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Introduction: The Silent Engine of Industrial Progress

Silent Engine of Industrial Progress

Chemicals | Mar, 2025

Imagine a massive bridge spanning a monsoon-swollen river, an offshore oil platform resisting corrosive salt air, or the sleek shell of an electric vehicle gliding through urban India. Each of these relies not just on engineering or materials—but on the critical protection and performance enhancement offered by industrial coatings.

Industrial coatings are more than just layers of color—they are specialized chemical substances designed to protect, preserve, and enhance the surfaces they cover. From metal structures and wooden furniture to consumer electronics and complex machinery, industrial coatings are the invisible guardians of durability, performance, and aesthetics. These coatings prevent corrosion, resist UV degradation, withstand extreme temperatures, and provide insulation or specific finishes, making them indispensable across multiple industries.

In India, industrial coatings play a vital role in infrastructure development, manufacturing, transportation, and consumer goods production. As the country industrializes further and integrates with global supply chains, demand for high-performance and sustainable coating solutions is rising sharply.

According to industry estimates, industrial coatings account for approximately 30% of the total Indian paint and coatings market by value. The market is segmented into four core categories: Automotive Coatings, Protective Coatings, Powder Coatings, and General Industrial & Others. Each segment is shaped by its specific applications, material requirements, and growth drivers.

1. Automotive Coatings: Enhancing Performance, Safety, and Style

Automotive coatings are a vital part of India’s industrial coatings market, contributing approximately 25% of market value. These coatings do more than enhance the visual appeal of vehicles they offer essential protection against environmental stressors such as moisture, UV radiation, dust, and extreme temperatures.

The demand for automotive coatings is directly tied to the performance of the Indian automotive sector, which is witnessing robust growth. According to the Society of Indian Automobile Manufacturers (SIAM), India produced over 26 million vehicles in FY 2023–24, across all segments including passenger, commercial, three-wheelers, and two-wheelers. This solidifies India’s position as the third-largest automotive market globally by volume.

Recent investments in new manufacturing capacities further reinforce this upward trend. VinFast is setting up a US USD2 billion EV plant in Thoothukudi, Tamil Nadu, targeting a capacity of 150,000 electric vehicles per year, with operations expected to begin by June 2025. Similarly, Toyota Kirloskar Motor has announced a ₹20,000–25,000 crore investment in a new plant in Chhatrapati Sambhaji Nagar, Maharashtra, with a projected capacity of 400,000 vehicles per year, focusing on a mix of ICE, hybrid, and EVs. Toyota’s expansion in Bidadi, Karnataka, is also underway with scalable capacity up to 200,000 vehicles annually. Additionally, Maruti Suzuki is developing a large-scale plant in Kharkhoda, Haryana, with an initial capacity of 250,000 units, expandable to 1 million vehicles per year by March 2025.

Together, these developments indicate strong momentum in India’s automotive manufacturing ecosystem, which in turn continues to drive demand for advanced, high-performance, and eco-friendly coating technologies.

Auto OEM Coatings – 17% (Value)

OEM (Original Equipment Manufacturer) coatings are applied during the production of new vehicles—both passenger and commercial. The process is complex, involving multiple coating layers: electrodeposition primers for corrosion protection, intermediate coats for leveling, basecoats for color, and clear coats for gloss and UV protection.

India’s ambition to become a global automotive manufacturing hub is driving growth in this space. Automakers are investing in robotic spray technologies and high-efficiency application systems to ensure uniform, defect-free finishes. Moreover, with increasing environmental regulation, there’s a marked shift toward low-VOC, water-based, and UV-curable OEM coatings.

Electric Vehicles (EVs) are reshaping coating demands, requiring lightweight, heat-resistant, and non-conductive coatings for battery and electric motor components, adding to the segment's technical depth.

The shift toward EVs also necessitates new innovations in coatings that reduce vehicle weight without compromising on protection. Manufacturers are exploring nanotechnology-based coatings, self-healing paints, and coatings with improved energy reflectivity.

