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Cross Laminated Timber Market Size

ID: MRFR//6490-HCR | 100 Pages | Author: Varsha More| May 2024

The Cross Laminated Timber (CLT) marketplace is influenced by various factors that play an essential role in shaping its dynamics. These market elements are instrumental in determining the boom, call for, and ordinary trajectory of the CLT industry. Understanding these elements is crucial for stakeholders, buyers, and companies running into or getting into the market.
One of the primary factors riding the CLT marketplace is the growing emphasis on sustainable creation practices. CLT, being a renewable resource and an environmentally pleasant building fabric, aligns with the growing global focus on inexperienced and sustainable production. As consciousness about weather exchange and environmental impact rises, the call for CLT as an alternative to standard building materials is on the rise.
The ongoing international trend of urbanization and population boom is contributing significantly to the demand for construction materials, which include CLT. As more people flow to city areas, there's a rising need for revolutionary and green building solutions. CLT, with its lightweight and versatile nature, is well-positioned to fulfill the demands of city production tasks, riding its market boom.
Government regulations and incentives play a pivotal role in shaping the CLT marketplace. Many governments around the sector are enforcing regulations to sell sustainable creation practices, and a few are providing incentives for the use of CLT. These guidelines can considerably affect the adoption of CLT in creation tasks, influencing market traits and increasing.
Architectural developments and a developing focus on aesthetically pleasing layouts are contributing to the popularity of CLT. The material's capability to provide particular and modern-day architectural solutions has made it appealing to architects and architects. As construction enterprise locations have a multiplied emphasis on modern and visually attractive structures, CLT is turning into a desired preference.
Advances in production technology are enhancing the efficiency and price-effectiveness of producing CLT. As production approaches improve, the general value of CLT is probably going to decrease, making it extra competitive with conventional construction materials. This thing is vital in figuring out the market's boom trajectory, as cost remains a big consideration for construction tasks.
Economic conditions, which include factors like hobby fees, inflation, and basic economic balance, can affect the CLT market. Construction tasks are regularly sensitive to financial fluctuations, and adjustments in those economic elements can influence investment choices, affecting the demand for CLT.

Global Cross Laminated Timber Market Overview

Cross Laminated Timber Market Size was valued at USD 526.03 billion in 2021. The Cross Laminated Timber industry is projected to grow from USD 540.49 Billion in 2022 to USD 671.5 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 2.75% during the forecast period (2024 - 2030). The market is expected to be driven by advanced design flexibility and faster implementation methods in the manufacturing of cross laminated timbers are driving the market growth.Cross Laminated Timber Market OverviewSource: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cross Laminated Timber Market Trends

  • Increasing Demand from the Residential Sector

Cross-laminated timber is a structured wood panel made from glueing layers of solid-sawn lumber, usually oriented perpendicular to adjacent layers in a symmetric way which are used as load-bearing parts for building frames, such as walls, floors, and roofs. Cross-laminated timber is also used in façade cladding and interior lining. Cross-laminated timber (cross-laminated timber) is an engineered wood product that is rapidly gaining popularity across the globe as a sustainable alternative to concrete and steel construction in commercial and multi-residential applications. The system consists of multilayer panels made from solid wood boards stacked crosswise and glued together. The cross-laminated configuration improves rigidity, dimensional stability, and mechanical properties. Structurally, cross-laminated timber offers performance comparable to concrete or steel, with panels suitable for use as walls, floors, roofs and other applications.

the cross-laminated timber market is currently being driven by the increasing construction activities and the rising demand coming from the education sector and residential and non-residential applications which are putting a pressure on the supplies of traditional materials and prompting developers to look for speedier alternatives like cross-laminated timber

Further, the cross-laminated timber market is currently being driven by the increasing construction activities and the rising demand coming from the education sector and residential and non-residential applications which are putting a pressure on the supplies of traditional materials and prompting developers to look for speedier alternatives like cross-laminated timber. The structures built with cross laminated timber require shorter period of construction time than traditional construction materials such as concrete and bricks. This is largely attributed to its light weight nature and easy and fast installation. Due to the faster construction time and cheaper built-up costs, cross-laminated timber offers a cheaper alternative over other popular construction material such as precast concrete to the building industry.

The increasing demand for cross laminated timber, an environmentally sustainable construction material, is due to increasing consumer awareness regarding damages caused to the environment during the manufacturing process of cement and bricks. Thus, consumers and technicians are shifting their focus on the usage of sustainable materials such as wood in the construction of buildings and other infrastructure. As CLT is manufactured using wood, many governments also support its usage in construction and provide monetary and space-liberty benefits to the user. For instance, in 2020, India's Public Works Department removed the ban on timber in the construction of buildings and habitat projects to spur the local economy. Furthermore, the timber also shows better thermal and acoustic insulation as compared to conventional construction materials and thus reduces the usage of detrimental materials such as glass wool and foamed plastics for building insulation. Thus, the environmental benefits provided by the material have been a vital reason for its adoption in the construction industry.

