Asphalt Additives Market: Paving the Way for Environmentally-Safer Infrastructure
Carbon footprint and sustainability are magic words, not only for the automotive industry but also for an increasing number of other industrial verticals. As the environmental impact of asphalt additives is becoming one of the most critical criteria for end users, the market is likely to see a sea of change in term of product innovation in the coming years. The asphalt additives market is undergoing conspicuous transformations with the advent of recent advancements in warn-mix technologies, where asphalt is mixed with novel additives such as rubber, plastic, and glass.
Transparency Market Research (TMR) divulges critical information about the developments in the asphalt additives market on the basis on thorough market research. TMR’s study offers a 360-degree view of the asphalt additives market, with actionable insights for stakeholders in this landscape, which can help them build business strategies and make value-based decisions.
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Asphalt Additives Market: Demand to Increase for Both, New and Aging Infrastructural Development
As the negative impacts of the Great Recession are ebbing, the trends of urbanization, globalization, and industrialization are on the rise, and roads are becoming arteries to the modern world economy. The growing need for the development of new as well as aging and under-funded infrastructure is triggering the growth of the asphalt additives market in various geographical regions.
The global demand for asphalt additives stood at 2,201 kilo tons in 2018, reaching a market valuation of ~ US$ 3.5 billion. In the coming years, the demand for reclaimed asphalt pavement is likely to surge rapidly, as the need for reducing energy costs will persist. In addition, new roadway projects underway in developing countries in the Asia Pacific region will boost the region, to account for ~35% revenue share of the global asphalt additives market in the coming years.
However, the high cost of asphalt may drive end users to look for cheaper, yet equally efficient alternatives such as concrete, gravel, and permeable paving, to replace asphalt in road pavement. Governing bodies in several countries have been promoting the use of cheaper substitutes for asphalt, as concrete or cement road pavement costs much lesser than bitumen surfaces, and results in better longevity. Nevertheless, the impacts of asphalt’s alternatives are equally harmful for the environment, which may drive the need for eco-friendly asphalt additives in the future.
Road Construction and Paving to Capture a Whopping ~ 83% Revenue Share
Sustainability is emerging as a vital parameter in the road construction industry, giving rise to innovations in terms of types of asphalt additives as well as manufacturing technologies. Roads and highways are the reflection of the economic growth of any region/country, and with increasing urbanization, the demand for innovative and environmentally-friendly asphalt additives is likely to reach new heights in the road construction and paving industry. TMR’s study estimates that, in 2019, the industry will account for ~ 83% revenue share of the asphalt additives market.
With the increasing growth of the road construction and paving industry, costly and unstainable materials such as asphalt and concrete are likely to be overtaken by bio-based or recycled alternatives. Not only in the road construction industry, but environmentally-safe asphalt additives are also expected to witness high demand in roofing applications in the coming years. As awareness about the Urban Heat Island (UHI) Effect due to the use of asphalt in road construction as well as roofing is increasing, end users are showing inclination towards substituting unsustainable additives by eco-friendly asphalt additives.
New sales opportunities in the roofing sector will have a significant impact on the demand for bio-based and recycled asphalt additives, and the increasing growth of the construction and road construction industry will support this trend in the future. While a mounting number of strict emission regulations are imposed in European countries, leading stakeholders in the asphalt additives market are investing heavily in research & development (R&D) to launch environmentally-safer additives, so as to gain an edge in the market. On the other hand, in Asia Pacific, where the regulatory framework is less stringent, manufacturers are likely to tap into the potential by expanding their production facilities in the foreseeable future.
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Competitive Landscape: Market Leaders Focusing on Eco-friendly Roads with Recycled Asphalt Additives
Evonik Industries, Kraton Corporation, DuPont, and The Dow Chemical Company are among the companies that are leading the asphalt additives market, with ~ 40% of the revenue share. Leading players are concentrating their strategies on product innovation for road construction, using recycled materials, to consolidate their position in the asphalt additives market. Some of the examples include:
- In December 2018, Evonik Industries announced that it has developed VESTENAMER®—a cost-effective and sustainable additive, which can act as a catalyst in the process of using rubber powder from scrap tires to manufacture asphalt additives with rubber content.
- In February 2019, The Dow Company announced that it is adopting the DuPont™ Elvaloy® asphalt modification technology for the manufacturing of asphalt additives for constructing new polymer modified asphalt (PMA) roads, at its Texas facility.
With the increasing growth of the road construction industry, especially in developing countries, the number of new entrants in the asphalt additives landscape is multiplying at a rapid pace. Other prominent players in the asphalt additives market, such as Akzo Nobel N.V. and Kao Corporation, are achieving significant sales in developing countries in Asia Pacific. As the economy in Asia Pacific is growing at a rapid pace, the road construction industry is expected to create lucrative sales opportunities for the asphalt additives market in the coming years.