Auto Refinish Coatings – 8% (Value)

Refinish coatings are used in vehicle repairs, repaints, and upgrades. They need to be quick-drying, compatible with existing finishes, and durable under various conditions. With India’s growing vehicle population, especially in metros and tier-2 cities, demand for auto refinish paints is rising.

Factors like road congestion, minor accidents, and increased insurance coverage contribute to the growth of the refinish segment. Additionally, premiumization of personal mobility has led consumers to demand better aesthetics and longer-lasting finishes.

Independent workshops, insurance companies, and multi-brand service chains are fueling this market, while OEM-certified refinish centers continue to gain traction. Moreover, digital color-matching technologies and mobile paint booths are transforming the way refinish operations are carried out.

Auto refinish coatings are also adapting to the rise of plastic body parts in vehicles, necessitating flexible, adhesive, and impact-resistant formulations that can bond effectively with composite materials.



2. Protective Coatings: Shielding Infrastructure and Heavy Industry

With 31% of market value, the Protective Coatings segment is the largest in value terms, highlighting the increasing need to protect infrastructure, industrial assets, and equipment from deterioration.

These coatings are specially formulated to resist corrosion, chemicals, high temperatures, moisture, and mechanical wear. They are vital in extending the life of capital-intensive assets and reducing maintenance costs.

Protective for Steel, Aluminum, & Other Metals – 24% (Value)

Protective coatings are the unsung heroes of India's heavy infrastructure sector—covering a wide range of structures, including bridges, pipelines, industrial tanks, metro rail systems, and power plants. In a country frequently exposed to monsoon-driven moisture, saline coastal air, and industrial pollution, these coatings are essential for metal protection and asset longevity.

India’s infrastructure investment is surging: the National Infrastructure Pipeline (NIP) is valued at approximately USD1.3 trillion (₹108.9 trillion) across 9,288 projects through FY 2025. This includes a record capital expenditure allocation of around USD134 billion (₹11.11 trillion) in FY 2024–25, equivalent to 3.4% of India’s GDP. Notably, 58% of this funding supports the transportation sector, including roads, bridges, and metro systems.

Major projects currently underway include NHAI’s plan to construct 6,376 km of national highways, with a projected cost of approximately USD 41.4 billion (₹3.45 lakh crore) during FY 2025–26. Additionally, large-scale greenfield expressways such as the Surat–Chennai corridor (1,271 km, USD540 million) and Bengaluru–Chennai expressway are expected to be completed by 2025–26. The metro rail network is also expanding rapidly, with over 919 km under construction in 26 cities across the country.

Coating formulations such as epoxy, polyurethane, polyurea, and hybrid systems are becoming more prevalent due to their durability and environmental compliance. In the oil and gas sector, where corrosion can lead to catastrophic failures, anti-corrosive coatings are critical. Many companies are now adopting smart coatings embedded with sensors that enable real-time corrosion monitoring and preventive maintenance.

As India continues to expand its infrastructure from highways and metros to ports and energy facilities the demand for advanced, durable, and intelligent coating solutions is expected to grow rapidly.

Steel-only Protective Coatings

Steel-only Protective Coatings account for nearly 90% of the total value within the 'Protective for Steel, Aluminum, & Other Metals' segment, highlighting the overwhelming reliance on steel-based infrastructure in India and the critical need for specialized coatings to prevent corrosion, extend asset life, and ensure structural integrity in harsh environmental conditions.

Steel is India’s most widely used construction material, and hence, coatings meant exclusively for steel protection dominate by volume. Applications span oil & gas pipelines, transmission towers, rebars, containers, heavy equipment, and fabricated steel structures.

Such coatings usually consist of zinc-rich primers, moisture-cured urethanes, and epoxy topcoats, providing multi-layer defense against rust and mechanical damage.

