Global Eco-Friendly Bitumen Market Grows Steadily at a CAGR of 4.30%

Introduction

Crude oil is refined to produce a substance known as bitumen. Bitumen is frequently used in construction, particularly for roads and highways, because of its waterproofing and adhesive properties. During distillation, the lighter elements of crude oil, such as gasoline and diesel, are removed, leaving only the heavier bitumen. Due to stringent government regulations to reduce carbon footprint and the growing adoption of zero-emission technologies in the construction industry, the market for environmentally friendly bitumen is growing. Recycled asphalt is significantly less expensive than new asphalt, has identical qualities and durability, and produces fewer greenhouse gases.

Market Dynamics

Growing Development of New Products and Dramatic Increase in Road and Highway Construction Worldwide Drives the Global Market

Implementing Recycled Asphalt Pavements (RAP) in pavement construction is a sustainable strategy with substantial economic and environmental benefits. This product improves workability, adhesion, and resistance to moisture damage compared to conventional bitumen grades. The increasing use of asphalt recycling and RAP is anticipated to increase the demand for eco-friendly bitumen. In Germany, for instance, up to 90 percent of asphalt has been reclaimed for use in constructing new roads and maintaining existing ones. The increasing viscosity of bitumen over time results in pavement deformation and cracking. Lower viscosity bitumen is blended with RAP to meet the final bitumen grade specifications.

In comparison to derivatives of crude oil, eco-friendly bitumen has shown to be significantly less harmful to the environment. The substance does not release carbon dioxide into the atmosphere because it is not burned. Additionally, it can be recycled and reused, making it environmentally friendly and cost-effective. It is anticipated that demand in the building and construction industry will increase due to cost benefits associated with eco-friendly bitumen, which will drive revenue growth of the market to a significant extent.

Growing Consumers' Inclination toward Sustainable Construction Creates Tremendous Opportunities

The demand for eco-friendly bitumen is anticipated to increase, primarily due to a growing consumer preference for sustainable construction. Various forms of bitumen that are kinder to the environment are available on the market, including natural bitumen made from recycled materials and bio-based bitumen. Recycled bitumen is in high demand on the global market for green bitumen because more people are becoming aware of the environmental benefits of recycling road pavements.

Regional Analysis

North America held the largest share of the bitumen market, which can be attributed to the increased demand for bitumen in the United States to maintain and reconstruct existing roadways. On the other hand, the market in Asia and the Pacific is anticipated to experience lucrative growth due to the increasing number of initiatives to develop infrastructure in the region.

Key Highlights

• The global eco-friendly bitumen market was valued at USD 105 million in 2021. It is projected to reach USD 153.37 million by 2030, growing at a CAGR of 4.30% during the forecast period (2022–2030).
• Based on the product, the market has been segmented into paving bitumen, oxidized bitumen, cutback bitumen, bitumen emulsion, and polymer-modified bitumen. Paving bitumen dominates the market.
• Based on application, the market is segmented into roadways, waterproofing, adhesives, and insulation. Road construction is anticipated to dominate the market.
• North America held the largest share of the bitumen market, which can be attributed to the increased demand for bitumen in the United States to maintain and reconstruct existing roadways.

Competitive Players

Competitive Analysis

The global eco-friendly bitumen market’s major key players are American Gilsonite Company, Agarwal Industrial Corporation Limited, Avello Bioenergy, Bharat Petroleum Corporation Ltd, Gilsonite CO., Jalnidhi Bitumen Specialties PVT. Ltd, Kraton Corporation, and Royal Dutch Shell.

Market News

• June 2022- Shell completed the acquisition of Landmark fuel and convenience network. Shell Oil Products US (Shell), through its wholly-owned subsidiary Shell Retail and Convenience Operations LLC, has acquired specific company-owned fuel and retail convenience sites from the Landmark group of companies (Landmark). The acquisition also includes supply agreements for convenience stores and gas stations that are independently owned and operated.
• March 2022- Kraton Corporation Completed Merger with Dl Chemical. Kraton Corporation (NYSE: KRA) ("Kraton"), a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, announced DL Chemical Co., Ltd. ("DL Chemical")

Recent Developments

Segmentation

Global Eco-Friendly Bitumen Market: Segmentation

By Product

• Paving Bitumen
• Oxidized Bitumen
• Cutback Bitumen
• Bitumen Emulsion
• Polymer-Modified Bitumen

By Applications

• Roadways
• Waterproofing
• Adhesives
• Insulation

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa