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The Timber Logistics Market size is estimated to grow at a CAGR of 6.61% between 2022 and 2027 and the size of the market is forecast to increase by USD 17,228.49 million. The growth of the market depends on several factors, the increasing demand for timber in the construction industry, the rising imports and exports of lumber, and an increase in demand for paper-based packaging.
The timber logistics market report extensively covers market segmentation by type (industrial roundwood, fuelwood, and others), mode of transportation (land transportation and sea transportation), and geography (APAC, Europe, North America, South America, and Middle East and Africa). 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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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 timber logistics 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 timber logistics 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 timber logistics 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 timber logistics market during the forecast period.v
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.
Global Timber Logistics 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.
Deutsche Bahn AG: The company offers timber logistics solutions for the sustainable transport of wood freight under the brand DB Cargo.v
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 timber logistics 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 16,951.86 million in 2017 and continued to grow until 2021. 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 timber logistics 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 timber logistics and connects remote regions with the rest of the world. Road transport is the main element of land transportation in the global timber logistics market. Trucks and lorries are commonly used for carrying raw materials such as timber 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 timber logs and sawn timber. The use of trucks, lorries, and rail networks for the transportation of timber has a significant impact on the global timber logistics market. Thus, such factors are expected to propel the adoption of land transportation, which will fuel the growth of the global timber logistic 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.Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to 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 timber 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 timber 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 in APAC witnessed a decline in 2020 and 2021 owing to the outbreak of COVID-19. The pandemic negatively affected the main countries of this market countries such as China, Japan, South Korea, and India. However, in 2021, business operations returned to normalcy because of the mass vaccination drives and significant relaxation of lockdown restrictions. In APAC via e-commerce channels, we expected to rise in the sales of timber products in the timber logistics market during the forecast period. Hence, the regional timber logistics market is expected to grow and recover to the pre-pandemic levels from the COVID-19 crisis with the economic recovery.
The timber logistics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Timber Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.61% |
Market growth 2023-2027 |
$ 17228.49 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.51 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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