Asphalt Products Manufacturing
Description
Companies in this industry manufacture asphalt and tar mixtures for paving and blocks, as well as asphalt shingles, roofing cements, and coatings. Major companies include building materials manufacturers such as Boral Limited, Carlisle, and Owens Corning; segments of large construction products companies such as Compagnie de Saint-Gobain, CRH (Ireland), and LafargeHolcim; and segments of large refined petroleum product companies such as BP, Marathon Petroleum, and Valero.
The global asphalt market size is expected to reach nearly $400 million by 2033, exhibiting a compound annual growth rate (CAGR) of 5.1% during the forecast period (2025 to 2033), according to Straits Research. Growth in demand for asphalt is strongest in the Asia/Pacific region, particularly China and India. Asphalt is often referred to as bitumen, petroleum bitumen, or asphaltic bitumen outside North America.
The US asphalt products manufacturing industry includes about 1,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $25 billion.
COMPETITIVE LANDSCAPE
Demand is determined primarily by the availability of government road-building funds and nonresidential and residential construction activity. The profitability of individual companies is strongly dependent on efficient operations. Large companies enjoy economies of scale in purchasing and the ability to invest in technologies that improve efficiency. Small manufacturers can compete through superior customer service and by serving small or rural markets. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue.
Because of the high cost of transportation relative to the value of the goods, trade in asphalt products is limited. Imports and exports of asphalt paving mixtures each account for about 2% of US production. Canada is the primary trade partner for US asphalt mix.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include asphalt paving mixtures and asphalt blocks (about 50% of industry revenue), and laminated or multilayered asphalt strip shingles, and individual shingles (about 25%). Asphalt mix is most commonly needed for new and reconstructed roadways. Asphalt is used to surface more than 90% of US roads and highways.
Asphalt is a mixture of sand, gravel, or rock, asphalt cement, and various additives. Sand and gravel (called "aggregate") make up over 90% of the asphalt. Asphalt cement (AC -- sometimes called bituminous cement) is the black substance left over when crude oil is distilled into gasoline and other liquid products. Asphalt is made up as "hot mix asphalt" (HMA) in a special mixing facility where the paving aggregates are dried and heated, and then mixed with melted asphalt cement.
The HMA is transferred to silos for short-term storage and delivered by truck to worksites. Some construction companies operate their own HMA facilities, but most buy their asphalt from independent operators.
The federal system for specifying asphalt quality is called Superpave. Superpave is a mixing system that allows designers to precisely specify proportions of various ingredients (including various grades of liquid asphalt cement) to produce a road surface with particular characteristics, and is designed to extend the life of the pavement.
Reconstruction of asphalt roads involves grinding off the top layer and replacing it. The ground up old pavement, called reclaimed asphalt pavement (RAP), can be added to HMA to form new asphalt. Every year, 70 million tons of asphalt pavements are reclaimed, and nearly all of it is reused or recycled, according to the National Asphalt Pavement Association.
The global asphalt market size is expected to reach nearly $400 million by 2033, exhibiting a compound annual growth rate (CAGR) of 5.1% during the forecast period (2025 to 2033), according to Straits Research. Growth in demand for asphalt is strongest in the Asia/Pacific region, particularly China and India. Asphalt is often referred to as bitumen, petroleum bitumen, or asphaltic bitumen outside North America.
The US asphalt products manufacturing industry includes about 1,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $25 billion.
COMPETITIVE LANDSCAPE
Demand is determined primarily by the availability of government road-building funds and nonresidential and residential construction activity. The profitability of individual companies is strongly dependent on efficient operations. Large companies enjoy economies of scale in purchasing and the ability to invest in technologies that improve efficiency. Small manufacturers can compete through superior customer service and by serving small or rural markets. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue.
Because of the high cost of transportation relative to the value of the goods, trade in asphalt products is limited. Imports and exports of asphalt paving mixtures each account for about 2% of US production. Canada is the primary trade partner for US asphalt mix.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include asphalt paving mixtures and asphalt blocks (about 50% of industry revenue), and laminated or multilayered asphalt strip shingles, and individual shingles (about 25%). Asphalt mix is most commonly needed for new and reconstructed roadways. Asphalt is used to surface more than 90% of US roads and highways.
Asphalt is a mixture of sand, gravel, or rock, asphalt cement, and various additives. Sand and gravel (called "aggregate") make up over 90% of the asphalt. Asphalt cement (AC -- sometimes called bituminous cement) is the black substance left over when crude oil is distilled into gasoline and other liquid products. Asphalt is made up as "hot mix asphalt" (HMA) in a special mixing facility where the paving aggregates are dried and heated, and then mixed with melted asphalt cement.
The HMA is transferred to silos for short-term storage and delivered by truck to worksites. Some construction companies operate their own HMA facilities, but most buy their asphalt from independent operators.
The federal system for specifying asphalt quality is called Superpave. Superpave is a mixing system that allows designers to precisely specify proportions of various ingredients (including various grades of liquid asphalt cement) to produce a road surface with particular characteristics, and is designed to extend the life of the pavement.
Reconstruction of asphalt roads involves grinding off the top layer and replacing it. The ground up old pavement, called reclaimed asphalt pavement (RAP), can be added to HMA to form new asphalt. Every year, 70 million tons of asphalt pavements are reclaimed, and nearly all of it is reused or recycled, according to the National Asphalt Pavement Association.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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