Home > HVAC & Construction > Cross Laminated Timber (CLT) Market
Cross Laminated Timber Market size was valued at over USD 912.34 million in 2020 and is projected grow at a CAGR of 14.2% from 2021 to 2027. The increasing penetration of cross laminated timber (CLT) in the emerging markets of Asia Pacific and Latin America will augment the product demand.
Get more details on this report - Request Free Sample PDF
CLT is a prefabricated, large-scale and solid engineered wood panel consisting kiln-dried lumber board layers stacked in perpendicular direction which are bonded by adhesives or mechanical components such as nails, screws, etc. The market is witnessing a rapid surge in demand due to rising CLT adoption in residential and non-residential construction.
Cross laminated timber is a relatively new product developed in the early 90s. The cross laminated timber market has observed a dramatic change over the past decades with the industry expansion outside Alpine Europe. The environmental & social factors of using more sustainable materials in building & construction have led to an increased demand for mass timber such as CLT. The market is prominently driven by custom orders with varied requirements by end consumers. More than 90% of the output volume is manufactured for custom orders and the rest are sold as a generic off-shelf product.
As per the World urbanization prospects, globally more than 55% of the population lives in urban areas and this number is expected to reach 68% by 2050 on account of rapid urbanization in Asia and Africa. The primary market of cross laminated timber is single and multi-family residential construction in western Europe and North America. The rising demand for sustainable residential dwellings will propel the industry growth. The increasing consumer demand for upscale apartments will have a positive effect on the overall market revenue.
CLT exhibits superior properties, such as durability, fire, and earthquake resistance abilities, and easy application. CLT is becoming popular construction material among North American and Asian contractors driving the market demand. CLT is relatively sustainable with a lower carbon footprint and it is a low-cost alternative to other major building materials such as steel and concrete.
Western Europe and North America are major markets with a majority of the product manufacturers present in these regions. Producers across the world are boosting their production capacity to tap the huge market potential in the U.S., India, Germany, etc. The global market will be driven by the construction of tall wooden buildings and structures in North America, Europe, and Asia. In the U.S., the market potential of CLT has been estimated to be more than the entire current global supply.
CLT provides architects and engineers with the freedom to design and enables new methods of design and construction. CLT has become increasingly popular outside the Alpine Europe markets. The increasing penetration of CLT in tall wooden buildings and construction in North America and Europe will fuel product demand. Manufacturers are aware of the huge potential of the product in the construction industry. Thus, they are investing in research & development to improve the product quality and overcome the existing barriers of the product.
Since product inception, the product demand is high in developed markets such as Germany, the UK, Austria, Canada, etc. However, demand is shifting to developing economies such as China, India, and eastern European countries. The market value is aided by the rising popularity of modular construction growth. Environmental-conscious consumers will drive the demand for sustainable construction materials including mass timber such as CLT.
Report Coverage | Details |
---|---|
Base Year: | 2020 |
Market Size in 2020: | USD 912.34 Million |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 14.2% |
2027 Value Projection: | USD 2,256.88 Million |
Historical Data for: | 2017 to 2020 |
No. of Pages: | 205 |
Tables, Charts & Figures: | 244 |
Segments covered: | Raw materials, Press Type, Application and Region |
Growth Drivers: |
|
Pitfalls & Challenges: |
|
Get more details on this report - Request Free Sample PDF
The ongoing Covid-19 pandemic has affected the profitability and operations of the cross laminated timber market. Government-imposed lockdowns and travel restrictions around the world have affected product demand in major markets. Furthermore, the credit crunch and collapse of financial markets have impacted the market share in 2020. Many countries around the world have started vaccination programs and expert believes it will take a considerate amount of time to vaccinate a significant portion of the population. However, product demand is poised to recover in the foreseeable future.
The industry is moderately concentrated with the presence of large players such as Stora Enso. Market leaders across the world are continuously increasing their production capacity to capture untapped markets.
The spruce segment will reach around USD 1.9 billion by 2027. Most of the CLT manufacturers use spruce as their primary raw material. Spruce is a softwood and widely available in Alpine Europe where most of the manufacturing plants are situated. Spruce is easy to handle, light, and very durable. CLT has a higher volume as the use of lightweight wood reduces end product weight.
Get more details on this report - Request Free Sample PDF
Hydraulic presses dominated more than 60% of the market share in 2020. Hydraulic presses are most widely used across CLT manufacturing plants. The segment growth will be impelled by the rising demand for CLTs from residential construction and increasing production capacity by major players operating in the business.
Get more details on this report - Request Free Sample PDF
The commercial application segment in the cross laminated timber market is likely to exceed USD 600 million by 2027. The commercial construction sector is witnessing strong growth in Europe, Asia, and North America. Improved building codes allow the use of CLT in multistory building construction. Thus, increasing infrastructure investment in the commercial sector will drive the segment expansion.
Get more details on this report - Request Free Sample PDF
North America cross laminated timber market is predicted to showcase a 14.5% growth rate through 2027. The popularity of cross laminated timbers in North America is increasing rapidly. A rising number of tall wooden structures are being established in North America, thus driving regional production and demand. As of 2018, there were only five certified product manufacturers present in the region. Growing mass timber demand in construction will propel the regional growth.
There are more than 66 product manufacturers around the world. Most of the manufacturers are located in western Europe and North America. Currently, the global market potential is much higher than the current global production capacity. Thus, manufacturers are motivated to increase their production capacity. Stora Enso, a major product manufacturer, invested more than 94 USD million in a new production line in the Czech Republic.
Market, By Raw Material
Market, By Press Type
Market, By Application
The above information is provided on a regional and country basis for the following: