Market Trends of India Paints And Coatings Industry
Architectural Industry to Dominate the Market
- Architectural coatings are used for commercial purposes, such as office buildings, warehouses, retail convenience stores, shopping malls, and residential buildings. These coatings can be applied on outer and inner surfaces and include sealers or specialty products.
- India has been experiencing rapid urbanization and infrastructure development, which has led to a surge in construction projects. Thus, this has directly increased the demand for architectural paints used in buildings and structures.
- The residential sector in the country is on an increasing trend, with government support and initiatives that are further boosting the demand. For instance, the Ministry of Housing and Urban Development (MoHUA) allocated the funds of INR 76,549.46 crore in the 2022-23 budget for the construction of houses and the creation of funds in order to complete the halted projects.
- Furthermore, according to Business Today, the government has allocated INR 80,671 crore for initiatives, such as the Pradhan Mantri Awas Yojana (PMAY) program, which is intended to provide affordable homes to many people. Also, the government offers subsidies for interest on housing loans if the citizens wish to build or buy their first house.
- According to the Economic Times, in July - September 2023, compared with a year earlier, the construction sector grew by 13.3%, up from 7.9% in the previous quarter and its best performance in five quarters.
- Home sales in India's seven most prominent cities, including Mumbai, New Delhi, and Bangalore, increased by 36% in the July-September quarter in 2023 from the previous year to more than 112,000 units, with an 8-18% increase in prices, according to data released by the Economic Times.
- Also, the country is expanding its commercial sector, which has a positive impact on the architectural emulsion coatings market.
- Hence, according to the factors mentioned above, the demand for paints from the architectural segment is expected to witness robust growth in India in the upcoming period.
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Acrylic Resin Segment to Dominate the Market
- Acrylic paints have excellent gloss and color retention along with excellent durability and good adhesion to many substrates. Acrylic paints are also the major architectural paints.
- The application of acrylic coatings is significant in the construction industry for bridges, high-end finishing in roofs, floors, decks, and other applications. Furthermore, water-based acrylic coatings are in huge demand due to their environmental concerns, which include the adverse effect of volatile organic compounds (VOCs) on the environment.
- In the automotive industry, acrylic coatings have applications in both interior and exterior surfaces. Acyclic-based paints are mainly used as bases and topcoats for automotive OEM exterior applications. In recent years, the automotive sector has been growing at a faster rate, which has led to an increase in the growth of acrylic automotive paint.
- For instance, according to data published by the Indian Brand Equity Foundation (IBEF), India produced 22.93 million vehicles in the financial year 2022.
- Moreover, automobile exports in India reached 4,761,487 in the financial year 2023.
- According to the data published by the National Investment Promotion and Facilitation Agency (Invest India), the Government of India has allocated USD 9.81 billion for the development of Gift City in Gujarat, India, which is expected to be completed by 2025.
- Thus, the positive factors mentioned above are expected to increase the demand for acrylic resin in the country's paints and coatings market over the forecast period.
