Engineered Wood Trends and Forecast
The future of the global engineered wood market looks promising with opportunities in the residential and commercial & industrial markets. The global engineered wood market is expected to reach an estimated $422.8 billion by 2030 with a CAGR of 5.5% from 2024 to 2030. The major drivers for this market are escalating demand for this wood from the non-residential segment and surge in the restoration, refurbishment, and transformation of aged structures.
• Lucintel forecasts that, within the application category, furniture will remain the largest segment over the forecast period.
• Within the end use category, residential will remain larger segment due to growing demand for wood-based building materials in residential structures as well as an increase in home construction and renovation projects.
• In terms of region, APAC will remain the largest region over the forecast period due to expanding building projects and increasing infrastructure development in the region.
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Emerging Trends in the Engineered Wood Market
The engineered wood market is undergoing changes, and some of the trends highlighted will significantly shape its future. These trends have technological aspects, environmental shifts, and transformations of market requirements.
• Adopting More Sustainable Building Approaches: Greater use of engineered wood is being witnessed, as most environmental degradation caused by its use compared to conventional construction materials is lower. Its use in the construction of green buildings helps achieve the objectives of sustainability and reduced carbon usage.
• Technological Advancements: The speed and performance of engineered wood products are improving with the help of new manufacturing features, including modern adhesives and accurate cutting techniques. These changes make new uses and design options possible.
• Urban Growth and Infrastructure Development: The trend of urbanization is increasing the use of engineered wood in the construction of tall structures and general infrastructural development. It is not only strong enough to meet structural requirements but also lightweight and cost-effective.
• Regulatory Support: Measures are being implemented by the government to encourage the construction of many buildings using engineered wood. These support measures are speeding up market growth while simultaneously promoting new technological developments.
• Consumer Preferences: It is observable that people are increasingly inclined towards using sustainable and environmentally friendly building materials. This trend is making engineered wood acceptable in both structural and non-structural residential and commercial buildings.
All aims and trends in the development of such materials contribute to the changing horizon of the engineered wood market and promote new development paths, the market launch of new products, and compliance with sustainable development parameters. These opportunities are proliferating the market and positioning engineered wood as a central element in the architecture of the modern world.
Recent Developments in the Engineered Wood Market
For the past few decades, the engineered wood market has been characterized by increasing product diversification due to structural changes and growing competition. These developments demonstrate advancements in technology and diversification in market demand.
• Technological Advancements: The technology of manufacturing processes has improved through significant developments, such as better adhesives and automated manufacturing processes, leading to better quality engineered wood products.
• Sustainability Initiatives: There has been enhanced concern regarding the environmental role of engineered wood products, which has given rise to environmentally friendly engineered wood. Such initiatives arise both from the industry and policies directed towards minimizing the impact of such activities on the environment.
• Urbanization Effects: Significant growth in urbanization is resulting in an increasing use of engineered wood in high-rise buildings and other infrastructure projects. Its lightweight and economical features are sufficient for the requirements of contemporary construction.
• Market Expansion: As demand for engineered wood products surges, the establishment of production locations and supply centers in countries such as India and China is reducing reliance on imports.
• Regulatory Developments: The use of engineered wood is being encouraged through the introduction of additional laws and the possibility of incentives. Such policies are enhancing the growth of industries and making the adoption of environmentally friendly building measures more feasible.
These developments are impacting the engineered wood market regarding product enhancements, market penetration, and trends in sustainable development worldwide. New avenues for innovation and expansion in the market are also being created.
Strategic Growth Opportunities for Engineered Wood Market
The engineered wood market contains various strategic growth opportunities across several applications. Technological innovation and rising demand make these opportunities more viable.
• Residential Construction: Cost efficiency and design versatility have increased the application of engineered wood in residential buildings. This eliminates the use of some existing materials that are not environmentally friendly, resulting in energy-efficient construction.
• Commercial Building Projects: There is growth in market spaces in the commercial sector, where engineered wood is favored due to its strength and aesthetics. An increase in its use has also been noted in office buildings, retail, and other commercial public facilities.
• Infrastructure Development: Engineered wood is increasingly being adopted in infrastructure projects such as bridges and transport hubs. Its lightweight and resilient properties are advantageous for large-scale infrastructure work.
• Green Building Initiatives: There is a growing inclination towards using engineered wood products in green building construction. It is environmentally friendly, and the requirements for certifying buildings as green are ensured with its use.
• Hybrid Construction: Developments in hybrid construction techniques that combine engineered timber with other materials are opening new possibilities. These methods improve both structural capability and design versatility in all building types.
Strategic growth opportunities contribute to the development of the engineered wood market. They are widening the scope of the materialÄX%$%Xs use in alignment with sustainability trends and addressing changing construction demands.
Engineered Wood Market Driver and Challenges
Major drivers and challenges in the engineered wood market revolve around technological, economic, and regulatory factors. These factors significantly influence market growth opportunities, progress, and dynamics.
The factors responsible for driving the engineered wood market include:
• Technological Innovation: Developments in manufacturing processes and product innovations are improving the quality and versatility of engineered wood products, encouraging market expansion.
