The asphalt market is forecast to reach 5.3 billion USD by 2027

1. Market overview

The asphalt market is estimated to reach over 100 million tons by 2020 and the market is forecast to register a CAGR of less than 4% during the forecast period (2021-2026). The market is forecast to grow to 5.3 billion USD by 2027.

The market was negatively affected by COVID-19 in 2020. According to forecasts of the International Monetary Fund (IMF), global GDP growth is forecast to be -4.9% in 2020. However, in In 2021, global growth is forecast to be 5.4%. Furthermore, the performance of the construction sector is forecast to be moderately impacted due to the impact on currency liquidity as the income of a relatively larger section of society is affected, which is expected to affect the market under study.

Reduced investment in the road building and construction segment has led to a reduction in bitumen consumption in applications such as road construction, waterproofing of roofs and basements of buildings, sealants, fillers and adhesives , thus having a negative impact on the bitumen market.

Asphalt is associated with growth through the necessity of roads

In the short term, increasing road construction and repair activities and growing demand for bitumen as fillers, adhesives and sealants from the commercial and domestic building construction sectors are expected. ​will promote the growth of the bitumen market.

For example, some major infrastructure investments are also being seen in Middle Eastern countries, where some 1,069 road projects are underway as of February 2020, potentially increasing demand. market demand for road construction and repair activities.

Growing environmental concerns related to bitumen and adverse conditions arising due to the impact of COVID-19 are hindering the market growth.

2. Market trend

Demand is increasing due to increasing road construction activities

The quality of asphalt makes each project a success

Most of the bitumen consumed is processed into bitumen to make roads. Asphalt is a mixture of stone aggregate and bitumen. Bitumen acts as a binder and is responsible for the stability of the asphalt.

Depending on the type of bitumen or the composition of the mixture used, asphalt roads can be tailored to regions with different climatic conditions or different levels of operational demands. Asphalt is also used for airport runways, parking decks, and work areas in ports.

Roads are one of the important sectors that determine a country's economic growth. Roads, airport runways and parking decks are essential services that drive economic activity by channeling trade and mobility. Large investments are needed to help modernize and maintain these systems.

The Asia-Pacific region is expected to dominate the market

The Chinese market is leading in road development

The Asia-Pacific region is forecast to dominate the global market share. In Asia-Pacific, China is the largest economy and its growth rate remains high, but is slowing as the population ages and the economy rebalances from investment to investment. consumption, production to services, and external to internal demand.

While the residential sector is enjoying a strong recovery, results for the office, retail and logistics sectors are mixed. The office market in Tier 1 cities (including Beijing, Shanghai and Shenzhen) is generally performing well and continues to have strong demand for office space, driven by the information technology (IT) sector. and financial incentives.

Besides, the significant development of railway and road infrastructure by the Chinese government to cope with the growing industrial and service sectors has led to significant growth of the construction industry. China in recent years. Since the construction industry is dominated by state-owned enterprises, the increase in government spending is boosting the industry in the country.

3. Competitive landscape

The asphalt market is fragmented with no major player having a dominant stake in the market. Some of the major players in the market include Exxon Mobil Corporation, China Petroleum & Chemical Corporation, BP PLC, Royal Dutch Shell PLC and Nynas AB, among others.