Asphalt Additives Market

Asphalt Additives Market Insights

"The global asphalt additives market size was US$ 2.5 billion in 2024 and is likely to grow at a decent CAGR of 4.3% in the long run to reach US$ 3.4 billion in 2031."

Introduction

Asphalt or bitumen additives are several substances that are added to asphalt to alter the characteristics of the final mixture, such as increasing elasticity, improving heat stability, improving adhesion to aggregate, decreasing viscosity, and more resistance to aging. Additives gained huge momentum in the asphalt pavement industry in the wake of high temperature and aging resistance requirements, improvement in thermal cracking and stripping, and reduced maintenance cost of pavements. More than 90% of the road pavements performed today are being done with asphalt.

The need for asphalt additives in the construction of durable roads, sustainable pavement construction and maintenance, and the growing use of RAP (Reclaimed Asphalt Pavement) are likely to create excellent growth opportunities in the asphalt additives market. Modified asphalt is gradually being progressively incorporated into asphalt pavements across regions to improve their quality and extend their life.

Government authorities, construction contractors, and asphalt pavement industry stakeholders have realized the potential of sustainable asphalt additives in reducing emissions like carbon dioxide, fumes, and aerosols and creating safer working conditions. Reducing temperature is one of the most viable strategies for achieving this, which has led to a growing trend of warm-mix asphalt over traditional hot-mix asphalt.

Asphalt Additives Market Drivers

• Expected increase in hot and warm mix asphalt production.

• Increase in new government-funded road maintenance
  projects.

• Expected increase in FAA airport improvement program (AIP) grants issued for airfield improvement projects.

• Stricter government regulations are aimed at reducing emissions and energy consumption.

• Increasing investments in road construction, repair, and expansion projects.

• Advancements in asphalt technology such as polymer-modified binders and performance-enhancing additives.

Segment Analysis

Product Insights

“Polymer is projected to be the most preferred product of the market for the next six years.”

The market is segmented into anti-stripping agents/adhesion promoters, rejuvenators, emulsifiers, polymer, and other products.  Key driving factors for polymers are better durability and flexibility, reduction in the life cycle cost, and reduction in rutting and thermal cracking. Also, different regions have a dominance of different additives along with varying dosage rates. For instance, China has a high penetration of polymer additives, whereas Brazil has a high penetration of emulsifiers. Styrene butadiene rubber (SBR)/ SBS, neoprene latex, ethylene-vinyl acetate (EVA), ground tire rubber (GTR), and polyphosphoric acid (PPA) are some major polymers used in asphalt modification.

Anti-stripping agents are used in warm-mix asphalt to achieve the same level of quality as hot-mix asphalt, further increasing the paving cost. Hydrated lime, the most commonly used anti-stripping agent, is generally used in hot-mix asphalt. Liquid anti-stripping agents are used to mitigate the moisture susceptibility of asphalt mixes.

Application Insights

“Road construction is estimated to contribute a larger share of the asphalt additives market.”

Based on the application type, the asphalt additives market is segmented into road construction, parking lots, roofing, and other applications. The increasing number of new road construction projects is being fuelled by federal and state governments, especially in developing economies, and there is a strong demand for road maintenance and preservation from developed economies. Furthermore, there has been an increasing penetration of road asphalt with additives over unmodified asphalts. Traffic volume loads and tire pressures have substantially increased over the past few decades, leading to demand for modifiers for longer service life and better maintenance of road pavements.

Parking lots are expected to remain the fastest-growing application of the market by 2031. Subgrade conditions and traffic load or intensity are key considerations for parking lot asphalt mix thickness. Strong growth potential with increasing traffic intensity leading to the construction of new parking lots, especially in emerging economies.

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Technology Insights

“Hot mix is estimated to remain the widely used technology of the market by 2031."

The market is segmented into hot mix, warm mix, and cold mix based on the technology type. Key driving factors for hot mix asphalt are cost-effectiveness, weather resistance, versatility, strength, durability, highly flexible, and malleability. Polymer additives have a significant share in the hot mix technology.

Warm-mix asphalt is gaining traction because it is superior to hot-mix asphalt in reducing carbon and fume gas emissions and creating safer work environments. There has been a growing interest in warm-mix asphalts, mainly due to their sustainability and similar performance level to hot-mix asphalt. North America is the world’s largest market for warm-mix asphalts, whereas Asia-Pacific is the largest market for hot-mix asphalt.

Regional Insights

“Asia-Pacific is estimated to maintain its unassailable lead in the foreseeable future.”

In terms of regions, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific is expected to remain the largest market, with China, Japan, and South Korea being the leading markets in the region. Strong demand exists from new road pavement projects and pavement preservation/maintenance in the Asia-Pacific region. There is also a huge whitespace opportunity from developing Asian economies, such as India, where additive penetration in the asphalt industry is very low.

North America is expected to remain the second-largest market during the forecast period. The region is the world’s largest market for warm mix additives with a strong desire to reduce emissions and improve a sustainable working environment. Key players: Arkema, Ingevity Corporation, Nouryon, Kraton Corporation, Cargill Incorporated, and Honeywell International Inc.

Key Players

The market is highly fragmented, with over 100 global and regional players. Different players have leadership positions in various regions and different additive product types. Kraton Corporation and Ingevity Corporation have a strong leadership position in North America, whereas Arkema holds a leading position in the European market.

Here is the list of the Top Players (Based on Dominance)

• Kraton Corporation

• Ingevity Corporation

• Arkema S.A.

• Nouryan Chemicals B.V.

• Kao Corporation

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at sales@stratviewresearch.com

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.

• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.

• Market trend and forecast analysis.

• Market segment trend and forecast.

• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.

• COVID-19 impact and its recovery curve.

• Attractive market segments and associated growth opportunities.

• Emerging trends.

• Strategic growth opportunities for the existing and new players.

• Key success factors.

Market Segmentation

The asphalt additives market is segmented into the following categories:

By Product Type

• Anti-Stripping Agent/Adhesion Promoter

• Rejuvenators

• Emulsifiers

• Polymer

• Other Products

By Application Type

• Road Construction

• Parking Lots

• Roofing

• Other Applications

By Technology Type

• Hot Mix

• Warm Mix

• Cold Mix

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)

• Europe (Country Analysis: Germany, France, The UK, Spain, Turkey, and the Rest of Europe)

• Asia-Pacific (Country Analysis: Japan, China, India, South Korea, and Rest of Asia-Pacific)

• Rest of the World (Country Analysis: Brazil, The UAE, and Others)

Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s asphalt additives market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)

• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com

Recent Developments of Asphalt Additives Market

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In July 2024, Nouryon entered into a strategic distribution agreement with Brenntag Specialties for the U.S. to enhance its presence in the asphalt sector and broaden its reach within the construction industry.

• In March 2024, Breedon Group plc acquired BMC Enterprises Inc. for US$ 300 million, expanding its footprint in the asphalt and construction materials industry.

• In 2020, BASF acquired distribution rights of RheoFalt® products manufactured by Ventraco to cater to the increasing demand for rejuvenators.

• In 2019, Arkema acquired Armaz to expand its portfolio of high-performance polymer additives and strengthen its position in the specialty chemicals and materials market.