Asphalt additives sales to surpass $8 billion by 2031
The global asphalt additives market is projected to grow at a healthy compound annual growth rate of over 5% till 2031, surpassing US$ 8 Billion, reports ESOMAR-certified market research and consulting firm.
Road infrastructure is one of the key priorities of governments, and close to 35% of worldwide infrastructure investment is likely to be allocated towards this.
Historical data suggests that the market for asphalt additives expanded moderately, recording a compound annual growth rate of 3% between 2016 and 2020. The market closed in at a value of US$ 5.3 Billion by the end of the aforementioned historical period. While the pandemic crisis temporarily stymied growth in the first half, gradual easing of restrictions largely restored expansion prospects.
Asphalt additives have a concrete role to play in order to improve the performance and sustainability of roads. Sustainable surfaces are an important attribute in the road construction industry and present a prime opportunity for government departments as well as contractors to use additives in asphalt paved roads.
Construction industry trends have asserted the need for eco-friendly additives in road construction, wherein preference for non-petroleum-based additives has gained momentum. This has encouraged industry participants to shift toward bio-based additives.
- By technology, warm/hot premixes to generate 30% of the total market revenue.
- Road construction applications to remain prominent, expanding at around 5% compound annual growth rate.
- Bio-based additives to emerge as an eye-catching trend in the global market.
- U.S to remain dominant North American market, expanding at a compound annual growth rate of 6% through 2031.
- Middle East & Africa to expand at around 6% compound annual growth rate, attributed to implementation of new road infrastructure projects.
- India and China to emerge as dominant markets across the East & South Asian regions.
“Increasing emphasis on reducing environmental impact from construction activities is prompting asphalt additive manufacturers to incorporate sustainable material, especially bio-based material, heightening growth prospects,” comments the Senior Research Analyst.
Prominent players in the industry are Nouryon, DowDuPont, Arkema SA, Honeywell International Inc., Evonik Industries, Huntsman Corporation, Kraton Corporation, Ingevity Corporation and BASF SE (Germany), among others.
These players focus on adopting various strategies to expand product offerings and strengthen geographic presence. With the advancement in technology, new players are expected to enter the market.
For instance, in March 2021, 7 companies from the GET H2 initiative show how rapidly the planning of the national and European hydrogen economy is developing. The consortium wants to build a cross-border infrastructure for hydrogen – from the production of green hydrogen to transport and industrial use.
These insights are based on a report on Asphalt Additives Market by Fact.MR.