The global market for Asphalt is projected to reach nearly 192 million metric tons by 2024, driven by focus on infrastructure in developing markets as well as developing markets, as well steady housing markets in developed economies.
Asphalt, also known as bitumen, represents the strongest wear surface and base layer material used in the construction of roads, pavements, pathways, roofs, and parking lots, among others. More than 90% of the roads in developed countries are asphalt based. Asphalt is a proven cure-all solution for several ecological problems and is also used as waterproof liners for fish rearing ponds, and water reservoirs. Water reservoir liners use open-graded and dense-graded blends of asphalt. Open-graded asphalt layer prevents leakages in drinking water reservoirs. Besides being used to pave bicycle, rail and other recreational trails, asphalt is also used to surface runways in many international airports, and military airfields.
By 2050, global population is projected to reach nearly 10 billion, rising from about 7.4 billion in 2015. With the global population growing at a robust rate, specifically in developing nations, demand for housing units and infrastructure facilities continues to increase, thereby offering huge growth opportunities for the building materials industry including asphalt. Another factor fueling demand growth is the rapid urbanization trend, with an increasing proportion of the population migrating to urban and semi-urban centers in search of better prospects. While the proportion of urban population in the overall global population stood at about 54% in 2017, this share is expected to reach 66% by the year 2050. In line with the trend of rising population and urbanization, infrastructure spending of countries is likely to witness corresponding growth. The resultant global infrastructure expenditure is expected to provide immense opportunities for suppliers of varied types of building materials used in construction projects.
Worldwide, the roadway network increased by roughly 12 million lane kilometers over the last decade, with India and China accounting for over half of the additions to paved lane-kilometers. The total paved kilometer lane across the world increased by approximately 11 million lane-km during the same period. BRT (bus road transit), also known as trunk corridors are an integral part of highways. However, BRT is specific infrastructure to facilitate the movement of high-capacity buses in specific lanes. With transit regarded a crucial infrastructure, a number of trunk corridors have been planned worldwide with a few of them already under construction. In addition, infrastructure in developed economies is also crumbling owing to years of neglect. Governments in the developed world, especially the US views infrastructure spending as essential as well as a tool to sustain economic growth.
Asia-Pacific represents the largest as well as the fastest growing market worldwide with a CAGR of 7.8% over the analysis period. Burgeoning population, increased urbanization, robust pace of industrialization and the subsequent need for housing, paving as well as transportation, among other infrastructures, represent factors promoting demand growth in the region. Paving applications, the leading end-application for asphalt, is expected to dominate demand for products including asphalt cement, cutback asphalt and asphalt emulsions; while roofing applications are expected to drive demand for modified bitumen, asphalt shingles, asphaltic roofing felts, and roofing membranes among others. In addition, global market for asphalt is also expected to be driven by expanding applications of the material in airfields, vehicle testing facilities, motorsport facilities, cycling facilities, hydraulic applications, speed humps, footways as well as asphalt curbs, among others.
Major players in the market include BP Plc, Exxon Mobil Corporation, Petroleos de Venezuela SA, Royal Dutch Shell plc, Aggregate Industries Limited, Anglo American Plc, Atlas Roofing Corporation, CEMEX UK Operations Limited, CertainTeed Corporation, Colas Danmark A/S, CRH Plc, Oldcastle Materials, Inc., Dehtochema Bitumat, S.r.o., GAF Materials Corporation, Hanson Limited, Husky, Nynas AB, Owens Corning, and Sinopec, among others.