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Balsa Wood Market Research Report- Forecast to 2030

Balsa Wood Market - By Type (Grain A, Grain B and Grain C), By Application (Aerospace & Defense, Renewable Energy, Marine, Road & Rail, Industrial Construction and other) - Forecast till 2030

ID: MRFR/CnM/3059-CR | February 2021 | Region: Global | 106 pages

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Balsa Wood Market Overview


The CAGR for the balsa wood industry is projected to be 5.50% until 2030. The balsa wood market value is projected to be USD 217.23 million by 2030. This is up from USD 146.53 million in 2016.


Many companies in a variety of industries like to use balsa wood as the interior filling in everyday objects like wind turbines, boats, and various types of planes. When balsa wood is used in industry, it’s harvested from various farms and plantations in Papua New Guinea and Ecuador.


COVID-19 analysis


COVID-19 is to the 21st century what the Bubonic Plague was to the 5th century A.D. and the Black Death was to the 14th century A.D. a real destiny and game-changer. COVID-19, in many ways, is just as dangerous as the bacteria that caused both the Bubonic Plague and the Black Death was. Governments realized this early on and that’s the reason why they imposed quarantines and lockdowns. These were temporary since they didn’t really work in terms of stopping the spread of COVID-19.


Many businesses in many industries around the world were forced to either slow production down dramatically or temporarily halt production because of the lockdowns and quarantines. This severely affected their ability to remain profitable.


The balsa wood industry was no exception. As many manufacturing facilities either temporarily shut down or slowed production to a trickle, the demand for balsa wood dropped dramatically. This adversely affected many processes and farmers both in the tropical regions and around the world. The market for balsa wood is starting to pick up now that a vaccine has been found. Many experts predict that the recovery for the balsa wood industry will be rapid.


Competitive landscape


The global balsa wood industry is extremely competitive. There are few barriers to entry - anyone who can source balsa wood and set up a processing plant can enter the industry. This is what makes the balsa wood industry very fragmented. Most of the players are small and medium-sized since the larger companies may not see the need to set up small-scale balsa wood processing plants which (from their standpoint) can be extremely expensive and have a cost that won’t be justified from the revenue streams that they can bring in from this activity.


In any case, companies are finding that they have to invest heavily in research and development to continue to develop the newer generations of products that are stronger, lighter in weight, more flexible, and have many more innovative uses. Companies that don’t have the resources to do intensive research and development are finding that they can merge with and acquire other strategic companies. This will give them the expertise, financial resources, and manpower needed to invest heavily in research and development. The same is true for strategic partnerships.


Incidentally, when companies engage in one or more of the second two activities they tend to find that they can justify charging more for newer and better products, strengthen their positions in existing markets, and easily have a strong and impactful presence in new markets.


3A Composites is a major Swiss company. It has managed to become a global player by investing heavily in research and development. This has allowed it to develop and market a new generation of products that have more innovative uses and make the materials that they’re incorporated in safer, stronger, more flexible, and more durable.


List of companies



  • 3A Composites (Switzerland)

  • Gurit (Spain)

  • DIAB International AB (Sweden)

  • The PNG Balsa Company Ltd (Papua New Guinea)

  • The Gill Corporation (U.S.)

  • CoreLite Inc (U.S.)

  • SINOKIKO BALSA TRADING CO., LTD (China


Market dynamics


Drivers


Balsa wood is lightweight. That is what makes it the material of choice for many manufacturers in most industries around the world. It can also insulate the materials that it’s incorporated into from shock and heat. This is why a growing number of companies in the renewable energy, defense, aerospace, industrial, rail, road, and marine industries are choosing to use this wood in their various products.


Opportunities


Many airplane manufacturers are choosing to use balsa wood because it makes them weigh less. This helps them use less fuel when taking off, take off faster, and land faster and safer. It also makes them stronger and more flexible. The same is true for the companies that make helicopters and hovercrafts.


Developing nations like India and China and developed nations like Japan and Australia are modernizing various industries. This is also driving demand for balsa wood and creating incentives for balsa wood processors to make a new generation of wood products that are safer, more flexible, stronger, lighter in weight, and have more innovative uses and applications.


Restraints


Balsa wood is expensive and this is one factor that’s hampering its growth.


Challenges


The biggest challenge that companies in the balsa wood industry face lie in continuing to improve upon balsa wood so that it’s in a state that manufacturers can use while continuing to keep the price point down.


Technology analysis


Corelite is a major American player in the global balsa wood industry. It has managed to remain profitable by creating a sustainable competitive advantage by investing heavily in research and development. This allowed it to create a new generation of balsa wood products that have more innovative uses and are safer for use in various products that humans use and interact with like boats and airplanes.


Segment overview


By type


The global balsa wood industry can be grouped into the following sub-segments based on type:



  • Grain A

  • Grain B

  • Grain C


Most end-use industries worldwide choose to use Grain b type of balsa wood. It had 41% of the global balsa wood market share five years ago.


By application


The global balsa wood industry can be grouped into the following sub-segments based on application:



  • Renewable energy

  • Aerospace and defense

  • Industrial

  • Rail and road

  • Marine


The aerospace and defense sub-subsegment is projected to have the highest growth rate. It’s projected to be valued at USD 77.76 million by 2023. The reason is that the companies in these industries need lightweight material to make the aircraft that their pilots fly.


