Market Trends of Polymer Concrete Industry
Increasing Demand for Asphalt Pavement
- Asphalt concrete is commonly used to surface roads, parking lots, airports, as well as dams. Owing to the advancements in the construction industry, polymers are added to modify the viscoelastic behavior of asphalt cement.
- Polymer-modified hot mix asphalt cement is being used majorly in the growing road network. The primary benefit of using these high-performance asphalts is improved rutting resistance, with less thermal (cold-temperature) cracking and overall improved mixture durability being the secondary benefits.
- Additionally, some modified binders provide improved stripping (moisture damage) resistance. Elastomers (rubbers or elastics) and elastomers (plastics) are the most commonly used types. Styrene-butadiene rubber (SBR) and styrene-butadiene-styrene (SBS) are frequently used elastomers.
- According to the CIA(Central Intelligence Agency), from 2002 to 2023, the road network size worldwide accounts for 63.7 million km. It includes asphalt paved roads, also known as motorways, expressways, and so forth, accounting for the major demand for polymer concrete.
- According to the CIA, the United States, China, and India accounted for the majority of paved lane additions globally. Paved lane kilometers accounted for 76% of the total global road lane kilometers in the recent past.
- Additionally, the fraction of paved roads is expected to increase in the coming years. It is, thereby, increasing the demand for polymer concrete in asphalt pavement applications, driven by the increasing road traffic. Furthermore, global road traffic activity is expected to more than double to nearly 43 trillion annual vehicle kilometers by 2050, according to OECD (Organisation for Economic Cooperation and Development).
- Increasing investments to improve road connectivity is highly prioritized for any country, and this affects the development of the region. Increasing projects will demand for high use of asphalt concrete for road building. Under the Union Budget 2023-24, the Government of India allocated INR 2.7 trillion (USD 33 billion) to the Ministry of Road Transport and Highways.
- According to Global Infrastructure Hub, global road capital construction, reconstruction, and operations and maintenance costs for 2040 are by far the largest infrastructure spending, with annual capital costs mounting up to USD 1.3 trillion over the next 20 years. It is because developing countries are aiming to ramp up roadway construction to meet the travel demand.
- Therefore, owing to the trends above, the demand for polymer concrete is expected to increase, during the forecast period for asphalt pavements.
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North America to Dominate the Market
- North America region is expected to dominate the market studied during the forecast period, with the United States holding the largest market share in revenue.
- According to the AGC (Associated General Contractors of America), the construction industry is a significant contributor to the US economy. The sector holds more than 919,000 construction establishments in the US in the 1st quarter of 2023, with over 8 million employees, creating nearly USD 2.1 trillion worth of structures each year. It is one of the largest customers for manufacturing, mining, and various services.
- The primary reasons for the industry's growth in this region include growing construction activities, new bridges in Clinton, Beaver, Clearfield, etc., and rising road construction activities.
- The construction industry in the United States continued to expand recently, owing to a strong economy and positive market fundamentals for commercial real estate, along with increased federal and state funding for public works and institutional buildings.
- According to AIA (American Institute of Architects), the market size of the global construction market is estimated to be USD 14.4 trillion in 2030. The subsequent increase will enhance the polymer concrete market's growth during the forecast period.
- Additionally, healthcare construction is expected to rise by around 5% in the region. Building in the commercial sector is expected to increase by 2%, with office construction taking the lead at about 6%, followed by retail building at 1%.
- Roads in the US are mostly asphalt paved, and according to SAPA Inc. (State Asphalt Pavement Association), the asphalt industry stands as the United States' leading recycler, with asphalt paving accounting for 94% of the country's 2.27 million miles of paved roads. It includes 65% of the interstate highway system.
- Due to the factors above, the demand for polymer concrete will increase in the region during the forecast period.
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