Asphalt provides many advantages for road construction such as durability, flexibility and resistance to water damage. With growing infrastructural developments and urbanization across the globe, requirement of smooth and durable roads is increasing rapidly thereby driving the demand for asphalt products.
The global Asphalt Market is estimated to be valued at US$ 284.08 billion in 2024 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 key trends:
Growing road construction activities is one of the major trends driving the growth of global asphalt market.There has been significant growth in road construction projects across both developed and developing countries owing to increasing traffic and transportation needs. Various governments are heavily investing in road infrastructure development which is expected to boost the consumption of asphalt in coming years. As per estimates, over 150,000 miles of new roads will be constructed globally by 2025. This rising road construction will augment the demand for asphalt sealcoat and other paving applications thereby accelerating the market growth over the forecast period.
Strength: The asphalt market is driven by the growing construction of roads and infrastructure activities across the globe. Infrastructure development projects boost the demand for asphalt in road construction.
Weakness: Fluctuations in crude oil prices impact the overall cost of asphalt production. Raw materials used in asphalt production are petroleum based and hence crude oil price volatility poses challenges.
Opportunity: Advances in asphalt production technology support the use of recycled materials and waste products in asphalt mixes, providing an opportunity to reduce virgin material consumption. Growing focus on sustainable construction further boosts the uptake of such green asphalt mixes.
Threats: Stringent environmental regulations regarding VOC emissions during production pose compliance challenges. Substitutes like cement and concrete pose competition threat in certain construction applications.
The Global Asphalt Market Size is expected to witness high growth at a CAGR of 23% during the forecast period of 2024 to 2031. The market size for 2024 is estimated to be US$ 284.08 Bn.
Regional analysis: North America dominates the global asphalt market currently owing to robust road infrastructure projects in the US and Canada. Asia Pacific is expected to witness fastest growth in the coming years led by China, India, Indonesia, and other developing nations ramping up focus on transportation infrastructure development.
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. These companies are focusing on expanding production capacities and implementing sustainable manufacturing practices to strengthen their positions in the market.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it