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The oriented strand board market size is forecast to increase by USD 33.64 billion, at a CAGR of 12.13% between 2023 and 2028. The construction industry is experiencing a surge in residential and commercial projects, leading to a significant increase in demand for building materials. One such material gaining popularity is the Oriented Strand Board (OSB), known for its superior and beneficial properties. OSBs offer strength, stability, and resistance to moisture, making them an ideal choice for various applications. Moreover, the rising concern for the environment has led to the increasing use of bio-adhesives as an alternative to traditional resins like PF and pMDI. These eco-friendly adhesives not only reduce the carbon footprint but also enhance the overall performance of OSBs. With their durability, sustainability, and cost-effectiveness, OSBs are becoming the preferred choice for construction projects. It also includes an in-depth analysis of drivers, trends, and challenges. Our market report examines historic data, besides analyzing the current market scenario.
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Oriented Strand Board (OSB) is a popular construction material known for its durability and strength. It is made from wood strands, which are pressed together with adhesive under high heat and pressure. OSB is commonly used for roofing, wall sheathing, and framing in both residential and commercial buildings. It is also suitable for DIY projects and home improvement, offering an eco-friendly alternative to traditional materials like plywood, chipboard, and particleboard. OSB is made from small-diameter trees and recycled wood chips, making it a budget-conscious choice for budget-conscious homeowners. It is also fire-resistant and can withstand extreme temperatures, making it an ideal choice for construction in areas with harsh climates. The installation process of OSB is relatively simple and can be done with common tools like a saw. It can be painted or stained, and it is available in various finishes, including veneers, laminates, and chipboard. However, it is essential to note that OSB contains formaldehyde, which can emit harmful fumes during installation and in the early stages of use. OSB is an excellent alternative to traditional construction materials like plywood and particleboard. It offers similar strength and versatility but is often more cost-effective and eco-friendly. Whether used for roofing, wall sheathing, or furniture making, OSB is a reliable and efficient construction material for various applications.
Increasing residential and commercial construction activities is notably driving market growth. The global market for Oriented Strand Boards (OSB) is experiencing significant growth due to the increasing residential and commercial construction activities worldwide. In developing countries, such as India, urbanization and new development projects, including the construction of new homes and smart cities, are driving the demand for OSBs. The Indian economy's expansion has led to proposed investments of USD 31,650 billion in 100 smart cities and 500 additional cities. OSBs are extensively used in construction due to their cost-effectiveness and superior properties, such as paintability, compatibility with veneers and laminates, and soundproofing abilities.
However, it is essential to ensure that OSBs are manufactured using low-emitting formaldehyde resins to minimize volatile organic compound emissions, which can cause respiratory problems and other health issues in the indoor environment. Recycled wood chips are increasingly being used as raw materials in OSB production to reduce the environmental impact of deforestation and promote sustainability. Thus, such factors are driving the growth of the market during the forecast period.
Growing adoption in Europe is the key trend in the market. The European Oriented Strand Board (OSB) market is projected to expand during the forecast period due to the thriving building and construction industry in Europe, the rising adoption of OSBs as a construction material, and the growing emphasis on sustainable and eco-friendly building practices. Authorities in Europe are promoting the use of sustainable construction materials, including OSBs, through various initiatives. For instance, the Build-in-Wood project, which started in September 2019, aims to encourage the use of sustainable construction methods, such as OSBs, in European buildings. This EU-funded project intends to make optimized and cost-effective wood construction techniques a standard practice in the European construction sector.
Further, OSBs are increasingly used for their soundproofing properties, which help reduce noise transmission in homes and buildings. They are also preferred for their durability, as they can be painted, veneered, or laminated to enhance their aesthetic appeal. However, it is essential to ensure that OSBs are manufactured using formaldehyde-free resins and recycled wood chips to minimize the release of volatile organic compounds (VOCs), which can cause respiratory problems and other health issues in the indoor environment. Thus, such trends will shape the growth of the market during the forecast period.
Uncertainties in construction projects is the major challenge that affects the growth of the market. The Oriented Strand Board (OSB) market experienced a significant disruption due to the COVID-19 pandemic in 2020. The construction industry was adversely affected, leading to the cancellation or postponement of numerous projects. According to a survey by the Associated General Contractors of America (AGC), 88% of US contractors reported such disruptions. In India, as per the Ministry of Statistics and Programme Implementation (MoSPI), out of 1,718 central infrastructure projects, 560 reported delays, and 86 projects, including 36 megaprojects, faced further delays. OSB is widely used in the construction of homes and buildings for its soundproofing properties and resistance to moisture. It is made from small-diameter trees and recycled wood chips, with veneers or laminates added for decorative purposes.
