by Asphalt is a highly refined petroleum product used in road construction which offers benefits such as high durability and resistance to cracking. It is used for surfacing roads, airport runways, and parking lots due to its strong adhesive properties. The global Asphalt Market is estimated to be valued at US$ 246.59 Bn in 2023 and is expected to exhibit a CAGR of 23.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Infrastructure Development and Road Construction Projects- One of the major factors driving the growth of the asphalt market is the large number of ongoing infrastructure development and road construction projects across the globe. Governments of various countries are heavily investing in the development of roads, highways, expressways, and bridges in a bid to boost economic growth and mobility. For instance, the government of India has allocated around $110 billion for its infrastructure development projects in 2022, which include expansion and development of over 26,000 km of highways. Such heavy investments in infrastructure development are expected to propel the demand for asphalt in the coming years.
SWOT Analysis
Strength: Asphalt has superior strength, durability, and moisture resistance qualities ideal for construction applications. It is cost effective for paving roads and highways.
Weakness: Asphalt is vulnerable to sunlight and heat exposure which can cause it to soften or rut over time. Its production requires petroleum which is non-renewable.
Opportunity: Increasing investments in infrastructure projects especially in developing nations is driving the demand for asphalt. The development of bio-asphalt from sustainable materials presents an opportunity.
Threats: Fluctuations in crude oil prices directly impact the cost of asphalt. Strict environmental regulations over emissions from asphalt plants and disposal of waste asphalt pose threats.
Key Takeaways
The Global Asphalt Market Size is expected to witness high growth over the forecast period driven by rapidly expanding road construction activities worldwide.
Regional Analysis: The Asia Pacific region currently dominates the market due to large-scale infrastructure development projects underway in major economies like China and India. Countries such as China, United States, India and Saudi Arabia account for over half of the global asphalt production.
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 capacity expansion and adoption of new technologies to lower production costs and reduce emissions. For instance, Tesla is researching non-petroleum based bio-asphalt made from agricultural waste materials.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