Marine Coatings – 3% (Value)

Marine coatings play a vital role in protecting maritime assets by offering anti-fouling, anti-corrosive, and weather-resistant properties essential for ship hulls, docks, ports, and offshore platforms. As India expands its port infrastructure and shipbuilding capabilities, this segment is emerging as a strategic area of growth within the industrial coatings market.

The increasing emphasis on green shipping practices and compliance with International Maritime Organization (IMO) regulations is accelerating the adoption of eco-friendly and biocide-free marine coatings. These advanced formulations not only enhance vessel efficiency but also reduce environmental impact by minimizing biofouling and drag.

A key enabler of future demand is India’s Sagarmala Programme, a government-led initiative aimed at modernizing ports, improving logistics, and boosting the coastal economy. With over ₹8 trillion (USD 96 billion) earmarked for investments across port development, shipbuilding, and inland waterways, Sagarmala is expected to catalyze sustained demand for marine coatings—particularly those incorporating fouling-release technologies and hull performance enhancement solutions.

As India strengthens its position as a maritime hub, the need for durable, efficient, and regulatory-compliant marine coatings will continue to grow, offering significant opportunities for coating manufacturers and suppliers.

Floor and Concrete Coatings – 3% (Value)

Industrial floor coatings are indispensable in environments such as warehouses, hospitals, parking decks, airports, and pharmaceutical facilities, where they must resist wear and tear, impact, chemical spills, and microbial contamination.

Epoxy and polyurethane-based systems continue to dominate, offering excellent durability, chemical resistance, and ease of cleaning. Notably, epoxy coatings contributed over 53% of concrete floor coating revenues in 2022. Environmental sustainability is also driving the adoption of low-VOC, water-based and biobased resins, in line with post-COVID hygiene standards.

The pandemic has further accelerated demand for anti-bacterial, slip-resistant, and even smart flooring systems featuring sensor integration for operational monitoring. In February 2024, over 950 companies showcased innovations at INDIAWOOD in Bangalore, highlighting breakthroughs in sustainable flooring technologies.

As India continues urbanizing—with significant growth in manufacturing, healthcare, and aviation infrastructure—the need for high-performance, hygienic, and versatile floor coatings is rising sharply. Manufacturers and businesses are investing in advanced and eco-friendly solutions to meet evolving safety, aesthetic, and regulatory standards.

Others – Pipes, Road Markings, Miscellaneous – 2% (Value)

Road marking paints, pipeline linings, structural elements, and minor tools fall under this category. Though smaller in size, these coatings often have specialized characteristics—like reflectivity, quick drying, or thermal insulation—tailored for niche sectors.

This sub-segment also includes thermal barrier coatings used in high-temperature applications, such as exhaust systems and turbine housings.

3. Powder Coatings: Clean, Efficient, and Future-Ready

Powder coatings contribute a 6% share in market value, and while smaller in size, they are among the fastest-growing segments due to their eco-friendliness and operational efficiency.

These coatings involve no solvents, minimal waste, and low emissions, making them ideal for companies pursuing sustainable production.

Powder coatings are used in:

  • Home appliances (refrigerators, washing machines)
  • Furniture (metal frames, office chairs)
  • Automotive parts (rims, bumpers)
  • Electrical enclosures and light fixtures
  • Architectural aluminum sections

Technological innovations have led to thin-film, low-bake, and weather-resistant powders, expanding their application in heat-sensitive substrates and outdoor applications.

With increasing green building certifications and EHS mandates, powder coatings are likely to outpace traditional solvent-based coatings in several sub-segments over the next decade.

The recyclability of overspray powder and ease of automation make this segment especially attractive for mass production. Further, low-temperature cure powder coatings are enabling applications on wood, MDF, and plastics, expanding their relevance beyond metals.

4. General Industrial & Others: The Most Diverse and Fastest-Growing Segment

With a commanding 38% share of the industrial coatings market by value, the General Industries segment encompasses a wide array of applications including wood coatings, packaging films, consumer electronics, appliances, machinery, and furniture finishes. Its diversity is its greatest strength, allowing the segment to remain resilient against cyclical slowdowns in individual end-use sectors and to quickly respond to emerging innovation trends.

