Industry: Chemicals and Materials
Published Date: December-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 191
Report ID: PMRREP34998
The India construction equipment OEM coating market is projected to witness a CAGR of 9.3% during the forecast period from 2024 to 2031. It is anticipated to increase from US$ 48.6 Bn recorded in 2024 to a considerable US$ 90.5 Bn by 2031.
The market is experiencing substantial growth, attracting global players in India who are investing through joint ventures and partnerships with local paint manufacturers. This approach enables global companies to utilize existing distribution networks and market insights while introducing new technologies.
Based on end use, the earthmoving equipment segment holds the most prominent market share, accounting for over 75% in 2024. This growth is driven by increasing demand from the highway and residential construction sectors. Rising investments in metro rail projects are further boosting the need for equipment coatings.
According to the Reserve Bank of India (RBI) and the Department of Economic Affairs, over 9,000 infrastructure projects are currently underway in the country, with a total budget of 6.81 lakh crore INR. The infrastructure sector contributes nearly 30% to India's GDP.
In 2023, India's construction industry was valued at 21.8 lakh crore INR and is anticipated to rise to 23.9 lakh crore INR in 2024. By 2031, the market is projected to reach 34.38 lakh crore INR, skyrocketing at a CAGR of 5.3%.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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India Construction Equipment OEM Coating Market Size (2024E) |
US$ 48.6 Bn |
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Projected Market Value (2031F) |
US$ 90.5 Bn |
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India Market Growth Rate (CAGR 2024 to 2031) |
9.3% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
6.9% |
The construction industry in India is strongly influenced by regional dynamics, with South India emerging as a hub for Original Equipment Manufacturers (OEMs) and coating suppliers due to rapid urbanization. The zone hosts a significant concentration of manufacturing facilities, accounting for about 40% of India's facilities.
The geographical distribution not only boosts local production but also drives demand for protective coatings, essential for construction equipment durability. Hence, South India is estimated to witness a CAGR of 9.8% through 2031. It is likely to hold a share of 35.2% in 2024.
Growing number of manufacturers in South India fosters competition, spurring innovation in coating technology and improving product quality. As production scales up to meet increasing demand, the emphasis on high-performance coatings becomes critical. Local manufacturers prioritize novel coatings to ensure their equipment withstands the rigorous demands of construction activities.
The synergy between manufacturers and coating suppliers enhances supply chain efficiency and accelerates access to high-quality coatings. It helps in solidifying South India as a key hub in the market.
The India construction equipment OEM coating market is driven by the superior performance of polyurethane coatings, especially in high-stress conditions. Renowned for their exceptional durability, these coatings resist corrosion and harsh weather. These further help in prolonging equipment lifespan and reducing maintenance costs in demanding construction environments. The segment is anticipated to witness a CAGR of 9.8% through 2031.
Polyurethane coatings further offer excellent chemical resistance, safeguarding equipment from degradation caused by exposure to fuels, oils, and solvents commonly encountered in heavy-duty operations. This feature is critical for manufacturers seeking to protect their investments and ensure reliable performance under challenging conditions.
Polyurethane coatings enhance visibility and safety through vibrant colors and reflective properties. Their adaptability allows for customization to meet operational needs, such as improved slip resistance or specific color formulations. The combination of durability, chemical resistance, and versatility makes polyurethane coatings a preferred choice for protecting construction equipment in tough environments.
The solvent-borne solutions segment leads the market with a 75% share in 2024, valued for its durability and robust performance. It is anticipated to showcase a CAGR of 8.8% through 2031.
Composed of organic solvents, these coatings offer excellent adhesion and resistance to abrasion, corrosion, and chemicals, making them ideal for harsh environments. However, their high VOC emissions require strict adherence to safety and environmental standards.
The spray coating method is the most widely used and preferred technique in construction equipment OEM coatings due to its ease of application and efficiency. This method enables rapid coverage of large surfaces, reducing downtime significantly.
Innovations in spray technology, such as improved nozzle precision and pressure controls, enhance application accuracy and reduce material waste, making it a cost-effective solution. The segment is hence anticipated to witness a CAGR of 9.1% through 2031.
Its versatility further adds to its appeal, as spray coating is compatible with various coating types, including solvent-based, water-borne, and high-performance formulations. This flexibility allows manufacturers to select coatings that best meet their specific requirements.
The India construction equipment OEM coatings market comprises a diverse array of coatings designed to enhance the performance and longevity of construction machinery. These coatings protect against various environmental factors, including abrasion, corrosion, and chemical exposure.
By improving durability, they help extend the lifespan of equipment while reducing maintenance costs. Furthermore, these coatings ensure that machinery operates efficiently under challenging conditions, contributing to productivity and reliability in the construction sector.
Companies like Asian Paints PPG and Axalta Coating Systems are developing novel, eco-friendly coatings such as low-VOC and water-borne solutions to meet regulatory demands. Axalta's NextJet™ technology highlights customization for mobility sectors.
