth of the India bitumen market.

Moreover, bitumen is widely used in waterproofing the roof of the building. Therefore, government initiatives such as “Smart City Mission” and Pradhan Mantri Awas Yojana (PMAY) that include construction of houses in urban and rural areas boost the market growth. Significant development in the Indian construction industry along with industrial development across the country is expected to drive the growth of the bitumen industry in the coming years. However, growth in health & environmental concerns over production and usage of bitumen, human health & environmental issues associated with bitumen, unsettled crude oil prices, and rise in usage of an alternative for bitumen are expected to restrain the growth of the market. Moreover, development of bio-based bitumen and EME (Enrobés à Module Élevé) binder is expected to provide growth opportunities for the market in the near future.

By type, the India bitumen market is segmented into paving grade bitumen, oxidized bitumen, polymer modified bitumen, and bitumen emulsions. Paving grade bitumen is expected to garner a higher market share during the forecast period, owing to growth in its demand and usage in road construction activities.

By end-user industry, the market is segmented into road construction, waterproofing, and others. Road construction is further classified into airports & runways and highways & expressways. Road construction segment is expected to garner the higher market share during the forecast period, owing to rise in infrastructural development activities initiated by the Government of India (GoI) that has led to construction of new highways & expressways and airports across the country.

The key players operating in the India bitumen industry 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.

Key findings of the study

• By type, paving grade bitumen accounted for the highest revenue in 2023 and is anticipated to grow at a CAGR of 3.9%
• By end-use industry, road construction accounted for the highest revenue in 2023 and is expected to grow at a CAGR of 4.2%.