Market Trends of Warm Mix Asphalt Industry
This section covers the major market trends shaping the Warm Mix Asphalt Market according to our research experts:
Increasing Usage in the Roadways Application
- Warm mix asphalt is widely adopted in the road construction industry as it reduces fuel consumption and Volatile Organic Compound (VOC) emissions. It reduces the fuel consumption by 20% as compared to hot mix asphalt due to lower viscosity.
- Reduction in pre-mature aging of asphalt cement and lower fume and odor emissions are some of the benefits of using warm-mix asphalt in road construction.
- Increasing investments in renewable energy infrastructure coupled with decreasing cost of renewable energy and rapid technology improvements are expected to drive the road construction industry. Besides, the growing demand for lowering carbon footprints from road construction will boost the demand for the warm mix asphalt market.
- Improved properties of warm mix asphalt as compared to hot mix asphalt such as lower paving costs, reduced emission of greenhouse gases, and extended paving season, enhances its usage in the road construction sector.
- In the United States, the average monthly value of public highways and street construction was valued at USD 99.90 billion in 2021 as compared to 99.54 in 2020, registering a growth of 0.36%, as per US Census Bureau, which is stimulating the demand for warm mix asphalt market.
- Owing to all these factors, the market for warm mix asphalt is likely to grow globally during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy, in terms of GDP. China and India are among the fastest emerging economies in the world.
- India is expected to dominate in the road construction industry in the Asia-Pacific region. The Indian Road construction industry depicted significant growth over the years. India has the second-largest road network globally. The road network in India transports around 64.5% of all goods and 90% of total passenger traffic. In the financial year 202, 13,298 km of the highway was constructed in India.
- Increasing policy initiatives by the Indian government such as Golden Quadrilateral and north-south-east-west corridor will boost the warm mix asphalt market. Besides, the National Highway Authority of India (NHAI) is planning to construct around 25,000 kilometers of national highways between 2022 to 2023 at a pace of over 50 km per day.
- Increasing road transportation in India owing to the rise in sales of automotive and freight movement through roads, is expected to stimulate the demand for road construction materials such as warm-mix asphalt. Increased highway construction in India at 17% CAGR between 2016 to 2021, is projected to drive the market for warm mix asphalt.
- Growing passenger traffic and increased construction of highways in China due to various government policies such as the Belt and Road Initiative (BRI). As per the Ministry of Transport of China, the total length of express ways was 161,000 kilometers in 2020 and grew significantly in 2021. Furthermore, China is planning to extend its national highway length to nearly 50% by 2035.
- Due to all such factors, the market for warm mix asphalt in the region is expected to have a steady growth during the forecast period.
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