Modified Bitumen Market by End-user, Application, and Geography - Forecast and Analysis 2023-2027

Modified Bitumen Market Size 2023-2027

The modified bitumen market size is forecast to increase by USD 2.92 billion at a CAGR of 4.53% between 2022 and 2027. The expansion of the market hinges on various elements, notably the worldwide upsurge in road construction endeavors, the exceptional qualities of modified bitumen, and the booming real estate sector engagements. Our comprehensive report delves into historical data spanning from 2017 to 2021, meticulously scrutinizing the prevailing market landscape. It delves into the intricacies of the global increase in road construction activities, highlighting how this trend is influencing market growth. Additionally, the report explores the superior properties of modified bitumen, showcasing its impact on market dynamics and paving the way for advancements in road construction technologies. Furthermore, it delves into the surge in real estate sector activities, analyzing the interplay between infrastructure development and market expansion. By synthesizing historical data with current market insights, our report offers a comprehensive understanding of the factors driving market growth, ensuring stakeholders are equipped with valuable insights to make informed decisions and capitalize on emerging opportunities.

What will be the  Market Size During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by End-user (road construction, building construction, and others), Application (hot asphalt method, cold asphalt method, and torch applied method), and Geography (APAC, North America, Europe, Middle East and Africa, and South America)

Market Definition 

Modified bitumen consists of modifiers that are added to enhance the plastic or rubber-like properties of bitumen. Modified bitumen is classified into PMB and elastomers. PMB includes thermoplastics (such as ethylene-vinyl acetate (EVA), APP, and alpha polyolefins) and thermosetting (such as epoxy and polyurethanes). Elastomers include SBS, styrene-butadiene-rubber (SBR), crumb rubber-modified bitumen (CRMB), and natural rubber-modified bitumen.

Market Dynamics and Customer Landscape

The Market is driven by the booming road construction sector and the need for renovation and maintenance projects in the construction industry. The trend towards smart cities is influencing demand, while advancements in stone matrix asphalt and dense grade mix are enhancing cohesiveness, strength, and resistance to deformation. Challenges include managing traffic conditions, ensuring fire safety, and navigating trade regulations. Additionally, the market faces challenges related to sourcing oil resources and adopting sustainable materials like thermoplastic elastomers and polymer materials. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

The global increase in road construction activities is the key factor driving the growth of the global market. Developments in the roadways sector, especially those related to restoration and renovation projects, will increase the consumption of modified bitumen since it is extensively used in construction activities, especially road construction. The increase in the number of automobiles and freight movement has spurred the demand for improved road infrastructure networks across the world. This presents a huge opportunity for the growth of materials that are used in the road construction industry, such as modified bitumen.

Moreover, the development of new roads and the increasing investments in transport and highway infrastructure projects are driving road construction activities. Investments in large-scale highway projects are likely to increase the demand for road construction and maintenance activities during the forecast period. This is expected to drive the growth of the global market during the forecast period.

Significant Market Trends

Advances in modified bitumen are the primary trend shaping the global market growth. Emerging economies, such as China, are focusing on making advanced modified bitumen. Also, companies are developing modified version that complies with sustainability goals and offers enhanced properties. For instance, in April 2020, Napco National, a Saudi Arabia-based manufacturing group, in collaboration with Dow, combined R&D and expertise to develop a new bitumen modifier that improves the properties of roads, lengthens their lifespan and has a smaller negative impact on the environment.

In November 2022, SOPREMA launched a new system in its EQUUS SOPREMA line of bitumen waterproofing membranes called SOPRASUN PLUS. In November 2022, Nynas launched Nypol RE, which is a newly developed, polymer with a biogenic material that increases the useful life of pavements and reduces the impact of temperature fluctuations. Thus, advances in modified bitumen will propel the growth of the market in focus during the forecast period.

Major Market Challenge

The adverse environmental impact of bitumen production is a major challenge impeding the growth of the global market. The ever-rising demand for energy and carbon-based products is fueling the extraction of bitumen resources. As bitumen is highly viscous, thermal enhanced oil recovery (EOR) methods such as in-situ combustion (ISC), steam-assisted gravity drainage (SAGD), steam flooding (SF), and hot water injection (HWI) methods are employed for its extraction. These methods have severe impacts on the environment. The severity of the environmental damage caused by bitumen production is measured depending on the amount and content of the produced water and gas samples, along with the quality of oil that is required to reduce the impact during bitumen refining.

Moreover, the ISC technique produces the least amount of water, which requires intensive treatment because of the high concentration of metal and sulfur contaminants and the low pH levels. On the other hand, the SAGD, SF, and HWI techniques produce large quantities of water, which gives rise to handling issues. These drawbacks in bitumen production severely affect the growth of the market and, in turn, will hamper the growth of the market in focus during the forecast period.

Market Segmentation by End-User, Application and Geography

The market in the construction sector is experiencing significant growth, driven by factors such as demolition and renovation projects, paving sites, and the need for rising road repair activities. Innovations in stone matrix asphalt and dense grade mix contribute to improved cohesiveness and strength in road construction, enhancing resistance to deformation and fatigue against heavy traffic conditions. Furthermore, the implementation of smart cities plans and adherence to trade regulations are influencing the market dynamics, promoting the use of sustainable materials like polymer materials, atactic polypropylene, crumb rubber, and natural rubber in formulations. These materials offer enhanced durability and fire resistance, ensuring the longevity and safety of road infrastructure. The demand for thermoplastic elastomers is also growing due to their unique properties that improve performance and maintenance efficiency. As the industry focuses on oil resources and sustainable practices, the Market continues to evolve with a strong emphasis on road construction and building construction projects that meet the highest standards of quality and environmental responsibility.

