The global asphalt market consists of various products such as paving, roofing, and oxidized asphalt used in applications ranging from construction of roads, buildings, and other civil engineering structures. Asphalt is a ubiquitous construction material used in road construction owing to its easy handling, cost-effectiveness, and durability. It can withstand heavy loads, resist cracks, and is highly flexible.Asphalt mixtures combine the natural bituminous binder called bitumen with aggregates used in pavements, flooring, roofing and other applications where a waterproofing material is needed.
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:
One of the key trends driving growth in the asphalt market is the ongoing infrastructure development activities across the globe. Rapid urbanization particularly in developing nations has boosted construction of roads, highways, rail networks, commercial buildings and other infrastructure. Asphalt finds widespread usage in roads, highways, airport runways, parking lots and cycling/walking paths construction. Additionally, rising investment toward repair and renovation of aging roads networks in developed markets is also propelling asphalt demand. Governments in various countries have ongoing plans to upgrade and expand existing road networks to cope with rising traffic volumes as well as facilitate economic and social development. This is positively impacting the consumption of asphalt globally.
Threat of new entrants: The asphalt market requires high initial set up and capital costs for manufacturing plants, which acts as a barrier for new players.
Bargaining power of buyers: Buyers have lower bargaining power in this market as there are numerous established players providing asphalt at competitive prices.
Bargaining power of suppliers: Major players control the supply side in this market, giving them stronger bargaining power over buyers.
Threat of new substitutes: Alternatives like composite pavements provide competition but are not widely used yet.
Competitive rivalry: Being a mature market, competition is high among major players to capture more market share.
The Global Asphalt Market Size is expected to witness high growth over the forecast period. Regional analysis Regional analysis Asia Pacific dominates the global asphalt market currently and is expected to grow at a high CAGR owing to the rapid infrastructure development activities.Key players operating in the asphalt market include 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.
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. Major players are focusing on capacity expansion plans to expand their production footprint and meet the growing demand for asphalt across regions.