Wood Based Panel Market size is anticipated to witness significant growth during 2020 to 2026. Rapid expansion of the construction industry in recent years has positively influenced global market trends, owing to economic improvement in both developed and emerging economies. The need for improved residential and commercial infrastructure has fostered the demand for robust construction materials and furniture. An increase in the number of public-private partnerships for the construction of buildings especially in countries like India, China, and the Middle East region is a major factor amplifying growth trends in the construction sector.
With respect to the types of products, the wood based panel market has been bifurcated into sheets less than 6 mm thick, plywood, veneers, veneered panels, oriented strand board, insulation board, fiberboard and hardboards.
Veneers account for a substantial stake in the wood based panel industry due to the variety of benefits the material offers with its use. Some of them include versatility in terms of color and design, superior quality, wide availability, sustainability and a regal design. The veneer panels are have witnessed demand across furniture, ceilings, floorings, and walls. These sheets are used in combination with maple, ebony, and teak wood to make lavish interior and exclusive furniture pieces.
A rise in global population has driven public infrastructure development and an increase in the number of residential buildings. However, due to the construction industry being responsible for a considerable amount of carbon emissions worldwide, people are turning towards the adoption of sustainable construction solutions. The building and construction sector accounts for more than 35% of carbon dioxide emissions in the U.S.
Some of the advantages of using wood-based panels include superior insulation and energy-saving properties, aesthetically acrobatic features, environment friendliness, water-resistance, durability, and the fact that they are naturally sourced. Wood based panel market comprises prominent industry players like Caihong Wood Co. Ltd., Lin Shi Tong Wood Co. Ltd., SKLEJKA PISZ PAGED S.A., , Shanghai Wood-Based Panel Machinery Co. and Mebelny Kombinat Rassvet, among various others.
The companies have invested in R&D towards new, enhanced products in order to expand their customer base as well as to achieve competitive advantage. Many entities have entered into alliances, acquisitions, and mergers with an aim to expand their global reach and expand their product portfolio.
A growth in the purchasing power among people due to the rise in employment rate along with rapid urbanization has magnified the demand for durable and visually appealing furniture pieces. Wood based panels find extensive application in the vast furniture industry. According to reports, in the year 2018, the furniture companies in the U.K. contributed nearly £12.2 billion towards the nation’s GDP, generating over 339,000 jobs.
Growing preference for traditional furniture in bedrooms and living rooms has furthermore steered the wood based panel market demand over the years. Wood based panels are used to manufacture small accent pieces and Ready-to-Assemble furniture products. Developed regions such as Europe have showcased tremendous demand for wood based panels due to the high rate of affordability among people and the consequent demand for building construction.
Reportedly, the construction industry in Europe is responsible for nearly 9% of the region’s GDP. The continuous expansion of local companies and industrial units belonging to various sectors of the economy over the past few years has propelled the need for establishing factories and commercial complexes, driving the use of wood based panels in construction activities.
The global construction and furniture sectors have both been widely affected by the recent COVID-19 pandemic. The novel virus outbreak has imposed travel and work restrictions on people to control its spread, affecting the completion of construction projects world over. Supply chain bottlenecks due to the sudden restriction on the supply of raw materials like steel and glass have also impacted the industry. Moreover, the reduction in the amount of labor and financial losses due to the delay in funded projects has affected the construction sector, slightly hindering the growth of wood based panel industry size.