Asphalt Additives Market Outlook - 2027
The global asphalt additives market was valued at $3.6 billion in 2019, and is projected to reach $5.3 billion by 2027, growing at a CAGR of 5.1% from 2020 to 2027.
Asphalt mixed together with concrete elements to obtain asphalt concrete is known as asphalt additive. Asphalt additive is used as an adhesive in road construction. The asphalt additives are also used as waterproofing materials. Asphalt additives help in reducing life cycle costs, stripping, cracking, permanent deformation, raveling, and pavement thickness.
The growth of the asphalt additives market is majorly driven by increase in road and building construction activities across the developing countries such as India and China. Construction of various national highways, expressways, and airport runways boosts the demand for asphalt additives across these countries. In addition, rise in investments by the government of these countries for the development of national highways and expressways across the countryand development of road network in rural areas for providing last mile connectivity, is anticipated to drive the growth of the asphalt additives market. Furthermore, bitumen is widely used in the construction industry for roofs, owing to its physical properties such as adhesion, resistance to water, hardness, ductility, and higher softening point. Therefore, rise in the construction industry due to growth in population across the cities and demand for new houses led to increase in demand across the developing economies. In addition, government initiatives such as Pradhan MantriAwasYojana (PMAY) launched by Government of India that includes construction of houses for poor people living in both rural and urban areas is expected to increase the demand for asphalt additives; thereby, driving the growth of the global market.
However, changing regulatory environment coupled with low consumer awareness can hamper the growth of market. On the contrary, increase in demand for asphalt additives from the emerging economies as well as rise in awareness about energy conservation and sustainable infrastructure are expected to offer remunerative opportunities for asphalt additives market growth in the near future.
The global asphalt additives market size is segmented into type, application, and region. On the basis of type, the market is categorized into polymerized asphalt cement, novophalt, multigrade asphalt cement, polyester modifier and others. The applications covered in the study comprise road construction, road paving, airport runway, parking lots, roofing and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.
The major key players operating in the global asphalt additives industry include Arkema Group, Akzo Nobel N.V., Evonik Industries AG, Honeywell International Inc, Huntsman International LLC, Ingevity, KAO Corporation, Nouryon, Sasol, and Tri-Chem Specialty Chemicals, LLC. Other players operating in this market include Bershire Engineering Supplies, Kraton, BASF SE, Engineered Addtives LLC and Delta Companies Inc.These major key players are adopting different strategies such as joint venture, agreement, and business expansion to stay competitive in the global market.
Global Asphalt Additives Market, By Region
Asia-Pacific accounted for a major market share in 2019 in the global asphalt additives market, owing togrowth of the real estate sector in China and India. This is a key factor driving the Asia-Pacific asphalt additives market. Road construction, road paving, and roofing are the main segments dominating the other segments due to unremitting growth of urban demographic and better infrastructure. The growing construction industry along with government initiatives for improvement of roads in various economies such as India and China in the region drives the demand for asphalt additives in Asia-Pacific. In addition, huge investments from multinational companies in the high growth potential economies of the region is also a major factor posing bright opportunities for the Asia-Pacific asphalt additives market. Increasing ownership of automobiles coupled with increasing government investment in the infrastructural development drives the growth of the market.
Asia-Pacific would exhibit an CAGR of 5.6% during 2019-2027.
Global Asphalt Additives Market, By Type
Polymerized Asphalt Cement segment accounted for amajor share in 2019 in the asphalt additives market.Addition of polymerized asphalt cement to the paving-grade asphalt is carried out during the first stage of road construction. Mixing is achieved by using a mechanical impeller or mixer. CRS-2P is the most commonly used polymerized asphalt cement grade. In addition, various companies use polymerized asphalt cement in road maintenance and repair activities to renovate previously constructed roads. During the analysis period, Asia-Pacific is expected to havethe highest utilization rate for polymerized asphalt cement,owing to the presence of large number of infrastructure projects.The increasing importance of polymerized asphalt cement in providing strength, durability, finishing, and workability to the final road block is expected to provide growth opportunity in the global asphalt additives market. Moreover, availability of various grades with a wide price range helps consumers to choose their products accordingly.
Polymerized Asphalt Cement is projected as the most lucrative segment.
Global Asphalt Additives Market, By Application
Depending on application, theroad construction segment accounted for a major asphalt additivesmarket share in 2019.Owing to perennial urbanization, efficient roads are currently in high demand across the globe. Construction firms have initiated road development projects using high grade construction materials including asphalt additives, to provide improved structural integrity and sustainability of roads. Asia-Pacific and LAMEA regions are forerunners in these ventures, due to the high urban displacement. Construction of new roads along with road maintenance and repair projects in emerging economies provides promising opportunities for the growth of market. Rapid urbanization and demographic shifts are some of the driving factors of the market and are anticipated to drive the growth of asphalt additives market during the forecast period 2020-2027.
Road Construction is projected as the most lucrative segment.
Key Benefits For Stakeholders
- The global asphalt additives market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Majorcountries have been mapped according to their individual revenue contribution to the regional market.
- The report provides an in-depth analysis of the global asphalt additives market forecast for the period 2020–2027.
- The report outlines the current global asphalt additives market trends and future estimations of the global asphalt additives market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- The key drivers, restraints, and global asphalt additives market opportunity and their detailed impact analysis is elucidated in the study.
Asphalt Additives Market Report Highlights
Key Market Players
Tri-Chem Specialty Chemicals, LLC, ARKEMA GROUP, SASOL, KAO Corporation, Honeywell International Inc., Nouryon, Evonik Industries AG, Ingevity, Akzo Nobel N.V., Huntsman International LLC
According to the analyst, significant factors that drive the market growth are rising demand of asphalt from the construction industry, growing conformity with latest manufacturing standards, and rapid urbanization globally. Polymerized asphalt cement is the leading segment, and is expected to maintain its lead throughout the analysis period. According to the analyst, Asia-Pacific is the fastest growing region due to increasing ownership of automobiles coupled with rising government investment in infrastructural development. Furthermore, adoption of asphalt additives in the road construction application is anticipated to increase during the forecast period. As per the analyst, China occupies more than half of the Asia-Pacific asphalt additives market; however, India is the fastest growing segment.