The market for seal coat market is expected to grow at a CAGR of over 4% during the forecast period. The major factor driving the market studied is the increase in pavement construction.
- Increasing investments in infrastructure and road connectives are expected to act like an opportunity for the market.
- North America dominated the market across the globe with the largest consumption in a country such as the United States, Canada, etc.
Key Market Trends
Driveways and Parking Lots to Dominate the Market
- Sealcoatings are used to reduce the effects of asphalt binders or other materials used in parking lots or driveway constructions, thereby increasing their lifespan. Further, seal coatings provide a layer of protection by blocking out harmful intrusions, such as water, oils, and UV ray damage.
- These coatings also result in a slip-resistance surface and are aesthetically pleasing owing to their deep black finish, which adds a level of magnificence to the parking lot or driveway.
- Moreover, driveways or parking lots are exposed to excessive chemicals, such as gasoline and water. Such external elements can weaken and eventually destroy the layers of asphalt. The application of a seal coat acts as a barrier to such chemicals, water, and even UV rays. It further saves money and time spent in repairing cracks and damages to the driveway or parking lot, thereby expanding the lifespan of such.
- In North America and Europe, almost every building (from small to big housing or high-rise buildings) has its own driveways and parking lots. Additionally, shopping centers, schools, hospitals, malls, multiplexes, stadiums, airports, etc. have their own driveways and parking lots. Increasing the construction of such buildings and other commercial institutions in these regions is expected to drive the market for seal coat through the years to come.
- According to the US Census Bureau, new privately-owned housing units under construction were counted at 12,602 thousand units during the period January to November 2019. From October to November 2019, the housing units under construction increased from 1,158 thousand units to 1,170 thousand units in the United States. The country is also embarking on a significant number of commercial construction projects, all of which are in various stages of development. Forbidden City And All Net Arena & Resort in Las Vegas, Ko Olina Atlantis Resort in Hawaii, Miami Herald Redevelopment in Florida, The Wharf - Phase 2 in Washington DC are some of the commercial projects that the country is embarking currently. The development of all such projects will require the construction of new driveways and parking lots, which in turn will increase the demand for seal coat through the years to come.
- Moreover, according to the National Asphalt Pavement Association, more than 90% of surface parking areas are surfaced with asphalt pavement in the United States. Thereby, any new construction of parking areas will significantly impact the market demand for seal coats, as they are almost mandatory to be used for asphalt pavement preservation.
The United States to Dominate the North America Region Market
- In the country’s transportation networks, seal coat is used in numerous areas, including paving roads, parking lots, airports, biking and walking trails, and other paved surfaces. The United States majorly relies on asphalt for the construction of pavements, as it offers an advantage of reclaiming more 99% of the asphalt pavement, which can be reused in future projects.
- As per the National Asphalt Pavement Association (NAPA), about 3,500 asphalt mix production sites operate in the country, with a production of around 350 million metric tons of asphalt pavement material per annum.
- As per the NAPA sources of 2018, the country had more than 4.1 million miles of public roads, out of which more than 1.3 million miles of public roads were unpaved. Besides, more than 90% of the surface parking areas in the country were surfaced by asphalt pavement.
- During 2018, there were 19,622 airports in the country. The United States set a bar of USD 1 billion in infrastructure expenditure, with many airport projects to reach conclusion during 2019-2021. Moreover, every year, the aviation industry witnesses grants and passenger facility charges of USD 4 billion from the Airport Improvement Program, which is spent on the airfield runways, aprons, and taxiways.
- Furthermore, about 35% of the asphalt pavement expenditure in the country is recorded from the residential and non-residential construction segment. In the United States, the total number of new residential housing units recorded a rapid growth of 7.84% in 2018, as compared to residential housing units in 2017. Besides, the expenditure of the United States on commercial building construction is forecast to grow by more than 4% annually over the forecast period. With the increased trend of nuclear families in the country, apartments have become one of the major preferences, leading to the construction of high-rise residential buildings and townships, thus, increasing the requirement of parking spaces, walkways, and driveways in such segments.
The seal coat market is highly fragmented. Some of the key players include Seal Master, RaynGuard, Neyra, STAR Inc., and Crafco Inc, amongst others.
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