Asphalt Market by Application, End-user, and Geography - Forecast and Analysis 2021-2025

The asphalt market share is expected to increase by 32.89 million tons from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.78%.

This asphalt market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. This report extensively covers asphalt market segmentation by end-user (non-residential construction, residential construction, and others), application (roadways, waterproofing, recreation, and others), and geography (APAC, North America, Europe, MEA, and South America).

What will the Asphalt Market Size be During the Forecast Period?

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Asphalt Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The increasing investments in road and highway infrastructure projects is notably driving the asphalt market growth, although factors such as volatility in raw material prices may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the asphalt industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Asphalt Market Driver

The increasing investments in road and highway infrastructure projects is one of the key factors driving the growth of the global asphalt market. Asphalt is preferred in road and highway construction owing to its significant strength and durability, thermoplastic nature, and waterproofing properties. Total global investment in new transport infrastructure and maintenance increased steadily during 2010-2015, growing at a CAGR of more than 9%. According to the data from the Organization for Economic Co-operation and Development (OECD), annual global investments in the transportation infrastructure industry were estimated at approximately USD863 billion in 2015. In 2016, China alone invested nearly USD506 billion in road infrastructure development. In 2017, the US spent nearly USD 84.5 billion on road infrastructure investment. During 2017-2018, the average national highway construction in India was recorded at a new record of approximately 27-28 kilometers per day. The increase in government funding for infrastructure development and highway construction is likely to increase the consumption of asphalt during the forecast period.

Key Asphalt Market Trend

The growing petroleum refining will fuel the global asphalt market growth. In the past few years, both of these industries have shown significant growth due to the increasing global population and energy demand. Asphalt is a derivative of crude oil and is generally produced during petroleum refining. Increasing petroleum refining ensures an uninterrupted supply of asphalt in the near future. According to the US Energy Information Administration (EIA), the global consumption of petroleum and other liquid fuels is estimated to reach 102.93 million barrels per day (mbpd) in 2020, which was 98.55 mbpd in 2017. The US is the global leader in terms of liquid fuel consumption (9.96 mbpd in 2017). Moreover, the global liquid fuel consumption grew at an annual rate of 1.58% during 2014-2018 and is expected to grow at a rapid rate during the forecast period. Crude oil supply has exceeded the demand over the past five years, with an average of more than 1.5 mbpd of surplus production during 2014-2018. Due to the rapid growth, the oil and gas industry is expected to drive the growth of the market during the forecast period.

Key Asphalt Market Challenge

The volatility in raw material prices is a major challenge for global asphalt market growth. The prices of raw materials used to manufacture asphalt are highly unpredictable, mainly due to their high dependence on crude oil prices. Crude oil is one of the major raw materials used to produce asphalt. Crude oil refining mainly produces liquid petroleum gas, gasoline, jet fuel, kerosene, diesel, heating oil, inland fuel oil, refinery fuel, asphalt, propylene, naphtha, aromatics, lubricants, coke, and others. Asphalt is a byproduct produced during the distillation and refining of crude oil. The price volatility of petroleum-based raw materials such as crude oil acts as a challenge for the growth of the global asphalt market. Such strong fluctuations in crude oil prices are caused by a systemic demand-supply imbalance in the global crude oil market. Fluctuations in raw material prices bring unpredictability in the market, affect production costs adversely, and reduce vendors? profit margins. Therefore, the volatility in crude oil prices is expected to have a negative impact on the global asphalt market during the forecast period.

This asphalt market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Which are the Key Regions for Asphalt Market?

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44% of the market's growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for the asphalt market in APAC. Market growth in this region will be faster than the growth of the market in regions.

The increasing investments in road and highway infrastructure projects will facilitate the asphalt market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

With the outbreak of COVID-19 in 2020, the growth of the global non-residential construction segment declined by around 10%-13% in 2020 as compared to 2019, with the steepest decline in the commercial sector (13%-15%). Furthermore, the economic downturn, disruptions in supply chains, uncertainty in the growth of the construction industry, and delays or suspension of construction projects due to the implementation of lockdown measures across different countries during the first half of 2020 have negatively impacted the global non-residential construction activities. However, the gradual relaxation of regulations and the initiation of COVID-19 vaccination drives across several countries led to the resumption of several construction projects since the beginning of 2021. Such factors will increase the demand for the market in focus during the forecast period.

What are the Revenue-generating End-user Segments in the Asphalt Market?

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The asphalt market share growth in the roadways segment will be significant during the forecast period. Asphalt is one of the key materials used in the construction of pavement or roadways. It is predominantly used in new pavement construction, reconstruction, and maintenance of roads. In roadway construction, asphalt is mixed with binders, aggregates, and fillers to produce the basic mixture used for road pavement. Such factors will increase the market demand during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the asphalt market size and actionable market insights on post COVID-19 impact on each segment.

Who are the Major Asphalt Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• BP Plc
• CEMEX SAB de CV
• Chevron Corp.
• China Petroleum and Chemical Corp.
• Exxon Mobil Corp.
• Marathon Petroleum Corp.
• Owens Corning
• Royal Dutch Shell Plc
• TotalEnergies SE
• United Refining Co.

This statistical study of the asphalt market encompasses successful business strategies deployed by the key vendors. The asphalt market is fragmented and the vendors are deploying growth strategies such as extensive sales and distribution networks across the world to compete in the market.

Product Insights and News

• BP Plc - The company offers asphalt under the brand name bp asphalt.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The asphalt market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Asphalt Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the asphalt market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global construction materials market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

 

Asphalt Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 4.78%
Market growth 2021-2025	USD32.89 million
Market structure	Fragmented
YoY growth (%)	4.06
Regional analysis	APAC, North America, Europe, MEA, South America, APAC, North America, Europe, MEA, and South America
Performing market contribution	APAC at 44%
Key consumer countries	China, US, Japan, Germany, and India
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	BP Plc, CEMEX SAB de CV, Chevron Corp., China Petroleum and Chemical Corp., Exxon Mobil Corp., Marathon Petroleum Corp., Owens Corning, Royal Dutch Shell Plc, TotalEnergies SE, and United Refining Co.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Asphalt Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive asphalt market growth during the next five years
• Precise estimation of the asphalt market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the asphalt industry across APAC, North America, Europe, MEA, South America, APAC, North America, Europe, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of asphalt market vendors

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