Paint & Coating Industry to Grow Fastest in India
WASHINGTON and NEW YORK and LONDON, August 24, 2016
The market for paint and coatings in India is forecast to advance 7.8 percent per year through 2020 to 4.2 million metric tons, the fastest of any major market worldwide. Growth will be fueled by continued strong increases in both residential and nonresidential construction spending, as well as by fast gains in manufacturing output. These and other trends are presented in World Paints & Coatings, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Architectural markets in India accounted for nearly 80 percent of paint and coatings demand in 2015, the highest level of any major market in the world. The high portion of the market dedicated to architectural applications is due primarily to India’s immense population and relatively small manufacturing sector compared to other countries. However, India generates a great deal of demand from nonresidential markets as well, a sign of rapid economic and infrastructure development in the country.
Demand for manufacturing coatings in India is limited, as the country is not a significant producer of many paint-consuming durable goods. However, India’s motor vehicle industry is growing rapidly (the country was the sixth largest automotive producer in 2015), generating substantial demand for coatings in OEM applications. Kansai Nerolac Paints, a subsidiary of Japan-based Kansai Paint, is the leading supplier of OEM automotive coatings to the Indian market, as much of the country’s motor vehicle production originates from Japanese automakers. Accelerating motor vehicle output through 2020 will continue to encourage multinational coatings firms to expand their presence in India.
Water-based coatings are expected to see demand rise 10 percent per year through 2020, overcoming solvent-based products as the leading coating type. Waterborne products will benefit as consumers trade up from low cost distempers and solvent-based enamel paints to higher-cost emulsions. The shift to water-based architectural paints, particularly in new construction, has been supported by the Indian Green Building Council (IGBC), which encourages the use of green building materials, such as low or zero VOC architectural paints.
About The Freedonia Group
The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players.