India Polyurethane Sealant (PU Sealant) Market Outlook to 2028

India PU Sealant Market Overview

• The India PU Sealant Market growth reflecting the Global PU Sealant Market size which was valued at USD 2.9 billion in 2023. This growth is driven by the increasing demand for PU sealants in construction, automotive, and manufacturing industries due to their superior properties such as durability, flexibility, and resistance to environmental factors.
• The PU sealant market in India is competitive, with several key players dominating the market include Sika India Pvt. Ltd., BASF India Ltd., Henkel Adhesives Technologies India Pvt. Ltd., 3M India Ltd., and H.B. Fuller India Adhesives Pvt. Ltd. These companies have established a strong presence through extensive distribution networks and continuous innovation in product offerings.
• In June 2023, Sika opened a new plant in Kharagpur, eastern India, to produce mortar products, concrete admixtures, and shotcrete accelerators. This facility enhances Sika's supply capacity in the region, supporting large-scale projects in eastern and northeastern India, including Kolkata. The new plant is part of Sika's strategy to leverage India's industrialization and urbanization trends.
• The Western region of India, particularly the state of Maharashtra, dominates the PU sealant market. Maharashtra's robust industrial base, including major automotive and construction hubs like Mumbai and Pune, drives the high demand for PU sealants. In 2023, Maharashtra extensive infrastructure projects and strong presence for key market players.

India PU Sealant Market Segmentation

The India PU sealant market can be segmented by various factors like product, application and region.

By Product: India PU sealant market is segmented by product type into one-component PU sealants, two-component PU sealants, and others. In 2023, one-component PU sealants held the dominant due to their ease of application, curing upon exposure to atmospheric moisture, and widespread use in construction and automotive industries.

By Application: India PU sealant market is segmented by application into construction, automotive, and industrial. In 2023, the construction segment held the largest market share due to the extensive use of PU sealants in residential and commercial building projects for waterproofing, sealing joints, and enhancing structural integrity.

By Region: India PU sealant market is segmented by region into north, south, east, and west. In 2023, the Western region, led by Maharashtra and Gujarat, dominated the market with the high concentration of industrial activities and large-scale construction projects are the primary factors for this dominance.

India PU Sealant Competitive Landscape

• Henkel Adhesives Technologies India Pvt. Ltd.: In July 2024, Henkel completed Phase III of its largest Indian manufacturing facility in Kurkumbh, near Pune. The new Loctite plant, part of this expansion, enhances Henkel's capacity to meet local demand, reducing reliance on imports. The facility also features an Automated Storage and Retrieval System (ASRS) and aims for carbon neutrality by 2030.
• BASF India Ltd.: In May 2024, BASF India announced a significant expansion of its Ultramid (PA) and Ultradur (PBT) production capacities at its Panoli and Thane plants by over 40%. Additionally, BASF inaugurated a new Polyurethane Technical Development Center in Mumbai, enhancing local production capabilities and customer support services across various industries.

India PU Sealant Market Analysis

India PU Sealant Market Growth Drivers

• Expansion of Construction Sector: In 2024, the construction sector in India is growing, with the government allocating INR 48,000 crore towards urban development projects under schemes such as the Pradhan Mantri Awas Yojana (PMAY). The need for high-performance materials like PU sealants is essential to meet the demands for durability and weather resistance in these construction projects.
• Increasing Automotive Production: The automotive industry in India has seen a notable increase in production, with over 3.6 million vehicles manufactured in 2024. This rise is due to growing domestic demand and export opportunities. PU sealants are extensively used in automotive manufacturing for sealing and bonding components, thereby enhancing vehicle durability and performance.
• Infrastructure Development Projects: In 2024, the Indian government allocated 3.3% of GDP to infrastructure development, focusing on transport and logistics. The budgetary outlay for infrastructure-related ministries increased from INR 3.7 lakh crore in FY23 to INR 5 lakh crore in FY24. This funding supports projects like Bharatmala, Sagarmala, and the development of 35 Multi-Modal Logistics Parks, boosting demand for PU sealants in construction and industrial applications.

India PU Sealant Market Challenges

• Environmental Regulations: Stringent environmental regulations imposed by the Indian government on volatile organic compounds (VOCs) emissions have impacted the PU sealant industry. In 2024, the government introduced new compliance requirements, increasing the operational costs for manufacturers who must invest in eco-friendly production processes and products. These regulations aim to reduce the environmental footprint but pose a challenge for the industry to adapt quickly.
• Supply Chain Disruptions: Supply chain disruptions due to geopolitical tensions and logistical issues have affected the availability of raw materials and finished products in 2024. Delays in shipment and increased transportation costs have disrupted the supply chain, impacting the production schedules and delivery commitments of PU sealant manufacturers. Addressing these challenges requires robust supply chain management strategies.

India PU Sealant Market Government Initiatives

• Smart Cities Mission: The Smart Cities Mission, with a total allocation of INR 48,000 crore in 2024, focuses on developing sustainable and smart infrastructure in urban areas. This initiative drives the demand for advanced construction materials, including PU sealants, to ensure the longevity and efficiency of smart infrastructure projects. The integration of smart technologies and sustainable materials is a key focus, enhancing the market for PU sealants.
• Make in India Initiative: The Make in India initiative, promoting domestic manufacturing. This initiative encourages local production of PU sealants and other industrial materials, reducing dependency on imports and fostering industry growth. The focus on enhancing the manufacturing sector directly benefits the PU sealant market by increasing local production and consumption.

India PU Sealant Market Future Outlook

The India PU sealant market is growing over the next five years, driven by increasing adoption of sustainable sealants, technological advancements, expansion of infrastructure developments, and rise in automotive sector.

India PU Sealant Future Trends Market

• Technological Advancements in Sealant Application: Automation and precision application techniques will become more prevalent, reducing labor costs and improving the quality of sealing in construction and manufacturing processes. These technological advancements will drive the adoption of PU sealants across various sectors.
• Rising demand in the Automotive Sector: The adoption of PU sealants in EV manufacturing for battery sealing and other critical applications will grow, supporting the market’s expansion. The automotive industry’s evolution will create new opportunities for PU sealant manufacturers.