Freedonia Market Research Report Analyzes Global Asphalt Demand Trends

World demand for asphalt products is forecasted to increase 2.6 percent per year to 123 million metric tons in 2011.  Growth prospects for asphalt will vary widely, with the more developed areas (North America, Western Europe and Japan) registering relatively slow gains, while developing economies post much more robust advances.  These and other trends, including market size and market leaders, are presented in World Asphalt, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

North America is the largest regional market for asphalt, accounting for 33 percent of total world demand in 2006.  The United States, with its extensive network of roads and highways and its huge expenditures on construction activity, represents the largest national market for asphalt, and dominates North American consumption.  Western Europe accounted for 21 percent of world demand in 2006.  However, both Western Europe and North America are relatively mature markets and will exhibit below average rates of growth through 2011, as will Japan, another highly industrialized, mature market.

In contrast, prospects for asphalt are much more robust in the rest of the world.  In the Asia/Pacific region, which accounted for 30 percent of total world demand in 2006, growth is being driven by the rapid industrialization being undertaken in developing industrial economies, most notably China and India, but also smaller markets such as Indonesia, Thailand and South Korea.  In the remaining regions of the world (Latin America, Eastern Europe and the Africa/Mideast region), demand growth will outpace gains in Western Europe or North America, but will trail the fast-growing Asia/Pacific region. 

Paving products, which accounted for 84 percent of world asphalt demand in 2006, will continue to dominate consumption, reflecting improved levels of road building activity.  Generally, asphalt emulsions and polymer modified asphalts will post the faster gains, while asphalt cement and cutback asphalts lag.  Demand for asphalt in roofing products will increase 1.8 percent annually to 16 million metric tons in 2011.  Gains will benefit from increasing construction activity and growing market penetration in countries where asphalt roofing currently accounts for a relatively small portion of total roofing demand.  In particular, opportunities will continue to exist in developing Asia, Latin America, Eastern Europe and the Africa/Mideast region. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.