According to a new report published by Allied Market Research, titled, “Asphalt Additives Market By Type, and By Application: Opportunity Analysis and Industry Forecast, 2020–2027,” 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 additives are the specialty chemicals that are added to impart additional benefits such as reduction in stripping, raveling, cracking, costs, and deformations. They are specifically added during construction of roads, sidewalks, airports, and parking lots. The market for asphalt additives has grown tremendously in the recent past due to increase in government investment for the infrastructural development coupled with the rise in ownership of automobiles globally.
The infrastructure development activities across the developing economies such as India and China has increased significantly due to rapid industrialization and urbanization. This is expected to drive the growth of global asphalt additives market. Rise in government projects like “Bharatmala” and “Pradhanmantri Gram SadakYojana” for road construction in developing economies like India, and China Pakistan Economic Corridor (CPEC) project in China is expected to positively drive the growth of global asphalt additive market. In addition, growing population across the developing countries such as China and India has led to increase in demand for new houses to accommodate poor people. Government initiative such as “Pradhan MantriAwas Yojana” in India to accommodate poor people in rural and urban areas is projected to increase the demand for asphalt additives as it is widely used in roofing application of building construction. Furthermore, initiative like development of “Smart City Project” in urban areas that includes construction of new cities with modern and advanced infrastructure facilities is anticipatedto increase the demand of asphalt additives and eventually drive the growth of the market during the forecast period. Environmental benefits that includee mission of minimal to zero toxic fumes compared to conventional additives are further expected to drive the growth of global asphalt additives market during the forecast period.
However, changing regulatory environment coupled with low consumer awareness may hamper the growth of asphalt additives market. On the contrary, increase in demand for asphalt additives from the emerging economies as well as growth in awareness about energy conservation and sustainable infrastructure are expected to offer remunerative opportunities for market growth in the near future.
Based on type, polymerized asphalt cement(PAC) is expected to maintain its dominant position throughout the analysis period, due to the remarkable properties such as enhancement of asphalt ability to combat fatigue & cracks, temperature susceptibility, and increment in the adhesion & cohesion properties. PAC is added to the asphalt immediately before heating to yield maximum benefit.
Based on application, road construction segment dominated with more than 50% share, in terms of volume, in 2019. In response to the perennial urbanization, efficient roads are currently in high demand across the globe. Residential construction companies are inclined toward using asphalt roofs to provide durability, algae resistance, fire resistance, and cost-effectiveness.
Region wise, the asphalt additives market size is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is expected to garner the highest asphalt additives market share during the forecast period due to increase in infrastructural and building construction activities across the region.
Key Findings Of The Study
In terms of both value and volume, novophalt is projected to be the fastest growing segment during the analysis period.
Asia-Pacific is projected to maintain its lead position during the forecast period and is expected to grow at a CAGR of 5.6%, in terms of volume.
Road construction application occupied more than half of the total market in 2019 i.e. 52.3%
China occupied two-thirds of the total Asia-Pacific asphalt additives market in 2019.
India is expected to grow at the fastest rate and is expected to grow at a CAGR of 7.0% from 2020 to 2027.
The key players operating in the global asphalt additives industry include Evonik Industries AG, Tri-Chem Industries, Ingevity, AkzoNobel N.V., E.I. DuPont de Nemours and Company, Honeywell International Inc., Huntsman International LLC, Kao Corporation, ArrMaz, and The Arkema Group.