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The engineered wood products market size is estimated to grow at a CAGR of 6.8% between 2022 and 2027. The size of the market is forecast to increase by USD 6,349.29 million. The growth of the market depends on several factors, including increasing residential and commercial construction, demand for environmentally friendly and durable flooring, and alternatives to sawn wood.
This report extensively covers market segmentation by product (structural wood I-beams, glued laminated timber, LVL, and others), application (construction, furniture, and others), and geography (Europe, North America, APAC, the Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increasing residential and commercial construction activities are notably driving the market growth, although factors such as high volatility in raw material prices may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Engineered Wood Products Market Driver
Increasing residential and commercial construction activities are notably driving the engineered wood products market growth. Developed economies such as the US are planning to invest significantly in infrastructural development. The rising focus on infrastructural and real estate development, as well as the construction of new residences and offices, is expected to increase the sales of new wood products and furnishings. The rising demand for wood products is also complemented by the increase in the number of renovation and modification projects across key countries such as the US, China, and India.
The rise in the number of multinational and global companies, as well as technology and business parks due to favorable trade relations between countries and government policies such as relaxation in FDI norms, is estimated to increase the demand for wood products in offices and other commercial spaces during the forecast period. The real estate industry is growing significantly in key countries such as the US due to the increasing construction of offices, commercial complexes, and residences. This will drive the growth of the regional as well as the global wood products market during the forecast period. Hence, the growth of the real estate industry across the world will drive the growth of the global engineered wood products market during the forecast period.
Key Engineered Wood Products Market Trends
Rising wages in key manufacturing hubs are a key trend influencing the engineered wood products market growth. The primary factor contributing to rising wages is rapid urbanization and industrialization in emerging economies, especially in countries such as China, India, the Philippines, Vietnam, and Indonesia. The growth of the global economy, driven by growth in the GDP of countries such as China and India, also leads to increased wages. In addition, urbanization is a key factor for rising wages. With the growth in urbanization, people in low-income counties are opting for a high quality of life, which is driving the trend of rising wages in these countries.
Several government initiatives across emerging economies have encouraged urbanization, which is directly impacting wage growth. For instance, initiatives by the Indian government, such as the Smart Cities Mission and the Sardar Patel National Urban Housing Mission, aim to improve the standard of living of the people, which is expected to contribute to an increase in wages. This is expected to be a trend in the global engineered wood products market during the forecast period.
Key Engineered Wood Products Market Challenge
High volatility in raw material prices may impede the engineered wood products market growth. The cost of wood has increased considerably in recent times. In addition, the prices of raw materials such as chipboard, timber, foam, polish chemical materials, color paints, and hardware used in making furniture have increased. The cost of wood particleboard has increased because of volatility in the input and transportation costs, as well as the continuous downsizing of furniture manufacturers' production capacities.
The fluctuations in raw material prices are estimated to have an adverse effect on profitability, the cost of sales, and the ability of vendors to address the demands of consumers effectively. Furthermore, plastic and polymers, which are extensively used to produce furniture products, are derivatives of crude oil products. Fluctuating crude oil prices have a direct adverse effect on the pricing strategies of raw material suppliers. Hence, they have an adverse impact on vendors. Thus, the volatility in raw material prices is estimated to be a key challenge for the global engineered wood products market during the forecast period.
Key Engineered Wood Products Market Customer Landscape
The engineered wood market report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Engineered Wood Products Market Customer Landscape
Vendors 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.
Boise Cascade Co. - The company offers engineered wood products such as Versa Lam LVL.
The engineered wood market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
A qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the structural wood I-beams segment will be significant during the forecast period. Structural I-beams are long timber beams. These beams are of high strength and are used to manufacture supporting structures and in load-bearing commercial and residential applications. They have high straightness, constant depth, and high dimensional stability. I-beams are produced using a combination of timber products; therefore, they are economical to produce.
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The structural wood I-beams segment showed a gradual increase in market share with USD 5,106.15 million in 2017 and will continue to grow by 2021. Many regional and international quality standards must be followed for structural wood I-beams. For instance, in Australia and New Zealand, these wooden beams must comply with the quality standards imposed by the AS/NZ 4063 Structural Products, Strength and Stiffness Evaluation. Such factors will create a demand for structural wood I-beams, which, in turn, will fuel the growth of the global engineered wood products market during the forecast period.
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Europe is projected to contribute 31% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The region is characterized by high disposable incomes, a growing working population, and steady economic growth, which fuels the demand for consumer goods, along with furniture and furnishings for home decor. Owing to the high purchasing power, the demand for premium and personalized wooded products made from high-quality raw materials is increasing, which is estimated to be one of the key drivers for the engineered wood products market in the region. Europe experiences a high rate of immigration when compared with other regions. With the rising number of people migrating to Europe, the demand for office furniture will also increase. The increase in disposable incomes and construction activities will boost the growth of the engineered wood products market in Europe. Economic growth in European countries, such as Germany and the UK, has fueled the growth of the engineered wood products market in the region in the past few years.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The market is expected to see a rise in the sales of engineered wood products during the forecast period, with the opening of borders for trade post the initiation and conduct of large-scale vaccination programs in the region.
The engineered wood market report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, application, and region.
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Engineered Wood Products Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.8% |
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Market growth 2023-2027 |
USD 6,349.29 million |
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Market structure |
Fragmented |
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YoY growth (%) |
5.7 |
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Regional analysis |
Europe, North America, APAC, the Middle East and Africa, and South America |
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Performing market contribution |
Europe at 31% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Boise Cascade Co., Celulosa Arauco y Constitucion SA, Georgia Pacific LLC, Greenply Industries Ltd., Huber Engineered Woods LLC, J M Huber Corp., Kahrs, Lampert Lumber, Louisiana Pacific Corp., Lowes Companies Inc., M.Y. Timber Co. Ltd, Raute Corp., RH Group, Rockshield Engineered Wood Products ULC, Roseburg Forest Products Co., Universal Forest Products Inc., UPM Kymmene Corp., West Fraser Timber Co. Ltd., and Weyerhaeuser Co. |
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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 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 Product
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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