Building Asphalt Market: Bourgeoning Growth Ahead

Asphalt is commonly termed as bitumen is the refined residue from the distillation process of selected crude oils. Outside U.S., it is commonly known as bitumen. It is a black and semi-solid form of rock oil. It is usually found in natural deposits. The most common use of asphalt is in the construction of the road, and the other uses of asphalt are waterproofing products such as sealing the flat roofs and production of roofing. It is a filler and binder which is obtained from refining some particular petroleum crude oils. The asphalt mixture consists of rock, slag, sand or gravel. Bitumen is available in a variety of products with paving grade bitumen being most commonly used. 

Several factors are driving the growth such as increasing urban population and growth of infrastructure in the emerging economies. It is also useful for paving segment, and it is overtaking concrete in most road paving applications in several regions such as US and Canada. Infrastructure developments in emerging economies including India and China will also impact on the growth of asphalt, and it is expected to grow at a significant rate over the next eight years. There are various types of bitumen which include polymer-modified bitumen, bitumen emulsion, cutback emulsion and oxidized emulsion. PMB is expected to be the fastest growing segment owing to its increasing penetration in various roofing applications, and this will be a key factor influencing demand over the next eight years. Asphalt market is segmented into varied applications such as residential buildings, non-residential buildings, adhesives, insulation, waterproofing, road construction and improvement and building repair.

“… recycled asphalt (RAP) can be used to reconstruct worn highway surfaces and repair damaged roads”

Paving products consume more than 50 percent of asphalt market, and it is expected to grow at the significant rate over the next eight years. With, the construction sector growing in emerging economies the demand for asphalt in roll roofing is expected to increase and will be having significant growth over the forecast period (2016 – 2024). Waterproofing was the second largest segment to consumer bitumen. Waterproofing becomes an essential part of roofing and building construction. Apart from construction and road paving it is also applicable in the residential market and will experience growth owing to increasing need from the real estate sector. With the government focusing on recycling initiatives and investments, recycled asphalt (RAP) can be used to reconstruct worn highway surfaces and repair damaged roads. Key players in the industry are British Petroleum, CEMEX, ExxonMobil, Imperial Oil, Shell Bitumen, Neustar, Nynas, PEMEX, Valero Energy, Marathon Petroleum, Chevron and Royal Dutch Shell, and there are several prominent vendors globally present which include Aggregate Industries, Akzo Nobel, Anglo American and Atlas Roofing. Several companies are engaged in new product developments, innovation, agreements, collaborations, mergers & acquisitions and strategic business activities to strengthen their market and increase distribution networks globally. This industry is expected to be highly competitive over the forecast period on account of incorporation of new processes and developments. Shell Corp. recently launched a fire resistant asphalt grade which can be applied for application in construction and residential segment.

Grand View Research, Inc.