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The cross laminated timber (CLT) market size is estimated to grow at a CAGR of 12.42% between 2023 and 2028. The market size is forecast to increase by USD 1,239.79 million. The growth of the market depends on several factors such as the growth in the real estate and construction industry, the growing demand for sustainable building materials, and the increasing demand for durable wood flooring. Our report examines historic data from 2018 to 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by end-user (non-residential and residential), application (structural and non-structural), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Cross Laminated Timber Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The development of the real estate industry across the globe has led to an increase in office spaces, commercial complexes, and residential buildings. This has resulted in an upsurge in demand for cross-laminated timber in construction and structural applications. Urbanization and significant investments in infrastructure are helping the construction industry grow in developing countries.
In addition, the world's urban population will probably increase by 65%-70% by 2050, which will see a growth in demand for quality infrastructure and residential and non-residential projects. The growth in single-person and two-person households across the globe has contributed to higher home construction activities. Thus, such factors are expected to drive the growth of the market during the forecast period.
Forestry management is an essential part of the cross laminated timber business. Wood suppliers and vendors are focusing on aligning their business activities to create sustainable business models based on renewable solutions. Moreover, market players are also focusing on the development of infrastructure among local communities. The focus is on investing in plantations because they provide lower-cost production and self-sufficiency to the cross-laminated timber industry.
Furthermore, with the focus on plantation management being a key attribute of vendors operating in developing countries, numerous players in emerging countries such as China and Indonesia are focusing on sustainable business models for growth. Their increasing focus on plantation and forestry management is likely to ramp up supplies of softwood and hardwood, key raw materials for cross laminated timber, and will drive the growth of the market during the forecast period.
Some of the commonly used raw materials are wood (softwood and hardwood), and adhesives. Most adhesives used while making glue laminated timber are polymer and resin products and a derivative of crude oil. The oil and gas industry is a key supplier of raw materials to the adhesives as adhesives are produced from petroleum fractions. Fluctuations in crude oil prices create an adverse impact on the prices of raw materials, thereby affecting the costs of adhesives.
Moreover, volatility in the prices of wood (sawn) is one of the critical challenges faced by the global cross laminated timber market. The production of various cross laminated timber products mainly relies on the prices of wood (softwood and hardwood). Price volatility brings uncertainty into the market and affects the profit margins of value chain stakeholders. In addition, higher tax and excise duties on lumber products will impede the global cross laminated timber market during the forecast period.
The non-residential segment will account for a major share of the market's growth during the forecast period.?Cross laminated timber is broadly used in commercial construction and is especially preferred for commercial and open-space construction. Some key aspects leading to the broad use of cross-laminated timber are easy maintenance and low-cost construction. Advancements in building-design technologies, along with increasing adoption of sustainable building materials such as wood, are likely to encourage the consumption of these timber products in non-residential construction.
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The non-residential segment was valued at USD 697.28 million in 2018. Furthermore, cross-laminated timber is also used in decks, utility poles, and cross-arm columns, among others. According to the US Census Bureau, the total cost of private non-residential construction in the country increased by 0.5% in July 2023 compared to the last year. Therefore, a surge in non-residential construction activities is expected to fuel the segment growth of the market in focus during the forecast period.
Based on application, the market has been segmented into structural and non-structural. The structural?segment will account for the largest share of this segment.? Structural cross laminated timber panels are utilized in structural construction and manufactured under the standards specified by APA- PRG 320 standard in North America. The Engineered Wood Association grants the qualification, and each mill should certify both process and product for commercial production of cross laminated timber panels for structural application. Furthermore, besides being the two most populous countries, China and India also have the fastest-growing economies. The growth in population and rapid developments taking place in these two countries have prompted their governments to invest substantially in infrastructure development. Thus, such factors are expected to increase the demand for cross-laminated timber for structural development, which will drive the growth of the market during the forecast period.
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Europe is estimated to contribute 39% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Germany, Italy, France, and Austria are some of the key contributing countries to the market in the region. Growing consumption and high adoption of sustainable building materials such as wood will likely drive the region's cross laminated timber market.
Moreover, Germany, Austria, France, Sweden, Finland, and the UK are among the major softwood producing countries in Europe. Increasing softwood exports, especially to China, are boosting output levels. Russia, Sweden, and Finland have some of the biggest forest ranges in Europe, and they export timber to countries such as the US, China, and Japan, which are major consumers of cross laminated timber globally. Thus, such factors are likely to boost the growth of the cross laminated timber (CLT) market in the region during the forecast period.
In 2020, the outbreak of COVID-19 negatively affected the growth of the cross laminated timber market in Europe. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Additionally, the vendors operating in the region are adopting several strategies, such as product innovations, market expansion, and mergers and acquisitions (M&A), to increase their market shares. Thus, such factors are expected to drive the growth of the cross laminated timber market in Europe during the forecast period.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
B and K Structures, Binderholz GmbH, DRJ Wood Innovations, Eugen Decker Holzindustrie KG, Freres Engineered Wood, HASSLACHER Holding GmbH, HESS TIMBER GmbH, KLH Massivholz GmbH, Mayr Melnhof Holz Holding AG, Mercer International Inc., Nordic Structures, Pfeifer Holding GmbH, PFS Corp., Schilliger Holz AG, SmartLam, STRABAG SE, StructureCraft, XLam Ltd., and Sterling Lumber
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The cross laminated timber market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Cross Laminated Timber Market Scope |
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Report Coverage |
Details |
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Page number |
147 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.42% |
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Market growth 2024-2028 |
USD 1,239.79 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.02 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 39% |
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Key countries |
US, China, France, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
B and K Structures, Binderholz GmbH, DRJ Wood Innovations, Eugen Decker Holzindustrie KG, Freres Engineered Wood, HASSLACHER Holding GmbH, HESS TIMBER GmbH, KLH Massivholz GmbH, Mayr Melnhof Holz Holding AG, Mercer International Inc., Nordic Structures, Pfeifer Holding GmbH, PFS Corp., Schilliger Holz AG, SmartLam, Stora Enso Oyj, STRABAG SE, StructureCraft, XLam Ltd., and Sterling Lumber |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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