Asphalt market declined drastically during 2008 and 2009, as demand dropped in various end-use segments including paving and roofing.
The harsh market conditions forced a noticeable number of suppliers either to close down or temporarily halt operations in their facilities. The impact was significantly higher on small-scale suppliers. Usually, a large portion of the asphalt produced is utilized for road paving and decline in road construction activity in various parts of the world dented the market prospects in a major way. The fall was significantly higher in matured markets such as the US and Europe, which collectively generate more than 55% of the world asphalt production. Asia-Pacific stood as the only region that registered positive growth during the period. Growth in the region was primarily driven by the Chinese initiatives to lay new roads and repair the existing roads, covering vast areas. A rebound in the construction sector and global GDP growth, in addition to the continued robust rise in emerging markets across the Asia-Pacific region, primarily India and China, is expected to enable the market to register growth in the near-term. Factors that continue to govern the market landscape include world economy gradation, prices of crude oil and implementation of new infrastructure projects. Besides these, environmental concerns, especially with regard to asphalt recycling, shape the industry structure.
Europe represents the largest region for Asphalt worldwide, as stated by the new market research report on Asphalt. Growth-wise, Asia-Pacific is projected to be the fastest growing regional market for asphalt. Rapid increase in population and steady economic growth are key factors driving growth in the paving and roofing end-use markets in Asia-Pacific, creating robust demand for asphalt. Infrastructure development is making rapid strides across the world, particularly in developing countries where huge investment has been flowing into infrastructure projects. Improving transportation infrastructure is one of the key strategies for enhanced standard of living in developing countries. This not only reduces the cost of imports but also improves the marketability of goods. Asia Pacific and Eastern Europe, which are taking up numerous paving projects including highways and shorter routes on a large scale, are expected to be the major growth markets. Paving represents the largest end-use segment for asphalt globally, while roofing constitutes the other major end-use segment of asphalt.
Cold applied systems are gaining popularity as viable alternative to multi-ply bituminous roofing systems. Use of cold adhesives is on rise, mainly due to concerns centering sensitivity to hot asphalt fumes and additional safety measures needed for torching. These systems are mainly used for roofing for high-rise buildings or constructions such as hospitals and hotels that are concerned about odor generated by other roofing systems. On the other hand, traditional asphalt roll roofing faces stiff competition from elastomeric roofing. Though asphalt roll roofing still dominates the roofing material market, its market share has been on a constant decline. On the other hand, elastomeric roofing continues to increase its market share in the roofing materials market.
Major producers of Primary Asphalt and Asphalt Products profiled in the report include BP Plc, Exxon Mobil Corporation, Petroleos de Venezuela SA, Royal Dutch Shell plc, Akzo Nobel, Anglo American Plc, Atlas Roofing Corporation, Aggregate Industries Limited, CEMEX UK Operations Limited, CertainTeed Corporation, Colas Danmark A/S, CRH PLC, GAF Materials Corporation, Hanson, Lafarge SA, Oldcastle Materials Inc., Owens Corning, SemGroup Corporation, and Sinopec.
The research report titled “Asphalt: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the asphalt markets, impact of recession on the markets, current market trends, key growth drivers, end-use market analysis, recent product introductions, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for Asphalt market for the years 2007 through 2015 for the following geographic markets - US, Canada, Japan, Europe, Asia-Pacific, Middle East, and Latin America. Key end-use segments analyzed include Paving, Roofing, and Others. Also, a seven-year (2000-2006) historic analysis is provided for additional perspective.