Paving Asphalt in Highways and Streets to Reach 13.7 Million Tons in 2021

Demand for paving asphalt products in all applications is forecast to advance 3.4% per annum

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Jul 12, 2017, 13:29 ET

CLEVELAND, July 12, 2017 /PRNewswire/ -- Demand for paving asphalt used in highways and streets is forecast to advance 3.3% per annum to 13.7 million tons in 2021, aided by increases in government funding and rising highway and street construction activity. Demand for paving asphalt products in these applications is primarily driven by government funding for highway and street construction, which accounts for 97% of nonbuilding paving asphalt demand. These and other trends are presented in Paving Asphalt Market in the US, a new study from The Freedonia Group, a Cleveland-based industry research firm.

Legislation created a favorable funding environment for highway maintenance. In addition, many states are considering legislation to increase fuel excise taxes, which help fund highway projects. In April 2017, California, the nation's most intensive user of paving asphalt products, approved a tax increase of 12 cents per gallon, which is expected to raise over $5 billion every year for highway projects. More favorable economic conditions will boost overall tax revenues used to fund paving projects; additionally, many legislative bodies will approve direct funding mechanisms -- such as grants or bond issues -- to allocate additional capital for such projects as road construction and highway repair and rehabilitation.

Demand for paving asphalt products in all applications is forecast to advance 3.4% per annum to 21.9 million tons in 2021. Factors driving growth include the passage of the Fixing America's Surface Transportation (FAST) Act; efforts by state governments to increase infrastructure budgets and fuel taxes; rising highway, street, and other nonbuilding construction activity; and strong gains in nonresidential improvement and repair activity.

More information about the study is available at https://www.freedoniagroup.com/industry-study/paving-asphalt-in-the-us-by-product-application-and-region-3528.htm

Related studies include:

#3552 Asphalt Market Forecasts (to be published July 2017)
#3518 Asphalt Shingles Market in the US (May 2017)

About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Construction & Building Products studies can be purchased at www.freedoniagroup.com, www.marketresearch.com and www.profound.com.

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SOURCE The Freedonia Group