Asphalt is a dense black liquid petroleum product used primarily to pave and surface roads, parking lots, airports, and footpaths. It provides excellent resistance to wear and maintains flexibility over a wide temperature range. Asphalt is known for its high durability, strength, and adaptability.
The global Asphalt Market is estimated to be valued at US$ 246.59 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The asphalt market is witnessing robust growth attributed to the rising infrastructure projects worldwide. Several countries are investing heavily in road construction and repair projects. For instance, the US government approved a $1 trillion infrastructure bill in 2022 to rebuild aging infrastructure across the country. Similarly, the Indian government launched the Bharatmala Pariyojana with an estimated outlay of $83 billion for highway construction during 2017-2022. Such large scale infrastructure projects are expected to generate significant demand for asphalt for surfacing and paving applications over the forecast period. This will remain a key factor propelling the asphalt market growth.
SWOT Analysis
Strength: Asphalt has strong material properties like durability and stability which makes it suitable for construction of roads. It provides a smooth and safe surface for vehicles.
Weakness: Asphalt prices are volatile as they are dependent on crude oil prices. Frequent maintenance and repairs are required due to wear and tear.
Opportunity: Growing construction activities in developing countries for roads, highways provides new opportunities. Governments allocating huge budgets for infrastructure projects.
Threats: Shift towards renewable sources of energy may reduce dependence on fossil fuels affecting asphalt market. Strict environmental regulations can impact production.
Key Takeaways
The Global Asphalt Market Size is expected to witness high growth. It is forecast to grow at a CAGR of 5.2% during the forecast period of 2023 to 2030. The market size for 2023 is estimated at US$ 246.59 Bn.
Regional analysis: Asia Pacific region currently dominates the asphalt market with a share of over 35% in 2023. Rapid infrastructural development in countries like China and India is driving the demand. North America is another major market owing to ongoing investments in road construction and maintenance activities.
Key players: Key players operating in the asphalt market are Aggregate Industries Ltd., Anglo American Plc, Atlas Roofing Corporation, BP Plc, Cemex, Chevron Corporation, Exxon Mobil Corporation, Imperial Oil Limited, Owens Corning, Petroleos de Venezuela S.A, Royal Dutch Shell plc, Shell International, Total SA, United Refining Inc. These companies are focusing on expansion in emerging regions and developing green asphalt solutions.