Asphalt Additive Market

The asphalt additive market is projected to grow from USD 4.0 billion in 2023 to USD 5.8 billion by 2028, at a CAGR of 7.7% from 2023 to 2028. Asphalt additives are used across applications such as road construction & paving, roofing, and airport construction. They are mixed with asphalt during construction to enhance their properties and improve the performance of asphalt pavement. These additives can modify the asphalt binder, which is the sticky, black, and viscous petroleum-based material used to bind the aggregate particles together in asphalt pavement.

Attractive Opportunities in the Asphalt Additive Market

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Asphalt Additive Market Dynamics

Driver: Recyclability of asphalt

There is a growing need for asphalt additives as a result of the advantages of recycling asphalt and promoting sustainability in road construction and maintenance. Recycling asphalt minimizes the use of natural resources and the requirement for new materials. Asphalt is a sustainable option for the construction of pavements as it is 100% recyclable. Recycling asphalt decreases the cost of quarrying, mining, and oil consumption. It also decreases costs on fuel, machinery, transportation, and labor involved in the production of asphalt pavements, as recycled asphalt is easier to manufacture than newly produced asphalt. Asphalt additives are required to improve the quality of recycled asphalt, reducing the risks of rutting and cracking reclaimed asphalt pavements. Thus, recycling of asphalt is a major driver for the asphalt additive market.

Restraint: Use of concrete and bio-asphalt as substitutes for asphalt

Concrete is a traditional substitute for asphalt in road paving applications. Vehicles running on concrete roads consume 15% to 20% less fuel as compared to vehicles plying on asphalt roads. However, asphalt pavements have lesser paving and maintenance costs than concrete roads. Bioasphalt is a product obtained from non-petroleum-based renewable resources. The use of bio-asphalt is increasing rapidly due to concerns over pollution and climate change. Thus, the use of these substitutes acts as a restraint to the growth of the asphalt market, thereby affecting the asphalt additive market.

Opportunity: Increasing use of warm mix asphalt

The use of the warm mix asphalt technology is increasing, especially in the European and North American regions. This technology enables lowering the temperature at which asphalt, and aggregate materials are mixed and used for the construction of roads. It is an environmentally friendly technology as it produces lower fuel emissions and improves working conditions at asphalt pavement construction sites. The use of warm mix technology results in the preference for asphalt as an alternative over concrete and gypsum, which are being replaced in various road pavement applications. As a result, the demand for asphalt additives using warm mix technology is increasing rapidly across the globe. This further provides opportunity for the market to grow.

Challenge: Lack of awareness about asphalt additives among road builders and contractors

The service life of asphalt pavements can be significantly improved by using asphalt additives as they help reduce rutting, cracking, and stripping. This leads to the reduced maintenance of asphalt road pavements. However, these factors are not considered by contractors and road builders in emerging economies as they are concerned about reducing the cost of materials and construction. The availability of several kinds of asphalt additives, their advantages, and how to correctly include them into asphalt mixtures may not be well-known to many road builders and contractors. Because of this lack of knowledge, asphalt additives may be underused or applied improperly, resulting in poor performance of the asphalt pavement. Thus, the lack of awareness about asphalt additives among road builders and contractors is a major challenge in the asphalt additive market.

Asphalt Additive Market: Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of asphalt additives. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Nouryon (Netherlands), Dow (US), Arkema SA (France), Honeywell International Inc. (US), Evonik Industries (Germany), Huntsman Corporation (US), and Kraton Corporation (US).

Based on type, the polymeric modifier segment is expected to account for the largest market share during the forecast period.

The polymeric modifier type is projected to have the largest market share during 2023 to 2028. The growth of this segment can be attributed to the improvement in the adhesion between asphalt binder and aggregate particles, enhancing the binder's ability to bind the aggregates together. This results in increased cohesion within the asphalt mixture, leading to improved pavement performance and reduced potential for aggregate stripping.

Based on technology, hot mix segment accounted for the largest share of the global asphalt additive market in 2022

The hot mix technology was the largest segment in 2022. Hot mix asphalt binders can be compacted more effectively compared to other methods. The high temperature of the asphalt binder reduces viscosity and increases its ability to flow, allowing for better compaction. This results in a denser and more tightly packed pavement, which improves durability, resistance to rutting, and overall performance.

Based on application, the road construction & paving is expected to account for the largest market share during the forecast period.

The road construction & paving application is projected to have the largest market share during 2023 to 2028. Asphalt is susceptible to aging and degradation when exposed to sunlight and environmental factors. Antioxidants can be incorporated into the asphalt binder to increase its resistance to oxidation and ultraviolet (UV) radiation, prolonging the lifespan of the pavement which leads to an increase in the demand for asphalt additives.

The Asia Pacific region accounted for the largest share of the global asphalt additive market in 2022

The Asia Pacific region was the largest market for asphalt additives in 2022, owing to the increasing demand for asphalt additives products in developing economies, such as India and China. China is the leading consumer of asphalt additives products in the Asia Pacific region. The nation has been undergoing rapid urbanization and economic growth, leading to an increased demand for road infrastructure. Asphalt additives are a crucial component in the construction of roads, highways, and airport runways, allowing for durable and reliable transportation networks. Rapid urbanization is expected to enhance the demand for asphalt additives.

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Key Market Players

Nouryon (Netherlands), Dow (US), Arkema SA (France), Honeywell International Inc. (US), Evonik Industries (Germany), Huntsman Corporation (US), Kraton Corporation (US), Ingevity Corporation (US), and BASF SE (Germany) are some of the leading players operating in the asphalt additive market. These players have adopted the strategies of expansions, new product developments, acquisitions, and collaborations to enhance their position in the market.

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Scope of the Report

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This research report categorizes the asphalt additive market based on type, application, technology, and region and forecasts revenues as well as analyzes trends in each of these submarkets.

Based on type, the asphalt additive market has been segmented into:

• Polymeric Modifiers
• Anti-strip and adhesion promoters
• Emulsifiers
• Chemical Modifiers
• Rejuvenators
• Fibers
• Flux Oil
• Colored Asphalt
• Others
  • Organic Materials
  • Rubber Modifiers

Based on Application, the asphalt additive market has been segmented into:

• Road Construction & Paving
• Roofing
• Airport Construction
• Others
  • Parking Lots
  • Bridges

Based on Technology, the asphalt additive market has been segmented into:

• Hot Mix
• Cold Mix
• Warm Mix

Based on Region, the asphalt additive market has been segmented into:

• Asia Pacific
• North America
• Europe
• Middle East & Africa
• South America

Recent Developments

• In April 2023, Sasol Chemicals, a division of Sasol Ltd, and Mission Possible Partnership (MPP) established a partnership to examine possible projects for Sasol's sustainability hub in Lake Charles, Louisiana.
• In March 2023, Kraton Corporation announced the expansion of itsproduction capabilityof styrene-butadiene-styrene block copolymers (SBS) at the Belpre, Ohio facility beginning in 2024. By 2025, manufacturing capacity is predicted toexpand by 24 kilotons per year.
• In December 2022, Nouryon has expanded its alkoxylation footprint in Southeast Asia with the acquisition of an asset on Singapore's Jurong Island. The purchased plant will help Nouryon meet expanding regional customer demand in important end-markets such as Agriculture and Food, Home and Personal Care, Natural Resources, and Paints and Coatings.

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