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

India Architectural Coatings Market Trends

Residential is the largest segment by Sub End User.

• The architectural coating consumption in India dipped in 2016 and 2017 due to the demonetisation and introduction of GST. The demonetisation impacted the retail spending of the consumers due to limited availability of cash. Thus, diverting the priority of consumers spending on the daily needs rather than painting the houses. The Goods and service tax, which came into effect in July, 2017 also laid a considerable impact on the paint industry as the Paints have been classified in the GST tax rate slab of 28%, higher than 24-27% paid out in the form of excise, value added tax (VAT) and entry taxes. Furthermore, the country’s GDP declined by 1.5% in 2017 compared to the previous years.
• The consumption recovered quickly and peaked in 2018 due to the higher addition of floor area and increasing foreign direct investment (FDI) equity inflows for the construction development sector. For instance, According to Department for Promotion of Industry and Internal Trade (India) the FDI in 2018 increased to 540 USD million from 105 USD million in 2017.
• The slow growth in the architectural coating consumption was observed in 2019 followed by a decline in 2020 due to lower new constructions in both residential cand commercial sector owing to the spread of covid-19 in the country and lockdown of 50 days across the country. The increase in consumption and sales is expected to grow at a significant rate in the forecasted period due to the rising population in the country and positive investment in the rapid growing construction sector. According to IMF, The total population in the country is expected to increase by 3.6% during the 2022-26.

Segment Analysis: SUB END USER

Residential Segment in India Architectural Coatings Market

The residential segment dominates the Indian architectural coatings market, driven by the country's massive housing sector and continuous renovation activities. The segment's strength comes from increasing disposable income, rapid urbanization, and government initiatives promoting affordable housing schemes. The growing middle-class population, particularly in tier-2 and tier-3 cities, has been fueling demand for residential architectural coatings. Interior wall coatings and exterior coatings for residential buildings constitute a significant portion of the market. The rise in nuclear families, coupled with increasing home ownership aspirations among millennials, has led to sustained demand in this segment. Additionally, the trend toward premium and eco-friendly coatings in residential applications has been gaining momentum, especially in metropolitan areas.

Commercial Segment in India Architectural Coatings Market

The commercial segment is experiencing rapid growth in the Indian architectural coatings market, projected to expand significantly from 2024-2029. This growth is primarily driven by extensive infrastructure development, including office spaces, shopping malls, hotels, and institutional buildings. The segment is benefiting from increased foreign direct investment in commercial real estate and the government's smart city initiatives. The demand for specialized commercial coatings with enhanced durability and aesthetic appeal has been rising in the commercial sector. Furthermore, the adoption of green building standards and sustainable coating solutions has become a key trend in commercial construction projects. The segment is also seeing increased demand for functional coatings that offer properties like antimicrobial protection and enhanced weatherability.

Segment Analysis: TECHNOLOGY

Waterborne Segment in India Architectural Coatings Market

The waterborne coatings segment dominated the Indian architectural coatings market, holding approximately 65% of the market share in 2024. This significant market position is primarily driven by increasing environmental regulations limiting VOC emissions and growing consumer awareness about eco-friendly coating solutions. The segment's dominance is further strengthened by its superior performance characteristics, including better durability, reduced odor, and easier application in various weather conditions. Major manufacturers in India have expanded their waterborne coating portfolios, particularly in the decorative and residential segments, to meet the growing demand. The segment has also benefited from government initiatives promoting green building solutions and sustainable construction practices across major metropolitan areas.

Waterborne Segment in India Architectural Coatings Market

As the fastest-growing segment in the market, waterborne coatings are projected to experience robust growth during the forecast period 2024-2029. This growth is primarily driven by stringent environmental regulations, particularly in urban areas, and increasing adoption of green building standards across commercial and residential construction projects. The segment's expansion is further supported by technological advancements in waterborne coating formulations, improving their performance characteristics and application properties. Manufacturers are investing heavily in R&D to develop innovative waterborne solutions that offer enhanced durability, better coverage, and improved aesthetic properties, making them increasingly attractive to both professional contractors and DIY consumers.

Remaining Segments in Technology

The solventborne coatings segment continues to maintain its presence in the Indian architectural coatings market, particularly in applications requiring specific performance characteristics such as high chemical resistance and durability in harsh environments. Despite environmental concerns, these coatings remain relevant in certain industrial and specialized architectural applications where their unique properties make them irreplaceable. The segment has undergone significant technological improvements to reduce VOC content while maintaining performance standards. Manufacturers are focusing on developing hybrid solutions that combine the benefits of both solventborne and waterborne technologies to address specific market needs.

Segment Analysis: RESIN

Acrylic Segment in India Architectural Coatings Market

The acrylic resin segment continues to dominate the Indian architectural coatings market, driven by its exceptional versatility and superior performance characteristics. Acrylic resins offer excellent durability, weather resistance, and color retention properties, making them the preferred choice for both interior and exterior architectural applications. The segment's prominence is further enhanced by its excellent adhesion properties, quick drying time, and compatibility with various substrates commonly used in construction. The growing focus on sustainable and eco-friendly coating solutions has also benefited acrylic resins, as manufacturers have developed low-VOC and water-based formulations to meet stringent environmental regulations. Additionally, the segment's growth is supported by increasing investments in residential and commercial construction projects across major Indian cities, where acrylic-based coatings are extensively used for walls, ceilings, and decorative finishes.

Polyurethane Segment in India Architectural Coatings Market

The polyurethane resin segment is experiencing rapid growth in the Indian architectural coatings market, driven by increasing demand for high-performance coating solutions. The segment's growth is attributed to polyurethane's superior chemical resistance, exceptional durability, and excellent weathering properties, making it ideal for premium architectural applications. The rising adoption of polyurethane-based coatings in luxury residential projects and high-end commercial spaces has significantly contributed to its market expansion. The segment is also benefiting from technological advancements in polyurethane formulations, leading to improved application properties and enhanced performance characteristics. Furthermore, the growing awareness among consumers about the long-term cost benefits of using high-quality polyurethane coatings, despite their higher initial cost, is driving the segment's growth in both new construction and renovation projects.

Remaining Segments in Resin

The other resin segments, including alkyd, epoxy, polyester, and various specialty resins, continue to play crucial roles in the Indian architectural coatings market. Alkyd resins remain popular in traditional architectural applications due to their excellent gloss retention and durability. Epoxy resins are primarily used in specialized architectural applications where chemical resistance and superior adhesion are required. Polyester resins find applications in specific architectural coating formulations where high mechanical strength and excellent aesthetic properties are desired. These segments cater to diverse market needs and specific application requirements, contributing to the overall growth and development of the architectural coatings industry in India. The continuous innovation in resin technologies and growing demand for specialized coating solutions ensure the sustained relevance of these segments in the market.