Worldwide annual consumption of asphalt is at more than 100 million tons. In the United States, generally 90% of liquid asphalt cement consumed is used for road paving and approximately 10% is used for roofing products, with other specialty applications accounting for only a very small fraction of consumption.
Though asphalt occurs naturally, the majority of today’s asphalt is produced as a residual product of the crude oil refining process. Most refiners focus on refining more expensive, lighter, “sweeter” crudes to produce the higher-value products such gasoline and diesel fuel. In all, about two to three percent of all refined crude oil in the United States becomes asphalt.
Most crude oil asphalt comes from less expensive, heavier, “sour” crude oils rather than the more expensive lighter, sweet crude oils. For crude oil refiners asphalt accounts for a much larger portion of the product refined.
Demand for asphalt is driven to a small degree by the private sector, but most demand comes from federal, state, and local governments. Funding for highway and road infrastructure construction and maintenance plays the largest role, but other public sector projects such as airport runway and taxiway construction can also affect demand. Since funding for highway and road construction and maintenance projects are often set for several years, demand tends to remain rather constant growing more or less at the rate of inflation. However, the recent prospect of massive infrastructure spending to stimulate growth in the U.S. economy under the new Obama administration suggest demand will likely increase significantly in the coming years.
Specialists in Business Information (SBI) estimates the U.S. market for liquid asphalt cement totaled $11.7 billion in 2008, up 34% from $8.7 billion in 2007. This report explains why, and forecasts what lies ahead for the asphalt industry from 2009 - 2013.
Scope of the Report
This SBI report contains data and analysis describing the U.S. market for asphalt. The report focuses on the primary commodity market, refined liquid asphalt cement, and the secondary product market, asphalt paving mixtures. In addition, limited data and analysis are provided for the asphalt shingle and coating materials manufacturing market (asphalt roofing products). Chapter 3 covers the liquid asphalt cement market while Chapter 4 covers the asphalt paving mixtures and asphalt roofing products market. SBI refers to the asphalt paving and roofing markets as the asphalt products market. Chapter 5 covers the competitive landscape of asphalt refiners and blenders with data and analysis on U.S. asphalt refining capacity and utilization including profiles of major asphalt refiners, blenders, and paving mixture manufacturers. Chapter 6 looks at economic and market trends affecting the asphalt industry. Included are an analysis and forecast through 2009 of gross domestic product (GDP), an in-depth cost and price analysis of various components of the asphalt market as well as the competing concrete market, and a look at the shift to warm mix, eco-challenges and weather/seasonality trends.. Finally, Chapter 7 provides a snapshot of the two end-user markets, asphalt paving and asphalt roofing.
Market Insights: A Selection From The Report
U.S. Market Nears $12 Billion
Asphalt Industry Big Winner in Obama Stimulus Plan
New York, January 28, 2009 - Thirty billion dollars is the current figure specified for highway construction in the American Recovery and Reinvestment Act moving swiftly toward signature by President Barack Obama. That’s a lot of asphalt!
The President’s commitment to a colossal investment in the nation’s road infrastructure is further reinforced by the proposed National Infrastructure Reinvestment Bank that will invest $60 billion over ten years and generate nearly two million new jobs. In the all-new report, Asphalt Manufacturing in the U.S., industrial market research publisher SBI estimates that as much as 28% of the proposed $60 billion will go towards increasing paving projects across American roads.
SBI subsequently expects the domestic asphalt industry to surge over the next four years and build on the nearly $12 billion the U.S. market for liquid asphalt cement totaled in 2008, which was a 34% increase from almost $9 billion in 2007. Through 2013, SBI forecasts the U.S. liquid asphalt cement market will top $16 billion accompanied by a compound annual growth rate (CAGR) of 7%. Overall, the U.S. asphalt products market is expected to grow at a CAGR of 10% through 2013 to over $38 billion compared to almost $24 billion in 2008.
“The major infrastructure spending expected by the Obama administration and a democratic Congress will mean greater demand for asphalt paving mixtures following the passage of a bill, which we at SBI expect may happen as early as spring 2009. The effects will be most noticeable in 2010 and beyond as state and local governments get their hands on much needed funds for projects already on hold,” says SBI Associate Publisher Shelley Carr.
Historically, the demand for asphalt is primarily driven by federal, state, and local governments seeking to fund highways and road infrastructure construction and maintenance.
Asphalt Manufacturing in the U.S. provides comprehensive market information for an asphalt industry certain to benefit from President Barack Obama's determination to create jobs in the U.S. quickly. Included are forecasts of what lies ahead for the asphalt industry from 2009-2013. The report focuses on the primary commodity market (refined liquid asphalt cement) and the secondary product market (asphalt paving mixtures). Limited data and analysis are also provided for the asphalt shingle and coating materials manufacturing market (asphalt roofing products).
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