Global Recycled Asphalt Market was valued at USD 8.44 billion in 2021 and is expected to reach USD 12.78 billion by 2029, registering a CAGR of 6.5% during the forecast period of 2022-2029.
Overview
Recycled asphalt or Recycled Asphalt Pavement (RAP) is a recycled pavement that contains asphalt and its aggregates. Virgin asphalt production increases CO2 emissions as fossil fuels have to be burned. Thus, repeated production of asphalt increases the environmental impact, thereby jeopardizing the scarcity of natural resources. Asphalt recycling is therefore emerging as an effective way to reduce global toxin production. Additionally, recycled asphalt offers a significantly lower price and longer durability compared to virgin asphalt. This plays an important role in improving the durability and surface of gravel roads. Demand for recycled asphalt is expected to grow exponentially worldwide due to rising oil prices. Also, the reuse of recycled asphalt provides a key factor for optimal use of resources leading to economic savings and environmental protection, thereby positively impacting the growth of the recycled asphalt market.
Drivers
As exponential industrialization and urbanization make global climate patterns unpredictable, the demand for sustainable construction has become critical. Recent trends mapped by experts show that 82% of architecture, engineering and construction (AEC) companies have a dedicated sustainability team, and the average AEC organization improves its sustainability efforts. These trends reveal that construction companies are seeking greener alternatives in the use of construction materials, including increasing use of recycled cement, concrete, and/or asphalt. Moreover, several companies are striving to develop bespoke solutions and modern plant technology to provide high quality asphalt in the recycling process. These advanced plant technologies are expected to offer benefits such as reduced costly storage capacity and reduced CO2 emissions. In addition, the production process in these factories aims to reduce overall production and transportation costs.
Furthermore, the key reason behind the growth and use of recycled asphalt is the rise in petroleum prices. Demand for recycled asphalt has been observed to grow at a modest pace as it does not require burning fossil fuels. Due to its eco-friendly factor, the demand for recycled asphalt is gaining momentum. Moreover, the growth of the market for recycled asphalt directly affects the sales of virgin asphalt materials. The binder used in virgin asphalt is very expensive and increases production costs, whereas recycled asphalt already contains a large amount of binder, reducing costs by about 30%. This will accelerate the demand for recycled asphalt. Additionally, increasing global warming associated with energy consumption is driving the use of recycled asphalt around the world. Using recycled asphalt is a sustainable process for rebuilding roads, paving patches and building small trails. Growth in the road and construction industry is having a positive impact on the recycled asphalt market.
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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 and Canada focus on zero-emission practices for construction purposes. This has increased the use of recycled asphalt in the region. For example, more than 15 US 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 opportunities over the forecast period (2021-2031).
The use of recycled asphalt is important to all industry players due to lower raw material prices and lower production and transportation costs. In addition, all industry participants, including asphalt pavers, road owners, asphalt producers and mixing plant manufacturers, are working together to introduce new technologies. Major players in the global recycled asphalt market include CertainTeed, GAF Materials, Oldcastle Materials, Owens Corning, Sinopec, Shell Bitumen, Cherry Companies, Lone Star Paving, Bodean Company and others.
Type Insights
By type, the recycled asphalt is divided into hot recycling and cold recycling. The hot recycling segment dominated the market share in 2022. There are two different methods of hot recycling: Hot Recycle Mix and Hot In-Place Recycling. Hot-In-Place recycling uses heater scribing, resurfacing, and remixing techniques. In this process, the surface is first heated and then sacrificed with non-rotating teeth. After this step, the viscosity of the binder is improved by adding new life-giving additives. During installation the top layer is completely removed.
Application Insights
The application segment is divided into patch material, hot-mix asphalt, temporary driveways & roads, road aggregate for unpaved roadways, interlocking bricks, new asphalt shingles, and energy recovery. The patch material segment dominated the market share in 2022. Patch materials repair surfaces such as roads, bridges, parking lots, driveways, sidewalks, sidewalks and potholes
Regional Insights
By region, the global recycled asphalt market is segmented into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa. North America dominates the consumption of recycled asphalt across the globe and is expected to capture a 37.2% market share. The U.S. Department of Transportation has approved the use of recycled asphalt in paving mixtures in several U.S. states, including Minnesota, Missouri, North Carolina, Ohio, Oregon, Texas, and Georgia. Additionally, several other states will allow the use of recycled asphalt for paving applications during the forecast period. The Asia-Pacific recycled asphalt market is also expected to witness significant growth owing to increasing infrastructure development in emerging markets and growing demand for sustainable building materials. The high proportion of virgin asphalt in the context of frequent fluctuations in oil prices is also driving the growth of recycled asphalt market in the region. Moreover, governments of countries such as India, China and South Korea are investing in infrastructure industries. Increased demand from road repairs and construction sites has increased sales of recycled asphalt in the region. Major road infrastructure projects such as China’s One Belt, One Road Initiative (BRI) have given a great impetus to the expansion of the recycled asphalt industry. BRI’s total funding is between $50 billion and $100 billion annually. This includes the cost of carrying out road repairs. Similarly, in October 2020, the Indian government allocated US$371.13 million for nine national highway projects in Tripura. Asia is expected to have about 25% market share of recycled asphalt in the period from 2021 to 2031.
Key Companies Insights
Key players are focusing on technology collaborations, partnerships, mergers and acquisitions strategies to gain competitive advantage and expand product portfolios and business footprints. 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 expanded its operations in Texas, USA with a $21 million investment to build a new 400,000 square foot facility in Gainesville. The company plans to move to a new facility in Gainesville, Florida around January 2022.
Some of the key players operating in the global recycled asphalt market include:
- Bodean Company
- CertainTeed
- Cherry Companies
- Downer Group,
- GAF Materials
- Lone Star Paving
- Owens Corning
- Pavement Recycling System, Inc.
- The Kraemer Company, LLC
- Wirtgen Group
- Oldcastle Materials
- Sinopec
- Shell Bitumen, Corporation.
- Tokuyama Corporation
- Evonik Industries AG
- Merck Millipore Limited
- Nippon Chemical Industrial Co. Ltd.
- PQ Group Holdings Inc.
- Occidental Petroleum Corporation
- CIECH S.A.
- Other Players
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Segments
By Type
- Hot Recycling Asphalt
- Cold Recycling Asphalt
By Application
- Patch Material
- Hot Mix Asphalt
- Temporary Driveways and Roads
- Road Aggregate
- Interlocking Bricks
- New Asphalt Shingles
- Energy Recovery
- Others
By Geography
- North America
o U.S.
o Canada
o Mexico
- Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Russia
- Asia-Pacific
o Japan
o China
o India
o Australia
o South Korea
o ASEAN
- Latin America
o Brazil
o Argentina
o Colombia
- MEA
o South Africa
o Saudi Arabia
o UAE
o Egypt
Key Points:
Define, describe and forecast Recycled Asphalt product market by type, application, end user and region.
Provide enterprise external environment analysis and PEST analysis.
Provide strategies for company to deal with the impact of COVID-19.
Provide market dynamic analysis, including market driving factors, market development constraints.
Provide market entry strategy analysis for new players or players who are ready to enter the market, including market segment definition, client analysis, distribution model, product messaging and positioning, and price strategy analysis.
Keep up with international market trends and provide analysis of the impact of the COVID-19 epidemic on major regions of the world.
Analyze the market opportunities of stakeholders and provide market leaders with details of the competitive landscape.
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