Asphalt is a sticky, black and highly viscous liquid or semi-solid form of petroleum that is primarily used for road construction and as the glue or binder in asphalt concrete and other products. It is produced from oil refineries or from natural sources and consists of highly complex mixtures of hydrocarbons of different molecular weights. It provides an excellent wearing surface, can easily be transported and applied, durable, economical and provides sufficient skid resistance when applied.
The global asphalt market is estimated to be valued at US$ 284.08 Bn 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 Dynamics:
Rise in demand for road construction and paving activities has been a key driver of the asphalt market. According to World Bank, nearly 65 million people are added to urban populations each year, necessitating the building of new infrastructure such as roads, highways, bridges, etc. which augment the growth of the asphalt market. Asphalt binders have superior properties like high durability, resistance to weathering effects and ability to withstand heavy traffic loading which makes it preferable material for construction of roads and highways. Its cost effectiveness as compared to concrete also propels the asphalt market growth. Continued investments in infrastructure modernization will further support asphalt demand during the forecast period.
SWOT Analysis
Strength: Asphalt has excellent pavement characteristics that make roads durable and strong. It is cost-effective for paving large areas and performs well in different weather conditions. Asphalt roads require less maintenance than other pavement types.
Weakness: Asphalt pavement requires ongoing repairs due to cracks and potholes forming over time from weathering and vehicle traffic. It also becomes damaged at high temperatures which limits its use in very hot regions.
Opportunity: With rising infrastructure investment and expansion of road networks in developing countries, the demand for asphalt is expected to grow substantially. Governments are allocating higher budgets for repair and construction of paved roads.
Threats: Fluctuations in crude oil prices impact the overall cost of asphalt since it is derived from crude oil. Environmental concerns related to emissions during production and paving processes could lead to tighter regulations.
Key Takeaways
The Global Asphalt Market Size is expected to witness high growth over the forecast period from 2024 to 2031 supported by increasing road construction activities worldwide.
Regional analysis: The Asia Pacific region accounts for around 45% share of the global asphalt market currently led by China, India and Southeast Asian countries. India's road construction target of 66,813 km under the flagship Bharatmala Pariyojana scheme will boost asphalt demand greatly.
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 capacity and global footprint to leverage opportunities in infrastructure driven markets.
For More details on the topic:
https://www.insightprobing.com/asphalt-market-size-share-analysis-growth/
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