India Bitumen Market Expected to Reach $6.8 Billion by 2032

According to a new report published by Allied Market Research, titled, " India Bitumen Market by Type (Paving Grade Bitumen, Oxidized Bitumen, Polymer Modified Bitumen, Bitumen Emulsion, and Others) and End-Use Industry (Road Construction, Water Proofing, and Others): India opportunity analysis and industry forecast, 2023–2032,"the India bitumen market attained $4.6 billion in 2022 and is projected to reach $6.8 billion by 2032, growing at a CAGR of 4.0% from 2023 to 2032. 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 during 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 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 has garnered 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 market players have adopted expansion, merger, and acquisition as their key strategies to gain an edge in the competitive market. 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.

COVID-19 analysis

COVID-19 negatively affected the demand for bitumen in the Indian market. Major construction projects were temporarily suspended during COVID-19, thereby reducing bitumen consumption. After 2020, the market witnessed gradual growth due to the continued construction activity in major regions.

• Reduced construction activity: During the pandemic, many construction projects were put on hold or delayed due to lockdown measures and labor shortages. This resulted in reduced demand for bitumen, as it is a key component used in road construction and infrastructure projects.
• Disruption in the supply chain: Restrictions on movement and trade disruptions caused logistical challenges in transporting bitumen and related products. This led to delays in the supply chain and potential shortages, affecting the availability of bitumen in the market.
• Fluctuating oil prices: Bitumen is derived from crude oil, and its pricing is influenced by oil market dynamics. The COVID-19 pandemic caused a sharp decline in global oil prices due to reduced demand and oversupply. This fluctuation in oil prices could have had an impact on the cost of bitumen in the Indian market.

Key findings of the study

• By type, the paving grade bitumen segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 3.7% from 2023 to 2032.
• By end user industry, the road construction segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.2% from 2023 to 2032.