Laminated veneer lumber (LVL) is a construction material that is used in building and renovation activities and for industrial purposes. LVL has applications in load-bearing columns and beams, trusses, ring beams, and components for the door and window market, among others. LVL is an engineered wood product that uses multiple layers of thin wood that is assembled with adhesives. It is increasingly being preferred for construction and remodeling and replacing traditional milled lumber due to its superiority over the latter in terms of strength, cost-efficiency, and sustainability.
The laminated veneer lumber (LVL) market has been broadly classified by product type, and application. Based on the product type, the global laminated veneer lumber (LVL) market has been segmented into cross-banded laminated veneer lumber and laminated strand lumber (LSL). By application, the global market for laminated veneer lumber (LVL) comprises of residential buildings and commercial buildings.
The major players considered in the scope of laminated veneer lumber (LVL) market are Weyerhaeuser Company, Metsä Group, Boise Cascade, Louisiana-Pacific Corporation, Modern Lumber Technology, Nelson Pine Industries Limited, Murphy Company, and Brisco Manufacturing Ltd.
The global laminated veneer lumber (LVL) market is expected to expand at 13.4% CAGR, from USD 2,882.6 million in 2018 to USD 6,950.3 million by the end of year 2025.
The increasing housing activities and growing residential, non-residential, and infrastructure projects due to urbanization and rising population are the major drivers for the growth of the construction industry. LVL is an engineered wood product, in which the multiple layers of thin wood are assembled with the adhesives. LVL products are primarily used in residential and commercial construction as a cost-effective solution. LVL is used for constructing house beams, concrete formwork, scaffold boards, purlins, truss chords, and others. The increasing application of LVL in residential and commercial construction is driving the growth of the laminated veneer lumber market. LVL is equipped with various beneficial structural properties, which has further increased its application in building spacious prefabricated structures and customized wooden houses. The need for innovative construction solutions that are durable and require less time for constructing and have low maintenance as well as an increase in new construction start-ups in recent years is leading to a rise in demand for LVL. Furthermore, the rise in home improvement and renovation projects is creating opportunities for the growth of the global laminated veneer lumber (LVL) market. The changing consumer preferences and increase in disposable per capita income of consumers are leading to the increasing adoption of innovative building solutions. LVL enhances and quickens construction, making it feasible to avoid welding and utilize lighter lifting equipment at the building site. Thus, the increasing demand for LVL in the construction industry is expected to drive the global laminated veneer lumber (LVL) market during the forecast period.
he high number of construction projects across the globe creates a high demand for skilled workers. Globally, the demand has exceeded supply, leading to the reduced availability of workers. The lack of skilled labor leads to an increase in the risks of contractors as it increases the likelihood of a delay. Moreover, many developing countries, such as India and China, have witnessed a severe shortage of skilled labor because of the migration of skilled workers, an aging workforce, and the lack of training. LVL products require highly skilled labor to ensure proper cutting, fixing, and finishing. Thus, the lack of skilled labor is expected to restrain the growth of the global laminated veneer lumber (LVL) market during the forecast period.
Developing countries play a major role in the growth of the global laminated veneer lumber (LVL) market as the construction industry significantly contributes to their emerging economies. The rapid growth of the emerging economies is anticipated in the Middle East, Asia-Pacific, and Latin America owing to the availability of barren lands, which could be transformed into commercial complexes, educational institutes, military, and industrial structures.
Asia-Pacific is expected to hold the largest share of the global construction industry due to the increasing number of construction projects that are set to go underway. With countries such as India and China looking to strengthen their infrastructural base, government aids and subsidies in these countries aim to attract significant investments in the construction industry. The rapidly growing population and increasing housing construction projects are set to increase the demand for LVL in these countries. The concept of wood construction has been welcomed in Asia-Pacific, mainly due to the increasing need for new housing facilities to meet the growing population demand and quick construction requirements. In addition to this, the benefits of LVL products, such as easy installation, cost-effectiveness, and lightweight, are expected to increase their use in construction projects in developing countries. Thus, the increasing use of LVL in emerging economies is expected to create growth opportunities for players operating in the global laminated veneer lumber (LVL) market during the forecast period.
Global Laminated Veneer Lumber (LVL) Market, 2018–¬2025 (USD Million)
Source: MRFR Analysis
Geographically, the global laminated veneer lumber (LVL) market has been segmented into North America, Europe, the Middle East & Africa, and South America.
