Mass Timber Construction Market Expected to Reach $1.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Mass Timber Construction Market," The mass timber construction market was valued at $857.10 million in 2021, and is estimated to reach $1.5 billion by 2031, growing at a CAGR of 6% from 2022 to 2031. 

Mass timber is also called engineered wood or man-made wood or manufactured boards. Mass timber construction uses mass timber panels glued or nailed parallel or perpendicular in order to provide the required strength and stability to building construction. Mass timber construction uses blocks or panels of mass timber for the construction of the entire structure of the building.

Mass timber, being cost-effective and environment-friendly is preferred over other wood and cement products that emit harmful byproducts while manufacturing. In addition, subsidies provided by governments over green building material encourages builders and architects which contributes to the growth in  adoption of mass timber construction. 

There is a growth in demand for effective use of the current land of the city along with urbanization. Building new, contemporary structures requires demolishing outdated ones. In addition, a number of historic buildings and structures have reached the end of their useful lives and are unsafe to occupy. As a result, the owner or the government knocks down the structure to make room for a new one. Furthermore, it has become popular to update or modify older homes with modern technologies to increase their aesthetic value. Engineered wood is required for the floors, walls, and roofs in this home and building rehabilitation and remodel projects. For instance, 5,400 home restoration projects in Singapore received authorization to begin remodeling activities in June 2020. All these reconstruction, renovation, and remodeling activities are mostly conducted in developed countries such as the U.S., Germany, and the UK. These factors promotes the  mass timber construction market growth around the world and is expected to offer new mass timber construction market opportunities.

In addition, another factor that drive the growth of mass timber is the global expansion of the residential construction industry. The growth in the number of residential construction projects boosts the demand for mass plywood panels as such panel provides better finishing to the surface. In addition, the mass timber panels used for construction are efficient in offering better resistivity towards water, fire, and earthquakes. Moreover, mass timber-constructed buildings require lesser maintenance and are more environment-friendly owing to the use of eco-friendly lumber and other engineered wood. These factors propel the mass timber construction industryforward. Governments of various countries invest in residential sectors due to the rise in population and for better living standards. For instance, in September 2021, an article published in The Indian Express stated that Germany will build 285,900 residential houses, the highest in 16 years. Expanding construction sector of Germany is thus one of the key drivers of the economic recovery of the country, and as a result, the mass timber industry is anticipated to grow in the forecast period.

Engineered wood is more environmentally friendly than building materials such as steel and concrete because it is stable for the environment and doesn't emit greenhouse gases. Wood waste is used to prepare some of the engineered wood. Additionally, this is recyclable, nontoxic, renewable, biodegradable, and non-toxic. Moreover, engineered wood has a significant advantage over cement, which is responsible for about 7% of the world's CO2 emissions. Because of the worldwide population boom, there is a rising need for homes. Growth in adoption of sustainable buildings in countries such as the Germany, France and U.S. has led to rise in requirement of green building materials such as engineered wood. It is expected that around 60% of the new construction projects are being planned according to the green building norms. Further, engineered wood is low cost compared to other cement and wood products. Thus, it also reduces the cost of the proejcts or cost of building construction, which encourages the architects and builders to opt for engineered wood over traditional building material. These factors currently drive the growth of the mass timber construction market in the world.

However, cheap, and easily available plastic, rubber, and synthetic materials over mass timber function as a restraint for the market during the mass the mass timber construction market forecast period. Similarly, plastic laminates also hamper sales of mass timber.

On the contrary, companies have keenly looked after products to enhance their aesthetics. Furthermore, rise in renovation and remodeling of old structures in developed nation of North America and Europe drives the market that is in turn helping in expansion of mass timber construction market size.

Key Findings of The Study

•        The report provides an extensive mass timber construction market analysis of the current and emerging global mass timber construction market trends and dynamics along with analysis of the companies having significant mass timber construction market share.

•        On the basis of construction type, the 1-8 stories segment was the largest revenue generator in 2021.

•        On the basis of material, the cross-laminated timber segment generated the highest revenue in 2021.

•        On the basis of application, the residential segment dominated the market in 2021.

•        On the basis of region, Europe is anticipated to dominate the global mass timber construction market throughout the study period.