Global Asphalt Additive Market - Forecasts from 2022 to 2027
The global asphalt additive market is estimated to grow at a compound annual growth rate of 5.94% from US$3.065 billion in the year 2020 to US$4.591 billion in 2027.
The market growth is driven specifically by the increasing number of road construction and various developments in public infrastructure projects.
Asphalt additives, also known as adhesion promoters, are the chemicals added to the asphalt. They are added around 0.50% by weight. They can be added to asphalt in various ways due to their easy handling properties. This addition improves the aggregate coating and increases the frequency and strength of chemical bonding of asphalt as aggregate. Due to an increase in the bonding, moisture damage destruction is prevented when the aggregate detaches from the asphalt in water. Moisture damage can cause rutting and potholes and pave the way to fail prematurely. The major application of asphalt additives is in the roofing sector, especially in waterproofing appliances. Thus, construction and roofing are the fields propelling the asphalt additive market growth during the forecast period.
Although the developments in airways and seaways, roads are still dominating the transport sectors in major parts of the globe. Governments of many countries still prioritize the development of roads and highways. Developing countries such as India, China, and others are expected to grow in roads and infrastructure in upcoming years. Even after building the roads, regular maintenance and rehabilitation are required. Thus, the road construction sector is termed as a never-ending process. Various projects have been launched by many governments to widen the expressways and highways. For instance, in December 2021, the Indian government announced that by the year 2024, the construction of the Zoji La tunnel situation on the Srinagar-Leh highways would be completed. The roads and transport ministry are also working on schemes that will provide funds from the public at a 6% per annual interest rate. Such rapid developments in road construction will require a high amount of asphalt aggregate chemicals. This is anticipated to rise in demand for asphalt additives in the future. Hence, there is no doubt about the growth of the asphalt additive market during the forecast period due to roads and highway or expressway infrastructure projects.
Additionally, growing traffic congestion on expressways and highways has led to the degradation of these roads. To make the roads durable, the proper base material is required. Whereas growing industrialization also paved the way for efficient road requirements. As the major number of raw materials are transported by roadways itself, the dependency of industries on the road is rising. Hence, the growing requirement for efficient roads is expected to rise the demand for asphalt additives to enhance the traditional asphalt's properties and increase its durability, which will lead to growth in the asphalt additive market in the future.
Asia-Pacific to grow at a faster pace
Along with India, China, Indonesia, and Malaysia, the government also have increased their spending on infrastructure. These road infrastructure developmental activities are expected to increase at a significant rate in upcoming years, which is eventually expected to drive the asphalt additive market in these countries. Whereas due to growing environmental awareness, increasing funding, increasing roads and highways, and government initiatives to enhance the infrastructure, the demand for the asphalt additive is growing in North America and Europe as well. As per the report by American Road and Transportation Builders Association, the road construction, highways, bridges, and parking lots in the United States are predicted to increase in the forecast period.
COVID-19 has come along with many life-changing factors. These factors have contributed to changing industrial life as well. Several restrictions were imposed on transport and business through social distancing norms and lockdowns. These restrictions led to a shortage of laborers; many huge infrastructure projects went to a halt. This led to underperforming the asphalt additive market as the demand for the same was slowed down. Moreover, many countries worldwide are being health conscious to avoid a national health crisis. Thus, work in many sectors is being done with extreme care. For instance, in December 2021, because of climate change, the Austrian government decided to halt several roads and highway construction projects. However, to recover from the huge halt, many projects are being undertaken by governments of several countries and strategies by key market players, which is expected to drive the asphalt additive market at a faster pace in upcoming years.
Road Construction and Paving
Middle East and Africa