The global market for asphalt additives is anticipated to expand at a compound annual growth rate (CAGR) of 7% during the forecast period of 2024 to 2032. Some of the major significant reasons driving the growth of the asphalt additive market around the world include an increase in the number of road construction projects as well as an increase in the amount of asphalt additives being used in roofing applications. Asphalt that has been combined with other components of the concrete to produce asphalt concrete is referred to as asphalt additive. In the process of building roads, an asphalt additive serves the function of an adhesive. Asphalt additives can also be utilised as materials for waterproofing applications. The life cycle costs, stripping, cracking, permanent deformation, ravelling, and overall pavement thickness can all be reduced with the use of asphalt additives.
Market Recovery on Way, Aftermath of the Pandemic
The pandemic caused by the COVID-19 virus caused disruptions in supply chains and caused construction projects all around the world to be postponed. In an effort to halt the propagation of the coronavirus, most of the world's nations have implemented stringent curfews and lockdowns. Because of this, the economy went into a tailspin, and the construction industry was one of the most seriously damaged sectors. This was owing to a lack of raw materials, labour force, and government regulation, which caused ongoing projects to be placed on hold. Despite the fact that in the third quarter of the year 2020, numerous local governments took action to restart construction work on roads, highways, and buildings. Building construction and road construction in Germany have both been restarted as of April 2020 according to the Federal Ministry of Transport and Digital Infrastructure (BMVI). Since the second part of the year 2020, nations like Romania and India have restarted the construction of highways and roads in their respective countries. Therefore, in comparison to the previous year, it is anticipated that the construction industry would have a significant amount of growth in 2021.
APAC Infrastructure Sector Evidencing Significant Growth due to Increased Investments
One of the primary contributors to the expansion of the asphalt additives market in the Asia Pacific region is the increased expenditure on infrastructure that has been seen in countries such as China, India, Malaysia, and Indonesia. The increasing construction of roads and other public infrastructure development projects in the Asia Pacific region can be attributed to the increase in government spending on infrastructure in that region. These projects are being undertaken to improve transportation and enhance connectivity between significant economic centres in each of these countries.
The expansion of the road and building construction industries in developing nations like India and China is the primary force behind the growth of the asphalt additives market. The increase in the number of different national highways, expressways, and airport runways that are being built across these countries drives up the demand for asphalt additives. In addition, the increase in investments made by the governments of these countries toward the construction of national highways and expressways across the country, as well as the construction of road networks in rural areas for the purpose of providing "last mile connectivity," is anticipated to drive the growth of the asphalt additives market. Additionally, due to its physical features such as adhesion, resistance to water, hardness, ductility, and a greater softening point, bitumen is commonly utilised in the construction industry for roofing purposes. This is the case because bitumen is a pliable material with a high melting point. As a result, an increase in demand across developing countries was caused by a rise in the building industry due to a growth in population across cities and a desire for more homes.
According to the India Brand Equity Foundation, one of the primary areas of concentration for the Indian government has shifted to the infrastructure sector. The Indian government included an allocation of USD 13,14 billion towards the construction of roads and motorways in the Union Budget for 2020-21. Public-private partnerships and foreign investments in road pavement applications are major trends that are currently being observed in the economies of the Asia Pacific region. These trends are expected to drive the market for road construction for the next ten years, so it is important to keep an eye on them.
Organic Warm Mix Asphalt Gaining Demand due to its Environmentally Friendly Characteristics
There has been an increase in awareness regarding environmental issues such as global warming and carbon footprint, which has led to an improvement in the asphalt additive industry's ability to impact the reduction of greenhouse gas emissions. Because of this, the development of Warm Mix Asphalt (WMA) and its applications for it have been sped up. WMA and its applications serve the purpose of cutting down on emissions of greenhouse gases by lowering the temperatures at which asphalt mix is mixed and compacted. As a result of the environmental benefit, it offers without compromising the characteristics, performance, or quality of the asphalt mix, the WMA has gained a lot of favour in recent years. Because WMA is produced at relatively lower temperatures, it results in less energy consumption, fewer emissions, reduced ageing, lower mixing and compaction temperatures, cool weather paving, and better workability of the mix. In addition, WMA is produced at temperatures that are comparatively lower than those used in the production of asphalt. It is anticipated that each of these characteristics of asphalt will contribute to the expansion of the global market for asphalt additives in the years to come.
In recent years, there has been a movement toward organic WMA additions that are known to reduce the viscosity of bitumen in order to increase workability. These additives can be found in several forms. These organic additives, which are mostly composed of waxes and fatty amides, are added to a warm mixture in order to promote lubrication and reduce the asphalt binder's viscosity at temperatures slightly higher than 90 degrees Celsius. The thickness of the asphalt binder is an essential characteristic at high temperatures. This is because it directly displays the ability of the binder to be elevated through an asphalt plant to precisely coat the aggregate in the asphalt concrete mixture, and it also displays the ability of the binder to be compacted to form a new street surface. On the other hand, other waxes like paraffin waxes are the optimal and most generally used additives for boosting binder flow and quality. Other waxes like carnauba waxes are not as effective.
Volatility In the Supply and Prices of Asphalt Is a Constraining Factor
Due to the fact that asphalt is a petrochemical, its price tends to fluctuate significantly. This is because asphalt's price tracks the price of petroleum, thus any changes in the price of petroleum are reflected in asphalt's price. Because asphalt is a main raw material that is utilised in the construction of road pavements, construction projects that are done by governments and road contractors are negatively impacted as a result of the uneven supply of asphalt that is caused by fluctuating petrochemical prices. As a result of this, there is a growing tendency toward the use of alternatives for the construction of road pavements, such as concrete, gypsum, and bio asphalt.
