Asphalt Modifiers Market

Market Overview

The global asphalt modifiers market size was valued at USD 3,937.6 million in 2022. It is expected to reach USD 6,408.15 million by 2031, growing at a CAGR of 5.56% during the forecast period (2023–2031).

Highlights

• The paving segment is the highest contributor to the market by application.
• The physical modifiers segment is the highest contributor to the market by product type.
• Asia-Pacific is the most significant revenue contributor by region.

Asphalt or bitumen is a dark, sticky, viscous liquid or semi-solid petroleum. Asphalt modifiers are substances added to asphalt to enhance its quality, temperature resistance, etc. These asphalt modifiers have an adhesive feature that promotes aggregate-asphalt binder bonding. For various objectives, chemical modifiers, rejuvenators, emulsifiers, etc., are utilized in the building industry. The global market for asphalt modifiers is expanding at a rapid rate due to factors such as rising demand from the infrastructure sector due to its rigid qualities. In addition, the growing utilization of asphalt modifiers in roofing applications is anticipated to enhance the need for asphalt modifiers in the future years. However, the rising use of bio-asphalt and concrete as substitutes is expected to restrain the growth of the asphalt modifiers market. Similarly, developing and commercializing environmentally friendly recyclable asphalt may provide market participants with a lucrative opportunity shortly.

Market Dynamics

Global Asphalt Modifiers Market Drivers

Growing Paving and Construction Activities throughout Developing Nations

The asphalt concrete mixture is the essential building material for roads, airport runways, taxiways, bicycle paths, etc. To increase the performance of asphalt pavements in terms of increased resistance to pavement distresses, such as thermal cracking, rutting, stripping, etc., moderators, such as binder moderators (such as polymers, elastomers, fibers, rubber) and aggregate moderators (such as lime, granulated rubber, anti-strip agents), are used. These characteristics enable the construction of longer-lasting, higher-load-bearing roads with less rutting. Asphalt modifiers enhance the performance of roads by providing resistance to rutting and stiffening for temperatures ranging from those of cold arctic regions to those of hot deserts. They offer various asphalt applications, long-term resilience, and climatic resistance. These developments aid in lowering the frequency of maintenance tasks and reducing long-term public and private expenditures. The demand for housing is rising quickly due to the world's population, particularly in developing nations like China and India. As a result, residential construction is increasing throughout the region, and this is further anticipated to fuel the demand for asphalt modifiers used in building roofs and other application areas.

Global Asphalt Modifiers Market Restraints

Use of Concrete and Bio asphalt as Asphalt Substitutes

Most flexible pavement constructions today use synthetic asphalt, also known as conventional asphalt, which is made from crude oil. Due to global environmental legislation, consumer demand for ecologically friendly pavement building is growing. Traditional asphalt is derived from petroleum and contains a variety of toxic heavy metals, including nickel, lead, mercury, and arsenic. Asphalt manufactured conventionally is hazardous to both the environment and human health. The conventional method of obtaining petroleum asphalt uses the leftovers from traditional crude-oil refining distillation processes, and it is primarily applied to roofing and road construction projects. Even though areas with asphalt pavement require more maintenance than those with concrete, concrete pavement is still used in many locations. Heavy construction equipment uses less energy and fuel because concrete pavement needs less ongoing repair and maintenance. As a result, the demand for asphalt modifiers will likely decline during the forecast period because concrete and bio asphalt act as direct substitutes for the asphalt market.

Global Asphalt Modifiers Market Opportunities

Progressing Warm Mix Asphalt Technologies

As concerns about global warming continue to grow, the asphalt industry is constantly working to reduce its emissions. This issue is resolved by lowering the mixing and compaction temperatures of asphalt mixtures without affecting the mix's properties, which is made possible by various industry-available technologies. WMA, a pavement construction innovation, has been widely adopted in the past ten years. Warm mix asphalt (WMA) refers to a group of technologies that enable the production of asphalt at temperatures lower than those required for conventional hot mix asphalt (HMA), which typically ranges from 150 to 170°C. The temperature at which WMA is produced generally is 20 to 40 °C lower than that of HMA.

