India Luxury Vinyl Tile (LVT) Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian LVT market has been passing through an exciting period, due to the influx of newer materials, technology, and specialized machinery. However, the market in India is concentrated among 5-6 brands, and these are entirely dependent on imports. The Indian LVT market reached a volume of 42 million square meters in 2020 while witnessing a CAGR of greater than 5% between 2016 and 2020. The market is further expected to grow at a positive rate during the forecast period of 2021-2026.

Owing to the lockdown due to COVID-19, the flooring industry in India is experiencing a slowdown, as the construction of housing and building projects in the country has come to a halt. This has affected the market for LVT flooring. Due to lockdown, the new purchases of LVT in India have decreased. The industry is anticipated to bounce back during the forecast period (2021-2026).

The product is used in niche segments and is dependent on the influence of leading architects and consultants. The demand for flooring products in India does not favor LVT usage; hence, the product sees very low penetration. High prices and product characteristics that do not suit Indian customer demand play a critical role in the low volume of sales for LVT suppliers in India. On the other hand, India's surge in economic activity has led to the growth of commercial Grade A office spaces and demand for private and international schools. Project scales, especially for industrial and commercial flooring, have increased dramatically in recent years. This is helping the concerned market.

In India, the growth trends of the LVT market have been unlike the other segments in the construction industry; but LVT is capturing the market steadily. Increasing emphasis on quality and adherence to strict deadlines while sticking to the budget is a major factor that will drive the trends in the LVT flooring industry. The customer needs quality, functionality, and long-term performance, all at competitive prices. Thus, LVT floors that are easy to clean and maintain and offer excellent wear resistance are becoming an obvious choice. The healthy growth rate maintained by industrialization and the buoyant urban infrastructure scenario may help the market's growth in the near future. One of the trends in the Indian market has been that the commercial flooring segment has been keeping up with the pace of growth of the LVT flooring market. The growth of the market is expected to increase soon. Similarly, increased disposable income and growth in tourism have led to increased customer spending through the retail sector and an increase in the number of hotel rooms. All of these factors are expected to favor the LVT market during the forecast period.

Key Market Trends

Industrialization is Acting as Catalyst to Help Grow the Market

Flooring is one area in the construction industry witnessing rapid changes over the past two decades. The advent of several new technologies and the increasing use of specialized machinery mean that the field has changed beyond recognition, especially concerning the industrial and commercial LVT flooring segments. LVT helps to meet sustainability/environmental objectives because it can last twice as long if it is a high-quality, commercially rated product. Replacing LVT flooring every twelve years instead of every six years (the average replacement cycle for some hotels) is a more sustainable option through the reduction of waste. Low-maintenance flooring products like LVT require little water to maintain and do not need harsh chemicals to clean. 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 new technologies. The growth of LVT flooring in India is also attributed to commercial flooring maintaining a corresponding growth curve to that of the industrial flooring market.

The Residential Building Segment Leads the Luxury Vinyl Tiles (LVT) Flooring Market

Luxury vinyl tiles (LVT) enhance the aesthetic appeal of a building, along with properties such as durability, comfort, and protection from extreme weather conditions. These factors are projected to drive the residential sector during the forecast period. In addition, the increased per capita income and rapid urbanization are the fuelling factors for the rise in renovation and remodeling of existing homes. Moreover, the increase in housing maintenance is further projected to drive the demand for luxury vinyl tiles in the residential sector.

The use of LVT flooring solutions in residential buildings also enhances the aesthetic appeal and provides durability and comfort. Luxury vinyl tiles are preferred for bathrooms, kitchens, laundry rooms, and basements due to their waterproof features. Further, LVTs don't trap dust and pet dander in bedrooms. All these factors are projected to drive the demand for LVT flooring solutions in the residential sector.

Competitive Landscape

The report covers major international players operating in the Indian LVT market. In terms of market share, few major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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