India Luxury Vinyl Tile (LVT) Market Size

India Luxury Vinyl Tile Market Analysis

The Indian LVT market has been passing through an exciting period, due to the influx of newer materials, technology, and specialized machinery. However, the market in India is concentrated among 5-6 brands, and these are entirely dependent on imports. The Indian LVT market reached a volume of 42 million square meters in 2020 while witnessing a CAGR of greater than 5% between 2016 and 2020. The market is further expected to grow at a positive rate during the forecast period of 2021-2026.

Owing to the lockdown due to COVID-19, the flooring industry in India is experiencing a slowdown, as the construction of housing and building projects in the country has come to a halt. This has affected the market for LVT flooring. Due to lockdown, the new purchases of LVT in India have decreased. The industry is anticipated to bounce back during the forecast period (2021-2026).

The product is used in niche segments and is dependent on the influence of leading architects and consultants. The demand for flooring products in India does not favor LVT usage; hence, the product sees very low penetration. High prices and product characteristics that do not suit Indian customer demand play a critical role in the low volume of sales for LVT suppliers in India. On the other hand, India's surge in economic activity has led to the growth of commercial Grade A office spaces and demand for private and international schools. Project scales, especially for industrial and commercial flooring, have increased dramatically in recent years. This is helping the concerned market.

In India, the growth trends of the LVT market have been unlike the other segments in the construction industry; but LVT is capturing the market steadily. Increasing emphasis on quality and adherence to strict deadlines while sticking to the budget is a major factor that will drive the trends in the LVT flooring industry. The customer needs quality, functionality, and long-term performance, all at competitive prices. Thus, LVT floors that are easy to clean and maintain and offer excellent wear resistance are becoming an obvious choice. The healthy growth rate maintained by industrialization and the buoyant urban infrastructure scenario may help the market's growth in the near future. One of the trends in the Indian market has been that the commercial flooring segment has been keeping up with the pace of growth of the LVT flooring market. The growth of the market is expected to increase soon. Similarly, increased disposable income and growth in tourism have led to increased customer spending through the retail sector and an increase in the number of hotel rooms. All of these factors are expected to favor the LVT market during the forecast period.