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The timber logistics market size is forecast to increase by USD 18.47 billion, at a CAGR of 6.7% between 2023 and 2028. The growth of the market depends on various factors, including the rising demand for timber in the construction industry, the increasing imports and exports of lumber, and the growing need for paper-based packaging. These elements are driving the market forward as construction projects expand and sustainable packaging solutions become more popular. Additionally, the international trade of lumber supports market growth by meeting the global demand for high-quality timber. Consequently, these factors collectively contribute to the market's expansion and highlight the importance of timber and lumber in various industries. Our report examines historic data from 2018 to 2022, besides analyzing the current market scenario.
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The market is driven by rising demand in the construction and furniture industries, supported by sustainable timber sourcing and certified timber products. Trends include the adoption of sustainable packaging, paper-based packaging, and advanced technologies like Blockchain technology, Internet of Things (IoT) devices, drones, and satellite imagery for forest mapping and timber inventory management. Challenges encompass deforestation, illegal logging practices, and infrastructure limitations. Moreover, environmentally conscious consumers and the need for eco-friendly timber are reshaping market dynamics, emphasizing sustainable and efficient logistics solutions. 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.
Increasing demand for timber in the construction industry is the key factor driving the growth of the market. The global construction industry witnessing rapid growth due to the growing population and rising urbanization. Governments are allocating more funds for building housing schemes. For example, according to the US Census Bureau, the annual spending on construction in the US increased by 14.45% in 2021 compared with 2019 and is expected to increase to USD 1,716 million by 2026 in the future. Moreover, n emerging economies such as India, the agreement of 100% FDI for townships increases the demand for products and accessories used in homes and offices during the forecast period.
In addition, in the construction of new houses, renovation, and modification of existing houses timber has a wide range of applications in the form of poles for building floors, frames for doors and windows, and wooden decks. The increasing demand for timber due to the growth of the construction industry will drive market growth during the forecast period.
An increase in the use of lesser-known timber species is the primary trend in the market. Rising concerns regarding the extinction of certain trees have increased the adoption of lesser-known timber species with similar properties. Moreover, with certain timber species becoming scarce, teak buyers are looking for lesser-known species for wood construction, including beams, walls, doors, and floors.
The cost advantage offered by lesser-known timber species is the main advantage for the market. For example, the popularity of Darina has increased over hububalli, which is used for furniture and building components. As compared to the construction using hububalli, Darina will offer cost savings of around 25%-35%. Such factors will increase the market growth during the forecast period.
Growing concerns over rising deforestation are a major challenge to the growth of the global market. Deforestation is the process of clearing, destroying, or removal of trees through deliberate, natural, or accidental means. Moreover, deforestation occurs due to various reasons, such as farming and logging for materials and development. The loss of trees and other vegetation can cause desertification, soil erosion, flooding, and increased greenhouse gases in the atmosphere. Government entities are taking proper steps to tackle the growing concern regarding the rise in deforestation.
However, countries such as Mexico, Uganda, and Costa Rica have started implementing Payments for Ecosystem Services (PES). In this initiative, people have paid more than USD 20 per hectare annually for the land forest that they preserved. As a result, lowered the rate of deforestation by around 4%-8. These factors will hinder the global market during the forecast period.
The market research 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 growth strategies.
Market Customer Landscape
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.
Acadon AG : The company offers timber logistics and supply through online and offline modes with industry-specific measurement conversion
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 industrial roundwood segment will account for a major share of the market's growth during the forecast period. Industrial Roundwood is a vital component of the global market. It refers to the raw materials used in the production of paper, lumber, and other wood-based products. Moreover, the market for industrial roundwood is supported by the growing wood-based product industry, as well as the increasing demand for eco-friendly and sustainable products. Due to the growing population and urbanization, the demand for industrial roundwood has been on the rise in recent years. Moreover, the demand for industrial roundwood varies from region to region depending on the level of industrialization and the preference for wood-based products. For example, countries such as China and India are major consumers of industrial roundwood due to the high demand for paper and packaging products.
