Cross-Laminated Timber Market To Generate Revenue Worth USD 3,783.7 Million by 2030
- Published: February 2024
The cross-laminated timber market was valued at USD 1,376.9 million in 2023 and it is projected to reach USD 3,783.7 million by 2030, registering a CAGR of 15.8% during 2024–2030. This is due to the flexibility in the design of a product and quicker implementation of the method, in comparison to other construction materials.
Moreover, growth in the economy of developing countries, an increase in the investment of infrastructure, strict regulations on the environment, a rise in the purchasing power of people, and a surge in the demand for green and eco-friendly materials are driving the market growth.
- Conventionally, cross-laminated timber was produced by the usage of hardwood from trees of the coniferous, which is available in the region of alpine.
- As there is a rise in admiration in other divisions of the world, businesses are having trials with soft and temperate species of wood for the production of this material.
- Such a latest development may lead to the enhanced performance of the material, and thus, the adoption of cross-laminated timber for construction applications is increasing.
- For instance, in 2020, the Department of India’s Public Works removed the ban on timber usage in the construction of buildings and habitats to stimulate the local economy.
Adhesive Bonding Dominates the Market
Based on the type segment, the adhesive bonding category holds the largest market share. This is because it generates a stiff bond between layers of wood, which is deprecatory for the structural stability of the material. The adhesive bonding also offers higher bond strength and is less contrived by conditions of the environment as compared to mechanical fasteners.
Moreover, the cost of adhesive bonding is remarkably lower than mechanical fasteners, which leads to the low cost of production of adhesive-bonded cross-laminated timber, in comparison with mechanical-fastened timber materials.
Non-Residential Category Holds the Largest Market Share
- Based on the industry segment, the non-residential accounts for the largest share of the market. This is due to the large-scale usage of cross-laminated timber in the construction of buildings and offices across the world.
- The utilization of cross-laminated timber in commercial buildings is also witnessing expansion, which results in the growth of the market in this category.
- In addition, the increasing number of mergers and acquisitions among players operating in the market is driving the demand for cross-laminated timber.
- For instance, in May 2022, Stora Enso obtained a 35% share of ACDF Industry SAS, a France-based company involved in the manufacturing of engineered wood products such as cross-laminated timber, Glulam, and LVL (laminated veneer lumber). This helps the company to capitalize on the rising requirement for timber in France.
Some of the major players operating in the cross-laminated timber market are Mayr-Melnhof Holz Holding AG, Stora Enso, 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, and CLT Finland Oy.