Cross Laminated Timber Market

The global cross laminated timber market space that stood at nearly US$800 Mn in 2021 is slated for a strong growth outlook in the years to come. The report would uncover how the market growth will unfold over the period of forecast.

Market Analysis in Brief

Cross laminated timber is derived from wood making it a suitable environment-friendly option for construction activities. Government authorities are supporting its usage in such activities by offering monetary benefits to construction companies. For instance, Public Works Department of India lifted the ban on use of timber products in the construction of habitat projects and buildings in 2020. This study intends to analyse diverse aspects of the global cross laminated timber market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline. In 2021, the market reflected modest growth and per industry figures, it stood at around US$800 Mn in terms of value. According to preliminary study carried out by Fairfield Market Research, the cross laminated timber industry will continue to grow at a strong, double-digit CAGR in the next eight years.

Key Report Findings

• Need for eco-friendly and sustainable material to drive growth of the cross laminated timber market
• Growing construction industry to provide ample opportunities for the market
• Europe likely to cement dominance over other regions in the cross laminated timber market
• Adhesive bonded cross laminated timber to witness spike in demand for various applications

Growth Drivers

Demand for Eco-friendly Materials in Construction

Cross laminated timber has been gaining high traction on the back of increasing demand for environment-friendly materials used in the construction sector. Authorities have been encouraging the use of eco-friendly materials backed by increasing awareness to environmental damage and health. This has resulted in a shift towards adoption of sustainable material such as wood, and its variants in the construction of residential and commercial buildings, and general infrastructure.

In addition, timber also possess superior acoustic insulation and thermal insulation properties as compared to conventional materials used in construction, in turn reducing the use of detrimental materials including foamed plastics and glass wool for insulation of buildings. That said, backed by growing awareness with regards to environmental protection and use of sustainable materials, demand for timber in constitution industry has increased owing to its favourable functionalities, in turn bolstering the growth of the cross laminated timber market.

Adoption of Timber in Commercial and Residential Construction Activities

The construction industry has been showcasing considerable growth since the past few decades, particularly in Asia Pacific, and the Middle East. Although there was a slight slack during the COVID-19 pandemic, huge investments were planned by government bodies to enhance infrastructure. This created ample opportunities for the cross laminated timber market. Timber being derived from wood is a sustainable solution that can be used in construction of walls, roofs, and floors.

Also, cross laminated timber is widely used in interior lining and façade cladding. Increasing use of cross laminated timber in such applications is poised to favour the growth of its market. Furthermore, the rampantly growing residential sector has largely influenced the market. Also, the shift towards sustainable material from its concrete counterpart has been shaping the residential construction sector significantly.

Moreover, benefits such as high durability, lightweight, design variety, high fire resistance, stability, strength, and enhanced insulation have uplifted the demand and sales of cross laminated timber for residential construction purposes. This factor coupled with rising residential and commercial construction activities is expected to drive the growth of the cross laminated timber market.

Overview of Key Segments

Demand for Adhesive Bonded Cross Laminated Timber to Increase Significantly

From the technology standpoint, adhesive bonded cross laminated timber is likely to gain high traction in the forthcoming years. The strength of any wooden material relies on the strong attachment of the layers present within it. By using adhesives, superior bond strength can be obtained, thus increasing the overall strength of the wooden material.

In addition, adhesive bonded wooden material also possesses high resistance against environmental conditions as compared to mechanically fastened material. Furthermore, adhesives are less costly as compared to mechanical fasteners. That said, adhesive bonded cross laminated timber is highly cost-effective as compared to its mechanically fastened counterpart.

In this backdrop, the demand for timber bonded by adhesive is expected to increase in turn largely contributing towards the revenue growth of the cross laminated timber market on the global front.

Growth Opportunities Across Regions

Europe Poised to Lead the Global Cross Laminated Timber Market

The cross laminated timber market in Europe is poised to witness considerable growth in the coming years. This can be attributed towards momentous growth in the construction industry across developed economies such as Germany, France, Italy, the UK, and Spain. This has paved a potential pathway with regards to adoption of sustainable material such as cross laminated timber. Moreover, the demand for cross laminated timber is high as it reduces the overall cost of construction, reduces time of construction as well as risks associated with natural calamities such as earthquakes.

In addition, authorities are encouraging the use of sustainable material in constructions in a bid to achieve carbon neutrality. For instance, the European Economic and Social Committee (EESC) is focused on promoting the benefits and adoption of wood construction for the EU to achieve carbon neutrality by the end of 2050. This has further fueled the need for green building materials such as cross laminated timber to reduce carbon emissions.

The green building movement initiated in European countries is likely to provide ample opportunities to the market in the coming years, thus making the region a major revenue pocket for timber manufacturing companies.

Cross Laminated Timber Market: Competitive Scenario

A few of the major players in the cross laminated timber market include Binderholz GmbH, Hasslacher Holding GmbH, Pfeifer Group, Stora Enso, Mayr-Melnhof Holz Holding AG, Xlam Ltd., IB EWP Inc., Sterling Company, Nordic Structures, Schilliger Holz AG, DRJ Wood Innovations, Eugen Decker Holzindustrie KG, Structurlam Mass Timber Corporation, and Freres Lumber Co. Inc.

Regional Classification of the Global Cross Laminated Timber Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa