Asphalt Additives Market - Forecast(2023 - 2028)

Report Code: CMR 42510 Report Format: PDF + Excel

Asphalt Additives Market Overview

The Asphalt Additives Market size is projected to reach US$5.1 billion by 2027, after growing at a CAGR of 6.8% during 2022-2027. Asphalt additives are the substances that can be added to the asphalt binder to change the characteristics of the final blend based on the requirement of hot mix asphalt, cold mix and warm mix asphalt. The various types of asphalt additives such as polymeric modifiers, chemical modifiers and rejuvenators are widely used in road construction, road paving, airport runway, parking lots, roofing and others. The idea is to enhance the physical or chemical characteristics of the asphalt mix by adhesion promoters to mitigate moisture damage. An increase in infrastructure construction activities such as roads, highways and ports construction would drive the asphalt additives industry. As per the U.S. Department of Commerce, the total spending for highways & streets construction was around US$97,403 million in June 2022. Therefore, the rise in construction activities due to growing construction spending would increase the demand for the asphalt additives market during the forecast period. However, the global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for asphalt additives in infrastructure development activities all across the world. This had a significant impact on the growth of the Asphalt Additives industry.

Asphalt Additives Market Report Coverage

The “Asphalt Additives Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Asphalt Additives industry.

By Type: Polymeric Modifiers, Anti-strip and adhesion promoters, Emulsifiers, Chemical Modifiers, Rejuvenators, Fibres, Flux Oil, Colored Asphalt and Others.
By Technology: Hot Mix, Cold Mix and Warm Mix.
By Application: Road Construction, Road Paving, Airport Runway, Parking Lots, Roofing and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World: the Middle East (Saudi Arabia, the UAE, Israel and the Rest of the Middle East) and Africa (South Africa, Nigeria and the Rest of Africa).

Key Takeaways

  • The Asia-Pacific region dominates the Asphalt Additives Market share with a CAGR of 7.9% during the forecast period (2022-2027), owing to the rising growth in the development of roads, ports, airports construction in various countries such as China, India, Japan and South Korea.
  • The rapid increase in the application of Asphalt Additives in road construction, owing to improved concrete performance with low pavement rutting and moisture-induced damage, is boosting the demand for the Asphalt Additives market during the forecast period.
  • The increase in government investment in the construction of national highways and expressways globally to enhance road networks in downtrodden areas is expected to drive the demand for Asphalt Additives.

Figure: Asphalt Additives Market Revenue Share (%) by Region, 2021

Asphalt Additives Market

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Asphalt Additives Market Segment Analysis – by Type

The polymeric modifiers segment held the largest share in the Asphalt Additives Market in 2021 and is expected to grow at a CAGR of 6.3% during 2022-2027. The polymeric modifiers type of asphalt additives is widely used for road construction, road paving, airport runway and parking lots with various techniques such as hot mix, cold mix and warm mix. Increased traffic volume and trucks carrying heavier loads are the major factors boosting this segmental growth. As per Fintraffic, traffic volumes on highways and main roads increased by 3% in 2021 as compared to 2020. Therefore, with the rise in the growth of the road traffic volume, the demand for the polymeric modifiers segment would increase and would boost the Asphalt Additives market size during the forecast period.

Asphalt Additives Market Segment Analysis – by Application

Road construction held a significant share in the Asphalt Additives Market in 2021 and is estimated to grow at a CAGR of 5.8% during the forecast period 2022-2027. Polymeric modifiers, emulsifiers, chemical modifiers and rejuvenators types of asphalt additives are widely used in road construction as they help to increase viscosity and stiffness at high temperatures. Milton Town, Canada, has invested US$61.7 million in roads, bridges and stormwater management ponds in building a complete community in 2022. Such investment in infrastructure building, globally, is expected to bolster the requirement for Asphalt Additives, which would propel the growth of the Asphalt Additives Market size during the forecast period.

Asphalt Additives Market Segment Analysis – by Geography

The Asia-Pacific region dominated the Asphalt Additives Market share with 47% in 2021, owing to the rising investment in infrastructure construction in the region. Such a factor, in turn, would boost the demand for various types of asphalt additives, such as polymeric modifiers, emulsifiers, chemical modifiers and rejuvenators. China is estimated to witness growth in the demand for asphalt additives due to increased investment in road and belt construction activity. As per the Chinese Ministry of Commerce (MOFCOM), Chinese enterprises invested about US$89.9 billion along the belt and road with a year-on-year increase of 10.2% in the first half of 2022. Also, there were 1,840 newly signed projects with a total contract value of over US$38 million with a focus on 55 countries that are along the belt and road from China to Europe including South Asia. Furthermore, there has been a consistent growth in the construction of national highways in India, with 13,327 km being constructed in 2020-21, from 4,410 km of national highway construction in 2014-15. Thus, the rise in infrastructure construction projects in the APAC countries is anticipated to increase the demand for asphalt additives in the forecasted period. All such factors are proving to be a market booster for this region's Asphalt Additives market size. 

Asphalt Additives Market drivers

Rapid urbanization and demographic shifts across the globe:

The growing urbanization would increase the need for infrastructure facilities such as road construction, road paving, parking lots and many more. This in turn would increase the market growth. According to World in Data, more than 4 billion people live in urban areas, globally. It is estimated that the urban population would grow to around 7 billion people by 2050. With the growing urbanization, the infrastructure projects would increase and would raise the demand for polymeric modifiers, emulsifiers, chemical modifiers and rejuvenators type asphalt additives, globally. The foundation stone was laid for nine National Highway projects in Tripura, India, with a total length of ~262 km and worth around INR 2752 crore (US$371.13 million) in October 2020. Also, as per the USA Facts, in 2021, 41% of the federal transportation and infrastructure spending was on highway transportation. Thus, the growing road infrastructure projects, globally, would raise the growth of the Asphalt Additives market size during the forecast period.

Growing construction activities would increase the roofing demand across the globe:

Asphalt Additives such as polymeric modifiers, emulsifiers, chemical modifiers and rejuvenators are widely used in the roofing of buildings. Growing construction activities would raise the roofing demand and boost the market growth. Various construction projects commenced in the third quarter of 2021. They include Reserva Alta Vista Residential Complex (US$50 million) in Sao Paulo, Nex One Alto da Boa Vista Residential Complex (US$30 million) in Sao Paulo, Shard Tower Residential Complex (US$30 million) in Santa Catarina, Indianapolis Ibira Mixed-Use Complex (US$28 million), Living Ipiranga Residential Complex (US$26 million) and many more in different parts of America. Thus, significant market traction from the increasing usage of asphalt additives for roofing across residential and commercial construction is further projected to fuel the Asphalt Additives market growth during the forecast period.

Asphalt Additives Market Challenge

Volatile Price of Asphalt Additives:

The price of Asphalt Additives is volatile as it is a petrochemical-based product. The fluctuation in the price of petrochemical products is affecting the price of asphalt additives. This, in turn, is affecting the supply chain of the asphalt additives. As per IG Petrochem, the price share return of petrochemical has decreased by 1.82% in a week as of 26 August 2022 and increased by 0.79% in a month. Therefore, the fluctuation in price of petrochemical would fluctuate the price of Asphalt Additives. This might hamper the market growth.

Asphalt Additives Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the Asphalt Additives Market. The top 10 companies in the Asphalt Additives market include:

1. Evonik Industries AG
2. Kraton Corporation
3. Arkema S.A
4. Nouryon Chemicals B.V.
5. DowDuPont
6. Honeywell International Inc.
7. Huntsman Corporation
8. Ingevity Corporation
10. Akzo Nobel

Recent Developments:

  • In August 2022, Kao Corporation commercialized the first-ever Asphalt Additive made from recycled plastic bottles with the features NEWTLAC 5000, a new additive with exceptionally high durability, oil resistance and environmental features.
  • In September 2020, BASF acquired the exclusive rights to distribute RheoFalt products from Ventraco, worldwide. The expansion of the product portfolio serves sustainable road construction and the need for rejuvenators in reclaimed asphalt pavement (RAP).
  • In June 2020, BASF launched Bitumen Additive, designed to make roads more durable. The new additive works differently than conventional bitumen modifiers and can bind components in the bitumen to form a strong yet elastic polymer grid.

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1. Asphalt Additives Market - Market Overview
    1.1 Definitions and Scope 
2. Asphalt Additives Market - Executive Summary
    2.1 Key Trends by Type
    2.2 Key Trends by Technology
    2.3 Key Trends by Application
    2.4 Key Trends by Geography
3. Asphalt Additives Market – Comparative analysis 
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Asphalt Additives Market - Startup Companies Scenario Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Asphalt Additives Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Asphalt Additives Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes 
7. Asphalt Additives Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Asphalt Additives Market – by Type (Market Size - US$ Million/Billion)
    8.1 Polymeric Modifiers
    8.2 Anti-strip and adhesion promoters
    8.3 Emulsifiers
    8.4 Chemical Modifiers
    8.5 Rejuvenators
    8.6 Fibers
    8.7 Flux Oil
    8.8 Colored Asphalt
    8.9 Others 
9. Asphalt Additives Market – by Technology (Market Size - US$ Million/Billion)
    9.1 Hot Mix
    9.2 Cold Mix
    9.3 Warm Mix 
10. Asphalt Additives Market – by Application (Market Size - US$ Million/Billion)
    10.1 Road Construction
    10.2 Road Paving
    10.3 Airport Runway
    10.4 Parking Lots
    10.5 Roofing
    10.6 Others
11. Asphalt Additives Market - by Geography (Market Size - US$ Million/Billion)
    11.1 North America
        11.1.1 The USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 The UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 The Netherlands
        11.2.6 Spain
        11.2.7 Belgium
        11.2.8 The Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zealand
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 The Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 The Rest of South America
    11.5 The Rest of the World
        11.5.1 The Middle East
   Saudi Arabia
   The UAE
   The Rest of the Middle East
        11.5.2 Africa
   South Africa
   The Rest of Africa
12. Asphalt Additives Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Asphalt Additives Market – Industry/Segment Competition Landscape Premium
    13.1 Company Benchmarking – Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share by Key Region - Major companies
    13.4 Market Share by Key Country - Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product Type/Product category - Major companies
14. Asphalt Additives Market – Key Company List by Country Premium Premium
15. Asphalt Additives Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."
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