As the construction machinery industry continues to be a consolidated landscape, the asphalt paver market dominates a handful of prominent players. With their strong regional distribution network, Tier 1 companies in the asphalt paver market hold nearly 64 percent of the global market share. These players, including Fayat Group, Caterpillar, Astec Industry, Wirtgen Group (Vogele), Ammann, Zoomlion, Sakai and Sumitomo, use global expansion, pricing strategies and investments in research and development to maintain their market share.
The expansion of the sales network in emerging countries is one of the most important strategies for manufacturers of asphalt pavers. For example, Dynapac (Fayat Group) resumed business with Bau Power Group, which will act as Dynapac’s exclusive importer partner in Australia and New Zealand.
Manufacturers fix downtime
Construction companies that invest heavily in asphalt pavers remain concerned about paver downtime as the cost can run into the millions. Since paving is the main line of road construction, the effects of downtime can extend to successful applications of rollers, trucks and mills, making them extremely expensive.
To eliminate downtime and reduce operating costs, manufacturers use predictive maintenance systems that significantly reduce device downtime and repair costs. In addition, predictive maintenance technologies provide operator safety, reduce training time, and increase the resale value of the equipment.
Screed technology upgrades
Screed plays an important role in paving work by providing better asphalt quality as well as optimal density. Manufacturers in the asphalt paver market are actively using new technologies to achieve better quality of the asphalt mat and ultimately to extend the life of the pavement.
Pre-compaction is a very desirable feature among end users in asphalt pavers. Efficient pre-compaction contributes to a higher density of the asphalt mat and maximizes the reduction of air pores caused by rollers. Manufacturers supply screed components with a combination of configurations such as screed weight, installation speed and temperature control rod amplitude, which can be adapted to the requirements of the user.
Global infrastructure efforts support market growth
Road infrastructures are improving around the world to make socio-economic advances and increasingly focus on strengthening transport infrastructure.
Significant investments are made in new infrastructures and in the maintenance of existing ones. For example, in March 2018, the World Bank approved $ 210 million for the rural connectivity project in Madhya Pradesh, India.
In May 2018, the World Bank approved the project to improve and maintain National Road 13 in the PDR Laos.
The support from the World Bank and the expansion of the public-private partnership are strengthening connectivity between urban and rural markets through road and highway connectivity. It is expected that the key requirement for construction machinery in such construction projects will maintain the sustainability of the asphalt paver market in the future.
Stakeholders aim for convenience in financing, acquisitions
Steady economic growth combined with substantial investments in construction projects are generating business optimism in the construction machinery market. Technology continues to change the business landscape as customer preferences change dynamically.