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Asphalt Additives Market Overview
The Asphalt
Additives Market size is projected to reach US$5.1 billion by 2027, after growing at a CAGR of 6.8% during 2022-2027. Asphalt additives are the substances that can be added
to the asphalt binder to change the characteristics of the final blend based on
the requirement of hot mix asphalt, cold mix and warm mix asphalt. The various types of asphalt additives
such as polymeric modifiers, chemical modifiers and rejuvenators are widely used in road
construction, road paving, airport runway, parking lots, roofing and others. The idea is to enhance the physical or chemical characteristics of the asphalt mix by adhesion promoters to mitigate
moisture damage. An increase in infrastructure construction activities such as
roads, highways and ports construction would drive the asphalt additives industry.
As per the U.S. Department of Commerce, the total spending for
highways & streets construction was around US$97,403 million in June 2022. Therefore, the rise in construction activities due to growing
construction spending would increase the demand for the asphalt additives market during the forecast period. However, the global economic downturn caused by the COVID-19
pandemic resulted in a huge drop in demand for asphalt additives in infrastructure
development activities all across the world. This had a significant impact on the growth of the Asphalt Additives industry.
Asphalt Additives Market Report Coverage
The “Asphalt Additives
Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth
analysis of the following segments in the Asphalt Additives industry.
By Type: Polymeric Modifiers,
Anti-strip and adhesion promoters, Emulsifiers, Chemical Modifiers, Rejuvenators,
Fibres, Flux Oil, Colored Asphalt and Others.
By Technology:
Hot Mix, Cold
Mix and Warm Mix.
By Application: Road Construction, Road Paving, Airport Runway, Parking
Lots, Roofing and Others.
By
Geography: North America (the USA,
Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain,
Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea,
Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South
America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of
the World: the Middle East (Saudi Arabia, the UAE, Israel and the Rest of the Middle East) and
Africa (South Africa, Nigeria and the Rest of Africa).
Key Takeaways
- The Asia-Pacific region dominates the Asphalt Additives Market share with a CAGR of 7.9% during the forecast period (2022-2027), owing to the rising growth in the development of roads, ports, airports construction in various countries such as China, India, Japan and South Korea.
- The rapid increase in the application of Asphalt Additives in road construction, owing to improved concrete performance with low pavement rutting and moisture-induced damage, is boosting the demand for the Asphalt Additives market during the forecast period.
- The increase in government investment in the construction of national highways and expressways globally to enhance road networks in downtrodden areas is expected to drive the demand for Asphalt Additives.
Figure: Asphalt Additives Market Revenue Share (%) by Region, 2021
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Asphalt Additives Market Segment Analysis – by Type
The polymeric
modifiers segment held
the largest share in the Asphalt Additives Market in 2021 and is expected to grow at a CAGR of 6.3% during 2022-2027. The polymeric modifiers type of
asphalt additives is widely used for road construction, road paving, airport
runway and parking lots with various techniques such as hot mix, cold mix and warm
mix. Increased
traffic volume and trucks carrying heavier loads are the major factors boosting this segmental growth. As per Fintraffic, traffic volumes on highways and main roads
increased by 3% in 2021 as compared to 2020. Therefore, with the rise in
the growth of the road traffic volume, the demand for the polymeric modifiers segment would increase and would boost the Asphalt Additives market size during
the forecast period.
Asphalt Additives Market Segment Analysis – by Application
Road construction held a
significant share in the Asphalt Additives Market in 2021 and is estimated to grow at a CAGR of 5.8% during the forecast
period 2022-2027. Polymeric
modifiers, emulsifiers, chemical modifiers and rejuvenators types of asphalt additives are widely
used in road construction as they help to increase viscosity and stiffness at
high temperatures. Milton Town, Canada, has invested US$61.7
million in roads, bridges and stormwater management ponds in building a
complete community in 2022. Such investment in
infrastructure building, globally, is expected to bolster the requirement for Asphalt Additives, which would propel the growth of the Asphalt Additives Market size
during the forecast period.
