Demand for asphalt used in paving, roofing and other products is forecast to rise 3.0 percent annually to 27.6 million tons in 2021. In terms of weight, asphalt used in paving products is projected to see the most rapid growth, reaching nearly 22 million tons in 2021.
These and other trends are presented in Asphalt Market Forecasts, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Gains will be boosted by:
- Favorable federal highway funding environment.
- Legislative pressure to repair the nation’s infrastructure.
- Rising office and commercial construction spending.
- Strong growth in housing starts.
Demand for asphalt in paving applications is projected to rise 3.4 percent annually to 21.9 million tons in 2021. This is a turnaround from the declines seen in the 2006-2011 period, when falling tax revenues caused government transportation departments to reduce or cancel road construction and maintenance projects.
However, demand for asphalt paving products is not expected to reach the 2006 peak level.