Asphalt Market Size, Share & Trends Analysis Report By Product Type (Hot Mix Asphalt, Warm Mix Asphalt, Cold Mix Asphalt), By Applications (Roadways, Waterproofing, Recreation), By End-User (Non-Residential Construction, Residential Construction) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Asphalt Market Size

The global asphalt market size was valued at USD 241.11 million in 2023 and is estimated to reach from USD 253.40 million in 2024 to USD 377.25 million by 2032, growing at a CAGR of 5.1% during the forecast period (2024–2032).

There has been a rise in technological advancements in asphalt and its related components, thereby augmenting the market expansion. Moreover, in recent years, there has been an increase in the research on asphalt, resulting in the creation of innovative asphalt products and the utilization of waste materials to produce asphalt, which is anticipated to create opportunities for market expansion.

Asphalt, also called bitumen, is a black, sticky, highly viscous liquid or semi-solid form of petroleum. It is a naturally occurring substance found in crude oil deposits. Asphalt is primarily used to construct roads, pavements, and roofing materials. Asphalt is mixed with aggregate materials like sand, gravel, or crushed stone in road construction to create asphalt concrete, commonly known as asphalt pavement or blacktop. This mixture is laid down in layers and compacted to create a durable surface that can withstand heavy traffic and weather conditions. Asphalt is preferred for road construction due to its flexibility, durability, and ability to withstand heavy loads and traffic volumes. It also offers excellent grip for vehicles and can be reused, rendering it a sustainable choice for paving endeavors.

Highlights

• Hot mix asphalt dominates the product type segment
• Roadways dominate the application segment
• Asia-Pacific is the highest shareholder in the global market

Asphalt Market Growth Factors

Growing demand from the construction industry

The demand for asphalt is constant due to the growing need for infrastructure development, including roads, highways, bridges, and airport runways. Asphalt is one of the main materials used to build these structures. Approximately 70% of bitumen is used in road construction, driving market growth. Favorable funding, infrastructure repair projects, and advancements in non-building construction activities contribute to this trend.

Furthermore, maintaining and repairing existing roads and pavements is essential for their continued use and safety. The long-lasting and budget-friendly asphalt is frequently chosen for road resurfacing and repairs. Governments worldwide are also investing in highway repairs, road construction, and rehabilitation, further boosting the overall revenue in the construction sector.

Technological advancements

Innovations in asphalt technology, such as developing polymer-modified asphalts, warm mix asphalts, and bio-based asphalt binders, can improve the performance and sustainability of asphalt pavements, influencing market demand.

• For instance, in June 2022, SHELL introduced Shell Bitumen CarbonSink, an innovative bio-component binder designed to sequester carbon within roads, preventing its release into the atmosphere. The binder sequesters carbon within asphalt, transforming roadways into functional 'carbon sinks.' Due to the recyclability of asphalt, most of this carbon will not be reintroduced into the atmosphere, even when it reaches the end of its lifespan.

Additionally, in June 2020, BASF developed a novel bitumen additive that enhances the durability of roads. The product's objective is already evident in its name: "bitumen to endure." The novel addition functions distinctly compared to traditional bitumen modifiers. It creates a cohesive polymer grid by bonding the components within the bitumen, resulting in a robust and flexible structure. This enhances the longevity of roadways, resulting in reduced rutting caused by truck tires during periods of high temperatures. Such advancements are anticipated to drive the market growth.

Restraining Factors

Rising costs for basic materials and limited supply

In the upcoming years, the asphalt market is anticipated to expand significantly because of the growing need for asphalt in road construction and maintenance, its capacity to be recycled, and its higher performance and durability when compared to concrete. However, other factors limit market expansion, such as shifting regional preferences for cement roads, fluctuating raw material prices, and environmental issues related to the bitumen sector.

Moreover, manufacturers may encounter high production costs and a limited supply of asphalt due to the volatile nature of crude oil and petroleum prices, which could obstruct market expansion. Pollutants are created during asphalt extraction, processing, and transportation, and energy is consumed. This is predicted to hinder the market growth.

Market Opportunities

Rising research and development

There has been a rise in the research on asphalt in recent years, which has led to the development of novel products made of asphalt and the production of asphalt from waste raw material.

• For instance, in June 2023, A novel technique pioneered at the University of British Columbia promises to transform the feasibility of manufacturing lightweight composite electric cars (EVs). Researchers in the Faculty of Applied Science at UBC have effectively converted bitumen into carbon fiber. This involved transforming the black and sticky substance found in Alberta's oil sands into a vital product for the transition towards sustainable energy.

Furthermore, in October 2019, Indian Oil Corporation implemented several initiatives to aid the government's efforts in eradicating single-use plastic by recycling these harmful materials for beneficial uses. The company intends to utilize its refinery operations to transform disposable plastic waste into specialized bitumen, which may be employed in constructing roads and highways. A pilot project has been conducted in Faridabad to create a bituminous road using "Single Use Waste Plastic." Such research projects are anticipated to create opportunities for market growth.

