The India paints and coatings market is estimated to witness a significant growth, at an estimated CAGR of over 8%, over the forecast period. Growing demand from the construction industry, coupled with rising infrastructure activities, is driving the demand for the market studied.
- Decreasing automotive production and sales in the country are estimated to hamper the growth of the market studied.
- The use of nanotechnology in the paints and coatings industry is expected to offer various opportunities for the growth of the market studied during the forecast period.
Key Market Trends
Acrylic Resin Dominating the Market
- Acrylic resins are the most widely used polymers in the paint and coatings industry. Most of the acrylic paints are water-based or solvent-based and are available as emulsions (latices), lacquers (lower volume solids), enamels (higher volume solids), and powders (100% solids).
- The common acrylic polymers come in a wide variety of types and combinations, such as methyl and butyl methacrylate. In the case of inexpensive paints, polyvinyl acetate is used primarily.
- The two principal forms of acrylic used are thermoplastic and thermoset. Thermoplastics acrylic resins are synthetic resins achieved by polymerization of different acrylic monomers. Thermosets are cured at elevated temperatures by reacting them with other polymers. Thermoplastic acrylic resins are of two types, namely solution acrylics and acrylic latex coatings.
- Furthermore, the acrylic resins develop properties, such as transparency, high colorability, and UV resistance in coating solutions. They are used in waterborne systems very often, which result in low VOC emission. The application of acrylic coatings leads to high surface hardness. In certain applications, such as walls, decks, and roofing, the acrylic coatings provide elastomeric finishes to improve the UV resistance of the surface, if employed with some fluids.
- The application of acrylic coatings is primarily found in the construction industry for high-end finishing in roofs, decks, bridges, floors, and other applications. The water-based acrylic coatings are high in demand, owing to the environmental concerns, as the negative impact of VOCs affecting the air quality in the environment.
- The primary binder type in the India paints and coatings market is acrylic, with a total share of more than 70% of all the waterborne coatings. Acrylic is widely used in architectural coatings.
- Such positive factors are likely to increase demand over the forecast period.
Increasing Demand from Architectural Industry
- Paints and coatings are not only used in the interiors of houses to add colors or decorative purposes, but also to perform a wide range of functions. Their functions vary depending on the type of environment and room that they are used on.
- For example, because of moisture, the bathroom walls need to have wipe-ability for keeping them clean. Paints with glossier sheens have a tighter molecular structure than flat paints, making it more difficult for moisture to penetrate. So, these types of paints are used in bathroom.
- Paints and coatings are applied on the exterior of the house to not only to give them a new look, but also to protect them from blistering summers, freezing winters, soaking rain, and the daily bombardment of UV radiation without fading, peeling away, and cracking.
- The modern advancements in paint technology, specifically in the acrylic formulations, have offered a wide range of weatherproof coatings.
- The government initiatives, such as the Housing for All by 2022 act, are going to change the dynamics of the construction industry in India.
- It is estimated that by the end of 2025, the construction industry in India may emerge as the third-largest on a global level. According to the Industry experts, the annual growth rate of the Indian construction industry is expected to be about 7.1% by 2025, which is expected to drive the consumption of paints and coatings in the country.
The market studied is highly consolidated, with the top five players contributing to more than 70% of the market share. The major companies include Asian paints, Berger Paints India Limited, Kansai Nerolac Paints Limited, Akzo Nobel N.V., and Nippon Paint (India) Company Limited, among others.
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