Less fuel is required to produce WMA because less energy is needed to heat the asphalt mixture. The fuel used during WMA manufacturing is typically 20% less. Warm mix asphalt (WMA) technologies have been developed to lower the temperatures at which asphalt mixtures are mixed and compacted, thereby reducing emissions. Improved worker conditions, pavement performance, and longevity are benefits of better compaction of asphalt mixtures. As it addresses a wide range of challenges faced on the environmental, construction, and performance aspects when using HMA, WMA is the new hope for the future of the global asphalt modifiers market.

Regional Analysis

The global asphalt modifiers market is segmented by Regions: North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 6.02% during the forecast period. China has the largest economy in the Asia-Pacific region in terms of GDP. With a target rate of 60% by 2020, China is actively promoting and undergoing a process of continuous urbanization. The need for more living space in urban areas due to urbanization and middle-class city dwellers' desire to improve their living conditions may significantly impact the housing market and increase the use of asphalt modifiers in construction applications. According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects worth an estimated USD 142 billion in 2019, and they are expected to be finished by 2023. Residential construction in the nation will likely be fueled by the rising housing demand in both the public and private sectors. The number of brand-new hotel projects in the country increased by 15% in 2019; the rise in tall building construction and hotels drives the market under study. In general, the market for asphalt modifiers is anticipated to be driven in the years to come by the expanding construction sector.

North America is expected to grow at a CAGR of 5.61% during the forecast period. The largest economy on earth is that of the United States. In 2019, the country's growth rate was 2.2%. In 2019, there were 11,471 thousand new privately owned housing units under construction nationwide, according to the US Census Bureau. Three thousand six hundred forty-two housing units were available as of 2020. Additionally, the Federal National Mortgage Association (Fannie Mae) predicted that housing starts would rise to 10% in 2020 and reach 1 million new homes on the market by 2021. The industrial sector was anticipated to grow by 0.5% in 2020 and 0.3% in 2021. The demand for asphalt modifiers is expected to rise over the coming years, as it is anticipated that the construction industry will continue to improve and grow steadily.

The German economy is the fifth-largest in the world and the biggest in Europe. The German economy expanded by roughly 0.5% in 2019, the slowest growth rate in the previous six years. The nation wants to keep construction sites operating because it views the sector as a crucial domestic economic pillar that must be preserved. According to the German minister for transport and digital infrastructure, the nation should keep up its construction efforts to aid in the recovery of the economy after the virus outbreak. Additionally, the nation's construction industry has been expanding slowly, primarily due to the rise in new residential construction activities. When compared to the total completions in 2018, which were 300,000 units, industry experts estimate that the completion of new home construction will be around 315,000 units in 2019. Thus, it is anticipated that during the forecast period, demand for asphalt modifiers will increase as a result of the expansion of the construction industry.

According to the International Monetary Fund, Brazil's GDP expanded by about 0.9% in 2019 and is projected to contract by 9.1% in 2020. While countries worldwide spend 4% of GDP on infrastructure, Brazil only spends 2% of its GDP there. The infrastructure market in Brazil is currently in flux. The government has launched a 120-billion-dollar initiative to leverage private sector logistics investment to boost the infrastructure sector. As public funding for infrastructure projects has decreased, the Brazilian government has started a program. The Program of Investment Partnerships is one such initiative (PPI). Partnership agreements strengthened ties between the state and the private sector. In addition, the government intended to put 44 infrastructure projects up for auction in 2020. 22 of the 44 projects will be given to the private sector. Furthermore, the project considered nine ports, seven highways, and six railways. The government sought to raise USD 24.6 billion for these projects.