Asphalt Additives Application in Various Roofing Applications Presents an Opportunity
The primary purpose of asphalt is as a waterproofing component in roofing materials. Additionally, it is utilised in the production of asphalt-saturated felts, roll roofing, and shingles in the capacity of a saturate. Asphalt shingles are one of the roofing applications with the lowest cost, and they are seeing rising demand in both North American and European countries. The sub-prime mortgage crisis that hit the United States in 2007 and 2008 triggered a recession in the building industry. Nevertheless, the construction industry in the North American region has made a full recovery and is expanding at a rate that is just slightly faster than average. It is anticipated that the percentage of these materials that contain asphalt will rise in both the North American and European areas due to the expansion of the market for construction materials in these regions. As a direct result of this, there is an anticipated rise in the need for asphalt additives. These additives improve the service life and durability of asphalt when it is used in roofing applications.
The Polymeric Modifier Segment Led the Market Revenues In 2021
In terms of value, the segment that comprised polymeric modifiers accounted for the highest share in 2021. The expansion of this market sector may be ascribed to the great qualities of asphalt pavements, which include improved stiffness and strength, as well as improved flexibility and durability. Because of how simple they are to work with and how easily available the components that go into their production are, they are by far the most popular type of asphalt additive utilised across the world.
Hot Mix Method to be the Fastest Growing Technology
It is anticipated that the hot mix method will take the lead with respect to growth in the asphalt additives market in the years to come based on technological developments. The hot mix asphalt is long-lasting and resistant to deterioration from both moisture and heat stress. In addition to that, it offers a high degree of workability and skid resistance. This sector is expanding as a result of recent developments in the building of brand-new highways and expressways. Therefore, the market is expected to register the highest CAGR during the forecast period of 2023 to 2030. The regulatory trends and regulations that are currently predominant in the market have a significant impact on the development of hot/warm mix technology. The rising level of consumption will open up significant sales prospects for environmentally friendly alternatives during the forecast period.
Road Construction Remains the Largest Application Market
On the basis of application, the road construction and paving segment of the asphalt additives dominated the market in 2021 and is also expected to grow at the fastest pace during the forecast period of 2023 to 2030. Damage to roads can be caused by a number of different things, including normal wear and tear, dampness, extremes in temperature, and frost. As a result of the fact that asphalt additives help increase the durability of pavements by preventing cracking and rutting, there has been an increase in the demand for asphalt additives. However, this damage can be avoided by using asphalt additives.
Because urbanisation is a continuing trend around the world, there is a significant demand for well-designed roads at the moment. Road development initiatives have been begun by construction companies employing high-grade building materials, such as asphalt additives. The goal of these projects is to increase the structural integrity and sustainability of roads. Because of the increasing rate of urbanisation, the Asia-Pacific and the LAMEA regions are leading the way in these kinds of enterprises. In rising nations, projects for the construction of new roads, as well as projects for the maintenance and repair of existing roads, provide significant potential for the expansion of the market.
The majority of roads in developing nations are in a poor condition and require ongoing maintenance and renovation. Many of the current expressways and roads are being expanded and lengthened as part of a variety of projects that are being initiated by the governments of developing nations. As an illustration, the highway system in India today spans around one hundred thousand kilometres. The Indian government is placing a significant amount of emphasis on expanding and improving the country's highway system. To strengthen its connections with South Sudan and Tanzania, Kenya has declared that it will invest approximately 280 million US dollars in road maintenance projects.
APAC Remains as the Global Leader
As a result of the expansion of the real estate industries in China and India, the Asia-Pacific region held a significant portion of the market share in the worldwide asphalt additives market in 2021. This is one of the primary factors that is driving the asphalt additives market in the Asia-Pacific region. Road construction, road paving, and roofing are the primary segments that are dominating the other segments due to the unrelenting development of the urban population and improvements in infrastructure. Those two factors are driving the need for these services. The demand for asphalt additives in the Asia-Pacific area is being driven by the developing construction industry as well as government initiatives for the renovation of roads in various economies within the region. Some of these economies include India and China. In addition, substantial investments made by multinational corporations in the economies of the area that have a high potential for growth is another important reason that is expected to create several lucrative chances for the Asia-Pacific asphalt additives market. The expansion of the market is driven by an increase in the number of people who own automobiles as well as an increase in the amount of money invested by the government in the development of infrastructure.
The United States is anticipated to be the most lucrative market for asphalt additives, with a growth of approximately 6% CAGR through 2030. The demand brought forth by activities related to road development is particularly on the rise. The American Road & Transportation Builders Association (ARTBA) forecasts that there will be an increase in the number of new roads, bridges, driveways, and parking lots built in the United States in the years to come. The deterioration of national highways and other significant roads is a direct result of the increasing volume of traffic on those roads.
Tier 1 Players Holding About 35% of Market Share
The global market for asphalt additives is considered to be moderately concentrated, with the top five market participants accounting for more than one-third of the overall market share. Dow Chemical Company, BASF SE, Evonik Industries AG, and Kraton Corporation are among the major companies that dominate the asphalt additives market. Tier 1 corporations are the key players in this industry and have a significant presence in many countries throughout the world. In the year 2021, these businesses held a share of up to 35% of global revenues. Other major participants are Evonik Industries AG. Other companies in this market include Nouryon (the Netherlands), DowDuPont (the United States), Arkema SA (France), Honeywell International Inc. (the United States), Evonik Industries (Germany), Huntsman Corporation (the United States), Ingevity Corporation (the United States), and Others. These competitors have improved their standing in the market by adopting various strategies, such as expanding their operations, developing new products, focusing on acquisitions, and strategic partnerships.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Asphalt Additives market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