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Author of TMR’s study on the asphalt additives market are of the opinion that, the asphalt additives market is riding on the coattails of innovations in bio-based and recycled materials that can be used to reduce harmful emissions and save the environment from its negative impacts. Strict emission regulations have influenced the most important and latest trends in the asphalt additives market, which will continue to dictate the salient business strategies of leading stakeholders in this landscape.
Manufacturers must focus on their R&D to boost product innovation, so as to introduce asphalt additives that do not harm the environment, and ultimately gain a competitive advantage in the market. In addition, growing consumer awareness about UHI and increasing growth of the road construction and paving sector will continue to create lucrative sales opportunities for sustainable and cost-effective asphalt additives, shaping the future of the market.
Asphalt Additives Market Description
- Rise in the usage of additives in reclaimed asphalt pavement (RAP) is expected to drive the global asphalt additives market during the forecast period. Emerging warm mix asphalt (WMA) technology is also projected to boost the asphalt additives market.
- The presence of various substitutes such as bricks, pavers, cobblestone, and concrete is anticipated to hamper the asphalt additives market during the forecast period.
- On the other hand, the presence of bio-based additives is anticipated to create lucrative opportunities for the asphalt additives market.
- The warm/hot mix segment is anticipated to expand rapidly during the forecast period, in the global asphalt additives market. Warm/hot mix helps in reducing the fuel consumption of a plant.
What are Key Growth Drivers of the Asphalt Additives Market?
- Rise in the demand for RAP in road construction is anticipated to boost the global asphalt additives market. RAP helps save costs due to the decrease in the usage of more costly virgin asphalt material. It also leads to a decrease in the need of landfill space reserved for used asphalt. However, just 20% to 30% of reclaimed asphalt is combined with virgin asphalt mix, as the addition of a higher percentage of RAP degrades performance.
- Increase in the percentage of RAP in virgin asphalt mix also creates the effect of aging on asphalt binder properties.
What are the Major Challenges for the Asphalt Additives Market?
- Bricks, pavers, cobblestone, concrete, permeable paving, gravel, and cement are some of the substitutes that are increasingly used in place of bitumen. Concrete is a highly employed product in the construction and maintenance of roads.
- Similarly, gravel, permeable paving, and pavers are some of the substitutes for asphalt driveways. Intense competition faced by asphalt from its substitutes is likely to hamper the asphalt additives market during the forecast period.
Lucrative Opportunities for the Global Asphalt Additives Market
- Increase in the need for eco-friendly additives, led by the rise in the trend of reducing reliance on petroleum-based additives, has encouraged industry participants to shift toward bio-based additives.
Asia Pacific Prominent in the Asphalt Additives Market
- Asia Pacific was the leading region of the global asphalt additives market in 2018. The Asia Pacific asphalt additives market is expected to continue to dominate the global asphalt additives market during the forecast period. China dominates the asphalt additives market in the region, followed by India, Malaysia, Vietnam, and Indonesia.
- In terms of consumption, Asia Pacific is followed by Europe and North America. Europe accounted for a moderate share of the global asphalt additives market in 2018. In terms of value and volume, the Rest of Europe held significant share of the Europe asphalt additives market in 2018. Construction of roads is taking place at a rapid pace in the Czech Republic, Poland, Hungary, and Slovakia. This is expected to boost the asphalt additives market in the region. The asphalt additives market in Russia & CIS is estimated to expand at a rapid pace during the forecast period.
- North America constituted a key share of the global asphalt additives market in 2018. In terms of volume and value, the U.S. dominated the asphalt additives market in North America in 2018.
- The Middle East & Africa is likely create lucrative opportunities for the asphalt additives market. GCC constituted a prime share of the asphalt additives market in the Middle East & Africa in 2018. The Public Works Authority (Ashghal) plans to complete expressway projects worth US$ 3 Bn, infrastructure and local roads projects worth US$ 2.4 Bn, and sewage treatment projects worth US$ 0.5 Bn, in the run up to the FIFA World Cup 2022.
Warm/hot Mix Segment to Account for a Prominent Share
- The warm/hot mix segment dominated the asphalt additives market in 2018. It is likely to maintain its dominance during the forecast period. The warm/hot mix segment is anticipated to expand at rapid pace in the asphalt additives market during the forecast period.
- The cold mix segment accounted for a considerable share of the asphalt additives market in 2018. Cold mix asphalt additives have high VOC emissions; therefore, they are not widely used in asphalt.
Polymerized Asphalt Cement Segment Offers Growth Opportunities
- In terms of value and volume, the polymerized asphalt cement segment accounted for the leading share of the global asphalt additives market in 2018. The segment is estimated to expand at a rapid pace in the asphalt additives market during the forecast period. Polymerized asphalt cement reduces the amount and severity of pavement distresses and increases service life.
- The multigrade asphalt cement segment held a key share of the asphalt additives market in 2018. The segment is anticipated to expand at the significant pace during the forecast period.