Regional Insights

Asia-pacific: dominant region

Asia-Pacific is the most significant global asphalt market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific region is at the forefront of the global asphalt market, primarily due to the fast pace of urbanization, population expansion, and infrastructure advancements. The Asia-Pacific region is considered an expanding market because more than half of the world's urban population resides in Asian cities. These cities are projected to contribute to two-thirds of the overall global urban population growth. China, India, and Japan are prominent consumers, prioritizing expanding road networks and modernizing transportation systems. Moreover, there has been an increase in investment and implementation of new facilities to improve asphalt production, thereby contributing to improving infrastructure projects.

• For instance, in February 2024, Tendy Three Investments and the Bulawayo City Council join forces to carry out a USD 2.1M asphalt batching plant project. The objective is to revitalize Bulawayo's infrastructure and generate significant annual profits. This collaborative relationship ensures the resolution of the city's ongoing infrastructure issues, the creation of job opportunities, and the provision of significant economic benefits. Similarly, in March 2021, Puma Bitumen, a subsidiary of Puma Energy, announced the inauguration of its newest bitumen facility in India. The newly constructed terminal will have the capacity to generate an annual output of up to 40 kilotons of asphalt, which will contribute to the development and expansion of the country's infrastructure. Located in Chennai, a city in South East India, the terminal will offer an advantageous strategic position for the region's first bitumen import facility. These aspects are projected to enhance the expansion of the regional market.

The North American asphalt market is influenced by factors such as the demand for asphalt in the construction of commercial and domestic roads and highways and positive measures taken by governments in different nations. As per the National Asphalt Pavement Association, asphalt surfaces 94% of roads and streets in the United States. The country boasts over 2.7 million miles of paved roads and highways. Moreover, the prominent stakeholders are implementing various strategies, such as partnerships, engaging in mergers and acquisitions, pursuing expansion opportunities, and more, to augment their market dominance.

• For instance, in August 2023, Canadian technology company Aduro Clean Technologies Inc. announced the progress of Phase 1 of their collaboration with Prospera Energy Inc. This collaboration aims to develop, construct, and provide a pre-commercial pilot plant to convert low API bitumen into more valuable products using Aduro's Hydrochemolytic technology ("HCT"). Aduro Clean Technologies uses chemistry to transform lower-value feedstocks, such as waste plastics, heavy bitumen, and renewable oils, into higher-value resources suitable for the 21st century. Therefore, these factors contribute to the growth of the market.

Asphalt Market Segmentation Analysis

By product type

Based on product type, the global asphalt market is segmented into hot mix, warm mix, and cold mix asphalt. The hot mix asphalt segment dominates the global market. Hot mix asphalt (HMA) is a blend of asphalt binder and aggregate (stone, sand, and gravel) manufactured at elevated temperatures and subsequently compressed to create a resilient pavement layer. The asphalt binder is an adhesive that binds the aggregate particles, resulting in a robust and pliable pavement surface. The production method entails subjecting the aggregate to elevated temperatures before combining it with the asphalt binder at a facility. Subsequently, the resultant blend is conveyed to the construction site and deposited in a heated state. It is positioned and then compressed with strong rollers to achieve the proper evenness and density.

By application

Based on application, the global asphalt market is bifurcated into roadways, waterproofing, and recreation. The roadways segment owns the highest market share. Asphalt is essential for the building and maintenance of roadways on a global scale. Asphalt pavements are renowned for their robustness and capacity to endure high traffic volumes and diverse weather conditions. Well-designed and constructed asphalt roads have the potential to endure for several decades with minimum upkeep. Asphalt offers a level and even surface for automobiles, improving driving comfort and safety.

The smoothness of the vehicle's operation also contributes to decreased fuel consumption and minimizes the amount of wear and tear on the vehicle. Moreover, it exhibits impermeability to water, inhibiting water infiltration into the roadbed and potentially harming the underlying layers. This contributes to the extension of the road's lifespan and the reduction of maintenance expenses.

By end users

Based on end-users, the global asphalt market is bifurcated into non-residential and residential construction. Asphalt is an environmentally friendly substance used for constructing pavements and roadways. The demand for asphalt shingles is anticipated to be boosted by the rising rise in residential building construction. Consequently, the market participants are introducing a novel asphalt shingle system.

• For instance, in November 2023, Summit Energy, a leading solar installation company in the Northeast region, announced that its Peak Roofing subsidiary has introduced the Solstice® Solar Shingle System developed by CertainTeed. The Solstice Shingle System is a roofing system that incorporates solar energy production. It has a low-profile design that offers seamless integration with asphalt shingles, resulting in a sleek and consistent appearance. It is used in constructing roofs, driveways, and sidewalks due to its convenient maintenance and uncomplicated crack repair and patching.

Recent Developments

• November 2023- Last20, a Canadian social business startup, announced that they are conducting trials of its plastic-infused asphalt prototype at Regeneron Pharmaceuticals' growing corporate site in Westchester County, New York.
• August 2023-CEMEX reported significant improvements in their UK asphalt operation investment program, which includes the inauguration of a new facility in Birmingham and enhancements at various sites to enhance operational efficiency and sustainability, resulting in improved product delivery for customers.