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

Engineered Wood Market is projected to be worth USD 490.56 Billion by 2030, registering a CAGR of 7% during the forecast period (2022 - 2030), The market was valued at USD 326.02 billion in 2021.

The engineered wood market size has flourished year on year since 2017. Lately, engineered wood products have gained popularity in the construction sector and its market is anticipated to grow at a CAGR of 12.38% till 2028. Engineer wood which is also known as composite wood or man-made wood is used instead of solid wood and concrete. It is also used as a substitute for steel beams in various construction projects. Hence, the market for engineered wood is expected to grow steadily in the stipulated time, globally.

Engineered wood products are an environment-friendly option in building projects as they are made up of recycled wood. Engineered wood is a good choice for use as it is made keeping durability and trouble-free usage in mind. Engineered wood has become a number one choice for both residential and non-residential construction as it brings down disposal costs with reduced wastes and product damage.

Within the span of a few decades, the global engineered wood market has evolved as a source to modern infrastructures that adds to better characteristics and enhancements. In order to meet the demand of consumers for cheap and best woodwork, realtors and builders are primarily focusing on the usage of engineered wood products in their construction work.

COVID 19 Analysis

With the onset of the COVID-19 pandemic hitting every system across the globe, the governments around the world had implemented lockdowns which have majorly affected the supply chain of the forestry industry. The series of lockdowns all across the world made a halt on domestic as well as on foreign shipping processes, particularly on the wood processing and production market.  It was then the demand for engineered wood witnessed a deep surge of lately.  The realty sector which walks hand in hand with the construction industry is directly linked to GDP growth. The scarcity in the supply of processed wood in the building work created great challenges for the global engineered wood market.

However, the rising funding and investment will help increase the engineered wood market size during the ongoing forecast period that will be ending in 2030. The global market has been witnessing a dire need for the development of market products and portfolios that will be helpful for the market in its expansion and increasing the market size during the period. Also, awareness is of prime importance that will help the market undergo positive transformation and expansion in the forecast period.

Competitive Landscape

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

• Boise Cascade Company (U.S.)


• Kahrs Group (Sweden)


• Huber Engineered Wood LLC (U.S.)


• Celulosa Arauco y Constitución (Chile)


• Lowe's Companies, Inc (U.S.)


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


• Rockshield Engineered Wood products ULC (U.S.)


• CST Timber Co (U.S.)


• Roseburg Forest Products (U.S.)


• 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 market products include the 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 2028.

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

• Engineered wood products come with the advantage of customization and personalization. It can be designed as per the specifications of the consumer. Engineered wood products have high resistance to temperature and attract the least moisture due to their structural manufacturing. Engineered wood is way cheaper than hardwood, low on maintenance, and is more durable than the laminated floor. Availability in various designs and colors is what makes the global engineered wood market potentially grow bigger and bigger.


• The key factors that are likely to help boost the engineered wood market are first, to have the availability of an alternative to hardwood that is economical and long-lasting; secondly, to bring down the wastes across the realty sector and construction business. The usage of engineered wood products helps in conserving energy, restoring natural resources with the help of strict regulations on the emission of CO2, and rapidly cutting down trees.


• The key market players of the growing engineered wood market size are expanding their investment and functioning that resulting in the expansion of the product portfolio that is available to the global target audience in the global premises.

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 forecast, 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.