Engineered Wood Market Information, By Product Type (Plywood, Laminated Veneer Lumber (LVL), Glulam, I-beams and Cross Laminated Timber (CLT)) and Application (Residential and Non-residential) -and Region - Forecast To 2030

Engineered Wood Market Overview

The engineered wood market is expected to gain a market value of USD 4,90,567 Million by 2030 at a CAGR of 7.21% from 2022-2030.

Engineered wood, also known as mass timber, composite wood, artificial wood, or manufactured wood, is used instead of solid wood and concrete in construction. It is also used as a substitute for steel beams in several construction projects.

The primary factors influencing the global engineered wood market growth are increasing demand from the non-residential sector and the growing use of cross-laminated timber (CLT) as a primary construction material. This is likely to drive the market in the forecast period. On the other hand, stringent environmental concerns related to formaldehyde releases will likely hamper the market growth. The Asia-Pacific region is likely to lead the global market and is expected to witness the peak consumption of engineered wood during the forecast period. In 2022, construction activities were increasing compared to 2020, leading to the growth in the engineered wood market as the residential, government sector, or health infrastructure is expanding.

COVID-19 Analysis

The covid-19 pandemic hit every system worldwide, and governments worldwide have imposed lockdowns which have majorly affected the industry's supply chain. The lack of a supply chain of processed wood in the building work formed significant challenges for the global engineered wood market.

However, the increasing investment and funding will help grow the engineered wood market size during the ongoing forecast period.

Competitive Landscape

Here is the list of major players in the global engineered wood market including the ones mentioned below:

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  Boise Cascade Company (U.S.)

  
  


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  Kahrs Group (Sweden)

  
  


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  Huber Engineered Wood LLC (U.S.)

  
  


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  Celulosa Arauco y Constitución (Chile)

  
  


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  Lowe's Companies, Inc (U.S.)

  
  


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  Universal Forests Products, Inc. (U.S.)

  
  


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  Rockshield Engineered Wood products ULC (U.S.)

  
  


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  CST Timber Co (U.S.)

  
  


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  Roseburg Forest Products (U.S.)

  
  


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  Weyerhaeuser (U.S.)

  
  

They are emerging as the key vendors in the global engineered wood market and serve the rest of the world.

Market Dynamics

Drivers

The Engineered wood products include engineered wood that is the most sought-after solution for those who are looking for some economical alternative to hardwood or something concrete. Engineered wood flooring, ceilings, wall partitioning, bookshelves, wardrobes, cabinets, and furniture are some of the highly popular products.

The dearth in the supply of solid wood and its expensiveness is helping the market of engineered wood products gain high demand. Not only has this, in the building system, but engineered wood also held the capacity to meet certain specifications to take up the load while adding value to the space. However, Government norms and regulations including Bharat stage emission standards or European emission standards regarding CO2 emissions are driving the market for engineered wood more dynamic.

Restraints

However, the engineered wood industry is witnessing the development of factors like the lack of investment followed by the reduced spending ability of the target audience since the outbreak of the pandemic. This is hampering the ability of the market to meet the rising needs of the audience and hence, hampering the market from growing during the ongoing period that will be ending in 2030.

Technology Analysis

The global engineered wood market is likely to witness a deep surge within the period forecasted. The market of engineered wood is driven by the boost for substitutes of solid wood to save trees, reduce waste, low on maintenance, and cut down labor costs.

Engineered wood is a faux wood product manufactured by humans by binding strands, fibers, and chips of wood with the help of adhesives. It is then compressed by machines to make composite wood structures that can be further designed or customized as per the requirement of the end-user. To be precise, it is made up of layers and layers of wood known as ply reformed with heat, adhesives, and composite pressure. Each layer of the wood joint together makes engineered wood highly durable and can be used instead of solid hardwood at a much cheaper price. Unlike hardwood infrastructure that requires regular maintenance including restoration, polishing, etc., products and arrangements made from engineered wood require less or no maintenance. That is why the factors driving the growing market of engineered wood products are the demand for wood composites in residential, commercial, and industrial applications.

Engineered wood Market-By Segment

Segment Overview

Talking about the global engineered wood market, it is divided into three segments. The three segments in which the market of engineered wood products is segregated into by product type, by application, and by region. The above mentioned three segments of the engineered wood market further includes-Plywood, Glulam, Laminated Veneer Lumber (LVL), Cross Laminated Timber (CLT), and I -beams in the by-product category while under application category comes residential and non-residential types. North America holds the largest share in the global engineered wood market, followed by Europe and the Asia Pacific, regionally. The market segmentation helps meet the rising needs of the globally spread target audience followed by the enhancement of the marketability and their focus to increasing the attainable revenue sum that has been predicted for the market forecast period by the experts and business leaders.

Regional Analysis

In terms of geography, Europe is also accounted to have a major market share due to its favorable geographical conditions and will remain to dominate the market in the stipulated period. Despite the economic turndown, Europe has increased rapidly in the last decade. Also in the wake of the enhanced cost competitiveness, the usage of engineered wood products across the realty sector has increased rapidly and is further anticipated to improve for various infrastructural business models. On one hand, the engineered wood market aims at promoting institutional changes, which is like replacing hard wood-framed work in multi-story buildings, whereas on the other hand, less knowledge about engineered wood products and lack of skills to use it can also cause obstacles in its market to flourish during the ongoing forecast period that will be ending in 2030.

Recent Developments

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  In February 2021, Norbord Inc. announced the acquisition by West Fraser, which is a diversified wood products company is manufacturing lumber, MDF (medium-density fibreboard), LVL (laminated veneer lumber), plywood, pulp, newsprint, other residuals, wood chips, and energy with facilities in the southern US and western Canada.

  
  


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  In January 2021, Boise Cascade installed its second-door shop in Texas, US, which can serve almost 900 customers. This new shop is in line with the company's strategy to expand with the help of its supplier allies.

  
  

Report Overview

This report coverage is based on the forecast period of 2021-2030 and discusses the emergence of factors that will second the market patterns for global growth. It includes revenue forecasts, growth factors, trends, and the competitive landscape of the global engineered wood market. The influx of key market opportunities via engineered wood products is increasing due to the lack of solid wood products and government norms and regulations.