The petroleum pitch market is expected to have a CAGR of 4.2% until the end of 2030. The entire market is expected to be worth US$989.6 million by this time
The petroleum pitch market is expected to have a CAGR of 4.2% until the end of 2030. The entire market is expected to be worth US$989.6 million by this time.
Petroleum pitch is somewhat sticky and thick. It has a molasses-like texture and consistency when untreated. This petroleum pitch is made from various petroleum oil products like naphtha and various oil-based gases.
Petroleum pitch is divided into three different categories: tar, bitumen, and asphalt. Interestingly enough, petroleum pitch can also be made from a type of plastic known as a resin. Petroleum pitch can also be plant-derived. It’s made out of a plant called rosin in that instance.
COVID-19 analysisCOVID-19 was a formidable virus that first appeared on the global scene in March of 2020. It was the latest gift to the world from Wuhan, China. Since this virus proved to be dangerous for some people (approximately 15% of all COVID-19 patients had to be hooked up to ventilators and/or hospitalized) and deadly for a small minority (less than 1%), national governments took action.
All governments around the world responded beginning in March of 2020 with either temporary quarantines or indefinite lockdowns. This adversely affected the petroleum pitch market. One of the main consequences of the lockdowns and quarantines was to shut down the operation of the companies that manufactured the raw materials needed to make petroleum pitch. This resulted in a dramatic increase in the cost of making the pitch. Petroleum pitch manufacturers were forced to pass this increase in costs in the form of higher prices to the end consumer.
Competitive analysisThe petroleum pitch industry remains highly competitive despite significant barriers to entry due to high initial setup and investment costs. The established players are responding by investing in greater production capacity. They’re also investing heavily in research and development to try to bring a new generation of more technologically efficient products to market.
These companies are also entering into supply/distribution agreements, mergers and acquisitions, and joint-ventures. The objectives of all of these are to try to enter into new markets and to try to remain entrenched in existing ones.
Solvay Industries is a major American player in the petroleum pitch industry. This company is innovating by investing heavily in research and development. It’s, therefore, able to bring a new generation of more technologically advanced and more powerful products and solutions to market.
One of these is in the field of crop protection. It has patented Rhodiosolv. This is an environmentally friendly agent that helps protect crops from insect and rodent damage by wetting them (crops) thoroughly. It keeps the foods safe for human and animal consumption though.
List of companies
DriversMany industries are currently experiencing a rapid increase in demand for petroleum pitch. Some of these industries are the aerospace and car manufacturing industries. Companies in these industries have an insatiable demand for high-quality brake pads. They use these in various planes, helicopters, cars, and other vehicles.
Another key driver of growth in the petroleum pitch market is the rapid growth and proliferation of companies - major and minor - that are manufacturing carbon-based products. These products have a high market demand and value. The reason being that they are lightweight, fairly thick, have a high tensile point, and are resistant to heat. That is they don’t melt or warp easily when subjected to extreme temperatures and heat.
OpportunitiesOne big opportunity for the petroleum pitch market is the fact that governments around the world are spending more on infrastructure development. This is especially true in the area of road repair and new road construction. The repair and construction of new roads require bitumen tar - petroleum pitch is used to make this type of tar. There is also an increase in demand for petroleum pitch - the material used to seal roads requires this.
RestraintsMore and more petroleum pitch manufacturers are using a substance called PAN to make petroleum pitch. This is also used when making carbon fibers, carbon felt, and graphite felt.
One of the main challenges that the petroleum pitch market faces is cost control. Since the manufacturing of petroleum, the pitch is expensive and manufacturers are forced to pass these costs onto the end consumer. Consumers may be incentivized to find low-cost alternatives that are equally effective.
Cumulative growth analysisThe CAGR for the petroleum pitch market is expected to be 3% until the end of 2025. Its market worth was approximately US$977.7 million at the end of 2018.
Technology analysisInvestments in research and development have yielded rich dividends. This is mainly in the increase of new petroleum pitch technologies. For example, Solvay Industries is marketing a new generation of advanced polymer materials. These are designed to make automotive vehicles lighter in weight.
The end consequence will be far fewer carbon monoxide and dioxide emissions (less pollution) and less fuel consumption.
Segment overviewBy typeThe global petroleum pitch market can be divided into high performance, universal, and others by type.
By applicationThe petroleum pitch market has the following applications:
Regional analysisThere are four main regions in the petroleum pitch market: the Asia-Pacific region, the European Union, the North American region, the South American region, the Middle East and North Africa region, and the others region.
The Asia-Pacific region had the greatest market share of 34.8% in 2018. This was largely due to rapid growth and industrialization in India and China. The market value in this region alone in 2018 was US$340.6 million. Of all of the countries in the Asia-Pacific region, China had the largest market share. The CAGR for China alone is expected to be around 3.6% until the end of 2025.
The CAGR in India is expected to be 3.8%. India will have the highest national CAGR in the region. Japan had the second-largest market in 2018.
The CAGR in the North American region is expected to be 3% by the end of 2025. The United States and Canada had the second-largest global market share in 2018. The market size and share may have been highest in the United States as of 2018. However, Canada is expected to experience a much higher CAGR in the coming years.
Report overviewThe CAGR for the petroleum pitch industry is expected to be approximately 3% until the end of 2025. The increased demand for cars and other products is driving growth in demand. However, the higher production costs are estimated to be a restraining factor.
The high costs that go into research and development are also expected to be a key challenge for the petroleum pitch industry. The Asia-Pacific region is growing strongly. The North American region claims the lion’s share in terms of market share and size
|Market Size||USD 989.6 million 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Cytec Industries, Inc. (US), Mitsubishi Chemical Corporation (Japan), Koppers Inc. (US), Rain Carbon Inc. (US), ORG CHEM Group (US), Puyang Changyu Petroleum Resins Co., Ltd (US).|
|Key Market Opportunities||The fact that governments around the world are spending more on infrastructure development.|
|Key Market Drivers||The rapid growth and proliferation of companies - major and minor - that are manufacturing carbon-based products.|
The petroleum pitch market is predicted to grow at a 4.2% CAGR between 2021-2030.
The global petroleum pitch market is predicted to touch US$989.6 million by 2030.
Asia Pacific is predicted to dominate the petroleum pitch market.
Greater production of aluminum anodes, increased growth in the global automobile industry, more usage of aircraft brakes.
The usage of PAN to manufacture carbon felt, graphite felt, and carbon fibers