Additionally, according to the Structural Timber Association (STA), in the Concept Behind Chimney Pot Park, designed to bring the terraced house up to date with all the style and benefits of modern construction technology, Chimney Pot Park is a 359-house residential plot creating a community of award-winning homes in Langworthy, Salford. The result of collaboration between Urban Splash, SIPCO, and architects, shedkm, Chimney Pot Park re-imagines the outdated version of the Victorian terraced street while keeping all of the benefits of a tight-knit neighbourhood environment. By increasing outdoor areas through timber-decked balconies and rooftop garden design, homes have a lighter, more spacious feel than their traditional predecessors. Chimney Pot Park homes turn interior design on its head, taking an upside-down approach – with bedrooms on the ground floor and communal living areas on the higher floors. Every inch of the design and layout, from the roof to the ground, was carefully planned and executed to maximise the total amount of usable space. Cross-laminated timber (CLT) is a structural two-way spanning solid wood panel product that can be used to form wall, roof, and floor panels. It is produced by stacking several layers of timber, known as lamellas, at 90o to the layer below and subsequently glued to create panels of up to 24 metres in length and 2,950mm in width, which can encompass between three and seven layers.

However, to cater the demand there has been significant advances in the sustainable construction materials. For instance, the shift of consumers’ and experts’ attention to the use of sustainable materials in the construction of homes and other infrastructure is another factor driving the growth of the Cross Laminated Timber market revenue.

Today marked the official opening of Stora Enso's new cross-laminated timber (CLT) production facility in Ždírec, Czech Republic, which will open in 2022. The new CLT plant, which is among the most advanced in the world after an expenditure of EUR 79 million, supports Stora Enso's expansion strategy within wooden construction solutions. Stora Enso's capacity to produce CLT at the new location will increase significantly in order to satisfy the growing need for renewable, affordable, and sustainable construction materials. From the time the investment decision was taken in September 2020 until the first panel was created in the third quarter of 2022, the project moved along as planned. CLT is a cutting-edge, environmentally friendly building material that enables quick and accurate construction. The estimated annual production capacity will be approximately 120,000 m³ after ramp-up.

Cross Laminated Timber Market Segment Insights

Cross Laminated Timber Type Insights

The Cross Laminated Timber market segmentation, based on type, includes Adhesive-Bonded CLT and Mechanically Fastened CLT. The Adhesive-Bonded CLT segment held the majority share in 2021 in respect to the Cross Laminated Timber market revenue. Reason behind the dominance of adhesive Bonded segment in this market is that cost of adhesives is slightly lower than the mechanical fasteners which lower the cost of manufacture of adhesive bonded CLT as compared to mechanically fastened CLT., Due to its aesthetic appeal and architectural flexibility, demand for wooden residential buildings such as single-family homes and multifamily flats is expanding. Cross laminated wood structure's better fire resistant and earthquake-proof properties are likely to boost market growth throughout the projection period.

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.

October 2021: Stora Enso planned to invest USD 114.76 million to boost board production at its Skoghall facility in Sweden. Simultaneously, Stora Enso is starting a feasibility study to convert the second, presently idle, line at its Oulu, Finland, location to a packaging board line.

Cross Laminated Timber Application Insights

The  Cross Laminated Timber market segmentation, based on application, includes residential, commercial and industrial, and others. The residential segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the use of Cross Laminated Timber (CLT) in residential construction is expected to rise, owing to the rising adoption of eco-friendly construction materials as a substitute for non-biodegradable and recyclable materials such as cement. Cross laminated timber has an excellent seismic bearing capacity and is expected to result in increased consumption in earthquake-prone areas, such as Japan, India, and Mexico, over the coming years. Hence, rising applications of residential building as they provide excellent thermal insulation performance for Cross Laminated Timber positively impacts the market growth.

November 2020: Stora Enso, a leading timber manufacturer in Europe, received approval for the production and delivery of CLT panels to the U.S. that comply with the International Building Code, North American CLT standard, ANSI/APA PRG 320-2019, Standard for Performance-Rated cross laminated timber. The changes in the 2021 issue of the code allow the construction of the building of up to 18 storey, paving the way for the company's products in the mid-rise building construction sector. This approval has further broadened the growth opportunity for the Cross Laminated Timber industry.

Figure 2:  Cross Laminated Timber Market, by Application, 2021 & 2030Cross Laminated Timber Market, by ApplicationSource: Secondary Research, Primary Research, MRFR Database and Analyst Review

Additionally, the residential segment holds a market share of more than 45% in 2021 and is expected to dominate the market during the forecast period. Cross laminated wood's excellent structural strength and recyclable nature are anticipated to fuel the market expansion in the residential sector. Rising investments by governments in various countries such as the USA, Canada, India, China, Japan, Germany, the UK, etc. for the adoption of environment-friendly activities for reducing the carbon footprint of the construction industry, is expected to further boost the market.