This segment plays a pivotal role in enhancing both aesthetic appeal and functional performance, offering properties such as abrasion resistance, anti-fingerprint finishes, corrosion protection, flame retardancy, and regulatory compliance. For instance, powder coatings and low-VOC formulations are increasingly used across furniture, white goods, and general equipment to meet environmental and worker safety standards.

In India's rapidly diversifying industrial landscape, driven by growth in consumer goods, organized retail, electronics manufacturing, and small to mid-scale production facilities, the demand for durable and cost-effective coating solutions in general industries continues to climb. Additionally, innovation in UV-curable coatings, water-based systems, and multi-surface compatibility is opening new avenues for manufacturers to deliver high-performance solutions across substrates such as wood, plastic, metal, and composite materials.

As global standards tighten and customer expectations rise, coatings under this segment are evolving not only to protect surfaces, but to enhance product value, extend lifecycle, and differentiate brands. With its wide applicability and adaptability, the general industries segment remains a core pillar of India’s overall industrial coatings market growth trajectory.

Others (Consumer Goods, Electronics, Food-Grade & Packaging, etc)– 25% (Value)

Coatings in this category serve functional and regulatory purposes. For example:

  • Food-grade coatings ensure safety and hygiene in utensils, tins, and packaging.
  • Consumer electronics demand sleek, anti-scratch, fingerprint-resistant finishes.
  • Aerospace and defense applications need lightweight, heat-resistant, and radar-absorbing coatings.

India’s growing consumer base, export manufacturing push, and design-focused electronics market are boosting demand here.

Advanced formulations include anti-bacterial, anti-static, flame-retardant, and non-stick coatings tailored to meet stringent international standards.

Coil & Extrusion Coatings – 9% (Value)

Coil coatings are used for pre-painted metal sheets commonly applied in cladding, roofing, modular structures, and home appliances. These coatings based on polyester, polyvinylidene fluoride (PVDF), and silicone-modified polyester (SMP) are valued for their excellent color durability, weather resistance, and formability, making them suitable for both industrial applications and consumer-facing products.

Recent developments in coil coating technologies are reshaping the segment. The industry is witnessing increased adoption of low-VOC, eco-friendly formulations, and high-reflectivity coatings that support energy-efficient building materials. Additionally, anti-microbial, self-cleaning, and scratch-resistant finishes are gaining traction particularly in sectors such as healthcare infrastructure, smart housing, and white goods.

The growing popularity of pre-engineered buildings, the rise in urban infrastructure investments, and India’s push for green construction materials have significantly boosted demand for coil coatings. Enhanced formulations, capable of withstanding extreme climatic conditions, are particularly important in regions with high UV exposure, humidity, or coastal influence.

As industries continue to seek durable, aesthetic, and low-maintenance metal surface solutions, the coil coatings segment is poised for robust growth. Innovation in coating chemistries and the expansion of localized production capacity further support the segment’s momentum, positioning it as a vital contributor to India’s industrial and construction coating markets.

Wood Coatings – 3% (Value)

With rising disposable incomes, Indian consumers are investing in premium furniture, kitchens, and interior decor, increasing demand for clear coats, stains, and pigmented lacquers.

Polyurethane and water-based wood finishes are popular in residential and commercial furniture manufacturing. UV-cured wood coatings are gaining share due to fast processing and durability.

General Industrial Coatings – 2% (Value)

These coatings serve machinery, fabricated metals, tools, and heavy-duty equipment. While not flashy, they are critical for abrasion resistance, rust protection, and operational safety.

Often applied in OEM lines, assembly workshops, and agri-equipment factories, general industrial coatings reflect the breadth of India’s industrial base.