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The industrial roundwood segment was valued at USD 17.61 billion in 2018 and continued to grow until 2022. In recent years, the industrial roundwood industry is affecting because of the norms of the Forest Stewardship Council (FSC). Council has been established to ensure that forests are being sustainably managed and that only legally harvested industrial roundwood is used in the production of wood-based products. However, some companies have differentiated their products by using sustainable industrial roundwood in their manufacturing process. For example, IKEA has been using sustainable forest management practices which helps to create a sustainable supply chain for its wood-based products. Thus, such factors are expected to propel the growth of the industrial roundwood segment in the global market during the forecast period.
Based on the mode of transportation, the market has been segmented into land transportation and sea transportation. The land transportation segment will account for the largest share of this segment. Land transportation is an important mode of transportation in the supply chain of logistics and connects remote regions with the rest of the world. Road transport is the main element of land transportation in the global market. Trucks and lorries are commonly used for carrying raw materials such as logs and sawn timber from the forests to the sawmills.
Moreover, in countries such as Canada and the US, logging trucks are widely used for the transportation of forest products. The structure of logging trucks is designed to handle heavy loads of timber and the container has a large storage capacity. Railways are commonly used in countries such as Russia, Brazil, and China for the transportation of logs and sawn timber. The use of trucks, lorries, and rail networks for the transportation of timber has a significant impact on the global market. Thus, such factors are expected to propel the adoption of land transportation, which will fuel the growth of the global market during the forecast period.
APAC is estimated to contribute 38% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In the APAC region, India is the main country that imports wood because of the conservation policies regarding wood harvesting. Manufacturers in India prefer to import in log form to feed the domestic market. Moreover, only 20%-30% of the market is organized in India, while a major part of the market is unorganized. Manufacturers in India prefer to import it in log form to feed the domestic market. The Government of India will mobilize over USD 1 trillion in investments by 2025 which is expected to become one of the top five largest construction markets in the world. Such factors will increase the market growth in this region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Region Outlook
Middle East & Africa
The Market is evolving rapidly, driven by the growing emphasis on sustainable packaging and paper-based packaging. This shift towards eco-friendly packaging solutions is bolstered by the use of wood pulp in producing paper and paperboard, tissue paper, and other packaging materials. The rise of e-commerce markets further amplifies the demand for these materials as companies seek sustainable and eco-friendly timber options.
However, challenges such as illegal logging practices, fluctuating timber availability, and market volatility persist. Stricter regulations and the need for certifications underscore the importance of sustainable timber sourcing. Additionally, infrastructure limitations can impede efficient logistics operations. Technological advancements play a crucial role in enhancing the timber logistics sector. Digital technologies like blockchain technology ensure traceability and transparency, while Internet of Things (IoT) devices facilitate real-time tracking and monitoring. Drones, satellite imagery, and forest mapping are instrumental in accurate timber inventory management.
Furthermore, consumers are increasingly environmentally conscious, prompting companies to adopt circular economy principles such as recycling and reuse. Certified timber products are in higher demand, driven by these eco-friendly preferences and environmentally conscious consumers with concern regarding plastic. The integration of air and warehousing logistics further streamlines the process, ensuring efficient delivery of plywood and other timber products. By leveraging these innovations, the Market can address current challenges and cater to the growing demand for sustainable timber solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.7% |
Market growth 2024-2028 |
USD 18.47 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.84 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
China, Germany, US, Canada, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
acadon AG, Biewer Lumber LLC, Buhle Betfu, Champion Freight NZ Ltd., DePiT e.K, Deutsche Bahn AG, ET Transport, Euroforest Ltd., Greenfreight, J and J Denholm Ltd., Kuehne Nagel Management AG, Malec Holdings Pty Ltd., PJSC Far Eastern Shipping Co., RETHMANN SE and Co. KG, Tenco Ltd., Timber Products Co., Trimble Inc., Waller Transport Services Ltd., Wood Based Products Pty Ltd., and Woodbridge Timber Ltd |
Market dynamics |
Parent market analysis, market growth analysis, market research and growth, market growth and forecasting, Market forecasting, 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 forecast period |
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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Mode of Transportation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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