Recycled Asphalt Market
Recycled Asphalt Market Report by Type (Hot Recycling Asphalt, Cold Recycling Asphalt), By Application (Patch Material, Hot Mix Asphalt, Temporary Driveways and Roads, Road Aggregate, Interlocking Bricks) & Regional Forecast, 2021-2031
Newly released data from Fact.MR states the sales of recycled asphalt market surpassed US$ 6.9 Bn by the end of 2021. The market is expected to accumulate US$ 10.7 Bn by 2031, expected to surge 1.5x throughout the forthcoming decade. Also, demand for hot recycled asphalt will likely reign supreme, accumulating over 60% market revenue.
Key Points Covered in Recycled Asphalt Industry Analysis
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Recycled Asphalt Market and How to Navigate
- Recommendation on Key Winning Strategies
Recycled Asphalt Revenue Analysis 2016-2020 in Comparison to Future Outlook 2021-2031
According to Fact.MR’s report, from 2016 to 2020, demand for recycled asphalt increased at around 2.5% CAGR. Recycled asphalt has gained popularity due to its advantage over traditional virgin asphalt. In addition, it emits zero CO2 and is priced lesser in comparison to virgin asphalt. Furthermore, it is also used as a mixture with virgin asphalt after heating process to construct roads and filling potholes.
During the COVID-19 pandemic, the global construction industry experienced severe contraction in the first half of 2020. This led to a dwindling of construction projects, limiting recycled asphalt demand temporarily. Moreover, logistical difficulties made it difficult to procure raw asphalt.
Fortunately, as relaxations were announced since Q4 2020, in view of flattening infection curves, the industry gradually recovered, restoring pre-pandemic sales projections. As per Fact.MR, the market for recycled asphalt is forecast to expand at the CAGR of nearly 4.5% across the 2021-2031 assessment period.
How is Rising Demand for Sustainable Construction Augmenting Recycled Asphalt Demand?
As global climatic patterns become erratic due to exponential industrialization and urbanization rates, demand for sustainable construction is acquiring immense importance. This has become further accentuated by the exposure of the industry’s fragility to the COVID-19 pandemic.
Recent trends mapped by experts infer that 82% of architecture, engineering & construction (AEC) companies have a dedicated sustainability team in place, with an average AEC organization willing to spend € 3.5 million (US$ 4 million) on improving their sustainability efforts over the next 5 years.
Based on these trends, it is evident that construction companies are looking to leverage more environmental friendly alternatives with respect to deployment of construction material, including enhanced usage of recycled cement, concrete and asphalt respectively.
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Environmentally Friendly Nature Spurring Demand for Recycled Asphalt?
The recycled asphalt market has been progressing at a significant pace over the past few years. The key reason for the growth and usage of recycled asphalt is the rising price of petroleum in the last few years. As recycled asphalt does not require the burning of fossil fuels, the demand for the same has been observed to grow at a moderate pace.
Due to its environment friendly factors, recycled asphalt demand is gaining momentum. Furthermore, the growing market of recycled asphalt is directly affecting the sales of virgin asphalt materials. The binder used in virgin asphalt is very expensive and increases the cost of production whereas recycled asphalt already contains a huge percent of binders that almost cuts down the cost by 30%. This, in turn, is accelerating the demand for recycled asphalt.
Increase in global warming along with energy consumption has spurred the usage of recycled asphalt globally. Using recycled asphalt is a sustainable process for reconstruction of road, fixing patches and small construction of pathway. Thus, the growing road and construction industry is positively influencing the market for recycled asphalt.
Government Policies Boosting Demand for Recycled Asphalt in North America?
Advanced recycling technology is playing a key role in the development and demand of recycled asphalt market. In addition, government policies in countries such as the U.S and Canada are focusing on zero emission methods for construction purposes. This, in turn, has increased the use of recycled asphalt in the region.
For instance, more than 15 states of the United States have signed a memorandum of understanding (MOU) to work collaboratively in replacing dirt fossil fuel trucks with zero emission electric trucks. Thus, North America is expected to account for 37.2% market share by accumulating over US$ 1.2 Bn absolute dollar opportunity in the forecasted period (2021–2031).
