Paint Industry: On the cusp of a tech revolution

– By Ashok Gupta

The fortunes of the paints sector are closely tied to the country’s resilient economy, which has demonstrated exceptional strength despite a challenging global environment. With India’s growth story unfolding gradually, the paints sector is poised for expansion. Positive outlook bolstered by rapid urbanization, increasing construction industry demand, infrastructure growth, automotive industry recovery, PMAY government initiatives, and evolving consumer lifestyle preferences drive higher demand for paints and allied products.

The Indian paints and coatings industry is projected to grow by 10-12 per cent in the current financial year (FY24). With a market over INR 65,000 crores, the sector is set to thrive, driven by improved consumer sentiment and economic recovery. The decorative segment, commanding 80 per cent of the market, is expected to contribute significantly to this growth.

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While the paint industry has a long-standing association with traditional color mixing and application techniques, technology is now revolutionizing this age-old sector. Advancements in paint formulations and innovative application methods are reshaping the industry’s landscape. From advancing the manufacturing techniques to design and application trends, homeowners now have the option of looking for paints that will help benefit their home in ways that are more than just visual. Innovative solutions such as air purifying, VOC-Free, antibacterial, green paint amongst others are offering some serious benefits that are making spaces smarter, safer, and healthier. Researchers have curated formulations that can repel any type of disposition, allowing surfaces to stay clean as long as the paint lasts. However, this technology is yet to be commercialized in India. Digital themes with significant implications have been identified in the chemistry and advanced materials sector, including paints and coating.

The digitalization of companies through the Industrial Internet of Things (IIoT), automation, analytics, and artificial intelligence are increasing efficiency, and productivity by taking core operational functions like R&D, manufacturing, and supply chain management to the next level. For example, AI-powered paint mixers and color-matching tools enhance precision, minimize waste, and optimize workflows, making digitalization and AI adoption crucial for staying competitive in a fragmented market.

Paints and allied companies are also betting big on launching digitally enabled products, creating new business models to improve customer interactions. This has helped in the abundance of data generation, enabling collaborations and statistics sharing across different verticals and the entire value chain of the paint industry. In fact, using AI-powered tools a paint can transform any wall into a touchscreen, giving your smart home a completely new meaning.

The sector is concentrating on increasing quality control, advancing advances supported by research, and using sustainable components to maintain environmental and personal wellbeing. Reduced levels of volatile organic compounds (VOCs) in paints are being achieved, and there’s a greater emphasis on biodegradability and waste reduction.

Furthermore, nanotechnology is playing a pivotal role in providing enhanced adhesion, microbial resistance, increased hygiene, and protection from harmful sun rays. It lessens surface friction, allowing dirt to simply slide off or deterring anything that might stain. Enabling the creation of custom paint solutions tailored to specific requirements, 3D printing is also gaining momentum. This technology allows precise mixing of pigments to produce unique colors, benefiting consumers and streamlining the supply chain for manufacturers by reducing waste and costs.