Cross Laminated Timber Market

Updated on : October 10, 2024

Cross Laminated Timber Market

The global cross laminated timber market was valued at USD 1.4 billion in 2023 and is projected to reach USD 2.6 billion by 2028, growing at 13.7% cagr from 2023 to 2028. The economic growth in emerging economies, increasing investment in infrastructure, stringent environmental regulations, growing purchasing power, and the rising demand for green and environmentally friendly materials are leading to market growth. The market is mainly characterized by two main types: adhesive bonded and mechanically fastened. Cross laminated timber has significant use in residential and non-residential industries. Mayr-Melnhof Holz, Stora Enso, Binderholz GmbH, Eugen Decker Holzindustrie KG, Hasslacher Holding GmbH, and Schilliger Holz AG dominate the cross laminated timber industry, accounting for significant market shares. Improved design flexibility and faster implementation methods are likely to drive the market in comparison to other construction materials. Europe's market share is expected to expand over the forecast period due to the rising construction industry in countries such as the United Kingdom, Germany, Italy, and France. The expanding potential benefits given by cross laminated wood in the building sector are projected to boost the market.

Attractive Opportunities in Cross Laminated Timber Market

To know about the assumptions considered for the study, Request for Free Sample Report

Cross Laminated Timber Market Dynamics

Driver: Capacity expansion is one of the strategies used by many manufacturers to increase business volume. Increasing demand always necessitates elevated production capacity, but it should also be understood in terms of a critical zone of the value chain, which is an investment. As a result, capacity must be defined in terms of process machinery and manpower. Manufacturers generally pursue a "lead capacity strategy," looking for developing countries that will serve as future industrial hubs. Most developing countries have a lot of room for development, construction, and new industrial setup, and cross laminated timber are in high demand due their cost effectiveness and durable nature. Though the initial setup cost is quite high, many manufacturers are opting for production capacity expansion after observing immense market potential and long-term ROI.

Strategic Partnership + Planned Execution = Meeting Rising Demand.

Restraints: The overall cross laminated timber market has been highly impacted due to the Russia-Ukraine conflict. Consequences of the conflict were faced by all sectors, construction being one of those impacted badly. The construction sector is considered one of the economic pillars of any country. Due to a lack of labor and a hampered supply chain of raw materials, cross laminated timber market saw a  drastic downward trend in that period. Overall, Consumers stopped buying goods, which led to a decrease in demand and hence led the manufacturers to shut down factories. Several industries suffered tremendous decline due to economic fluctuations, resulting in a lowering of cost and inventory by the supply side. The supply has stopped for a few materials, which is hampering the cost of final product. Many prime leaders of cross laminated timber market have set up manufacturing in these regions, and thus heavily affected by the war.

Opportunity: The integrity of functionality and product durability has been a paramount concern of the consumers and has been shown to key factor determining the purchase of these products. Companies rely on clean labels and natural certification which shows the authenticity of the product. These labels further increase the legitimacy of the raw material used in the final product sourced from an approved entity. Cross laminated timber manufacturers investing in these certification labels and are expected to show a significant increase in demand. However, packaging of the end product also plays a vital role while purchasing the product, so in order to highlight these certified norms and also to avoid counterfeiting, manufacturers should also concentrate on packaging.

Challenges: The cross laminated timber has a limited number of end-use industries, and each of them has different regulations for the use of these timbers. Manufacturers cannot alter the specifications of the product to comply with the regulations. Almost the same quality products are being provided to each of the industries by different manufacturers. Therefore, there is no scope for product differentiation in the cross laminated timber market, which is a major challenge for the growth of the market, globally.

Cross Laminated Timber Market Ecosystem

Based on type, adhesive bonded segment is estimated to account for the largest market share of the cross laminated timber market

Adhesive bonding is commonly employed in Cross-Laminated Timber (CLT) because it creates a strong link between the layers of wood, which is critical for the material's structural stability. According to a study on the mechanical and physical qualities of CLT, two types of adhesives were employed to bond boards together: PRF and one-component PUR. Another study discovered that the surface treatment and adhesive type of CLT can alter bond performance and mechanical qualities. Moreover, improper CLT production and handling might result in delamination owing to adhesive failure. As a result, selecting the proper adhesive is critical for assuring the strength and longevity of CLT.

