India Sealants Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2028

India Sealants Market Analysis

The India Sealants Market size is estimated at 369.21 million USD in 2024, and is expected to reach 462.18 million USD by 2028, growing at a CAGR of 5.78% during the forecast period (2024-2028).

India's construction and infrastructure sector is undergoing significant transformation, driven by ambitious government initiatives and increasing urbanization. The construction sealants industry is poised to reach USD 1.4 trillion by 2025, reflecting the robust growth trajectory of the sector. The government's emphasis on sustainable development and low-energy buildings has led to the implementation of stricter building codes and environmental regulations. This shift towards sustainable construction practices has catalyzed innovations in sealant technologies, particularly in terms of eco-friendly formulations and enhanced performance characteristics. The sector's expansion is further supported by substantial foreign direct investment, with infrastructure activities accounting for 13% of total FDI inflows.

The electronics manufacturing sector has emerged as a crucial growth driver for the sealant industry, with the Indian electronics market projected to reach USD 20.92 billion by 2025. The increasing domestic production of electronic devices, coupled with the government's push for local manufacturing through initiatives like "Make in India," has created substantial demand for specialized electronic sealants. These sealants play critical roles in various applications, from protecting sensitive electronic components to ensuring the durability of consumer electronics. The sector's growth is particularly notable in areas such as semiconductor packaging, printed circuit board protection, and electronic component assembly.

The residential construction segment is experiencing unprecedented growth, driven by rapid urbanization and changing demographics. Current projections indicate that India will require approximately 25 million additional housing units by 2030 to meet growing demand. This massive housing requirement has spurred innovations in construction techniques and materials, including advanced construction sealants formulations that offer improved durability and weather resistance. The trend towards smart homes and energy-efficient buildings has also created demand for specialized building sealants that can enhance building envelope performance and contribute to overall energy efficiency.

Technological advancements in sealant formulations are reshaping the industry landscape, with manufacturers focusing on developing products with enhanced performance characteristics. The industry is witnessing a shift towards hybrid silicone sealants that combine the benefits of different chemical compositions to achieve superior properties. New construction area in India is expected to reach 5 billion square footage by 2028, driving demand for innovative industrial sealants solutions. These developments are accompanied by increasing emphasis on quality standards and certifications, as manufacturers align their products with international specifications while adapting to local environmental conditions and application requirements.

India Sealants Market Trends

Government investments and initiatives such as Housing for All and Pradhan Mantri Awas Yojana (PMAY) for the housing sector to lead the construction industry

• The construction industry is the second-largest industry in India, with a GDP contribution of about 9%, and it showed promising growth in 2019. However, due to the outbreak of COVID-19, the construction sector witnessed a significant decline, owing to the lockdown by the government for a brief period. The construction industry is the second-largest industry in India, with a GDP contribution of about 9%. India is expected to become the third-largest construction market in the world by 2025. Moreover, the construction industry is expected to register a CAGR of about 3.79% during the forecast period (2022 - 2028).
• In the residential segment, the government is pushing huge projects in the next few years. The government’s ‘Housing for All initiative aims to build more than 20 million affordable homes for the urban poor by 2022. This will provide a significant boost to residential construction (the market’s largest category) and accounts for more than a third of the industry’s total value by 2023. Furthermore, initiatives such as Pradhan Mantri Awas Yojana (PMAY) are intended to provide affordable homes to many people by 2022. The government is also into providing some subsidiary on interest on housing loans if a citizen builds/buys their first house.
• India is also witnessing significant interest from international investors in the construction space. Foreign Direct Investment (FDI) in the construction development sector (townships, housing, built-up infrastructure, and construction development projects) stood at USD 25.66 billion from April 2000 to March 2020. The increasing infrastructure and construction development across the nation leads to an increase in the demand for adhesives and sealants.

Rising government initiatives such as e-AMRIT and auto loan interest rates decrease by 2-3% to lead the automotive manufacturing

• The Indian automotive industry was the fourth largest in the Asia-Pacific by volume in 2020. With the government initiatives such as the expansion of roads in 2021 by allocation of funds of INR 4.32 trillion, the number of vehicles has also increased on roads. This trend of growth is expected to sustain in the coming years up to 2028.
• Due to the COVID-19 pandemic, there was a dip in sales of passenger vehicles from 3.38 million in 2019 to 2.39 million in 2021 because of nationwide lockdown, supply chain disruptions, and overall economic slowdown. But, with the government initiatives to support the automobile manufacturing sector, such as decreasing interest rates for auto loans by 2-3%, it moved up to 2.72 million vehicles by March 2022. Maruti Suzuki is the largest in the passenger vehicles segment, with a market share of 52% in 2021. This growth trend is expected to sustain in the forecast period, which is 2022-2028.
• In the case of commercial vehicles, Tata Motors is the largest vehicle producer by number, with a market share of nearly 43% in March 2022. The commercial vehicle sales increased from 568,560 in 2021 to 716570 by March 2022 because of recovering loss-ridden economy due to the impact of COVID-19 in 2020. With this growing post-pandemic economy, it is expected to increase in the mentioned period.
• The electric vehicle manufacturing push by the Indian government with initiatives such as e-AMRIT will lead increase in the production of electric vehicles in years up to 2028. The increase in the number of electric vehicles being sold in India increased by 108% in 2021 compared to 2020.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Building and Construction Segment in India Sealants Market