Cross Laminated Timber Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. Europe Cross Laminated Timber market accounted for USD 289.3 billion in 2021 and is expected to exhibit an 11% CAGR during the study period. Europe is projected to bolster on account of strong demand from applications such as residential homes under single-family and multi-family segments is further likely to support the demand for cross laminated timber products. Europe dominates the market share. With the growing construction sector in countries such as the UK, Germany, Italy, and France, the utilization of cross-laminated timber is increasing in the region.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, China, Japan, India, Australia.

Figure 3:  CROSS LAMINATED TIMBER MARKET SHARE BY REGION 2021 (%)CROSS LAMINATED TIMBER MARKET SHARE BY REGIONSource: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America Cross Laminated Timber market accounts for the second-largest market share due to Mechanically fastened CLT manufacturing is more complicated than adhesive bonded CLT production owing to the necessity for highly experienced workers to operate the fastening machinery. The risk of raw material waste is also high as poor screw application at one point can cause issues throughout the assembly. Regardless of the difficulties, the market for mechanically fastened CLT is likely to rise due to environmental concerns about the use of adhesives made from petrochemicals and other hazardous components. Further, the US Cross Laminated Timber market held the largest market share, the Pacific Northwest, Northeast, and Southeastern US, which have consistently been prominent in the production of wood products, are expected to have an increasing number of cross laminated timber manufacturers, with certain companies planning on capacity additions. and the Canada Cross Laminated Timber market was the fastest growing market in the North America region

The Asia-Pacific Cross Laminated Timber Market size is expected to grow at a CAGR of 19.97% from 2022 to 2030. This is due to the growth of the laminated timber market is slow when compared to other regions. As the construction method which is followed in the Asia Pacific's goal is to use concrete products when compared to wooden construction. Moreover, China Cross Laminated Timber market held the largest market share, and the India Cross Laminated Timber market was the fastest growing market in the Asia-Pacific region.

For instance, China Cross Laminated Timber market is the favored destination for optimization and mechanical performance of CLT due to the China’s specifications and the public's lack of awareness of multi- and high-rise wood buildings, the CLT were predominantly used in low-rise buildings in China, and those buildings were mainly built for demonstration purpose. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Cross Laminated Timber Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Cross Laminated Timber market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Cross Laminated Timber industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the Cross Laminated Timber industry to benefit clients and expand the Cross Laminated Timber market sector is to manufacture locally to reduce operating costs. In recent years, Cross Laminated Timber has provided medicine with some of the most significant benefits.

The majority of these companies focus on forward integration by providing their products directly to end-users across different industry verticals. Some of these companies also use an established distribution and sales network to connect with their customers across regions easily. For instance, Mayr-MelnhofHolz Holding AG has achieved a high value-added chain with vertical integration by sourcing wood from its forest and manufacturing engineered wood in its production facility to maintain the economies of scale to the highest level. Mayr-Melnhof Holz MM crosslam is a solid cross-laminated timber panel that can be used for structural as well as partitioning applications. Three to nine layers of selected softwood lamellas are cross-laminated indefinitely. This structure generates lightweight but strong, slim and dimensionally stable building components with excellent structural and physical properties.

Also, Decker holding GmbH is one of the leading manufacturers of glued laminated timber in Europe. The company supports load-bearing, bracing and non-load-bearing wall, ceiling and roof elements. The elements can be individually adapted to the demands made on structural design, fire protection, noise and thermal insulation and are therefore very well suited for public buildings such as schools, children’s nurseries, as well as for detached single-family homes and apartment blocks, office and commercial buildings. 

Key Companies in the Cross Laminated Timber market includes

  • Stora Ensa Oyj

  • Mayr- Melnh of holz holding AG

  • Binderholz Gmbh

  • XLam

  • Sterling Company

  • B&K Structures

  • Schilliger holz AG

  • KLH massiv holz GmbH

  • Ante group

  • Decker holding GmbH, among others

Cross Laminated Timber Industry Developments

January 2020 Mayr Melnhof Holz Holding AG announced an investment of approximately USD 145 million to build a modern CLT manufacturing plant at Leoben, Austria. The new plant is planned to meet the growth strategy set by the company to strengthen its forward integration progress and solidify its position in the European timber industry.

October 2022 Stora Enso inaugurated its new production site in Czechia, Europe, which produces cross-laminated timber (CLT) with an estimated annual production capacity of 120,000 m³. The company has strengthened its presence in the competitive market through expansion.

January 2023 Stora Enso acquisition of the Netherland-based company De Jong Packaging Group, one of the largest corrugated packaging producers in the Benelux countries. The acquisition announced in September 2022 with an enterprise value of approximately EUR 1,020 million was closed today following regulatory clearances and employee consultation.July 2023: A study published in the journal "Fire Technology" examines the fire performance of CLT panels under various conditions, providing valuable insights for architects and engineers designing CLT structures. This research contributes to the ongoing development of fire safety standards and best practices for CLT construction.

Cross Laminated Timber Market Segmentation

Cross Laminated Timber Type Outlook

  • Adhesive-Bonded CLT

  • Mechanically Fastened CLT

Cross Laminated Timber Application Outlook

  • Residential

  • Commercial

  • Industrial

  • Others

Cross Laminated Timber Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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