Regional analysis


The balsa wood tree grows at an extremely fast rate and is naturally found in the rain forests of South America. However, with modern farming and irrigation techniques, it can be grown in other tropical regions of the world including Papua New Guinea. Ecuador has been the world’s largest producer and exporter of balsa wood for the past six decades because the tree grows so well in its fertile soils.


The global balsa wood industry can be separated into five regions:



  • North America

  • The European Union

  • Asia-Pacific

  • Latin America

  • The Middle East and North Africa


The North American market can be further separated into the following nations:



  • The United States

  • Canada


The European Union can be further divided into the following nations:



  • Germany

  • Poland

  • France

  • Uk

  • Italy

  • Spain

  • The rest of Europe


The Asia-Pacific market can be further divided into the following nations:



  • China

  • Japan

  • India

  • The rest of the Asia-Pacific region


The Asia-Pacific region currently has the largest market share in the balsa wood industry. The North American region comes in second place and The European Union occupies the third rung.


The reason for this is because the Asia-Pacific region has many tropical areas (especially in India) where balsa wood can grow well. Not surprisingly, the Asia-Pacific region has the highest growth rate because economic growth is the strongest in this region. The CAGR in this region is expected to be 5.97% until 2023. The balsa wood market value is expected to be USD 71.25 in 2023.


There are many reasons for this. One is that the Asia-Pacific region has an inexpensive labor force. Also, many industries are growing at a rapid pace in this region. These industries need to use balsa wood and other lightweight materials to make their materials well. Also, there are a growing number of processors of balsa wood since this is an ideal region for growing balsa wood and since the economies in this region are among the fastest-growing in the world.


The North American market is seeing respectable growth in balsa wood consumption largely because the renewables market is growing at breakneck speed, thanks to initiatives by industry and growing and stricter government regulations. Canada especially is seeing this, but there is respectable growth in the United States of America for both balsa wood and the industries that use this material.


The United States of America also has a strong and growing aerospace and defense market. As these markets modernize, there is more of a need to make strong and agile aircraft. This is pushing the demand for balsa wood up considerably.


The European Union is seeing decent growth in the global balsa wood industry. The reason for this is that one of its strongest nations in terms of economy, Germany, has industries that need to use this wood and these industries are growing at a rapid pace. Poland is expected to have a high regional CAGR during the time period covered by this report.


Recent developments


February 2021- SABIC has built resin manufacturing techniques using nanotechnology to effectively manufacture more uniform polyethylene terephthalate (PET) foam, causing higher performance characteristics in the end product. The latest product LNP™ COLORCOMP™ WQ117945 is a ground-breaking material that may expand the use of PET foams.
Nanotechnology in SABIC LNP™ COLORCOMP™ WQ117945aids to control nucleation and causes more uniform cells with an extremely narrow equal size range spread across the foam.
Polyethylene terephthalate (PET) is considered one of the most broadly used thermoplastic polymers worldwide and is used to produce foams, packaging, and fibers. It can also substitute balsa wood or polystyrene in structural sandwich materials.

June 2021- 3A Composites Core Materials, famous for the manufacturing of high-performance, sustainable core materials, announced the signing of a two-year technical cooperation agreement with the Achuar Nationality of Ecuador for the promotion of sustainable forestry practices and also accountable development, processing, and harvesting of balsa wood for native communities. The Achuar Nationality of Ecuador is an NGO protected by the Ecuadorian Constitution with the main target of reestablishing, protecting, and diffusing its language, culture, and traditions.

Balsa wood has recently been noted for its ability to clean up imperfections in scaffolding that can make it have holes and absorb water easily. This can eventually destroy it.


Northland Fishing Company recently acquired another company. The resulting company plans to enter new regions quickly.


Report overview


The CAGR for the global balsa wood industry is projected to be 5.50% until 2030. The balsa wood market value is expected to be USD 217.23 million by 2030. The Asia-Pacific region has the highest market value, share, and CAGR because it’s easy to grow balsa wood in the region and because it has a large number of growing industries that need to use balsa wood.



Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2016: USD 146.53 Million
  • 2023: USD 217.23 Million
  •   CAGR   5.50%(2021–2030)
      Base Year   2019
      Forecast Period   2020-2030
      Historical Data   2018
      Forecast Units   Value (USD Million)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   By Type, Application and Region
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   3A Composites (Switzerland), Gurit (Spain), DIAB International AB (Sweden),The PNG Balsa Company Ltd (Papua New Guinea), The Gill Corporation (U.S.), CoreLite Inc (U.S.),SINOKIKO BALSA TRADING CO., LTD (China)
      Key Market Opportunities   Rising Preference for Lightweight Components in Aircraft to be Present Opportunity
      Key Market Drivers   Growing Commercial Importance of Balsa Wood to Benefit Global Market


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    Frequently Asked Questions (FAQ) :

    The CAGR is 5.5%. The market was worth USD 146.23 million in 2016. It’s expected to be worth USD 217.23 million in 2023.

    Because it’s convenient. It’s not derived from animals so it’s easier to make since it’s not subjected to any strict rules and regulations regarding the trade of animals.

    The aerospace, defense, and renewables energy industries are using balsa wood in large quantities.

    Gurit (Spain), 3A Composites (Switzerland), DIAB International AB (Sweden), The Gill Corporation (US), The PNG Balsa Company Ltd (Papua New Guinea), CoreLite Inc. (US), and Sinokiko Balsa Trading Co., Ltd (China)