Other players such as Berger Paints and Kansai Nerolac focus on anti-corrosion products with enhanced weather resistance. Such innovations are critical as manufacturers address durability, efficiency, and environmental compliance.
The India construction equipment OEM coating market recorded a decent CAGR of 6.9% from 2019 to 2023. Focusing on environmental concerns, manufacturers invested in the development of sustainable and durable coatings with corrosion and abrasion resistance properties. Key players also extended their market presence by opening new plants in several regions to resolve supply chain issues. For instance,
India is estimated to record a CAGR of 9.3% during the forecast period between 2024 and 2031.
Increasing Demand for Earthmoving Equipment in India Boosts Sales
The India construction equipment OEM coating industry is primarily driven by the rising demand for earthmoving machinery, propelled by large-scale infrastructure projects and urbanization efforts. Equipment such as loaders, excavators, and motor graders require high-performance coatings to endure challenging conditions, including dust, debris, and fluctuating weather. These coatings are essential to ensure durability, reduce maintenance costs, and extend machinery lifespan, making them indispensable for the booming construction sector.
The sharp increase reflects the rising demand from India’s construction industry, further amplifying the need for novel coating solutions. These help enhance the operational efficiency and longevity of equipment in demanding environments.
Novel Coatings Gain Traction to Protect Equipment from Harsh Conditions
Construction equipment, often operated in open and harsh environments, faces significant exposure to adverse weather conditions, including heavy rain, high humidity, and temperature fluctuations. These factors accelerate corrosion and wear, emphasizing the importance of durable anti-corrosion coatings. These coatings protect machinery from rust and environmental pollutants, ensuring operational efficiency and prolonged equipment life.
Manufacturers increasingly prioritize novel coatings that withstand extreme conditions while reducing maintenance costs. Growing emphasis on sustainability and compliance with environmental regulations has also spurred the development of eco-friendly, weather-resistant coatings.
The solutions not only offer superior protection but also align with industry standards by minimizing harmful emissions. This shift underscores the critical role of high-performance coatings in maintaining the integrity and performance of construction equipment in challenging conditions.
Limited Adoption of Electro-coating and UV Coatings due to High Costs
A significant restraint in the India construction equipment OEM coating market is the high cost of novel coating technologies like electro-coating and UV coatings. These coatings offer superior performance, including enhanced durability, corrosion resistance, and environmental benefits. However, their high price points can deter widespread adoption in cost-sensitive markets.
Manufacturers and contractors operating under tight budgets often hesitate to invest in these premium solutions. They are instead, opting for conventional coatings that are more affordable but less efficient.
The financial barrier also extends to the initial setup costs for novel coating processes, which require specialized equipment and expertise. The substantial upfront investment limits their market penetration. This cost-driven reluctance can stifle innovation, as companies prioritize immediate cost-efficiency over long-term benefits. These include lower maintenance expenses and improved equipment lifespan, which ultimately slows the adoption of high-performance coatings.
Booming Highway and Residential Construction Activities to Create Avenues
The India construction equipment OEM coating market heavily relies on the growth of highway and residential construction projects. As infrastructure development extends in urban and rural areas, demand for construction equipment and high-quality coatings rises.
The trend is particularly evident in regions experiencing rapid urbanization and population growth, driving a surge in construction activities. For instance, the road construction rate in India increased from 29 km per day in 2022 to 34 km per day in 2024.
The country’s government is undertaking several key highway projects, such as the Delhi-Mumbai Expressway and the Bundelkhand Expressway, which require durable machinery exposed to harsh environments. These projects amplify the need for coatings that provide corrosion resistance and long-lasting protection.
Rising residential construction market, fueled by increasing housing demand and government initiatives for affordable housing, further increases the need for construction equipment. These are further anticipated to push sales of protective coatings, making it a key driver for the market.
The India construction equipment coating industry is in the growing phase, driven by continuous innovation from established and emerging players. Market players are advancing the coating methods by applying water-coating technologies with high durability and superior climate resistance.
Global players such as PPG Industries and Kansai Paints are partnering and acquiring the regional players to enhance their market presence in India. PPG Industries recently partnered with Asian Paints to form Asian Paints PPG and PPG Asian Paints. Additionally, Berger Paints acquired SBL Coatings Ltd to enhance its specialty offerings. Players like Axalta Coating System are also contributing to the market by innovating new products with better efficiency.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Zones Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
By Material Type
By Formulation
By Technology
By End Use
By Application
By Zone
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Yes, the market is set to reach US$ 90.5 Bn by 2031.
The construction sector is the main consumer that companies need to target.
India is estimated to witness a high CAGR of 9.3% through 2031.
Asian Paints PPG is considered the leading player in India.
It is applied on substrates for decoration and protection purposes.
