Recycled Asphalt Market

Market Definition

The market refers to the industry involved in the collection, processing, and reuse of asphalt materials from old roads, roofs singles, pavements, or construction debris. This market is driven by the demand for sustainable and cost-effective solutions for road construction and maintenance.

Recycled asphalt is created by removing, grinding, and reprocessing existing asphalt material from roads or other infrastructure projects. Once processed, it can be reused for new road construction, resurfacing projects, or other related applications.

Recycled Asphalt Market Overview

The global recycled asphalt market size was valued at USD 7.78 billion in 2023, which is estimated to be USD 8.42 billion in 2024 and reach USD 17.46 billion by 2031, growing at a CAGR of 10.99% from 2024 to 2031.

Rising infrastructure needs, driven by urbanization and expanding transportation networks, fuel the demand for recycled asphalt. Emphasis on sustainable, cost-effective solutions for road construction and maintenance grows as cities grow.

Major companies operating in the recycled asphalt industry are Owens Corning, Cherry Companies, Downer Group, John Deere GmbH & Co. KG (WIRTGEN GROUP), GAF Materials LLC, CertainTeed, LLC., Atmos, LINTEC & LINNHOFF HOLDINGS PTE LTD., ALLTECH, BoDean Company, Kraemer Mining & Materials, Skanska AB, BURNCO, Holcim, and Tarmac.

The market offers a cost-effective solution for construction and maintenance projects by providing an affordable alternative to virgin materials. Recycled asphalt reduces the need for new raw materials and lowers overall project costs, making it an attractive option for both public and private sector initiatives. Thus, recycled asphalt is increasingly being utilized in road construction, resurfacing, and infrastructure maintenance projects globally.

• In October 2023, Owens Corning advanced its shingle recycling initiatives, aiming to recycle two million tons annually by 2030. The company highlights the cost-saving potential of using recycled materials in paving by deconstructing waste shingles into asphalt, granules, and filler.

Key Highlights:

1. The recycled asphalt industry size was valued at USD 7.78 billion in 2023.
2. The market is projected to grow at a CAGR of 10.99% from 2024 to 2031.
3. North America held a market share of 33.24% in 2023, with a valuation of USD 2.59 billion.
4. The reclaimed asphalt pavement segment garnered USD 4.50 billion in revenue in 2023.
5. The hot recycling segment is expected to reach USD 9.33 billion by 2031.
6. The sports surfaces segment is anticipated to register the fastest CAGR of 11.30% during the forecast period.
7. The market in Asia Pacific is anticipated to grow at a CAGR of 11.87% during the forecast period.

Market Driver

"Rising Infrastructure Needs"

The growing demand for infrastructure development, especially in urban areas, is driving the recycled asphalt market. The need for efficient road construction and maintenance grows as cities expand.

• According to the World Bank Group, approximately 56% of the global population currently resides in cities. This urbanization trend is expected to persist, with the urban population more than doubling by 2050. By that time, nearly 70% of the global population will be living in urban areas.

Recycled asphalt offers a cost-effective and environmentally friendly solution, reducing reliance on virgin materials. This trend is particularly evident in urbanizing regions where infrastructure projects are prioritized to accommodate increasing populations. The push for sustainable development further enhances the adoption of recycled asphalt in these expanding urban environments.

• In October 2024, Aggregate Industries made significant strides toward achieving 100% recycled asphalt, incorporating up to 95% recycled content in their asphalt mixtures. This supports the growing demand for sustainable construction solutions, driven by urbanization and resource scarcity.

Market Challenge

"Quality Control"

A major challenge in the recycled asphalt market is the variability in the quality of materials, which can affect performance in certain applications. Differences in the age, source, and processing of recycled asphalt can result in inconsistencies, potentially impacting durability and functionality.

Companies can improve quality control processes by refining recycling methods and using advanced testing techniques. These solutions ensure that recycled asphalt meets the required standards, enhancing its performance and reliability for a variety of construction projects.

Market Trend

"Circular Economy Adoption"

A growing trend in the recycled asphalt market is the adoption of circular economy principles, where materials are continuously reused and recycled to minimize waste. Increasing interest in closed-loop systems is driving innovations in asphalt recycling, allowing old pavement materials to be repurposed for new construction.

This shift aligns with sustainability goals, as it reduces the need for virgin materials and lowers environmental impact. As a result, more companies are investing in technologies and processes to enhance recycling rates and promote circularity in construction.

• In November 2024, Aggregate Industries contributed to the A439 road safety improvement project by supplying asphalt with 95% recycled content. The A439 project aims to enhance road safety and accessibility in Warwickshire, England. This supports the circular economy trend, as sustainable construction practices reduce carbon emissions while maintaining high-quality road performance, driving further adoption of recycled materials.

