Asphalt is a sticky, black, and highly viscous liquid or semi-solid form of petroleum that is mainly used for road construction activities. Asphalt is produced by refining crude oil or petroleum and is used as a binder for aggregates to create asphalt concrete that is primarily used in road surfaces, airport runways, and parking lots among other things. The global demand for asphalt has increased significantly owing to rapid urbanization and infrastructure development across countries.
The global asphalt market is estimated to be valued at US$ 246.59 Billion in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Asphalt serves as a durable and affordable binding agent for aggregates in asphalt concrete and is a key material for construction of highways, pavements, airport runways, parking lots, and more. Asphalt’s viscosity allows it to adhere well to crushed stone, sand, and gravel to form a relatively waterproof and wear-resistant surface. Rising investments in transportation infrastructure projects that use asphalt concrete are fueling market growth.
Market Key Trends:
One of the key trends in the asphalt market is the rising demand for warm mix asphalt. Warm mix asphalt is produced and placed at lower temperatures than hot mix asphalt leading to decreased emissions and energy usage during production. Warm mix asphalt allows compaction of asphalt at temperatures as low as 100–130°C as compared to 150–180°C for hot mix asphalt. This reduces fuel consumption in drying and heating aggregates during production. It also decreases emissions of volatile organic compounds and reduces worker safety issues associated with heat. Many countries are leveraging warm mix asphalt technology’s environmental benefits in construction of roads and highways.
Threat of new entrants: Low due to requirement of large production facilities and distribution channels and brand loyalty.
Bargaining power of buyers: Moderate due to presence of large buyers like construction companies.
Bargaining power of suppliers: Moderate due to availability of raw material suppliers globally.
Threat of new substitutes: Low as there are limited substitutes for asphalt in construction.
Competitive rivalry: High due to presence of global players operating in the market.
The Global Asphalt Market Demand is expected to witness high growth.
Regional analysis: The asphalt market in Asia Pacific region is expected to witness fastest growth due to increasing construction activities in China and India. North America is expected to dominate the global asphalt market during the forecast period.
Key players related content comprises Key players operating in the asphalt market are Tesla, Duracell Power Center, Durapower Group, Contemporary Amperex Technology Co., Limited (CATL), and Toshiba Corporation. Key players operating in the asphalt market are focusing on expansion of production facilities and enhancing production capacities to meet the growing demand for asphalt in construction applications.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it