• Sustainability Trends: The increasing shift toward the use of environmentally friendly building materials is boosting the use of engineered wood, as it is less harmful to the environment compared to other alternatives.
• Urbanization: Rapid urbanization raises the need for construction materials that are efficient, durable, and sustainable, such as engineered wood, particularly in high-rise buildings and infrastructure projects.
• Government Incentives: Favorable laws and policies to enhance green building activities further promote the use of engineered wood, making it easier to capture market share.
• Cost-Effectiveness: Engineered wood serves as a cost-effective substitute for natural materials, reducing overall expenditure on construction projects and thereby increasing its uptake in the market.
Challenges in the engineered wood market are:
• Regulatory Hurdles: Different regulations that must be followed in various regions may pose challenges and influence market entry and growth of engineered wood products.
• Supply Chain Issues: Supply chain interruptions and lack of raw materials will affect the distribution and pricing of engineered wood, creating market instability.
• Market Competition: The presence of substitutes and competing building materials and technologies will slow the growth of engineered wood market share expansion, necessitating continuous efforts to remain competitive.
All these factors have a potential impact on the engineered wood market, growth trends, and other attributes. It is critical to address these factors to seize potential opportunities and minimize risks in the market.
List of Engineered Wood Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies engineered wood companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the engineered wood companies profiled in this report include-
• Boise Cascade
• Havwoods
• Huber Engineered Woods
• Louisiana-Pacific
• Mayr-Melnhof Holz Holding
• Nordic Structures
• Pacific WoodTech
• Roseburg Forest Products
• Stora Enso
• UFP Industries
Engineered Wood by Segment
The study includes a forecast for the global engineered wood by type, application, end use, and region.
Engineered Wood Market by Type [Analysis by Value from 2018 to 2030]:
• I-Beams
• Plywood
• Laminated Veneer Lumber
• Glulam
• Oriented Strand Boards
• Cross-Laminated Timber
• Others
Engineered Wood Market by Application [Analysis by Value from 2018 to 2030]:
• Construction
• Furniture
• Flooring
• Packaging
• Others
Engineered Wood Market by End Use [Analysis by Value from 2018 to 2030]:
• Residential
• Commercial & Industrial
• Others
Engineered Wood Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Engineered Wood Market
Engineered wood products are becoming popular worldwide, especially because they are considered both sustainable and high-performing. Certain regions, particularly the US, China, Germany, India, and Japan, derive significant benefits from technological advancements and the increasing demand for green building materials.
• United States: The US market focuses on advanced manufacturing methods such as cross-laminated timber (CLT), aimed at improving structural efficiency and sustainability. Government stimulus and an increasing level of green construction are encouraging uptake.
• China: China invests enormous resources in engineered wood technology to address challenges related to urbanization and environmental pollution. Building large-scale CLT facilities and upgrading production technologies are critical sectors in this region.
• Germany: Germany is at the forefront of applying engineered wood in modern energy-efficient buildings. Improved adhesives and precision engineering are facilitating product development and broadening the scope of green building applications.
• India: The use of engineered wood in India is increasing due to the high population growth rate and demand for affordable building materials. Strategies are being implemented to enhance local production capacity to satisfy growing demand and reduce reliance on imports.
• Japan: Innovations in constructing buildings using engineered wood that withstands the impact of earthquakes are progressing. Research continues on elements and construction methods to enhance safety and durability in earthquake-prone areas.
Features of the Global Engineered Wood Market
Market Size Estimates: Engineered wood market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Engineered wood market size by type, application, end use, and region in terms of value ($B).
Regional Analysis: Engineered wood market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, end uses, and regions for the engineered wood market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the engineered wood market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the engineered wood market size?
Answer: The global engineered wood market is expected to reach an estimated $422.8 billion by 2030.
Q2. What is the growth forecast for engineered wood market?
Answer: The global engineered wood market is expected to grow with a CAGR of 5.5% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the engineered wood market?
Answer: The major drivers for this market are escalating demand for this wood from the non-residential segment and surge in the restoration, refurbishment, and transformation of aged structures.
Q4. What are the major segments for engineered wood market?
Answer: The future of the engineered wood market looks promising with opportunities in the residential and commercial & industrial markets.
Q5. Who are the key engineered wood market companies?
Answer: Some of the key engineered wood companies are as follows:
• Boise Cascade
• Havwoods
• Huber Engineered Woods
• Louisiana-Pacific
• Mayr-Melnhof Holz Holding
• Nordic Structures
• Pacific WoodTech
• Roseburg Forest Products
• Stora Enso
• UFP Industries
Q6. Which engineered wood market segment will be the largest in future?
Answer: Lucintel forecasts that furniture will remain the largest segment over the forecast period.
Q7. In engineered wood market, which region is expected to be the largest in next 5 years?
Answer: APAC will remain the largest region over the forecast period due to expanding building projects and increasing infrastructure development in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the engineered wood market by type (i-beams, plywood, laminated veneer lumber, glulam, oriented strand boards, cross-laminated timber, and others), application (construction, furniture, flooring, packaging, and others), end use (residential, commercial & industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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