Wood-Based Panel Market size is anticipated to record an appreciable CAGR between 2022 and 2028. This is because the rising inclination of commercial establishments and homes towards a net zero goal has led builders and architects to pay more attention to the fittings, designs, and systems supporting energy efficiency. Furthermore, as compared to other building materials, wood has a higher R-Value. This makes it more efficient in comparison to an insulated building equipped with steel framing.
By product, the plywood segment is expected to account for a commendable share in the wood-based panel market through 2028. This rise can be attributed to the extensive applicability of utility plywoods for furniture, joinery, and limited exterior uses. While special end-use plywoods are commonly available, a noteworthy instance is the phenolic film, that provides enhanced resistance to water penetration and abrasion. These factors are set to drive segmental expansion through the forecast period.
Based on application, the furniture segment is projected to foresee substantial expansion by 2028 driven by the moderate cost of wood-based panel furniture. This is mainly due to the deployment of surface veneering technology and moderate density fiberboard or particleboard, which helps in meeting the requirements of numerous consumer classes.
In addition, furniture made from wood-based panel products is not easy to deform and, in comparison to real wood furniture, the moisture content is strictly controlled. This makes it resistant to air humidity and temperature, leading to product adoption across various regions.
Considering the regional perspective, the Asia Pacific wood-based panel market share is estimated to register lucrative growth over the analysis period. This upsurge can be credited to the escalating affinity for rental furniture and the surging presence of regional players on e-commerce platforms. These aspects have opened a range of opportunities for wood raw material suppliers for the expansion of their business. For instance, Greenpanel, India’s largest wood panel manufacturer, announced plans for the promotion of MDF in the wood segment.
Major players across the wood-based panel market comprise Shanghai Wood-Based Panel Machinery Co., Caihong Wood Co. Ltd., SKLEJKA PISZ PAGED S.A., Mebelny Kombinat Rassvet, Lin Shi Tong Wood Co. Ltd., and others. These companies are taking a keen interest in the adoption of strategic moves including collaborations, mergers, acquisitions, and the implementation of capacity expansion initiatives for establishing a strong foothold in the industry.
Citing an instance, in November 2021, Shandong-based wood based panel producer, Luli Group, procured a set of MT1650 stainless steel belts from Mingke. Following a week’s adjustment and installation, the belts & the line were put into complete load production in a smooth manner.
The SARS-CoV-2 pandemic has affected the global construction and furniture industries. The imposition of work and travel restrictions on people for controlling the spread of the virus has impacted the completion of construction projects across the world. Furthermore, the industry has also been hit by supply chain disruptions owing to the sudden limitations on the supply of raw materials such as glass and steel.
A decrease in the amount of labor and financial losses on account of the delay in funded projects has also affected the construction industry. This has slightly hampered wood based panel industry growth, which is expected to revive with increase in economic activity through the coming years.