The North American region includes major markets such as the US, Canada, and Mexico. North America has vast potential for LVL due to the increased use of wood in the construction industry. The US is expected to hold the largest market size in North America. Strong economy and real estate industry lead to an even strong outlook for wood construction in the coming years in North America. LVL is expected to be preferred over traditional construction methods owing to various advantages, such as quickening construction methods, strength, and cost-effective. Hence, the growing popularity of LVL further boosts the market in the region.
Europe region is further divided into Germany, UK, France, Spain, and Rest of Europe. It is expected to be the fastest growing market for LVL globally owing to the increasing upgrade of the existing infrastructure, rising environmental concerns, and the growing interest in cost-effective construction are some of the factors driving the growth of the market in Europe. Moreover, the construction sector has primary contribution in the growth of the economies in Europe. Germany accounted for the largest market share in 2018 followed by UK, France, and other countries.
Asia-Pacific includes China, Japan, Southeast Asia, India, Australia, and Rest of Asia-Pacific. The growth of the building & construction industry and improvement in financial conditions in this region have led to a rise in demand for LVL. Moreover, industrialization and urbanization in the emerging economies, such as China, India, and Japan are also boosting the growth of the laminated veneer lumber (LVL) market. China has witnessed rapid growth in industrialization and growing population levels, which have fueled the demand for cheap residential houses. This will raise the demand for the laminated veneer lumber.
South America includes countries such as Brazil, Argentina, and Rest of South America. The region is expected to witness a significant increase in construction-related spending especially the larger markets like Brazil, Argentina, and Chile are anticipated to observe decent construction output in the coming years. The significant growth in construction investment is expected to result in the growth of the laminated veneer lumber (LVL) market in the region owing to several benefits associated with it, such as reduced carbon footprint and costs, and acoustical properties. These among other such factors are expected to drive the demand for wood-based structures, which in turn will create demand for LVL in the region during the forecast period.
The Middle East and Africa includes Saudi Arabia, UAE, South Africa, and the rest of Middle East and Africa. The Middle East & Africa represents a huge market for suppliers of EWP (Engineered wood Products) materials as sustainable products will be a key growth driver of the construction industry in the region. The government plays an important role in promoting and enforcing policies to reduce the carbon footprint in the UAE. For instance, government bodies such as (Dubai Electricity and Water Authority) DEWA, (Abu Dhabi Water and Electricity Authority) ADWEA, and (Sharjah Electricity & Water Authority) SEWA are executing new plans and policies and sustainability initiatives. The market for wood-based construction buildings is in the introductory phase in the Middle East & Africa and is expected to grow steadily during the forecast period. Meanwhile, South Africa holds the largest market share in the Middle East and Africa owing to the government reforms in the construction industry in South Africa. For instance, it is supporting the construction industry through initiatives such as National Development Plan (NDP). Such factors are expected to drive the market for LVL in the Middle East & Africa.
The key players of the global laminated veneer lumber (LVL) market are Weyerhaeuser Company, Metsä Group, Boise Cascade, Louisiana-Pacific Corporation, Modern Lumber Technology, Nelson Pine Industries Limited, Murphy Company, and Brisco Manufacturing Ltd.
By Product Type
|Market Size||USD 6,950.3 million|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Forest and Wood Products Australia Ltd (Australia), Metsä Board Oyj (Finland), Modern Lumber Technology Ltd. (Russia), Weyerhaeuser Company Ltd. (US), Nelson Pine Industries Limited (New Zealand), Clarke Veneers & Plywood (US), Murphy Company (US), Brisco Manufacturing Ltd. (BML) (Canada), Roseburg (US), and MJB Wood Group, Inc. (US).|
|Key Market Opportunities||The highest market growth due to extensive use of laminated veneer lumber in the construction industry.|
|Key Market Drivers||
Global laminated veneer lumber market is projected to grow at approximately 13.4% CAGR during the assessment period (2025).
The valuation of the global laminated veneer lumber market is estimated to increase to USD 6,950.3 million by the end of 2025.
Concrete formwork is the largest application segment in the global laminated veneer lumber market.
Increasing demand for visually appealing furniture and rising urbanization and consumer preference, are major tailwinds pushing the growth of the global laminated veneer lumber market.
The Asia Pacific region holds the largest share in the global laminated veneer lumber market, followed by North America and Europe, respectively.
Metsä Board Oyj (Finland), Forest and Wood Products Australia Ltd (Australia), Modern Lumber Technology Ltd. (Russia), Nelson Pine Industries Limited (New Zealand), Weyerhaeuser Company Ltd. (US), Clarke Veneers & Plywood (US), Brisco Manufacturing Ltd. (BML) (Canada), Murphy Company (US), Roseburg (US), and MJB Wood Group, Inc. (US), are some of the top players operating in the global laminated veneer lumber market.