Recycled Asphalt Market

Recycled Asphalt Market Growth Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global recycled asphalt market is estimated to be valued at US$ 7.6 billion in 2023 and it is forecasted to grow at a CAGR of 4.7% to reach US$ 12.0 billion by the end of 2033.

Recycled asphalt has gained tremendous popularity in the infrastructure development and construction industry. Other uses of recycled asphalt include roofing and waterproofing.

Report Attributes	Details
Recycled Asphalt Market Size (2022A)	US$ 7.2 Billion
Estimated Market Value (2023E)	US$ 7.6 Billion
Forecasted Market Value (2033F)	US$ 12.0 Billion
Global Market Growth Rate (2023-2033)	4.7% CAGR
North America Market Share (2023)	37.2%
Key Companies Profiled	Bodean Company Cherry Companies Pavement Recycling System, Inc. The Kraemer Company LLC Wirtgen Group

Historic and Future Pathway Analysis for the Recycled Asphalt Market

Recycled asphalt is made of high-quality graded aggregates coated with asphalt cement which can be used to produce hot asphalt mixes, cold asphalt mixes, and asphalt concrete for subgrade construction. Most recycled asphalt is usually destined to return to street construction. This is due to the recycled asphalt grading curve.

Recycled asphalt is less expensive than traditional new asphalt because it is made from existing pavement. Further, it is an eco-friendly alternative to virgin asphalt which is made from a petroleum product, hence, using recycled material help to lower the carbon footprint.

• Short Term (2023-2026): Adopting sustainable construction practices is stimulating the demand for recycled asphalts.
• Medium Term (2026-2029): The Asia-Pacific recycled asphalt market is expected to witness remarkable growth owing to increasing infrastructure development and growing demand for sustainable building materials.
• Long Term (2029-2033): Government expenditures on road development, promoting recycling initiatives, and others to create an opportunity for market growth.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.7% CAGR between 2023 and 2033.

Market Dynamics Overview

“Consistent Increase in Highway/Roads Constructions to Supplement Growth”

Growth in the road and construction industry is having a positive impact on the recycled asphalt market. Using recycled asphalt for rebuilding roads, paving patches, and building small trails drives the market growth.

Recycled asphalt also plays an important role in improving the durability and surface of gravel roads. Adding recycled asphalt to gravel, minimizes gravel road noise, dust emissions, and gravel displacement from the road. Recycled asphalt is highly functional while constructing temporary driveways and roads.

Road pavements constructed from virgin asphalt tend to exhibit the urban heat island effect. The materials used absorb heat from the sun into the ground, keeping the area warm. However, pavers made from recycled asphalt are light in color and less susceptible to heat absorption. Therefore, the consumption of recycled asphalt in pavements will lead to a reduced urban heat island effect and increase the growth prospects of the global recycled asphalt market.

In recent years, the asphalt recycling market has developed rapidly. The main reason behind the growth and use of recycled asphalt is the recent rise in petroleum prices.

“Factors Affecting Market Growth”

Asphalt is a petrochemical product, and fluctuations in oil prices directly hampered the price of asphalt, so it is highly volatile. One of the biggest concerns is that the quality of the material may not be as high as new asphalt.

Asphalt is an important raw material for pavement construction, so fluctuating petrochemical prices can affect the supply and demand of construction projects by the government and road construction companies. As a result, road substitutes such as concrete, gypsum, and bio-asphalt are being used more and more.

The recycled asphalt market cannot be separated from the asphalt market. Therefore, fluctuations in asphalt price and supply during the forecast period are impacting the global reclaimed asphalt market.

Country-wise Insights

Why is the U.S. increasing the demand for Recycled Asphalt Market?

Advanced recycling technology plays a key role in the development and demand of the recycled asphalt market. Additionally, government policies in countries such as the United States focus on zero-emission practices for construction purposes further increasing the use of recycled asphalt.

For instance, more than 15 U.S. states have signed a memorandum of understanding (MOU) to work together to replace fossil fuel-powered dirt vehicles with zero-emission electric vehicles. Therefore, North America is expected to capture a 37.2% market share by accumulating over US$ 1.2 billion in absolute dollar opportunities over the forecast period.

Will China Present a Lucrative Market for Recycled Asphalt During the Forecast Period?

Governments in countries such as China are investing in infrastructure development. Additionally, increased demand from road repairs and construction sites is boosting sales of recycled asphalt in the country.

Large-scale road infrastructure projects such as China's Belt and Road Initiative (BRI) have provided significant impetus to the expansion of the recycled asphalt industry. BRI's total funding is between $50 billion and $100 billion annually which includes the cost of carrying out road repairs. Thus, creating immense growth opportunities for the market players.

Category-wise Insights

Will Reconstruction Boost Demand for Hot Recycled Asphalt?

The demand for hot asphalt recycling processes is growing as it offers more advantages compared to cold asphalt recycling processes. Hot asphalt or warm mix reclaimed asphalt can help speed up road repair. This, lead to saving energy and resource.

Therefore, the hot recycling asphalt process is expected to grow at a CAGR of 4.1% during the forecast period. Additionally, hot recycled asphalt ensures optimal manual laying and is easy to handle, store, and other.

Will Patch Material Application Generate Maximum Recycled Asphalt Demand?

On the basis of application, patch material I estimated to grow at a CAGR of 4.0% during the forecast period. Patch materials repair surfaces such as potholes, roads, bridges, parking lots, driveways, and sidewalks.

The use of recycled asphalt is economical as well as they are effective in all weather conditions, reducing the chance of potholes and other damage in the road, eliminating the need for expensive repairs, and requiring no priming.

There are several manufacturers in the global market that offer recycled asphalt for paving applications. For instance, AS Systems offers a range of cold patch asphalts suitable for repairing dangerous potholes and large cracks in minutes. It is widely used in parking lots, driveways, roads, and others.

Eminent Players Key Stratagems

Prominent recycled asphalt manufacturers are Bodean Company, Cherry Companies, Pavement Recycling System, Inc., The Kraemer Company LLC, and Wirtgen Group

The majority of the companies are focusing on establishing partnerships with road construction companies, introducing workshops to aware people of benefits, and continuously investing in research and development. Manufacturers use mineral materials such as gravel, sand, crushed stone, slag, or other materials to process aggregates.

Government guidelines on the usage of recycling material favor market growth. For instance,

• The Federal Highway Administration (FHWA) has taken a particular interest in promoting asphalt recycling because using asphalt in new road projects saves taxpayers money and is more environmentally friendly than using virgin materials. National Asphalt Pavement Association to track the amount consumed and stored nationwide at the end of each calendar year.

Fact.MR has provided detailed information about the price points of key manufacturers of recycled asphalt positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Recycled Asphalt Industry Research

• By Type :

  • Hot
  • Cold

• By Application :

  • Patch Material
  • Hot Mix Asphalt
  • Temporary Driveways and Roads
  • Road Aggregate
  • Interlocking Bricks
  • New Asphalt Shingles
  • Energy Recovery

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa