February 23, 2024

Asphalt Market is expected to be Flourished by Increasing Demand for Road Construction and Pavement Works

Asphalt is a highly viscous liquid or semi-solid form of petroleum that is widely used in road construction as a binder and waterproofing agent. It provides excellent durability and strength attributes to various pavements and highway projects. Asphalt is made by refining crude oil or petroleum and heating it to remove any undesirable compounds. Some key applications and use cases of asphalt in the construction industry include road surfacing or paving, sealing cracks and joints in pavements, production of asphalt shingles and roofing materials, and manufacturing of soundproof and waterproof coatings.

The global asphalt market is estimated to be valued at US$ 284.08 Bn in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
As asphalt is the primary material for constructing various pavements and surfaces, its demand has witnessed a steady rise. In addition, periodic maintenance, repair and relaying of existing roads has further augmented consumption of asphalt., the report cites growing government investments towards improving transport infrastructure as another key driver expected to boost the asphalt market size over the forecast period.
Segment Analysis

The Global Asphalt Market Size can be segmented based on application, product type and region. Based on application, the road construction segment dominates the market and accounts for over 60% share in 2024. Asphalt is extensively used in road construction activities such as paving and surfacing of roads due to its cost effectiveness and ability to withstand heavy vehicular traffic. Based on product type, the hot mix asphalt segment dominates with over 70% share as it offers high durability and resistance to cracking.

PEST Analysis

Political: Governments across countries are significantly focusing on infrastructure development and road construction activities in order to boost economic growth. This is driving demand for asphalt globally. Economic: Rise in construction spending on roadways and highways owing to growing transportation needs is fueling market growth. Social: Increasing urbanization and growth in vehicle ownership is propelling infrastructural advancement. This is increasing adoption of asphalt in developing nations. Technological: Advancements in terms of development of asphalt mixes that exhibit high strength and durability are encouraging widespread application of the material.

Key Takeaways

The global asphalt market size was valued at US$ 284.08 Bn in 2024 and is expected to reach ~US$ 750 Bn by 2031, expanding at a CAGR of 23% during the forecast period.

Regional analysis: North America dominated the market in 2024 with over 30% share owing to high construction spending and a large road network in countries like the US. Asia Pacific is expected to witness fastest growth through 2031 with China and India emerging as lucrative markets.

Key players: Key players operating in the asphalt market are Tesla, Duracell Power Center, Durapower Group, Contemporary Amperex Technology Co., Limited (CATL), and Toshiba Corporation. Duracell Power Center and Durapower Group collectively account for 30% share due to their expertise in development and supply of hot and warm mix asphalt.

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