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

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

The Asphalt Pavers Market was valued at USD 2.38 Billion in 2021 and is expected to surpass a net valuation of USD 6.32 Billion by 2027 end, registering CAGR of above 5% during the forecast period.

Owing to the increased spending by governments for high-quality roads and highways for swift movement of goods and passengers even from remote locations to all major cities all around the world to enhance the quality and stretch of roads and highways, smart city initiatives are creating demand for asphalt pavers.

Moreover, during 2020 covid-19, demand for asphalt paver reduce amid the rising virus cases across the globe. In addition, the government of almost all regions imposed strict lockdowns which delayed the road construction projects and thus reduced the procurement orders for asphalt pavers. Although soon after Q3 21, demand regained its growth phase after the government pulled off the restriction slowly. The government and private road projects again took their pace and increased demand for asphalt pavers in the market

Over the longer term, the asphalt road paver equipment globally is set to witness steady growth in post 2022 due to increased activities and reforms by the government and increased budget allocation with respect to the development of roads and highways.

Countries like China, India, United States and Germany have been observed as the bedrock for the growth of asphalt paver and milling equipment owing to increased public and private investments in highways and road development in the region. Various initiatives by the government is set to propel the demand for asphalt paver and milling equipment in the longer term. For instance, In FY21, around 13,298 km of highway roads were constructed across Indian states.

Further, In June 2021, the Ministry of Road Transport and Highways has constructed around 2,284 km of national highways in comparison with its execution of 1,681 km in June 2020. This justifies huge development being imposed by the government to boost the Indian mobility network. Furthermore, the Government now aims to construct around 65,000 km of national highways costing worth Rs. 5.35 lakh crore by end of FY2022.

Asia-Pacific region is under the spotlight for mass deployment of the asphalt paver over the long term forecast period. Region showcases immense potential interm of public and private investment coupled with pipeline road construction projects. For instance, In April 2022, the Chinese government under its geopolitical favors planned to extend its reach in Bangladesh by extending belt and road initiatives. Beijing has proposed a road development project worth RMB 7.26 million for this project to enter Bangladeshi roadways. 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 the global market.

Key Market TrendsTrack Pavers Segment Expected to Drive Demand in the Market

Track pavers have been widely accepted compared to wheeled paver owing to its superior traction for jobs that require wide pulls or large mix-delivery vehicle. In addition, track pavers are much mobile and easily shipped to the desired locations where road construction projects are undergoing. Players in the segment are offering reliable and technological advance track pavers to witness elevated sales bars. For instance,

• In April 2022, Dynapac unveiled one of its new models of highway pavers which is an 8-foot tracked paver D25T in the United States market. This came after the United States federal government offered USD 1 trillion for road and highway development.
• In February 2022, Wirtgen introduced SP 102i concrete pavers in the market. The modular design of the two-track concrete paver enables customers to handle a variety of applications by adding or deleting necessary modules.

With increasing spending on roads, 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. Considering these factors and developments, demand for track pavers is expected to witness a high growth rate during the forecast period.

Asia-Pacific Region Anticipated to Grow at Significant Level During the Forecast Period

The Asia-Pacific region remains the largest market for asphalt pavers market in the year 2021 and the developments in the market to further rise over forecast period contributing for the growth of market during the forecast period. This growth can be attributed to factors such high rate of road and highway construction in the region.

Countries including India, China, and ASEAN remained key epicentre for high and road construction to elevate the demand for asphalt pavers. In addition, Covid-19 has also affected the market during complete 2020. All the ongoing government projects and private construction were halted amid the lockdowns and resulting in reduced demand for asphalt paver.

Although soon after Q32021, road and infrastructure activities were again initiated which helped the demand to regain its growth phase to the pre-covid-19 crisis. During the long term, increased public and private investment in road and highway construction is expected to remain a key growth enabler for asphalt paver demand. For instance:

• India built 13,298 km of motorways in FY21 despite the pandemic and the lockdown. The Ministry of Road Transport and Highways has received funding from the Indian government of Rs. 199,107.71 crore (US$ 26.04 billion) as part of the Union Budget 2022–23. 13,298 km of highway were built throughout India in FY21.
• In June 2021, An IDR 8.5 trillion which is (USD 587 million) refinancing credit has been negotiated for an Indonesian toll road project financed by the Canada Pension Plan Investment Board (CPPIB). The 117 km Cikopo-Palimanan (Cipali) toll road's project sponsors finished the overall refinancing in May 2021 and started the road construction.
• In October 2021, The Pasig River Expressway (PAREX) project has received official permission from the Philippine government for road construction projects. San Miguel Corporation will construct the expressway in Philippines, with a project cost of USD 1.88 billion. The construction will strengthen the connection between Circumferential Road 6 and Radial Road 10. It is anticipated that the new road will aid in reducing rush-hour traffic congestion.

Moreover, the major players in the region are spending heavily on research & development of asphalt pavers to increase the rate of construction of roads. Thus, considering these developments and factors demand asphalt pavers in the Asia-Pacific region is expected to witness a high growth rate.

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 the research and development of asphalt pavers. Players are launching a new paver, upgrading the technology, and looking forward to electrifying the fleet. For instance,

• In May 2022, Caterpillar Inc. announced updates to the large asphalt paver line. The company improved the performance, fuel efficiency, comfort, and operational benefits of its new F-series asphalt pavers, built upon the new Cat AP600, AP655, AP1000, and AP1055 pavers. These new models continue to develop into tools that give contractors a high return on investment with to additional screed offerings, technology that helps with paver setup, and better material retention.
• In July 2021, The first 100% electric asphalt paver in the world is now being tested in Europe. KWS, a division of VolkerWessels Infrastructure, is currently developing the first production model in close cooperation with UMS (the developer), Dynapac (the manufacturer), and Van der Spek (dealer).

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