Cross-Laminated Timber Market Size and Share Analysis by Type (Adhesive Bonding, Mechanically Fastened), Application (Structural, Non-structural), Industry (Residential, Non-residential) - Global Industry Revenue Estimation and Demand Forecast to 2030

Cross-Laminated Timber Market Statistics

Key Information Available in this Report

Market Players

Market Outlook

The cross laminated timber market generated revenue of USD 1,376.9 million in 2023, and it is expected to grow at a CAGR of 15.8% during the forecasted period, to reach USD 3,783.7 million by 2030. This is because of its enhanced flexibility in design and method with faster implementation.

Moreover, economic growth in developing economies, rising investment in infrastructure, rigid environmental regulations, surging purchasing power, and increasing demand for environmentally friendly and green materials are driving the market growth.

• The expansion in capacities is also one of the main strategies that are used by producers to boost the volume of the business.
• The rising demand raised the capacity of production, but it should also be acknowledged in terms of an important zone of the chain of value, which is an investment.
• As an outcome, the quantity must be interpreted in terms of process machinery and manpower.
• The cross-laminated timber market has been encountering ongoing growth on account of beneficial initiatives, which are undertaken by government agencies to encourage green substitutes in the building and construction industry.
• Currently, the increasing requirement for economical and long-lasting materials across the world depicts one of the major components, which is supporting the growth of the market.
• Increasing pollution levels also propelled the demand for continual construction materials, which include cross-laminated timber.
• Adjacent to these, it helps in decreasing the duration of construction time in comparison to conventional materials, such as bricks and concrete.
• As cross-laminated timber is produced using wood, so several governments also provide support to its utilization in construction and provide users with monetary and space-liberty advantages.
• For instance, in 2020, India’s Public Works Department abolished the ban on timber in the construction of buildings and habitat projects to stimulate the local economy.
• Cross-laminated timber is progressively used in the application of construction attributing to the increasing awareness about the benefits of the product, which include resistance from the fire, flexibility of the design, cost-effectiveness, superior thermal performance, and others.
• The hiking perceptiveness of viable materials for buildings as well as global technologies in an attempt to diminish greenhouse gas discharges will positively impact the market.
• The strong occupancy of the supportive regulatory environment will also play an important role in the expansion of the market.
• For instance, the government of Finland, commenced a program named Wood Building, as the fragment of the strategy of national climate in order to dual the usage of the wood in the work of the construction.
• The escalation in the R&D capitalizing to enhance the process of manufacturing, advanced technologies, address the distress of the long-term performance, and the impact of the environment of the cross-laminated timber as well as the other bulk products of timber which will also support the development of the industry.
• Companies very much depend on clean labels and natural certification, which displays the originality of the product.
• Cross-laminated timber producers started financing in these labels of certification and are anticipated to show a remarkable rise in demand.

Adhesive Bonding Is the Largest Category

Based on the type segment, the adhesive bonding category holds the larger share, around 80%, in the market, as it generates a powerful link between the layers of the wood, which is crucial for the material’s structural stability. Moreover, adhesive cost is lower than mechanical fasteners, which reduces the cost of adhesive-bonded cross-laminated timber as compared to mechanically fastened cross-laminated timber.

In addition, because of its aesthetic appeal, flexibility in the architecture, and better resistance to fire, the requirement for wooden residential buildings, which include single-family homes and multi-family flats, is expanding.

Moreover, the increasing number of collaborations between companies and end users is boosting the demand for such products in the market. For instance, Mayr-Melnhof Holz Holding entered into an agreement to purchase the group of Swedish sawmill Bergkvist Siljan.

There are two types of cross-laminated timbers covered in the report:

• Adhesive Bonding (Larger and Faster-Growing Category)
• Mechanically Fastened

Non-Structural Category To Witness the Fastest Growth

Based on application, the non-structural category is expected to witness the faster growth, more than 15% CAGR, during the forecast period in the market. This is ascribed to the growing residential sector.

Moreover, cross-laminated timber panels can be utilized in constructions of floor, roof, and wall applications that are of both non-load bearing and load bearing. The materials initially were employed to build the low and mid-rise buildings.

Applications of cross-laminated timbers are:

• Structural (Larger Category)
• Non-Structural (Faster-Growing Category)

Non-Residential Category Holds the Largest Market Share

• Based on the industry segment, the non-residential category dominates the market with over 80% market share.
• The construction of buildings has regulated the environment, which includes the usage of water and electricity.
• Cross-laminated wood is widely used by businesses operating in construction for non-residential areas, due to its stiffness, and mechanical and aesthetic advantages.
• As an outcome, the non-residential sector offers a large number of opportunities to market players.
• In addition, the increasing number of product approvals driving the growth of the market.

Below type of industries are covered in the cross-laminated timber market report:

• Residential
• Non-Residential (Larger and Faster-Growing Category)

Europe Is the Largest Market

Based on region, the European cross-laminated timber market holds the largest revenue share. The market is propelled extremely by the swift development of the construction and residential sectors and the presence of key industry players in Europe. In addition, an increase in the realization about the usage of wooden products ascribing to their features such as light in weight and ease of remodeling is driving the demand for such materials in the region.

Furthermore, the increasing investment in this field boosts the market growth. For instance, Mayr Melnhof Holz Holding AG declared an investment of an average of USD 145 million to construct a modernized cross-laminated timber-producing plant at Leoben, Austria. The latest plant is organized to meet the growth strategy that is set by the company to build up its progress of forward integration and stiffen its position in the European timber industry.

Whereas, since the implementation of the green building laws by government organizations, the market of Asia-Pacific is forecasted to grow at a notable CAGR across the expected duration. In the region, China is the largest market, owing to its large and growing construction industry.

• Moreover, the market in the region is growing due to the increasing demand for sustainable construction materials. These materials offer environmental benefits like carbon sequestration and reduced CO2 emissions compared to traditional materials like concrete and steel.
• The rising urbanization and infrastructure development fuel the need for faster and more efficient construction methods, where this timber offers advantages like prefabrication and modularity.
• Governments are implementing policies and incentives that encourage the use of such materials in the region.

Below listed regions and countries are studied in the report:

• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Europe (Largest Regional Market)
  • U.K.
  • France
  • Spain
  • Germany (Largest Country Market)
  • Italy
  • Austria (Fastest-Growing Country Market)
  • Rest of Europe
• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Cross Laminated Timber Companies:

• Mayr-Melnhof Holz Holding AG
• Binderholz GmbH
• Eugen Decker Holz­industrie GmbH & Co. KG
• HASSLACHER Group
• Schilliger Holz AG
• KLH Massivholz GmbH
• Mercer International Inc.
• Hyne Group
• Pfeifer Holding GmbH
• Lion Lumber
• CLT Finland Oy