Recycled Asphalt Market Report Snapshot

Segmentation	Details
By Product	Reclaimed Asphalt Pavement, Recycled Asphalt Shingles
By Technology	Hot Recycling, Cold Recycling
By Application	Paving Roads & Driveways, Parking Lots, Site Development, Recreational Areas, Sports Surfaces, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Product (Reclaimed Asphalt Pavement, Recycled Asphalt Shingles): The reclaimed asphalt pavement segment earned USD 4.50 billion in 2023, due to increased infrastructure investments and growing demand for cost-effective, sustainable materials.
• By Technology (Hot Recycling, Cold Recycling): The hot recycling segment held 54.02% share of the market in 2023, due to its ability to reuse materials efficiently and reduce environmental impact in road construction.
• By Application (Paving Roads & Driveways, Parking Lots, Site Development, Recreational Areas, Sports Surfaces, Others): The paving roads & driveways segment is projected to reach USD 5.23 billion by 2031, owing to urbanization, infrastructure development, and the adoption of sustainable construction practices.

Recycled Asphalt Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America recycled asphalt market accounted for a market share of around 33.24% in 2023, with a valuation of USD 2.59 billion. North America leads the market, fueled by strong government regulations, eco-friendly construction practices, and growing infrastructure investments. The region’s emphasis on circular economy principles, coupled with technological innovations in asphalt recycling, has driven widespread adoption.

Additionally, the increasing focus on sustainability in urban planning and road maintenance supports the steady demand for recycled materials. These factors collectively position North America as a key player, driving both economic and environmental benefits in the asphalt industry.

The recycled asphalt industry in Asia-Pacific is poised for significant growth at a robust CAGR of 11.87% over the forecast period. Asia-Pacific is registering rapid growth in the market, driven by the increasing demand for sustainable infrastructure solutions. The region’s focus on circular economy practices, by utilizing recycled materials, is propelling this growth.

The emphasis on reducing waste and carbon footprints is growing as urbanization accelerates and construction activities increase. This trend, coupled with government initiatives and technological advancements, positions Asia-Pacific as the fastest-growing region in the market.

• In March 2025, Boral launched an Australian-first crumbed rubber asphalt using Off the Road (OTR) tyres, enhancing pavement durability and sustainability. This innovation reduces maintenance costs, extends road lifespan, and supports a circular economy in the market.

Regulatory Frameworks

• In the U.S., the Environmental Protection Agency (EPA) protects public health and the environment by enforcing regulations on the use of Reclaimed Asphalt Pavement (RAP), aiming to reduce emissions and promote sustainability.
• In the EU, the European Commission’s Circular Economy Action Plan promotes recycling initiatives across product life cycles, encouraging sustainable consumption, waste prevention, and the reuse of materials, including increased asphalt recycling.
• The National Asphalt Pavement Association (NAPA) is a trade association representing the asphalt pavement industry in the U.S. It advocates for the asphalt pavement industry’s interests, including promoting the use of asphalt for road construction and maintenance.

Competitive Landscape:

Companies in the recycled asphalt industry are focusing on innovative technologies to improve sustainability and performance. They are developing advanced methods to recycle asphalt more efficiently, increasing the use of reclaimed materials in road construction.

These efforts aim to reduce waste, lower carbon emissions, and enhance the durability of asphalt, contributing to more eco-friendly and cost-effective paving solutions.

• In October 2024, Saint-Gobain launched RenuCore by CertainTeed, a technology that pelletizes asphalt shingle waste for reuse in hot mix asphalt paving, enhancing sustainability and performance while reducing landfill waste and increasing recycled content in roads.

List of Key Companies in Recycled Asphalt Market:

• Owens Corning
• Cherry Companies
• Downer Group
• John Deere GmbH & Co. KG (WIRTGEN GROUP)
• GAF Materials LLC
• CertainTeed, LLC.
• Atmos
• LINTEC & LINNHOFF HOLDINGS PTE LTD.
• ALLTECH
• BoDean Company
• Kraemer Mining & Materials
• Skanska AB
• BURNCO
• Holcim
• Tarmac

Recent Developments (Partnerships)

• In January 2025, Saint-Gobain's RenuCore partnered with Mark II Transfer Station LLC in Kansas City, Missouri. This collaboration enables the recycling of asphalt shingles into high-performance paving products, advancing sustainability efforts and contributing to a circular economy in the construction industry.
• In April 2024, Northstar Clean Technologies received its first delivery of asphalt shingles at the Empower Calgary Facility as part of a new supply agreement with Ecco Recycling. This marks a significant step in Northstar’s mission to reprocess asphalt shingles sustainably and support circular economy practices.