- In terms of demand, the novophalt segment constituted a considerable share of the global asphalt additives market in 2018. Novophalt has high temperature sensitivity, which limits its use in asphalt additives.
- Polyester modifiers and others segments accounted for small shares of the asphalt additives market in 2018. Their share is likely to decline during the forecast period. The others segment includes rejuvenators, fibers, organic materials, and rubber modifiers.
Road Construction & Paving Sector Segment Held a Prominent Share
- In terms of value and volume, the road construction & paving sector segment was the leading segment of the global asphalt additives market in 2018. The segment is estimated to expand at a significant pace in the asphalt additives market during the forecast period.
- Asphalt additives have high load level resistance and temperature resistance. Thus, they are widely used in road construction & paving. The roofing sector segment accounted for a key share of the market in 2018. The segment is expected to expand at a rapid pace in the asphalt additives market during the forecast period. Asphalt additives are used in roofing to improve the heat stability of the roofs.
Leading Players Actively Engage in Joint Ventures and R&D Activities
Key players operating in the global asphalt additives market include
- Berkshire Engineering Supplies
- Engineered Additive LLC
- Kao Corporation
- Honeywell International Inc.
- Huntsman Corporation
- Evonik Industries
- The Dow Chemical Company
- Akzo Nobel N.V.
- Kraton Corporation
Honeywell International Inc. introduced a line of asphalt additives in 2013. This move was aimed at helping the paving industry decrease energy usage, reduce emissions, and cut costs, while meeting demanding road specifications.
Transparency Market Research (TMR) recently published a market study on the global market for asphalt additives. An extensive analysis of the key industry drivers, challenges, market trends, and market structure is also included in the asphalt additives market report. The market study presents thorough information, and it elucidates how the asphalt additives market is expected to expand during the forecast period of 2019-2027.
This market research report conducted by TMR offers insights about the various factors driving demand, with the help of detailed analysis of the asphalt additives market. Key indicators of market growth, which include Year-on-Year (Y-o-Y) growth of the market, Compound Annual Growth Rate (CAGR), and value chain as well as supply chain analysis, are explained in a comprehensive manner. The information featured in the study helps readers\to understand the growth prospects of the asphalt additives market for the assessment period.
TMR’s study on the asphalt additives market offers a comprehensive assessment of the popular business strategies adopted by leading stakeholders in the market, and sheds light on the imperatives for succeeding in the asphalt additives market. In this study, readers can also find unique, yet accurate information on the growth prospects of the asphalt additives market, to help companies in making appropriate business decisions.
On analyzing industry-validated data, facts, and important statistics about the global expansion of the asphalt additives market, comprehensive information about its growth prospects is presented in a seamless format in the report. The information featured in the report is segmented into chapters to offer a comprehensive structure to the study.
Key Questions Answered in TMR’s Asphalt Additives Market Study
- What are the low-hanging opportunities for stakeholders in the asphalt additives market?
- What is the scope of growth for asphalt additives in the roofing sector?
- What is the influence of the changing trends in technologies on the asphalt additives market?
- What are the risks of investing in emerging markets for asphalt additives?
- How is the changing growth prospects of the chemicals industry impacting the growth of the asphalt additives market?
- Which factors are expected to impede the growth of the asphalt additives market during the forecast period?
A robust approach and unique research methodology is utilized by TMR to conduct the trend analysis for the asphalt additives market, and reach conclusions about market size-related information. Secondary resources referred to by analysts during the production of the asphalt additives market study include statistics from governmental organizations, white papers, trade journals, and internal and external proprietary databases.
Secondary resources that have contributed to the production of this report include various white papers, regulations, and research papers that highlight the sales potential for asphalt additives. Secondary resources, including Asphalt Emulsion Manufacturers Association, National Asphalt Pavement Association, and Global Asphalt Pavement Alliance, have been referred to by analysts to confirm the accuracy of the forecast on the future trends and opportunities in the asphalt additives market.
Analysts have interviewed c-level executives and brand managers of companies in the supply chain of the asphalt additives market, as well as investors and industry experts, who contributed to the development of this report as a primary resource. The exclusive information provided by primary and secondary resources acts as a validation from asphalt additives market players, and makes TMR’s estimates on the future prospects of the asphalt additives market more accurate and reliable.
Segmentation of the Asphalt Additives Market
TMR’s study on the asphalt additives market classifies information into four broader categories - technology, type, application, and region. Market dynamics and changing trends associated with the aforementioned segments of the asphalt additives market are featured in detail in this study.
The study provides complete information about the adoption asphalt additives based on channels and systems across five geographical regions - North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Readers can find comprehensive reasoning about the estimates on the revenue share of each segment in the global asphalt additives market in these geographical regions through the forecast period.
Polymerized Asphalt Cement
Multigrade Asphalt Cement
Road Construction & Paving Sector
Middle East & Africa