The building and construction segment dominates the India sealants market, commanding approximately 46% market share in 2024. This significant market position is driven by the extensive application of construction sealants in various construction activities, including waterproofing, weather-sealing, crack-sealing, and joint-sealing applications. The segment's dominance is reinforced by the Indian construction sector's substantial contribution to the nation's GDP and the government's continued promotion of low-energy buildings and sustainable development initiatives. Construction sealants are particularly valued for their longevity and versatile application capabilities across different substrates. The segment's strong performance is further supported by ongoing infrastructure development projects and the growing demand for residential properties across India. The increasing focus on sustainable construction practices and energy-efficient buildings has also contributed to the heightened demand for advanced silicone sealants solutions in this sector.

Aerospace Segment in India Sealants Market

The aerospace segment is emerging as the fastest-growing segment in the India sealants market, projected to grow at approximately 8% during 2024-2029. This remarkable growth is primarily driven by the expanding civil aviation sector and increased activities in defense aerospace. The segment's growth is supported by rising demand for large aircraft from Indian carriers and the government's strategic focus on strengthening domestic aerospace manufacturing capabilities. The increasing capital expenditure in defense aerospace and the government's push towards indigenous aircraft production are creating substantial opportunities for aerospace sealants manufacturers. The segment's growth is further accelerated by the expanding maintenance, repair, and overhaul (MRO) activities in the country and the increasing adoption of advanced aerospace sealants technologies in aerospace applications.

Remaining Segments in End User Industry

The automotive segment represents a significant portion of the market, driven by the increasing vehicle production and the growing electric vehicle sector. The healthcare segment continues to evolve with the rising demand for medical-grade sealants in various applications, including surgical procedures and medical device manufacturing. The other end-user industries segment, which includes electronics, marine, locomotive, and DIY applications, maintains a steady presence in the market. These segments collectively contribute to the market's diversity and stability, with each serving specific industrial requirements and technological innovations. The automotive sector particularly benefits from the increasing focus on electric vehicles, while the healthcare segment is driven by technological advancements in medical procedures and devices.

Segment Analysis: Resin

Silicone Segment in India Sealants Market

The silicone sealants segment dominates the Indian sealants market, accounting for approximately 45% of the total market value in 2024. Silicone sealants have gained significant prominence due to their superior properties, including high thermal conductivity, a broad temperature operating range from -50°C to 250°C, and tensile strength capabilities of up to 400 PSI. These sealants demonstrate exceptional versatility in both interior and exterior applications, particularly in the building and construction industry, where they are extensively used for sealing joints of windows, doors, and addressing leakages. The segment's dominance is further strengthened by silicone sealants' ability to cure within 24 hours and their excellent bonding capabilities with various substrates, including plastics, aluminum, steel, and different fabrics. The growing residential properties sector and increasing electric vehicle sales in India continue to drive the demand for silicone sealants, with manufacturers focusing on developing innovative products to meet evolving industry requirements.

Polyurethane Segment in India Sealants Market

The polyurethane sealants segment is experiencing robust growth in the Indian sealants market, driven by its expanding applications across multiple industries. These sealants offer unique advantages, including high mechanical strength, superior adhesion properties, and excellent temperature resistance ranging from 40°C to 90°C. The segment's growth is particularly notable in the automotive and construction sectors, where polyurethane sealants are preferred for vehicle production, floor joints, curtain wall joints, and concrete prefabricated panels. The increasing infrastructure activities and the rapid expansion of the electric vehicle market, which is projected to reach USD 206 billion by 2030, are creating substantial opportunities for polyurethane sealants. Manufacturers are investing in research and development to enhance product performance and meet the growing demand for environmentally friendly formulations.

Remaining Segments in Resin Segmentation

The other segments in the Indian sealants market include acrylic sealants, epoxy sealants, and various other resin-based sealants, each serving specific application needs. Acrylic sealants are valued for their quick-drying properties and high holding strength, making them particularly suitable for construction applications. Epoxy sealants stand out for their non-brittle and flexible characteristics, finding extensive use in outdoor applications and various substrate materials. The other resins category, including rubber-based and butyl resin-based sealants, caters to specialized applications requiring specific performance characteristics such as high movement capabilities and enhanced service elongation properties. These segments continue to evolve with technological advancements and changing industry requirements, contributing to the overall market diversity.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on various end-user production trends including automobile production, newly built construction floor area, packaging production, aircraft deliveries, footwear production, and regional data on adhesives and sealants demand, etc.