Africa faces a growing infrastructure gap that could undermine its development aspirations if left unaddressed. By 2050, the continent’s population is projected to double to around 2.5 billion people. Meeting their needs will require huge investments in transport, power, housing and other public works. Bitumen plays a vital role in these infrastructure projects as a binding agent in road construction. Demand for bitumen is thus propelled higher by the extensive planned and ongoing infrastructure developments across Africa.
The global Africa Bitumen Market is estimated to be valued at US$ 488.88 Mn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One key trend augmenting growth in the Africa bitumen market is the major infrastructure development drives underway in various African countries. Governments are investing heavily in building new roads, highways, airports and rail networks to support economic expansion. For example, projects underway as part of Egypt’s New Administrative Capital city project and Ethiopia’s urban light rail system will utilize large volumes of bitumen. Nigeria plans to construct thousands of kilometers of new highways under its Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. Such lucrative government construction contracts are expected to drive up demand for bitumen significantly over the coming years.
SWOT Analysis
Strength: Global Africa Bitumen Market Size has significant potential for growth driven by increasing infrastructure development activities. The continent houses huge reserves of bitumen resources that can be utilized domestically.
Weakness: Limited local refining capacity of bitumen in most African nations results in high dependency on imports. Inadequate supply chain and logistics infrastructure pose challenges.
Opportunity: Rising government investments in road construction, railway, and other infrastructure projects across East, West, Central and Southern Africa are opening new expansion avenues. Growing automotive sector is augmenting the product demand.
Threats: Vulnerability to volatility in crude oil prices can impact the bitumen costs. Political and economic instability in some countries acts as a roadblock to market growth.
Key Takeaways
The global Africa Bitumen Market is estimated to be valued at US$ 488.88 Mn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023 to 2030.
The Africa bitumen market is expected to witness high growth over the forecast period supported by increasing government expenditures on infrastructure development projects in transportation and construction sectors. Nations like South Africa, Nigeria, Kenya, Egypt and Morocco dominate the regional market due to their well-established road networks and construction activities. South Africa has emerged as the largest market in Africa owing to strong economic growth and rising focus of the government towards upgrading transport infrastructure in the country.
Key players operating in the Africa Bitumen market are AxoSim Technologies LLC., BICO Group AB(Visikol), CN Bio Innovations Limited, Elveflow, Emulate, Inc., Insphero AG, Mimetas B.V., Nortis Inc., Organovo Holdings, Inc., and Tara Biosystems. The presence of major petroleum reserves and growing construction industry are driving increased bitumen consumption in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it