Increasing Investments in Road Infrastructure Promote Growth of Global Asphalt Additives Market
Rising investments in road infrastructure are likely to give a boost to the demand of asphalt additives. Underpinned by their enhanced adhesion and durability properties, asphalt additives are an apt solution that enhances life of pavements. This also has resulted in asphalt additives being used in highway constructions worldwide. Moreover, growing demand for environment-friendly solutions in road infrastructure will also turn attention to global asphalt additives market. For instance, EU has invested around EUR726 Mn in Romania’s road infrastructure. The commission has approved construction of express highway, a 121 km connection, between Pitesti and Craiova in Romania in 2021, which is expected to complete by 2023. Such investments and infrastructural plans will bode well for the global asphalt additives market.
Bio-Based Asphalt Additives - An Upcoming Trend
Since past few years, public agencies and government bodies have been focusing on using eco-friendly and sustainable solutions in the construction sector, which has resulted in a shift towards use of bio-based additives. Demand for bio-based asphalt additives in roofing, road, and construction sector is expected to gain momentum in the years to follow. Being environment friendly, bio-based asphalt additives are gaining high traction in the infrastructure industry worldwide. For instance, in Gulf Countries use of recycled rubber in new road projects has been initiated by Ministry of Infrastructure - an effort to promote innovation, achieve sustainability, and build a green and clean road network. This trend is likely to proliferate further in the coming years, influencing use of bio-based asphalt additives in the future.
Global Asphalt Additives Market Finds Opportunity in Reclaimed Asphalt Pavement Applications
Asphalt additives is likely to witness a rising demand in reclaimed pavement applications (RAP) in road constructions. RAP is a cost-effective solution that enhances pavement life, durability, and significantly reduces greenhouse emissions. In October 2020, Federal Highway Administration (FHWA) extended its support to promote utilization of recycled highway substances in construction of pavements in a bid to reduce wastes, support environment health, and reduce cost of highway construction. This factor is expected to pave new pathways of growth for manufacturers of asphalt additives in the coming years.
Volatile Prices to Question Growth of Global Asphalt Additives Market
Volatility in prices of asphalt coupled with fluctuating petroleum prices continues to challenge the market’s growth. Fluctuations in petrochemical prices have resulted in inconsistent asphalt supply, in turn impacting construction and road infrastructure initiatives undertaken by road contractors and government bodies. This has translated in the use of alternatives such as gypsum, bioasphalt, and concrete in road constructions and pavements. Asphalt additives being directly connected to asphalt, the influence of volatility on the parent market is likely to have an indirect impact on the supply of asphalt, in turn challenging growth of the asphalt additives market.
Asia Pacific Asphalt Additives Market - A Strong Opportunity Driven Dynamic
Emerging economies in the Asia Pacific region, such as China and India are showcasing high growth potential with respect to use of asphalt additives. This can be attributed towards growing construction sector and highway constructions in these countries. Favourable government support for infrastructure development in these countries is yet another factor promoting use of asphalt additives.
For instance, in May 2021, according to the Minister of Micro, Small and Medium Enterprises and Minister for Road Transport and Highways, the Government of India is focusing on infrastructure development by setting a road construction target worth USD206 Bn in the coming two years. Likewise, Japan and India have collaborated to support development of infrastructure in North-eastern region in India to initiate strategic projects, according to India Brand Equity Foundation. This has presented a volley of opportunities and manufacturers of asphalt additives can focus on expanding their footprint in APAC in the coming years.
Few of the key companies in the global asphalt additives market are DowDuPont, Nouryon, Honeywell International Inc., Huntsman Corporation, Evonik Industries, Ingevity Corporation, Kraton Corporation, and BASF SE.
Regional Classification of the Global Asphalt Additives Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Asphalt Additives Market
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