11 November 2019

Industry Focus- Industrial Floorings

On a Smooth Flooring

 

Flooring is basically a layer of finished material that is applied on the floors which acts as a permanent covering for the same. Materials such as vinyl sheet & tiles, carpets & rugs, laminates, natural stone, wood, ceramic tiles, and rubber are commonly used as flooring materials. The rise in the construction of facilities and related infrastructure has resulted in the demand for industrial flooring in the long run, reports R Kashyap.

 

 

 

Industrialisation has brought with it a rapid change in technologies, products and services being used in the country. It has especially widened the market for niche and specialised products like construction chemicals. Floorings, especially catering to industrial requirements, is a segment that is increasingly occupying busy market space.

 

Ask any Industrial Flooring solution provider about the right flooring for a particular industry and he will respond that today it’s all about the requirement. The modern connotation of a good Industrial Floor encompasses aesthetics, quick installability, longevity, economy, slip resistance, quality, functionality, durability, eco-friendliness, and moisture resistance.

 

With the advent of modernization in every industry and the growing concern for sustainability, people have become more discerning and don’t look at floors as just floors! They seek much more, and no wonder, before devising a flooring solution, an expert will take into account various factors such as the movement of people/machinery in a premise, the ambient environment, nature of activities taking place within the building and much more.

 

There are various permutations and combinations, and there can be different floors for different departments in a single industry these days.

 

What’s more, the market is abuzz with such products and companies are constantly upgrading their offerings to meet the growing demand in various segments such as airports, Metro-Rail projects, shopping malls, IT parks, and SEZs. According to experts, Logistics, Warehousing, and Packaging Industries have also played vital roles in boosting the Industrial Flooring market upwards. They are also of the view that big ticket projects like Delhi Mumbai Industrial Corridor, where some industrial townships are planned, will increase the demand for flooring products in the future.

 

 

Market Dynamics

 

The industrial and commercial flooring segments have been maintaining a healthy pace of growth in the recent few years, with India emerging as a key market for newer technologies. The 2017-2024 industrial floor coatings market research by Global Market Insights, Inc. says epoxy cementitious is the fastest growing segment forecast to rise at over 6.5% up to 2024 as double component accounted for over 50% of market share in 2016. The global flooring market was valued at USD 121.4 billion in the year 2016, which is expected to reach USD 161.4 billion by the end of the 2023 growing at 4.25% CAGR.

 

Shifting trend towards floor protection in manufacturing, transportation, chemical, and food-processing industries

 

have stimulated the industrial floor coatings demand. Advancement in the production units to safeguard the diminishing of interior structure will enhance the industrial floor coatings market growth.

 

An increasing need to certify the manufacturing plants due to rising awareness among end-users have influenced market growth. Rising adoption of heavy, high-performance machineries & equipment and automotive & aviation companies has enhanced necessity for efficient ground coatings strongly supporting product demand.

 

Rising industrialization in several countries owing to improved consumer demand is encouraging key players to expand production capacities. Technological advancement in material handling equipment with enhanced mobility through wheels has influenced the rising need for smooth surfaces, stimulating industrial floor coating market share.

 

Prominent industries such as iron, steel, automotive, chemical, pharmaceutical, machinery, and food & beverage are majorly supporting global economic development. Industry growth including metallurgical, mining, oil & gas owing to the high requirement for tough ground in the usage of various chemicals, liquid, solvents, and elevated temperature. Excellent surface strength improved adhesion and high-performance chemical proof benefits mainly stimulating industrial floor coatings market size. Increase infrastructure spending in manufacturing sector is one of the key factor fueling industrial floor coatings market growth.

 

Technical Trends

 

Flooring compounds are most commonly used to meet various industrial needs like resistance to abrasion, chemical attacks, moisture penetration, strengthening of damaged floors etc. Epoxy and floor hardeners today constitute a major share of the industrial flooring market. However, the growing technical requirements and specialised industrial operations have led to a rising demand for products offering load bearing abilities and resistance to heat, fire and even sound. Ability to maintain the aesthetic appeal of the flooring systems is the other crucial factor considered during the selection of such chemical solutions.

 

Apart from the resin and epoxy flooring compounds, industry experts indicate PU Concrete solutions as a product finding fast acceptance in the Indian markets. These user specific chemical products have especially found acceptance in the industrial units demanding heat and chemical resistance.

 

 

 

Rise of Indian Market

The Indian economy is booming, with rates of Gross Domestic Product (GDP) growth exceeding 8 percent every year since 2003–04. One of the world’s fastest growing economies – and growth expected to continue at 7-7.5 percent despite the global downturn, India is one of the favorite destinations for investments. Nearly all of the infrastructure sectors present excellent opportunities, Public private partnerships (PPPs) are gaining in importance, and are benefiting from government support – targeted PPP participation. Construction is the second largest economic activity in India after agriculture, and has been growing rapidly.  The flooring industry in India is relatively unorganized. Contractors and builders have considerably cut down on the ‘under-construction’ time by using new construction technologies and construction aids. This has led to decrease in the overall operational expenditures and also improved the construction quality. Though such formulations have been limited for use in only large-scale infrastructure projects like up market private constructions, it is expected that the usage will slowly pick up in all the other construction areas as well.

 

Logistics- the sunrise sector

 

The logistics sector has been growing at an impressive rate of 8 to 10 per cent per annum since 2002. The World Bank’s report in 2007 ranks India 39 amongst 150 countries in terms of logistics performance during the year as well as its future potential. Further, the Indian logistics industry is expected to grow annually at the rate of 15 to 20 per cent, reaching revenues of approximately US$ 385 billion by 2015. Fuelled by the increasing trend 3 Part Logistics, including the warehousing / ports & transport segment is estimated to grow at about 30 per cent annually.

 

Slippery Flooring

 

India’s flooring market has its own challenges, and is still very nascent with a latent potential that will manifest concomitant to growth of the manufacturing sector, which is accelerating on the back of ‘Make in India’ push. However, currently almost 90 per cent of flooring in India is not geared to the actual usage, in most occasions the client or the contractor is not even aware of the advantages of correct and quality flooring.

 

The flooring industry in India is relatively unorganized. Contractors and builders have considerably cut down on the ‘under-construction’ time by using new construction technologies and construction aids. But such formulations are limited only to large-scale commercial and industrial real estate projects and usage is expected to become widespread gradually.

 

One major challenge according to leading players in the industry is the absence of a Governing Standard for products that are being manufactured in the country. This is bound to result in dilution of specifications in many projects to cut on costs. Robust measures hence need to be adopted to ensure that product quality is maintained and stringent application procedures are put into practice.

 

The manufacturers seek a proactive government approach to bring about standardisation in the gradually expanding flooring chemicals market in India. It is expected that the implementation of such stringent norms backed by varied project opportunities can drive the market for flooring solutions on a price-to-performance basis rather than being just price competitive.

 

Global Sweep

As is the case in many other sectors, India has great potential to emerge as a major exporter of flooring products to emerging markets. India’s huge latent demand for flooring will spawn the manufacturing ecology for flooring products here. That coupled with low cost manufacturing on the Rupee standard and ‘Make in India’ will likely channel exports to emerging markets. All in all India is skating on a smooth shiny floor with a demand for mosaic across the spectrum.

 

 

 

 

 

Fast Facts

  • Currently almost 90 per cent of flooring in India is not geared to the actual usage.
  • Market research by Global Market Insights predicts epoxy cementitious to grow at 6.5% up to 2024.
  • Shifting trend towards floor protection in manufacturing, transportation, chemical and food-processing industries.
  • Absence of a Governing Standard for products is a major challenge.