According to projections, the asphalt additive market would increase from USD 2,906.5 Billion in 2020 to USD 4.7 billion by 2028, with a 5.97% CAGR during that period. Some of the primary reasons propelling the expansion of the asphalt additive market globally include an increase in road building projects and an increase in the use of asphalt additives in roofing applications.
Impact of COVID-19 on the global market for asphalt additives
According to estimates, the pandemic will have an influence on a number of elements along the asphalt additives market’s value chain. This impact is anticipated to be felt throughout the forecast period, but particularly between the years 2020 and 2021. Following are some of COVID-19’s many effects:
AFFECT ON ASPHALT SUPPLEMENTS: Worldwide supply chain disruption and building project delays were caused by the COVID-19 pandemic. To stop the spread of the coronavirus, strict lockdowns and curfews were implemented in the majority of the countries. Construction was one of the most negatively hit industries as a result of the economic downturn because of a lack of manpower, raw supplies, and government regulations that forced the suspension of ongoing projects.
Although many local governments started steps to restart the development of roads, highways, and buildings in the third quarter of 2020. Since April 2020, Germany’s Federal Ministry of Transport and Digital Infrastructure (BMVI) has resumed road and building construction. Since the second part of 2020, nations like Romania and India have resumed building highways and roads. Therefore, compared to 2020, 2021 is anticipated to see a significant increase in the construction sector.
Driver: Increasing investment in the Asia Pacific region’s infrastructure sector
One of the key drivers boosting the Asia Pacific asphalt additives market is rising infrastructure spending in China, India, Malaysia, and Indonesia. The expansion of road construction and other public infrastructure development projects for better mobility and increased connectivity between significant economic centres in these countries can be ascribed to the rise in government spending on infrastructure in the Asia Pacific region.
The amount spent by the Indian government on building roads and bridges grew. The infrastructure industry has reportedly become one of the Indian government’s main areas of attention, according to the India Brand Equity Foundation.
The Indian government announced USD 13.14 billion for road and highway construction in the Union Budget 2020–21. In the countries of the Asia Pacific region, public-private partnerships and foreign investments in applications for road pavement are important trends that are anticipated to boost the market for road construction over the next ten years.
An increase in infrastructure development and road construction projects in the Asia Pacific region are anticipated to support the growth of the asphalt additives market during the forecast period since asphalt additives are utilised in road pavements.
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Restraint: The erratic nature of asphalt supply and price.
Because asphalt is a petrochemical and the price of petroleum fluctuates, there is a large amount of volatility in its costs. As asphalt is a main raw material used in the construction of road pavements, fluctuating petrochemical prices have an impact on construction projects done by governments and road contractors. As a result, replacements including concrete, gypsum, and bioasphalt are becoming more and more popular for use in the construction of road pavements.
The market for asphalt additives is closely tied to the market for asphalt. As a result, the global market for asphalt additives is impacted by changes in asphalt availability and pricing.
Utilizing asphalt additives in roofing applications presents an opportunity.
Asphalt is generally utilised to weatherproof roofing systems. Additionally, shingles, roll roofing, and felts saturated with asphalt employ it as a saturate. One of the least expensive types of roofing materials is asphalt shingles, which are in higher demand in North America and Europe.
The US sub-prime crisis of 2007–2008 led to a recession in the building sector. However, the North American construction market has bounced back and is expanding gradually. The usage of asphalt in these products is anticipated to rise as the market for building supplies in North America and Europe expands. Consequently, since these extend the useful life and durability of asphalt in roofing applications, the need for asphalt additives is also anticipated to rise.
Lack of knowledge regarding asphalt additives among contractors and road builders is a problem.
The use and advantages of asphalt additives are not widely known among road builders and contractors in some emerging economies. The use of asphalt additives can greatly extend the useful life of asphalt pavements by reducing rutting, cracking, and stripping. This leads to the reduced upkeep of asphalt road surfaces.
Benefits offered owing to the use of asphalt additives for the building of road pavements surpass their price. However, since they are focused on lowering the cost of materials and construction, contractors and road builders in emerging nations do not take these considerations into account. The benefits offered by using these speciality compounds must be made more widely known, especially in developing economies like India and Brazil.
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