GLOBAL MASS TIMBER MARKET SIZE (2023 - 2030)

The global Mass Timber Market size is anticipated to expand at a compound annual growth rate (CAGR) of 17.32% and reach USD 824.9 million by 2030.

Market Overview:

Mass timber or more popularly known as Cross-laminated timber (CLT) is an engineered wood product that is rapidly gaining traction across the globe as a more sustainable and renewable alternative to concrete and steel construction in commercial and multi-residential application sectors. It consists of multilayer panels which are made from solid wood boards stacked crosswise and glued together. Its configuration improves rigidity, dimensional stability, and other mechanical properties. Structurally, it offers superior performance comparable to concrete or steel, with panels suitable for walls, floors, roofs, and other applications. The panels are strong and stiff, which permits them to be used across a wide range of applications. The use of mass timber panels has become a popular method of construction in Europe since it was first introduced there during the early 1990s. At the present time, it is used for all kinds of structures ranging from houses, barns, powerline towers, and others adding visibility and reputation to the system. 

COVID-19 Impact on the global Mass Timber Market:

Due to the COVID-19 outbreak, the construction industry witnessed a sharp drop around the globe, with governments halting all construction efforts. As a result, demand for mass timber fell sharply. The sudden emergence and the rise in the number of cases led to the imposition of lockdowns by various governments of the economies, thereby affecting economic development critically. Further, the restrictions in the travel and transport sector led to the lack of availability of raw materials and caused price fluctuation of these raw materials. The resumption of construction activity in the latter half of 2020 and 2021, resulted in industry growth. Furthermore, green construction initiatives and other steps toward utilising environment-friendly goods that may have a low detrimental impact are the major drivers positively impacting the industry. The market is estimated in the forecasted years to be driven by rising consumer awareness about the benefits of mass timber in the construction sector.

Market Drivers:

Technological advancements and increased research and development activities in the industry are driving market growth:

Major key players in the market are investing on advance equipment, technologies, and their optimum application which reduces the overall building cost, time-taken, and risk during earthquakes so that they are faster, easier, and more profitable, driving the market growth size in the forecasted years.

Growth in the residential, commercial, and real estate industry sectors is bolstering the market size:

Rising investment in real estate projects and an increasing number of restaurants, hotels, corporate offices, and across the education sector is the major driving force for the mass timber market. Hence, the major players are aiming to identify new opportunities, and are putting pressure on the supplies growing the market size considerably in the forecast period.

Government Policies regarding efficient waste disposal and reduced carbon emission is boosting the market size:

Government Policies had a significant influence on the residential and non-residential industries. As a result, manufacturers are working on cost-effective technologies to reduce carbon emissions while increasing health, equity, and economic prosperity in society along with recycling processes with a focus on a reverse distribution model to promote the return of carpet tiles which is eco-friendly and aligns well with government initiatives driving the market growth opportunities. 

Market Restraints: 

High production cost restricts the significant growth of the global market size:

The manufacturing process involves a lot of non-degradable waste materials, which may be costly to deal with and process as per the guidelines issued by the government and possess to be the biggest challenge to market growth.

MASS TIMBER  MARKET REPORT COVERAGE:

This research report on the global Mass Timber Market has been segmented and sub-segmented based on Application, Product Type, Element Type, Raw Material Type, Bonding Method, Panel Layers, Adhesive Type, Press Type, Storey Class, Application Type, Regions, and Key Companies.

Mass Timber Market – By Application.

• Residential

• Educational Institutes

• Government/Public Buildings

• Commercial Spaces

Based on application, the mass timber market has been segmented into 4 segments – Residential, Educational Institutes, Government Buildings, and Commercial Spaces.

The residential sector dominates and holds the highest revenue share in the global market in the use of mass timber in the construction sector. In Japan, about 58.9% of houses are built of wood, making it the world’s largest country with the construction of wooden houses. Hence, with the rise in the number of wooden structures, it is further anticipated to grow the Mass Timber Market during the coming years. According to reports by European Union, countries such as Sweden use about 84%, and Germany uses approximately 20% of the mass timber materials in constructing houses mainly consisting of wooden structures. This is anticipated to create a major scope for the growth of the mass timber market globally.

 Breakup by Product Type:

• Custom CLT

• Blank CLT

Based on product type, the mass timber market has been segmented into 2 segments – Custom CLT and Blank CLT.

Breakup by Element Type:

• Wall Panels

• Flooring Panels

• Roofing Slabs

• Others

Based on element type, the mass timber market has been segmented into 4 segments – Wall Panels, Flooring Panels, Roofing Slabs, and Others.

Breakup by Raw Material Type:

• Spruce

• Pine

• Fir

• Others

Based on raw material type, the mass timber market has been segmented into 4 segments – Spruce, Pine, Fir, and Others.

Breakup by Bonding Method:

• Adhesively Bonded

• Mechanically Fastened

Based on the bonding method, the mass timber market has been segmented into 2 segments – Adhesively Bonded and Mechanically Fastened.

Breakup by Panel Layers:

• 3-Ply

• 5-Ply

• 7-Ply

• Others

Based on the panel layers, the mass timber market has been segmented into 4 segments – 3-Ply, 5-Ply, 7-Ply, and Others.

Breakup by Adhesive Type:

• PUR (Polyurethane)

• PRF (Phenol Resorcinol Formaldehyde)

• MUF (Melamine-Urea-Formaldehyde)

• Others

Based on the adhesive type, the mass timber market has been segmented into 4 segments – PUR, PRF, MUF, and Others.

Breakup by Press Type:

• Hydraulic Press

• Vacuum Press

• Pneumatic Press

• Others

Based on the press type, the mass timber market has been segmented into 4 segments – Hydraulic Press, Vacuum Press, Pneumatic Press, and Others.

Breakup by Storey Class:

• Low-Rise Buildings (1-4 Storeys)

• Mid-Rise Buildings (5-10 Storeys)

• High-Rise Buildings (More than 10 Storeys)

Based on the storey class, the mass timber market has been segmented into 3 segments – Low-Rise Buildings, Mid-Rise Buildings, and High-Rise Buildings.

Breakup by Application Type:

• Structural Applications

• Non-Structural Applications

Based on the application type class, the mass timber market has been segmented into 2 segments – Structural Applications and Non-Structural Applications.

Mass Timber Market – By Region.

• North America

• Europe

• Asia-Pacific

• South America

• Middle-East and Africa

Based on region, the Mass Timber Market has been segmented into 5 major regions – North America, Europe, Asia-Pacific, South America, Middle-East, and Africa.

Europe region dominates and holds the highest revenue share in the global market share in 2022. With the growing construction sector in countries such as the United Kingdom, Germany, Italy, and France, the utilization of mass timber is increasing rapidly in the region. The largest producers of mass timber are located in Europe. According to a report by UK Housing Fit for Nature, about 1.5 million new houses made of timber are pipelined and planned to be constructed by the end of 2022. It is announced that around 27,000 – 50,000 new homes would be built by 2022 thus augmenting the growth opportunity in the residential sector. The aforementioned factors, along with government support, are contributing to the increasing demand for mass timber during the forecast timeline.

Mass Timber Market – By Companies.

1. Stora Enso Group

2. Binderholz GmbH

3. Mayr Melnhof Holz Group

4. Schilliger Holz AG

5. KLH Massivholz GmbH

6. HASSLACHER Holding GmbH

7. Sterling Company

8. Structurlam Mass Timber Corporation

9. Nordic Structures

10. Eugen Decker Holzindustrie KG

11. Others

The Mass Timber Market is highly fragmented and extremely competitive with key players involved in R&D and constant technological innovation done by the vendors.