India Particle Board Market Analysis - Size and Forecast 2024-2028

India Particle Board Market Size and Trends

The India particle board market size is forecast to increase by USD 554.2 million at a CAGR of 5.1% between 2024 and 2028. The market is experiencing significant growth, driven by the increasing demand for furniture in the office space and hospitality sectors. This demand is fueled by the expansion of these industries and the need for affordable and efficient furniture solutions. Additionally, the lightweight and easily transportable nature of particle board makes it an ideal choice for infrastructure and construction projects, contributing to the market's growth. The rising number of infrastructural and construction activities in India further boosts the market's potential. Overall, the market is poised for steady expansion due to its versatility, affordability, and growing demand from various industries.

Market Analysis

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The market has seen significant growth, driven by eco-friendly building materials and increasing demand for budget-friendly renovations. Widely used in construction, DIY projects, and furniture design, particleboard for crafts is also popular in interior design trends. Particleboard for shelving, kitchen cabinets, and wall cladding offer versatile solutions for modern kitchen design ideas and home improvement projects. With applications ranging from floor installation to ceiling design ideas, it is valued for its smooth surfaces and decorative finishes. Furthermore, particleboard fire rating and moisture resistance are crucial for its use in sustainable construction. The material's thermal performance, soundproofing, and density make it a reliable plywood substitute, while particleboard recycling helps reduce wood waste. MDF panels and HDF panels complement particleboard for durable building materials in new home construction and alternative building materials.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• End-user
  • Residential
  • Commercial
  • Industrial
• Distribution Channel
  • Offline
  • Online
• Geography
  • India

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period. Particle boards are becoming more popular as a building material due to the wide range of applications and low cost. Particle boards are an environmentally benign material since it is made from wood waste such as wood chips, sawdust, and shavings combined with resin.  It is occasionally used in place of plywood or medium-density fiberboard to reduce building costs.

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The residential segment was the largest segment and was valued at USD 849.60 million in 2018. Particle boards are utilized as flooring material in temporary buildings where loads are applied lightly. It is also extensively used as a covering for hardwood floors, as hardwood boards have a low resistance to scratches and need to be protected. When a final aesthetic effect is required, wood veneer particle board or laminated particle board is used in flooring. Hence, such factors are fuelling the growth of this segment during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

India Particle Board Market Driver

Increasing demand for furniture from office space and hospitality sectors in India drives the market. The increasing demand for furniture from the office space and hospitality sectors in India continues to drive growth in the market. Particle boards are widely utilized in the manufacture of furniture for offices, hotels, restaurants, and cafes, as well as for shelf structures and storage solutions.

Moreover, recent reports indicate that the Indian office leasing market has witnessed a remarkable resurgence, with gross leasing activity reaching an all-time high of 62.98 million square feet in 2023, marking a significant 26.4% year-on-year increase. This surge is supported by a diverse range of sectors, including manufacturing and BFSI (banking, financial services, and insurance), which have contributed to the demand for office spaces. Hence, such factors are driving the market during the forecast period.

India Particle Board Market Trends

Significant growth in construction on account of rapid urbanization is a major trend in the market. With the high pace of expansion in the construction industry, the demand for particle boards is significantly increasing due to rapid urbanization and ongoing infrastructure projects across India. In 2023, the Indian office leasing sector experienced a remarkable resurgence, with gross leasing activity reaching an all-time high of 62.98 million square feet, reflecting a 26.4% year-on-year increase.

Moreover, this growth is supported by major construction initiatives such as the Navi Mumbai International Airport and the Delhi-Mumbai Industrial Corridor, which are set to enhance connectivity and stimulate economic activity. Additionally, projects like the Dholera Smart City in Gujarat aim to promote sustainable urban living, further driving demand for materials like particle board used in furniture and interior design for these new developments. As these construction activities continue to unfold, they are expected to bolster the market during the forecast period.

India Particle Board Market Challenge

Low durability is a major challenge hindering the market. Particle board swells and warps in the presence of moisture. Discoloration can also occur under severe settings. Particle board readily absorbs moisture and, even when exposed to low moisture levels. At the absolute least, moisture exposure may cause particle boards to shrink and expand, as well as warp and bend, which is undesirable.

Moreover, because it does not operate well when exposed to moisture, it does not endure very long, especially in humid locations. Particle boards are not strong enough compared to other home interior materials such as plywood. It should be handled with care since it is low in strength and easily damaged. It comes with a low resistance to moisture and humidity. It is one of the significant disadvantages of particle boards. Due to moisture, particle boards can expand. Thus, the low durability of particle boards is expected to hinder the growth of the market in focus during the forecast period.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Action Group: The company offers particle board such as Action TESA, known for its high moisture resistance and durability, making it suitable for various furniture applications and interior designs.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Archidply Decor Ltd.
• Asian Prelam Industries Pvt. Ltd.
• Associate Decor Ltd.
• ATT Panels
• Century Plyboards India Ltd.
• DMK Particleboard LLP
• EverGreen Boardlam Pvt. Ltd.
• Featherlite
• Glam Ply and Decor
• Krifor Industries Pvt. Ltd.
• Kunnathan Chip Boards Pvt. Ltd.
• Padmavati Ply Pvt. Ltd.
• Positive Chip Boards India Pvt Ltd.
• Shell Laminates Pvt. Ltd.
• Shirdi Industries Ltd.
• Supreme Decor LLP
• The Decorative Laminates (India) Pvt. Ltd.
• Vihaan boards Pvt Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

The market is expanding with increasing demand for wooden panel products and sustainable building practices. Raw particleboard and fiberboards are widely used in furniture manufacturing, particularly for particleboard cabinets, modular kitchens, and ready-made furniture. The material is available in various sizes, offering cost-effective rates and dimensions that meet the needs of interior designers and homeowners. Pre-laminated particleboard is favored for its aesthetic appeal, while fire-resistant particle board is essential for demanding environments. With sound-absorbing properties, moisture-resistant particleboard is used in flooring underlayment, wall paneling, and false ceilings. Wood-based products like particleboard doors and decorative overlays enhance interior applications, offering low-maintenance, recyclable, and environment-friendly solutions. This market plays a key role in the development industry and real estate sector, where thermal insulation, mechanical properties, and geometrical shapes are critical.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across India
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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