Asphalt Pavers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asphalt Pavers Market is projected to grow with a CAGR of more than 4 % during the forecast period.

Key Highlights

• Owing to the increased spending by governments for high quality roads and highways for swift movement of goods and passengers even from the remote locations to all major cities all around the world to enhance the quality and stretch of road and highways, smart city initiatives are creating demand for asphalt pavers.
• As of March 01, 2019, the total length of National Highways in India stood at 132,500 km. While in United States it is 259,032 Km. In India the rate of construction is growing with a double-digit growth rate because of the developing nature of the economy and still many remote areas are not having proper connectivity by road.
• The increased demand for road traffic will require the continued construction and improvement of roads in both urban and rural areas and will likely drive the demand in global market.

Key Market Trends

Increased Government Spending Driving the Growth

With the growing urbanization rate and the increase in industrial activities around the world, especially in the developing nations. The requirement for good roads, highways and bridges are on the priority list on the governments’ to-do list. With increasing spending on road, highways and expressways for swift and smooth movement of industrial products across the region and also the movement of people from remote regions to the major cities from where these products can either be consumed or exported.For instance,

• The Indian government on construction of roads, highways have allocated Rs. 91,823 Crore (USD 13.14 billion) in the union budget of financial year 2020-21, which was Rs. 83,016 Crore (USD 11.84 billion), with an increase by a rate of more than 10%.
• Similarly, the Chinese government has increased spending on highways by around 3% with a spending of 1.81 trillion yuan during first 10 months in the year 2019.
• The United States Federal Government spending on highways and streets have grown with a CAGR of about 17% during the year 2014-18 and has reached a value of about USD 1038 million.

Asia-Pacific Remains the Largest Market

The Asia-Pacific region remains the largest market for asphalt pavers market in the year 2019. This growth can be attributed to the factors such high rate of roads and highway construction in the region.

The government in the region are spending heavily on construction of roads and highways in countries like China and India due to the developing nature of the countries and high urbanization rate, requirement for connecting remote areas to major cities in the region. For instance, the rate of construction of roads in India per day in year 2014-15 was 12 km, this rate has been increased to more than double to 30km per day in the year 2018-19. The road sector accounts for about 3.14 per cent of India's gross value added and around 69 per cent of India's freight traffic and 90% of passenger traffic.

Similarly, in China, the length of Expressway is increasing with a growth rate of more than 3.5 % per year, which has reached to 142,600 Km of expressway in 2018.

The major players in the region are spending heavily on research & development of asphalt pavers to increase the rate of construction of roads.

Competitive Landscape

The Asphalt Pavers Market is fragmented, with many players accounting for a small market share. Some of the prominent companies in the Motor Graders Market are Caterpillar Inc., John Deere Co., Komatsu Ltd., SANY Group and others. These players are investing heavily in research and development of asphalt pavers.

For instance,

• In January 2020, Volvo CE launched 8-Foot Asphalt Pavers in North America, with high productivity, new engine technology and convenient service features on two new pavers help ensure laying a high-quality mat is simple for the operator. The Volvo engines have low vibration and extremely quiet operation, around 79.2 weighted decibels (dBa).
• In May 2020, Trimble Road works launched 2-D paving control platform for Asphalt Pavers, an automatic screed control system that can improve the accuracy and productivity in applications of asphalt paving. The main aim is to enable paving contractors to minimize the waste of expensive asphalt material, achieve optimal rideability results as well as finish their projects on time and budget.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support