The global asphalt market is estimated to be valued at USD 222.0 million in 2019 and is expected to reach a value of USD (insert market value for 2022) million by 2022, growing at a CAGR of (insert CAGR)% during the forecast period, according to a new report published by Coherent Market Insights.
A) Market Overview:
Asphalt, also known as bitumen, is a sticky, black, and highly viscous liquid or semi-solid form of petroleum. It is primarily used in road construction and paving applications due to its excellent binding and waterproofing properties. Asphalt offers various advantages such as increased durability, enhanced skid resistance, and reduced noise levels, making it an ideal choice for road infrastructure.
B) Market Key Trends:
One key trend in the global Asphalt Market is the increasing demand for road construction. Rapid urbanization and industrialization, especially in emerging economies, have led to a growing need for transportation infrastructure development. Governments worldwide are investing heavily in the construction of new roads and highways to enhance connectivity and promote economic growth. For instance, in 2018, the Indian government announced the Bharatmala Pariyojana project, aiming to construct 83,677 kilometers of national highways by 2022. Such initiatives are driving the demand for asphalt in the construction industry.
C) PEST Analysis:
Political: Governments’ infrastructure development initiatives and regulations on road construction play a crucial role in shaping the asphalt market. Political stability and favorable policies create a conducive environment for market growth.
Economic: Economic growth, disposable income, and investment in infrastructure projects are key economic factors influencing the demand for asphalt. Growing economies and urbanization fuel the demand for road construction materials.
Social: Increasing urbanization, population growth, and rising vehicle ownership contribute to the demand for better road infrastructure. Asphalt provides a smooth and safe driving experience, fulfilling the social need for efficient transportation systems.
Technological: Technological advancements in asphalt production and pavement materials are driving market growth. The development of sustainable and eco-friendly asphalt mixes, along with innovations in recycling techniques, are gaining traction in the industry.
D) Key Takeaways:
1. The global asphalt market is expected to witness high growth, exhibiting a CAGR of (insert CAGR) over the forecast period, due to increasing demand for road construction. Governments’ infrastructure development initiatives and the need for efficient transportation systems are driving market growth.
2. Regional Analysis: Asia Pacific is expected to be the fastest-growing and dominating region in the global asphalt market. Rapid urbanization, industrialization, and government investments in transport infrastructure projects are fueling the demand for asphalt in countries like China and India.
3. Key Players: Key players operating in the global asphalt market include BP plc., Anglo American plc., Atlas Roofing Corporation, Aggregate Industries Limited, CertainTeed Corporation, GAF Materials Corporation, CEMEX S.A.B. de C.V., Colas Danmark A/S, Chevron Corporation, China National Offshore Oil Corporation, Exxon Mobil Corporation, Hanson Asphalt Runcorn, Sinopec, SemGroup Corporation, and Owens Corning. These companies focus on product development, strategic partnerships, and mergers and acquisitions to strengthen their market position.
In conclusion, the global asphalt market is poised for significant growth due to the increasing demand for road construction. The market is driven by government investments in infrastructure projects and the need for efficient transportation systems. Asia Pacific is expected to emerge as the fastest-growing region in the market. Key players continue to innovate and collaborate to meet the growing demand for asphalt globally.