April 21, 2024

The Global Asphalt Additives Market Is Projected To Driven By Improving Road Infrastructure

Asphalt additives aid in preventing oxidation, improving adhesion and workability at high and low temperatures. They extend the lifespan of asphalt pavements by preventing raveling, stripping and improving water resistance. The global asphalt additives market size was valued at over US$ 1 billion in 2023 and is expected to grow significantly over the forecast period due to increasing investments in road construction projects across major economies.

The global Asphalt Additives Market is estimated to be valued at US$ 4 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the asphalt additives market is the growing demand for polymer-modified asphalt. Addition of polymers such as styrene-butadiene-styrene (SBS) and ethylene-vinyl acetate (EVA) improves the performance and durability of asphalt pavements. Polymer-modified asphalt exhibits improved resistance to reflecting, rutting and aging. It extends the service life of roads by 2-4 times compared to conventional asphalt. Hence, transportation departments across countries are promoting the use of polymer-modified asphalt in road construction, which is expected to drive the polymer segment during the forecast period.

Porter’s Analysis
Threat of new entrants: The asphalt additives market requires high initial investments and R&D efforts to produce specialized additives. Thus, the threat of new entrants is low.
Bargaining power of buyers: The presence of numerous buyers and substitutes increases the bargaining power of buyers in this market.
Bargaining power of suppliers: Key raw materials used in additives such as polymers and binders have few substitutes. This gives suppliers higher bargaining power.
Threat of new substitutes: Alternatives such as concrete are available but do not provide the same advantages as asphalt. The threat from substitutes is moderate.
Competitive rivalry: Being a fragmented market with many global and local players, competitive rivalry is high.

Key Takeaways
The Global Asphalt Additives Market Size is expected to witness high growth during the forecast period of 2023 to 2030. The global Asphalt Additives Market is estimated to be valued at US$ 4 Bn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030.

Regional analysis: North America dominated the market in 2024 due to major road construction activities in the US, followed by Europe. The Asia Pacific region is expected to grow at the fastest pace due to ongoing infrastructure development projects in China and India.

Key players: Key players operating in the asphalt additives market are Berkshire Hathaway Inc., XL Group Ltd, Munich Re Group, Aon PLC, The Chubb Corporation, American International Group Inc., Allianz Global Corporate & Specialty, Zurich Insurance Co. Ltd, Lockton Companies Inc., Bin Insurer Holding LLC and SecurityScorecard Inc. These major players focus on enhance product quality and expanding their presence in high-growth regional markets through partnerships and mergers & acquisitions.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it