The Freedonia Group released a study, “Asphalt,” that forecasts U.S. demand for asphalt to increase 3.3 percent annually to 26.8 million tons in 2019. According to the study, asphalt demand will be ignited by a rebound in building construction expenditures, as well as efforts of state and local governments to maintain the nation’s infrastructure.
The study expects demand for asphalt in paving applications to rise 3.1 percent per year to 19.6 million tons through 2019. In 2014, paving accounted for the largest end use for asphalt with 74 percent in consumption, according to the Freedonia Group. However, this number is far below the demand for asphalt in paving applications in 2004, due to the Great Recession. The Freedonia Group expects the increased demand for asphalt to be supported by improving economic conditions and the need to fix and repair older roads and highways.
According to the Freedonia Group, among asphalt paving products, asphalt emulsions will exhibit the fastest growth in demand through 2019, boosted by increasing interest in in-place recycling. Despite this, asphalt cement will remain the leading paving material used in the U.S. due to the prevalence of hot-mix and warm-mix asphalts in paving jobs. Additionally, the firm reports the demand for asphalt used to make roofing and other building construction products will rise 3.7 percent annually to 7.2 million tons in 2019. This increase will be fueled by strong growth in housing starts.
The Freedonia Group’s industry study presents historical demand data, as well as forecasts by use, product, market and U.S. region. The study also considers market environmental factors, examines the industry structure, evaluates company market share and profiles 39 U.S. industry competitors.