Based on industry, non-residential segment is anticipated to dominate the market

Building construction has an influence on the environment, including the use of water and electricity. Cross laminated wood is in great demand among construction businesses for non-residential areas because to its mechanical, stiffness, and cosmetic advantages. Because of the benefits in design and following environmental requirements required in the office, public, institutional, and hotel segments, the non-residential building industry provides major prospects for cross laminated wood. As a result, the non-residential sector provides enormous prospects and is likely to account for a significant part of the market in the future.

By end use, the structural segment of the cross laminated timber market is projected to witness the highest CAGR during the forecast period.

In engineering construction, structural grade cross laminated timbers are used. Commercial structures are the primary users of structural grade cross laminated wood at the moment. The usage of hardwood floor beams has expanded as new building and restoration activities have increased across the world. Moreover, the growing demand for eco-friendly housing is propelling the market. The advantages of structural cross laminated wood include design flexibility, thermal characteristics, fire protection, acoustic performance, and seismic performance. As the home market evolves, design adaptability is essential when assessing buildings and their uses and objectives. As compared to steel and concrete buildings, it allows for longer spans and/or fewer interior support components, which may be achieved by increasing panel thickness.

The Europe market is projected to contribute the largest share of the cross laminated timber market.

Europe is the world's largest manufacturer of cross laminated timber. The European market is driven majorly by the rapid development of construction in the residential sector. The rise in awareness about the use of wooden products due to their lightweight structures and ease of remodeling is expected increase the demand for cross laminated timber and is expected to attract manufacturers to invest in the country.

Cross-laminated timber is a product used by wood lovers to build single-family homes in 2021. On the other hand, it is a product that is ideal for multi-story, large-volume timber projects. This is one of the reasons why CLT prices have been relatively constant this year. When CLT is manufactured, the project for which it is required is typically already confirmed. This implies that delivery dates, quantities, and pricing are set in stone. As a result, in 2020, 2-by-4 lumber was more expensive than well-developed CLT. In terms of pricing, even glulam and solid structural wood surpassed CLT this year. While the prices of these products doubled within just a few months, those of glulam saw a significantly slower upward trend. The low variability in CLT prices is probably also part of the success of this product. Even with delivery times of ten weeks, prices did not change considerably in the past years.

Cross Laminated Timber Market Players

The cross laminated timber market is dominated by a few globally established players such Mayr-Melnhof Holz (Austria), Stora Enso (Finland), Binderholz GmbH (Austria), Eugen Decker Holzindustrie KG (Germany), Hasslacher Holding GmbH (Austria), Schilliger Holz AG (Switzerland), KLH Massivholz GmbH (Austria), Structurlam Mass Timber Corporation (Canada), and XLam NZ Limited (New Zealand), among others, are the key manufacturers. Major focus was given to the contracts and new product development due to the changing requirements of commercial, and residential users across the world.

Read More: Cross Laminated Timber Companies

Cross Laminated Timber Market Report Scope

Based on type, the cross laminated timber market has been segmented as follows:

• Adhesive Bonded
  • Polyurethane
  • Melamine-Urea-Formaldehyde
• Mechanically Fastened
  • Self-tapping screws
  • Dowel-type fasteners

Based on end use, the cross laminated timber market has been segmented as follows:

• Structural
• Non-structural

Based on industry, the cross laminated timber market has been segmented as follows:

• Residential
• Non-residential
  • Industrial
  • Public
  • Others

Based on the region, the cross laminated timber market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In May 2022, Stora Enso invests in ACDF Industrie SAS and becomes a 35% shareholder of the French wood processing company. The investment is in line with Stora Enso’s growth strategy for mass timber building elements, enabling value-added, bespoke CLT (cross-laminated timber) solutions to its long-term French partners.
• In December 2021, Mayr-Melnhof Holz Holding Firm entered an agreement to buy the Swedish sawmill group Bergkvist Siljan. This maintains the Austrian wood processing group's steady expansion and growth plan.

Frequently Asked Questions (FAQ):

To know about the assumptions considered for the study, download the pdf brochure

To speak to our analyst for a discussion on the above findings, click Speak to Analyst