However, formaldehyde, a volatile organic compound used in the manufacturing process, can pose health issues, including respiratory problems. Ensuring low formaldehyde emissions is crucial for maintaining a healthy indoor environment. Therefore, the focus on eco-friendly and low-emission OSB is increasing. Despite the challenges, the market for OSB is expected to recover and grow, driven by its cost-effectiveness and versatility. Hence, the above factors will impede the growth of the market during the forecast period
The market share growth by the construction segment will be significant during the forecast years. Oriented Strand Board (OSB), a wood-based panel made from compressed wood strands bonded together with adhesive, is gaining popularity as a versatile and eco-friendly construction material. OSBs offer several advantages over traditional building materials like lumber, plywood, chipboard, and particleboard. They are ideal for DIY projects and home improvement, providing excellent moisture resistance, sustainability, and fire resistance.
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The construction segment accounted for USD 12.71 billion in 2018.OSBs are also environmentally friendly, as they are made from recycled wood and have a lower environmental impact than other construction materials. OSBs' popularity is on the rise due to their strength, durability, and cost-effectiveness. The growing demand for OSBs in single-layer flooring, subflooring, and wall, roof, and panel sheathing will drive the market's growth during the forecast period. With proper preparation and installation, OSBs offer a long-lasting and sustainable solution for various construction needs.
North America is estimated to contribute 40% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Oriented Strand Board (OSB) is a popular engineered wood product used extensively in DIY projects and home improvement. Made from compressed wood strands bonded with adhesive, it offers superior strength and durability. OSB is widely used as a construction material for roofing and wall sheathing due to its moisture resistance and sustainability. In addition, it is an eco-friendly alternative to traditional materials like chipboard, plywood, and particleboard. OSB's versatility extends beyond construction. It is also used for furniture, wood paneling, flooring, shelving, and even as a budget-conscious option for fire resistance and extreme temperature framing. Budget-conscious homeowners appreciate OSB's affordability without compromising on quality. Its eco-friendliness and sustainability are also appealing to those who prioritize the environment. With proper knowledge and preparation, OSB can be a valuable addition to any DIY project or home improvement endeavor.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The market forecast report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Coillte Cuideachta Ghniomhaiochta Ainmnithe, Dieffenbacher GmbH, DOK Kalevala LLC, J M Huber Corp., Koch Industries Inc., Kronospan Ltd., Louisiana Pacific Corp., Luli Group Co. Ltd., Produits Forestiers Arbec Inc., RoyOMartin, Sonae SGPS SA, SWISS KRONO Tec AG, Tolko Industries Ltd., West Fraser Timber Co. Ltd., and Weyerhaeuser Co.
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 growth and trends 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.
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Oriented Strand Board (OSB) is a popular construction material known for its durability and versatility. Made from compressed wood strands bonded together with wax and resin adhesive, OSB is an engineered wood product suitable for various applications, including DIY projects, home improvement, roofing, wall sheathing, furniture, and wood paneling. OSB's moisture resistance and sustainability make it an eco-friendly alternative to traditional construction materials like Chipboard, Plywood, and Particleboard. Its fire resistance and ability to withstand extreme temperatures make it an ideal choice for framing and sheathing in harsh environments. Budget-conscious homeowners appreciate OSB's affordability, making it a preferred option for those seeking cost-effective solutions for their home improvement projects. OSB is also easy to install, requiring minimal knowledge and preparation.
Further, OSB's versatility extends to flooring, shelving, and even eco-friendly decorative applications like painting and staining. Its aesthetics appeal to those seeking a natural look while minimizing the environmental impact of their construction projects. OSB's manufacturing process involves recycling wood waste, making it an environmentally friendly choice for construction materials. Its moisture resistance and durability make it an excellent option for damp environments, ensuring long-lasting results. In conclusion, Oriented Strand Board is a versatile and budget-friendly construction material suitable for various applications, from DIY projects to commercial construction. Its eco-friendliness, durability, and ease of installation make it a popular choice among homeowners and builders alike.
Market Scope |
|
Report Coverage |
Details |
Page number |
139 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.13% |
Market growth 2024-2028 |
USD 33.64 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.94 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Germany, China, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Coillte Cuideachta Ghniomhaiochta Ainmnithe, Dieffenbacher GmbH, DOK Kalevala LLC, Fritz Egger GmbH and Co. OG, J M Huber Corp., Koch Industries Inc., Kronospan Ltd., Louisiana Pacific Corp., Luli Group Co. Ltd., Produits Forestiers Arbec Inc., RoyOMartin, Sonae SGPS SA, SWISS KRONO Tec AG, Tolko Industries Ltd., West Fraser Timber Co. Ltd., and Weyerhaeuser Co. |
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 forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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