Cross Laminated Timber Market revenue to hit USD 7 Billion by 2036, says Research Nester

Major cross laminated timber market players include Stora Enso, Mercer International, Semodu AG, Melnhof Holz, Binderholz GmbH, Obayashi Corp., Idemitsu o.Ltd., Sekisui House, Misawa Home, and Ryohin Keikaku Co., Ltd.

New York, Feb. 15, 2024 (GLOBE NEWSWIRE) -- The global cross laminated timber market size is slated to expand at ~14% CAGR between 2024 and 2036. The market is poised to garner a revenue of USD 7 billion by the end of 2036, up from a revenue of ~USD 2 billion in the year 2023.The escalating pollution rate worldwide and demand for renewable resources are likely to boost the market growth. To reduce the carbon emissions occurring from the construction industry and to promote eco-friendly building methods is anticipated to fuel the market size. As per the 2022 reports, pollution generated by the construction industry contributes to 20% of air pollution, over 38[MK1] % of water pollution, and nearly 47% of climate change and 48% of landfill wastes.

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Besides, the rising concern of people to minimize their carbon footprint by not producing carbon dioxide gases through any means is proliferating market growth. Of 1 million individuals who participated in the survey of 2021, over 60% of the people are[MK2]  concerned that climate change is a threat to the world. The cross laminated timber (CLT) is produced through sustainable and safely harvested forests and is a renewable material. Also, the use of CLT improves the structural appearance of the building with its lightweight, easy-to-build properties.

Increasing Investment in Clean Label Products is Mounting the Growth of the Cross Laminated Timber Market

The sales of the products with the lean label certification are rising in the market owing to their authenticity. The manufacturers are applying for the approval of clean label certification to enhance sales which is estimated to propel the market growth. The certification provides proof or validity to the produced wood and prevents counterfeiting. Thus, many business owners are investing in clean-label goods to represent their authorization in the production industry. As per the estimated data, the area of certified forests increased to 470 million hectares in 2022[MK3]  rising at a rate of 2% from over 8.3 million hectares in 2021.

Cross Laminated Timber Market: Regional Overview 

The presence of Stringent Regulations and Multiplying Urban Projects is Fostering Market Growth in the European Region

The cross laminated timber market in the Europe region is reckoned to acquire a significant revenue share of 33% by the end of 2036. The rise in the market size is credited to the soaring number of building projects in the industrial and urbanization sectors. Amplifying the ratio of sustainable projects in the construction sector with the awareness of climate safety is proliferating the market size. During 2022, over 33,000 infrastructure projects were initiated in Europe in main cities such as Paris, Berlin, and Madrid with scope for large[MK4] -scale urban developments.

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The occurrence of Natural Calamities Causing the Destruction of Property is Augmenting the Market Expansion in the North American Region

The North American region cross laminated timber market is expected to expand with a market share of 26% by the end of 2036 as a result of the ability of CLT to protect buildings from natural incidents such as earthquakes, cyclones, and fires. The CLT is resistant to fire as the wood is thick and undergoes charring effect which forms a protective outer layer preventing further damage. The extended wood buildings in the region for residential structures are reinforcing the market trends in the coming years. In America, during natural calamities, nearly 1 in 10 homes were[MK5]  affected in 2021 which accounts for more than 14 million home destruction contributing to the loss of over USD 55 billion in property.

Cross Laminated Timber, Segmentation by Application

  • Residential
  • Non-Residential

The non-residential segment of the cross laminated timber market is estimated to register a noteworthy market share of 54% during the forecast period on account of rising demand for environmentally safe construction processes. The need for water, and electricity for building constructions especially for nonresidential sites is enormous which may affect the ecosystem. The construction and building industry utilizes[MK6]  over 38% of the energy across the world and contributes[MK7]  more than 30% of greenhouse gas emissions as of the 2023 analysis. Hence, to reduce this effect and to create mechanically stiff, sound, and secure structures, the implementation of CLT is made. An accumulating number of offices, hotels, institutions, shopping malls, theaters, and other public nonresidential areas in need of a unique piece of structure is increasing the market segment growth.

Cross Laminated Timber, Segmentation by End-Use

  • Structural
  • Non-Structural

The structural segment from the market of cross laminated timber is predicted to secure a 52% market share in the coming years owing to the high usage in engineering structures. The intensifying application of CLT in commercial sites for the construction of strong buildings is propagating the market segment demand. Further, the properties of cross laminated timber to withstand great heights, flexibility to design interiors, protection against fire, thermal properties, and seismic ability are driving the progression of the market segment. The prefabricated panels of CLT decrease the time of construction compared to the usual concrete buildings which is another advantage adding to the market segment growth. As per the reports, nearly 24[MK8] % of the time savings can be seen with the use of CLT based on the level of wood prefabrication and project size.

A few of the well-known industry leaders in cross laminated timber market that are profiled by Research Nester are Stora Enso, Mercer International, Semodu AG, Melnhof Holz, Binderholz GmbH, Obayashi Corp., Idemitsu o.Ltd., Sekisui House, Misawa Home, Ryohin Keikaku Co., Ltd., and others.

Recent Development in the Market 

  • Stora Enso Oyj inaugurated a production site to produce cross laminated timber in Czechia, Europe. The production capacity of the site was expected to be 120000 m3 (cubic metric) per year. This expansion was to establish a strong foothold in the competitive market of the timber industry.
  • Mercer Mass Timber together with its subsidiary firm declared the closing deal of Structurlam Mass Timber Corporation's acquisition. The agreement includes the complete ownership of Structurlam and its subsidiaries to Mercer International which is a low-carbon advanced manufacturing unit of timber materials.

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