Cross Laminated Timber Market Expected to Reach $3.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cross Laminated Timber Market," The cross laminated timber market size was valued at $1.6 billion in 2020, and is estimated to reach $3.7 billion by 2032, growing at a CAGR of 8.4% from 2023 to 2032. Furthermore, in terms of volume, the global cross laminated timber market was valued at 75.03 million cubic feet in 2020, and is projected to reach 160.67 million cubic feet by 2032, registering a CAGR of 7.5% from 2023 to 2032.  

Cross-laminated timber is available in different number of layers known as plies. Commonly available layer types are 3-ply, 5-ply, and other. Among these, the 5-ply cross-laminated timber segment dominated the cross laminated timber market share in terms of revenue in 2022 and is expected to grow with high CAGR. This is mainly attributed to relatively cheaper price and versatile usability.

Moreover, the market is segmented on the basis of structure type, which includes wall, roof and floor, and others. The roof and floor segment registered a high market share in 2022, in terms of revenue. Cross-laminated timber roofs and floors offer stability, durability, and resistance to deformation, making the building structure stronger. However, the walls segment is expected to witness growth at a higher CAGR during the forecast period owing to increasing urbanization which requires which requires construction of new buildings.

Furthermore, the market is analyzed with respect to different applications of cross-laminated timber, including residential and non-residential. The residential segment accounted for a higher market share in terms of revenue in 2022, mainly due to the increasing population and rising demand for sustainable construction materials. However, the non-residential segment is expected to dominate the cross laminated timber market forecast by growing with the highest CAGR during the forecast period, owing to rapid urbanization in developing nations.

The market is mainly driven by a rise in residential and commercial buildings that make use of cross-laminated timber. In addition, the degrading climate of the earth has increased demand for sustainable construction materials driving demand for timber in the construction sector. However, lumber or wood is infamous for fluctuating cost with weather changes, wildfires, trade disputes, gap between demand and supply, and various other political and non-political factors. Thus, fluctuations in the cost of raw wood which is used for making cross-laminated timber is expected to restrain the cross laminated timber market growth in the coming years.

In 2022, Europe dominated the cross laminated timber market, in terms of revenue. Moreover, the cross laminated timber market in North America is anticipated to grow with a higher CAGR during the forecast period. Moreover, growth in population in countries, such as China, India, Singapore, and Indonesia is an instrumental factor in the high market growth in Asia-Pacific.

Various key players in the cross laminated timber market have adopted many development strategies such as product launches, business expansion, acquisitions, partnerships, and mergers. For example, Stora Enso, a major player in the cross laminated timber market, inaugurated a new production site for cross-laminated timber (CLT) in Ždírec, the Czech Republic in October 2022. This more than $80 million investment is expected to allow the company to meet the increasing demand for sustainable, cost-effective cross-laminated timber. This expansion is estimated to ramp up the annual production capacity to approximately 120,000 m³. Moreover, in June 2023, Mayr-Melnhof Holz Holding AG inaugurated a cross-laminated timber production plant in Leoben. The plant has the capacity to produce 140,000 m3 cross-laminated timber annually.

However, various businesses in the cross laminated timber market are expected to witness a slow growth rate in the coming year, owing to the looming recession in major countries driven by the Ukraine-Russia war. The inflation has already led to higher prices of materials in construction sectors which is the end-user industry of cross-laminated timber and related products.

Key Findings Of The Study

• The report provides an extensive analysis of the current and emerging cross laminated timber market trends and dynamics. 
• Depending on the layer type, the 5-ply segment dominated the cross laminated timber market, in terms of revenue in 2020 and the same segment is projected to grow at a significant CAGR during the forecast period.
• By structure type, the roof and floor segment dominated the cross laminated timber market share in terms of revenue generated in 2020.
• By application, residential segment registered highest revenue in 2022.
• North America is projected to register the highest growth rate in the coming years.
• The key players within the cross laminated timber market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the cross laminated timber industry.
• The report provides an extensive analysis of the current trends and emerging opportunities of the market. 
• In-depth cross laminated timber market analysis is conducted by constructing estimations for the key segments between 2023 and 2032.