Asphalt Additives Market Segment Analysis – by Geography
The Asia-Pacific region dominated the Asphalt Additives Market share with 47% in 2021, owing to the rising investment in infrastructure construction in the region. Such a factor, in turn, would boost the demand for various types of asphalt additives, such as polymeric modifiers, emulsifiers, chemical modifiers and rejuvenators. China is estimated to witness growth in the demand for asphalt additives due to increased investment in road and belt construction activity. As per the Chinese Ministry of Commerce (MOFCOM), Chinese enterprises invested about US$89.9 billion along the belt and road with a year-on-year increase of 10.2% in the first half of 2022. Also, there were 1,840 newly signed projects with a total contract value of over US$38 million with a focus on 55 countries that are along the belt and road from China to Europe including South Asia. Furthermore, there has been a consistent growth in the construction of national highways in India, with 13,327 km being constructed in 2020-21, from 4,410 km of national highway construction in 2014-15. Thus, the rise in infrastructure construction projects in the APAC countries is anticipated to increase the demand for asphalt additives in the forecasted period. All such factors are proving to be a market booster for this region's Asphalt Additives market size.
Asphalt Additives Market drivers
Rapid urbanization and demographic shifts across the globe:
The growing urbanization would increase the need for infrastructure facilities such as road construction, road paving, parking lots and many more. This in turn would increase the market growth. According to World in Data, more than 4 billion people live in urban areas, globally. It is estimated that the urban population would grow to around 7 billion people by 2050. With the growing urbanization, the infrastructure projects would increase and would raise the demand for polymeric modifiers, emulsifiers, chemical modifiers and rejuvenators type asphalt additives, globally. The foundation stone was laid for nine National Highway projects in Tripura, India, with a total length of ~262 km and worth around INR 2752 crore (US$371.13 million) in October 2020. Also, as per the USA Facts, in 2021, 41% of the federal transportation and infrastructure spending was on highway transportation. Thus, the growing road infrastructure projects, globally, would raise the growth of the Asphalt Additives market size during the forecast period.
Growing construction activities would increase the roofing demand across the globe:
Asphalt Additives such as polymeric
modifiers, emulsifiers, chemical modifiers and rejuvenators are widely used in the roofing
of buildings. Growing construction activities would raise the roofing demand
and boost the market growth. Various construction projects commenced
in the third quarter of 2021. They include Reserva Alta Vista Residential Complex (US$50
million) in Sao Paulo, Nex One Alto da Boa Vista Residential Complex (US$30
million) in Sao Paulo, Shard Tower Residential Complex (US$30 million) in Santa
Catarina, Indianapolis Ibira Mixed-Use Complex (US$28 million), Living Ipiranga
Residential Complex (US$26 million) and many more in different parts of
America. Thus, significant market traction from the increasing usage of asphalt
additives for roofing across residential and commercial construction is further
projected to fuel the Asphalt Additives market growth during the forecast period.
Asphalt Additives Market Challenge
Volatile Price of Asphalt Additives:
The price of Asphalt Additives is volatile as it is a petrochemical-based product. The fluctuation
in the price of petrochemical products is affecting the price of asphalt
additives. This, in turn, is affecting the supply chain of the asphalt additives. As
per IG Petrochem, the price share return of petrochemical has decreased by
1.82% in a week as of 26 August 2022 and increased by 0.79% in a month.
Therefore, the fluctuation in price of petrochemical would fluctuate the
price of Asphalt Additives. This might hamper the market growth.
Asphalt Additives Industry Outlook
Technology launches,
acquisitions and R&D activities are key strategies players adopt in the Asphalt Additives Market. The top 10
companies in the Asphalt Additives market include:
1. Evonik Industries AG
2. Kraton Corporation
3. Arkema S.A
4. Nouryon Chemicals B.V.
5. DowDuPont
6. Honeywell International Inc.
7. Huntsman Corporation
8. Ingevity Corporation
9. BASF SE
10. Akzo Nobel
Recent Developments:
- In August 2022, Kao Corporation commercialized the first-ever Asphalt Additive made from recycled plastic bottles with the features NEWTLAC 5000, a new additive with exceptionally high durability, oil resistance and environmental features.
- In September 2020, BASF acquired the exclusive rights to distribute RheoFalt products from Ventraco, worldwide. The expansion of the product portfolio serves sustainable road construction and the need for rejuvenators in reclaimed asphalt pavement (RAP).
- In June 2020, BASF launched Bitumen Additive, designed to make roads more durable. The new additive works differently than conventional bitumen modifiers and can bind components in the bitumen to form a strong yet elastic polymer grid.
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