Government Policies Related to Industrial Coatings in India

The industrial coatings sector in India is regulated and influenced by a range of government policies, environmental standards, and manufacturing incentives. These policies aim to promote sustainable practices, ensure product safety, and support domestic manufacturing. Below are key policies and frameworks relevant to industrial coatings: -

Environmental Protection Laws & VOC Regulations

  1.  The Environment (Protection) Act, 1986: This is the umbrella legislation for environmental regulation in India. It empowers the government to set standards for emissions and hazardous materials, including Volatile Organic Compounds (VOCs) emitted from solvent-based coatings
  1.  Central Pollution Control Board (CPCB) Guidelines: CPCB, under the Ministry of Environment, Forest and Climate Change (MoEFCC), has issued guidelines restricting VOC content in paints, coatings, and varnishes, in line with global environmental norms. Example: VOC limits for water-based industrial coatings are typically set under 50–150 g/L depending on application.
  1. Chemicals Management & Worker Safety

▪ Factories Act, 1948 (amended): Industrial coating units must comply with safety rules concerning the handling of flammable materials, spray painting, and storage of hazardous chemicals.

▪ Occupational Safety, Health & Working Conditions Code, 2020: This modern code mandates worker safety and use of personal protective equipment (PPE), especially important during spray coating and solvent exposure.

  1.  “Make in India” and PLI Scheme for Specialty Chemicals

The “Make in India initiative” and “Production-Linked Incentive (PLI) schemes” for specialty chemicals (2021 onwards) support domestic production of coating resins, hardeners, additives, and pigments—reducing import dependence and boosting the supply chain for coatings.

  1. BIS Standards for Paints and Coatings

The Bureau of Indian Standards (BIS) has issued several product-specific standards applicable to coatings, including:

·         IS 2932: Enamel, synthetic, exterior: For industrial applications

·         IS 101: Methods of testing paints, varnishes, and enamels

·         IS 168: Specifications for ready-mixed paints

·         IS 15489: Powder coatings—safety and quality norms

These standards are mandatory for public procurement and projects under the government.

  1. Green Building & Smart Cities Mission

Coatings play a vital role in India’s Green Building Codes such as:

·         IGBC (Indian Green Building Council)

·         GRIHA (Green Rating for Integrated Habitat Assessment)

Eco-friendly coatings with low VOC, high solar reflectivity, or anti-bacterial properties are encouraged in construction under Smart Cities Mission and urban sustainability programs.

  1. National Infrastructure Pipeline (NIP)

With over ₹108 trillion (~US$1.3 trillion) planned investments across transport, energy, and water infrastructure, the demand for protective and anti-corrosion coatings is indirectly fueled by this initiative.

  1. Import Tariffs & Customs Regulations

Industrial coating raw materials like resins, solvents, and pigments are subject to basic customs duties and anti-dumping regulations. The government regularly updates duty structures to protect local manufacturers and ensure fair pricing.

  1.  Extended Producer Responsibility (EPR) for Packaging Coatings

Although more relevant to packaging, EPR regulations under the Plastic Waste Management Rules also impact coatings used on food-grade tins, foils, and plastic containers, requiring safe, non-toxic, and recyclable coatings.

 

Layer by Layer, India’s Industrial Future is Being Coated

India’s industrial coating industry is no longer a peripheral sector it is a strategic enabler of the country's manufacturing and infrastructure dreams. Whether it's a bridge withstanding floods or a smartphone that resists scratches, coatings are the quiet force behind performance and longevity.

The Indian market is undergoing a transformation, driven by:

  • Environmental mandates and the rise of sustainable solutions (e.g., powder, waterborne coatings)
  • Smart manufacturing and automation in application
  • Consumer lifestyle shifts, favoring premium finishes
  • Public investment in infrastructure and industrial corridors

The industry now stands at the intersection of innovation, sustainability, and demand diversification. Companies that invest in R&D, smart formulation, ESG compliance, and technical services will lead this transformation.

With the right policy push and global integration, India can become a coatings innovation hub—not just a consumer, but a global leader.

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