The asphalt additive market is projected to grow from USD 3.4 billion in 2021 to USD 4.7 billion by 2026, at a CAGR of 6.8% from 2021 to 2026. Increase in road construction projects along with the growing usage of asphalt additives in roofing application are some of the major key factors driving the growth of the asphalt additive market across the globe.
Asphalt is a composite material used for the construction of pavements, roads, airport runways, parking lots, and bridges. Environmental damage, high load traffic, and use of low-quality construction materials lead to the deterioration of asphalt, which needs to be modified to reduce wear & tear. Asphalt additives help in improving the performance, durability, and service life of the asphalt. They also enhance the sustainability of tires, increase the braking efficiency of vehicles, and help reduce the stripping, rutting, and cracking of asphalt.
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Based on type, the rejuvenators segment is expected to grow at the highest CAGR during the forecast period, in terms of value. Increasing use of recycled materials, such as Reclaimed Asphalt Pavement (RAP) and Recycled Asphalt Shingles (RAS) in the asphalt pavements application, has resulted in the growing demand for rejuvenator asphalt additives to restore the strength and durability of aged binders. Rejuvenators are being widely used to improve properties, such as viscosity, of aging binders. The growth of this segment is due to the increased use of recycled road material for pavement application globally. Rejuvenators are used to increase the life of asphalt pavements. They improve the low-temperature cracking resistance of asphalt pavements. North America is expected to account for the largest share of the rejuvenators market during the forecast period.
Based on application, the road construction & paving segment is expected to lead the asphalt additives market in coming years. Asphalt is required for the construction and maintenance of pavements. Asphalt pavements can be constructed quickly and are easier to maintain. The recyclability of asphalt also makes it the most widely used material in the road paving application. Governments of countries such as, China, India, Malaysia, and Indonesia in the Asia Pacific region have invested in infrastructure development, which includes the construction of new highways and freeways. This has lead to the growth of the asphalt additives application segment.
Based on technology, the warm mix technology of the global asphalt additive market is expected to grow at the highest CAGR from 2019 to 2029, in terms of value. The demand from warm mix technology segment is rising due to various properties that have made it more attractive than other asphalt mixes. In warm mix technology, asphalt can be mixed and placed on roads at lower temperatures. The temperature in the warm mix technology is 50 to 100 degrees Fahrenheit. Less energy is needed to heat the asphalt mix, and less fuel is required to produce warm-mix asphalt. Also, it is environment-friendly as it produces fewer emissions, thus improving the working conditions at asphalt pavement sites. Warm mix technology can be used for longer paving seasons as temperature drop during the transportation is not a concern. These properties will further increase its market share in the technology sector.
The Asia Pacific region was the largest regional player in the asphalt additives market in 2020, in terms of value. Among all countries in the Asia Pacific region, its demand in Indonesia is projected to grow at the highest CAGR between 2021 and 2026. There is a requirement for heavy investments in the Asia Pacific region to increase infrastructural developments in various countries such as India, Indonesia, and South Korea. According to the Asian Development Bank (ADB), Asia needs USD 8.4 trillion to enhance the transport infrastructure, including road construction. Thus, requirement of huge investment in infrastructural developments such as roadways, railway networks, and residential housing projects is expected to enhance the demand for asphalt additives in the industry.
Asia Pacific, North America, and Europe are significant regional markets for asphalt additive market. Growth in the infrastructure sector of emerging economies is driving the demand for new road pavements, and consequently, the demand for asphalt additives. Various leading manufacturers of asphalt additive have adopted the strategies of expansions, new product developments, acquisitions, and collaborations to cater to the increased demand for asphalt additive from various end-use industries.
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