Europe bitumen market size is certain to expand through 2027 owing to the growing use of this material across multiple sectors. Bitumen is a substance formed through the distillation of crude oil. It contains excellent adhesive and waterproofing properties, and hence it is widely used to build highways, motorways, as well as rail networks. In the marine industry, it is used for construction of underwater canals and dams.
In terms of Industrial applications, bitumen is used in printing inks, roofing felt material, packaging paper, electrical cable installation, linoleum, duplex paper manufacture, and mastic for roofing of terraces. With R&D in this sector, bitumen's properties can be combined with other elements to fit another industrial requirement. This should have a positive impact on bitumen industry in Europe.
Polymer modified bitumen (PMB) is a special type of bitumen that is used to surface airfield runways due to its fuel resistant properties. Additionally, it is also used in construction of railway tracks owing to its dampening properties which reduce the noise and vibration levels caused by heavy weight and high speed of railways to a significant extent. The PMB segment has been witnessing rising demand owing to ongoing construction of exceptional-quality roads to accommodate high speed limits.
According to MarketWatch, the PMB segment is anticipated to register a CAGR of 3.2% in bitumen market outlook through 2027, owing to rising road construction activities across European countries, such as Germany, Spain, and Russia further driving growth.
The demand across bitumen industry in Europe is directly correlated with ongoing road development plans and activities across the region. It is estimated that about 90% of the 5.2 million km (3.2 million mi) of roads & expressways are surfaced with asphalt in Europe. Germany not only accounts for the largest share of European construction industry, but also had the largest market for modified bitumen in 2020.
Rising investments of the government in roadway repairs as well as maintenance and development in Western European countries has been accelerating the bitumen market in Europe. For instance, through 2016 to 2030, the government envisions to invest EUR 260 billion for superior quality of transport networks. Out of the total investment funding, 49.3% is reserved for roadway, 41.6% accounts for railway, and 9.1% is for waterway development.
The United Kingdom has been planning to execute major construction and infrastructure activities in the forecast period, including construction and development of a road from the East of England to the port of Felixstowe. The freight route construction includes investment of USD 1.5 billion. Europe bitumen market size crossed USD 15 billion in 2020 and is proposed to rise substantially through 2027. Alongside the above-mentioned regional projects, Sweden, France and Italy will also be actively involved in road expansion activities through the upcoming years.
Europe bitumen market's top five market players are Total S.A., Royal Dutch Shell plc, Gazprom Neft PJSC, ROSNEFT, and Repsol, accounting for nearly 30% of the industry share. Nynas AB, Valero Energy Corporation, China Petroleum, Exxon Mobil Corporation, Chevron Corporation, Chemical Corporation, Bouygues SA, Gazprom Neft, and Villas Austria GmbH are some other companies in the competitive market league of Europe bitumen market.