Investment in Road Infrastructure Accelerating Demand for Recycled Asphalt in Asia?
Governments in countries such as India, China and South Korea are investing in the infrastructure industry. In addition, increasing demand from road repairing and construction sites has increased the sales of recycled asphalt in the region.
Major road infrastructure projects, such as the Belt & Road Initiative (BRI) in China, have provided major stimulus for the expansion of recycled asphalt industry. Total funding for the BRI amounts to US$ 50-100 billion per year. This also includes expenditure on carrying out road repairs.
Likewise, in India, the government has allocated US$ 371.13 million in October 2020 for nine Nation Highway projects in Tripura. Thus, according to Fact.MR, Asia is expected to possess around 25% of market share for recycled asphalt in the assessment period 2021-2031.
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Is Reconstruction Spurring Demand for Hot Recycled Asphalt?
The demand for hot recycled asphalt process is increasing as it has more advantages in comparison to the cold asphalt recycling process. Hot asphalt, or warm mix recycled asphalt, helps quicker mending of roads and also results in high energy and resource savings.
Thus, hot recycling asphalt process is expected to accumulate around 62.3% market share globally, expanding at over 4% value CAGR. Furthermore, hot recycled asphalt provides for optimized manual laying, is easy to store, handle or meter.
Will Patch Material Applications Generate Maximum Recycled Asphalt Demand?
Based on application, Fact.MR expects recycled asphalt sales for patch material to experience maximum usage, attributed to the widespread use of recycled asphalt in resurfacing of roads and covering potholes. A CAGR of 4% is anticipated for this segment, as per Fact.MR.
Several manufacturers offering recycled asphalt for patch material applications operate in the global market. For instance, AS Systems offers its range of Cold Patch asphalt, suitable for restoring dangerous potholes and wide cracks in minutes. It is used across driveways, parking lots, roads and sidewalks.
Majority of the companies are focusing on establishing partnerships with road construction companies, introducing workshops to aware people about benefits and continuously investing into research and development. For instance,
- In 2020, GAF Materials invested US$ 21 million to build a 400,000 square feet of new space in Gainesville to expand their business in Texas, U.S. The company plans to occupy the new space in Gainesville, Florida in around January 2022.
- In 2020 Ames-Kraemer Company LLC announced ramping up of its major construction activities on the Twin Ports Interchange Project in Duluth for MnDOT (Minnesota Department of Transportation). Once completed, this project will enhance safety by eliminating blind merges and left exits, replace aging infrastructure, and better accommodate freight movements through the interchanges next to the Clure Public Terminal.
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|Market Size Value in 2021||USD 6.9 Billion|
|Market Value Forecast in 2031||USD 10.7 Billion|
|Growth Rate||CAGR of 4.5% from 2021 to 2031|
|Historical Data Available for||2016-2020|
|Market Analysis||US$ Mn for Value & Tons for Volume|
|Key Regions Covered||
|Key Countries Covered||
|Key Segments Covered||
|Key Companies Profiled||
|Pricing||Available upon Request|
Key Segments Covered
- Hot Recycling Asphalt
- Cold Recycling Asphalt
- Patch Material
- Hot Mix Asphalt
- Temporary Driveways and Roads
- Road Aggregate
- Interlocking Bricks
- New Asphalt Shingles
- Energy Recovery
- FAQs -
As of 2020, the market for recycled asphalt reached nearly US$ 6.9 Bn
The recycled asphalt market is expected to surpass a CAGR of 4.5% from 2021-2031.
The recycled asphalt market is expected to reach nearly US$ 10.7 Bn by 2031
From 2016 to 2020, sales of recycled asphalt expanded at a CAGR of 2.5%
Increasing driver towards adopting sustainable construction practices is stimulating demand for recycled asphalt products
According to Fact.MR, recycled asphalt sales in North America will contribute 37.5% revenue, yielding an absolute opportunity worth US$ 1.2 Bn
The recycled asphalt industry is expected to possess a market share of 25% throughout Asia
Hot recycled asphalt is expected to hold the highest share for sales, expanding at over 4% CAGR
Recycled asphalt for patch material applications will reign supreme, expanding at around 4% CAGR
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