Market End-user Segment 

The market share growth by the road construction segment will be significant during the forecast period. In road construction applications, it increases skid resistance, lowers the noise level, and improves porosity. Globally, the rapid increase in the number of road construction activities fuels the consumption of itin these activities. These factors will drive the growth of the road construction segment and, in turn, the market in focus during the forecast period.

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The road construction segment was valued at USD 7.00 billion in 2017 and continued to grow until 2021. Globally, it is extensively used in the laying of road pavements, highways, and bridges. Along with cutback bitumen, bitumen emulsions, and bituminous primer, it is one of the most common materials used for the construction of pavements. Several countries, including the US and Canada, depend heavily on road transportation. According to the Central Intelligence Agency (CIA), the length of unpaved roads in Canada is higher than that of the total length of paved roads. Thus, the country offers opportunities for growth and expansion of the market.

Market Application Analysis 

Hot-mix asphalt blends heated aggregates with modified bitumen for road construction. It is vital for roads, with varying types based on load capacity. It's used in diverse projects like runways and sidewalks. Growing global road construction drives demand, propelling market growth in this segment.

Cold-mix asphalt combines unheated aggregates with this material for repairs. It's cost-effective, user-friendly, and eco-friendly, positively impacting market growth. Growing repair demands for infrastructure will drive this segment's growth.

Regional Analysis 

APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Modified bitumen is used extensively in constructing pavements and roofing in buildings. The rising use of modified asphalt emulsions in the construction industry is accelerating the consumption of this material in the region. Factors such as the expanding manufacturing sector and the flourishing construction industry have a tremendous impact on the growth of the market in APAC. Furthermore, APAC is witnessing an increase in road and highway-building activities, which will fuel the growth of the market in this region during the forecast period.

Key Market Companies

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.

BASF SE: The company offers modified bitumen additives called B2Last which can be used to produce PmB Polymer modified Bitumen and HiMA Highly modified Asphalt.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

BASF SE, Breedon Group plc, Colas SA, Compagnie de Saint Gobain, Dow Chemical Co., Exxon Mobil Corp., Fosroc International Ltd., GAF Materials LLC, Holcim Ltd., Jiangsu Baoli International Investment Co. Ltd., Nynas AB, Polski Koncern Naftowy ORLEN SA, Repsol SA, Rosneft Oil Co., Shell plc, Sika AG, SK Innovation Co. Ltd., and SOPREMA SAS

Qualitative and quantitative market research report analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market research and growth, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.

• End-User Outlook 
  • Road Construction
  • Building Construction
  • Others
• Application Outlook 
  • Hot Asphalt Method
  • Cold Asphalt Method
  • Torch Applied Method
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Market is witnessing significant growth driven by various factors such as air traffic expansion, advancements in civil engineering work, and rising demand for residential buildings and non-residential buildings. This market segment benefits from the unique properties of modified bitumen, including corrosion resistance, cohesiveness, and density. Moreover, the utilization of atactic polypropylene, bio oils, and crumb rubber enhances the performance of bitumen in road construction and waterproofing applications. The increasing focus on smart cities plans and utility systems is further propelling the demand for modified bitumen due to its waterproofing capabilities and resistance to deformation. The market is also influenced by factors like rising road repair activities, the number of airports, and industrialization efforts, Paving site, Open graded mixes, Fine grade, Coarse grade, Smart cities plan and Styrene Butadiene Styrene.

Moreover, polymer materials such as polypropylene, polyurethane resin, and polyvinyl chloride play a crucial role in enhancing the strength and fatigue resistance of modified bitumen products. Additionally, innovations in thermoplastic elastomers and epoxy resin are driving advancements in bitumen technology, offering solutions with lower temperature sensitivity and improved mechanical fastening properties. However, challenges such as trade regulations and the risk of fire pose potential obstacles to market growth. Overall, the Market is poised for expansion, driven by technological advancements, infrastructure development, and evolving construction trends. The market is also influenced by developments in styrene butadiene rubber and styrene-butadiene-styrene materials, offering enhanced softening point and self-adhering capabilities for seamless installation and improved resistance to deformation.

Furthermore, the Market is experiencing notable growth driven by various factors such as base bitumen advancements, increasing demand for dense grade mix in construction projects, and the adoption of smart cities plans focusing on sustainable infrastructure. One of the key drivers is the use of ethylene vinyl acetate and natural rubber in modified bitumen formulations, enhancing their high strength and waterproofing properties. Additionally, innovations in fiber reinforcement and mechanically fastened systems contribute to improved durability and performance in diverse applications. Gilsonite, a naturally occurring bitumen, is gaining attention for its exceptional fire point and flash point characteristics, making it suitable for applications in interior and exterior living spaces and walls.

Market Scope
Report Coverage	Details
Page number	177
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.53%
Market growth 2023-2027	USD 2.92 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.92
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 42%
Key countries	US, China, France, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	BASF SE, Breedon Group plc, Colas SA, Compagnie de Saint Gobain, Dow Chemical Co., Exxon Mobil Corp., Fosroc International Ltd., GAF Materials LLC, Holcim Ltd., Jiangsu Baoli International Investment Co. Ltd., Nynas AB, Polski Koncern Naftowy ORLEN SA, Repsol SA, Rosneft Oil Co., Shell plc, Sika AG, SK Innovation Co. Ltd., and SOPREMA SAS
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, market growth analysis, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of market companies

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