Saudi Arabia's GDP increased at a 2.4% annual rate in 2018, but due to lower crude oil prices and unfavorable geopolitical conditions, that rate decreased to 0.2% in 2019. Construction of homes and businesses is anticipated to increase due to government and private investments in various areas of the nation. The Saudi Arabian Ministry of Housing announced in 2019 that its plan for 2019 had been completed, exceeding its targets for giving the country's citizens housing support. This was done through its "Sakani" housing program. The country's social infrastructure, transportation, energy, and utility construction are all major priorities for the government. In 2020, construction was also ongoing at two cutting-edge airports in the northern part of the nation at Al Jouf and Al Qurayat. The country is also engaged in a project to expand Jizan's King Abdullah International Airport. The demand for asphalt modifiers will likely rise due to all the above factors.

Segmental Analysis

The global asphalt modifiers market is segmented by application and product type.

Based on application, the global market is bifurcated into paving and roofing.

The paving segment is the highest contributor to the market and is expected to grow at a CAGR of 5.64% during the forecast period. The asphalt concrete mixture is the essential building material for roads, airport runways, taxiways, bicycle paths, etc. Asphalt pavements can perform better by increasing resistance to distresses like thermal cracking, rutting, and stripping thanks to modifiers like binder modifiers (polymers, elastomers, fibers, rubber, etc.) and aggregate modifiers (lime, granulated rubber, anti-strip agents, etc.). The ongoing road construction activities worldwide correlate with the demand for asphalt modifiers. During the forecast period, the factors above will likely impact the demand for asphalt modifiers used in paving.

Most of the asphalt used in roofing applications is for roofing shingles. In the asphalt roofing industry, modifiers are frequently used to reduce premature failure and enhance final performance, such as cracking and impact resistance, which is challenging for asphalts to achieve independently. The asphalt modifiers improve a low-slope roofing system's performance and longevity. In addition to increased elasticity and strength, modifiers offer increased resistance to brittleness and cold temperatures. The two most popular modifiers are SBS and APP (Atactic Polypropylene). The demand for asphalt modifiers in roofing applications is influenced by urbanization, residential and commercial construction activity, and roofing materials.

Based on product type, the global market is bifurcated into physical modifiers, chemical modifiers, fibers, adhesion improvers, extenders, and fillers.

The physical modifiers segment owns the highest market and is expected to grow at a CAGR of 5.89% during the forecast period. The physical modifiers are subdivided into plastic and rubber. Ethyl-vinyl acetate (EVA), PVC, polypropylene (PP), and polyethylene (PE) are the four leading plastics used as asphalt modifiers. These plastics, which are used in the thermosetting form, can effectively increase the stiffness of the binder at high temperatures. As a result, they increase asphalt's resistance to rutting and fatigue and its thermal susceptibility. The volume of plastic modifiers in the entire mixture typically ranges from 1% to 3%, but there are some cases where the proportion can reach as high as 7%. However, the high cost of plastics like PP, PE, and PVC has restricted their use as asphalt modifiers. Recycling plastics to make asphalt modifiers is becoming increasingly popular to reduce costs. The fact that these plastics' melting points are lower than the temperature at which the asphalt mixture is mixed is one of the primary reasons why they can be used as asphalt modifiers. The above factors will likely impact the demand for plastics as asphalt modifiers during the forecast period.

The primary components of an asphalt mixture are thought to be bitumen and aggregates, and the physical and chemical characteristics of these components directly influence the performance of the mix. The adhesion between bitumen and aggregate, one of the most crucial requirements for a highly durable and water-damage-resistant pavement, determines the lifespan of an asphalt pavement. Asphalt is susceptible to physical and chemical changes, deformations, and cracking due to atmospheric and transportation-related factors. Adhesion promoters can be included in the bitumen binder to help prevent issues like stripping and moisture damage. They serve as a connection between bitumen and aggregates, preventing the displacing effects of water and enhancing bitumen's adhesion to aggregates. During the forecast period, the above factors will likely impact the demand for adhesion enhancers as asphalt modifiers.

Recent Developments

• November 2022- BASF and G-Philos increased their collaboration on stationary storage systems for renewable energy projects.
• July 2022- USDA approved Colorbiotics Plant-Based Additives for Asphalt.