What is Bitumen?
Bitumen is a dark, sticky substance that is derived from crude oil. It is a material that has been used for thousands of years in various forms, but has become an essential component in the infrastructure & construction industry, specifically in the building of roads and other infrastructure projects.
One of the key properties of bitumen is its ability to bind together different materials, making it an ideal binder for asphalt concrete, which is used to construct roads, bridges, and other surfaces that need to withstand heavy traffic
What is the use of Bitumen?
Approximately, 95% of all roads in the world are paved with asphalt.
However, bitumen isn’t just limited to roads and bridges, it also has other uses such as waterproofing, insulation, and as a sealant for dams and other structures. It is also a raw material in the production of various chemicals such as solvents, lubricants, and even paints.
One of the most striking statistics about bitumen is its global consumption. According to the Bitumen World, the world’s consumption of bitumen is estimated to be around 150 million metric tons per year.
Despite the fact that bitumen is a non-renewable resource, the industry is growing rapidly. The global bitumen market is forecasted to reach a staggering $110 billion by 2026, with a projected growth rate of 5%.
Indian infrastructure milestones and Bitumen
India’s construction industry is a tapestry of ancient architectural marvels and modern-day feats of engineering. From the grandeur of the Taj Mahal, built in the 17th century, to the towering height of the Statue of Unity, completed in 2018, India has a long history of construction excellence.
In the current scenario, India is focusing on infrastructure development, with the government announcing several ambitious projects such as the construction of 100 smart cities, the development of industrial corridors, and the construction of new airports and seaports. This is expected to boost the construction industry, which is projected to grow at a CAGR of 11% from 2020-2025.
Moreover, bitumen plays a vital role towards planning and execution of road construction projects in India. India has made significant progress in the realm of Bitumen Emulsion infrastructure, resulting in a surge of pride among citizens and growth in the number of manufacturers in the industry.
India has demonstrated its capability in creating a diverse range of infrastructure projects, from eco-friendly cities to massive freeways and tunnels. Some of them are Chenab Bridge, Yamuna Expressway, etc.
However, the infrastructure industry in India is not without its challenges. Shortage of skilled labour, delays in project approvals and land acquisition, and difficulties in obtaining financing are some of the hurdles that the industry is facing.
Role of Bitumen in India’s Future
Bitumen plays an important role in India’s economic growth and development. It helps to improve transportation infrastructure and reduce traffic congestion by improving road quality through better road surfaces. The use of bitumen reduces the cost of maintenance significantly by increasing durability and reducing breakages during use
The market for bitumen in India, valued at $2.8 billion in 2018, is expected to grow to $3.6 billion by 2026 with a CAGR of 2.8% from 2019 to 2026
The market size of bitumen is predicted to increase massively in the coming years due to various government initiatives and construction projects.
The projects include expenditure for development of National Highways, including projects relating to expressways, two-laning of highways, under the National Highways Development Project,development of Vijayawada-Ranchi road, six-laning of crowded stretches of the Golden Quadrilateral, a special program for the development of road connectivity in Naxal affected areas.
Moreover, bitumen adhesive is widely used in the construction industry for roofing because of its physical properties, including toughness, flexibility, and good UV resistance, making it an ideal adhesive for this purpose.
Hence, rapid urbanisation and government programs like “Housing for All” which focuses on building homes for urban dwellers, is likely to propel the growth of the bitumen market in the country.
In 2022, the budget for road construction witnessed a massive increase from INR 33,414 crores (Financial Year 2015) to INR 1,83,101 crores (Financial Year 2022).
According to Prime Minister Narendra Modi’s vision of Speed and Scale of progress, India is accelerating towards the goal of constructing 100 km of roads per day over the next two years.
Even though the pace of road construction was slowed during the pandemic, it has picked up pace during 2021-22.
‘My ministry and my team is working hard, and even during COVID-19 pandemic time, our (highway) construction rate was 38 km per day and my ambition is to take it up to 60 km per day, it is a target’.– Union Road Transport and Highways Minister, Nitin Gadkari
Though the goal of constructing 60 km per day did not reach in 2022-23, there is still a considerable chance of achieving it this year (2023-24).
Takeaway:
In conclusion, bitumen plays a crucial role in the construction industry and is a building block for India’s economic growth in 2023.
With the increasing demand for housing and infrastructure development, the bitumen market is expected to continue its growth trajectory in the coming years.