Cross Laminated Timber (CLT) Market size is set to surpass USD 2.25 billion by 2027, according to a new research report by Global Market Insights Inc.
Growing adoption of mass timber in construction will drive the market growth
The demand for mass timber is rising rapidly across the world as a primary building material. Cross laminated timber originated in Europe; however, the product has gained attention in other regions including North America and Asia Pacific. Although a major share of the global market demand is led by western European countries, the product is witnessing a rising penetration in the non-traditional markets including China, Japan, and India. Japan has become a major producer outside Europe and North America.
The primary market of CLT is residential construction driven by the Europe region. However, the product has started to penetrate the North American and Asian markets. This can be attributed to technological advancements in tall wooden buildings, creating new market opportunities for product manufacturers. Cross laminated timber panels are now recognized as a robust alternative to heavy construction materials. The product exhibits seismic resistance and environmental sustainability, making it a good choice compared to other materials. CLT construction has proven to be more sustainable from the extraction of raw materials to the production process and up to usage, disposable & recycling.
The timber-based construction market has rapidly grown over the past decades due to urbanization and rising population, increasing the demand for modular homes. The use of mass timber in residential construction is growing in countries that are not prone to the use of wood. The inherent good properties of CLT are pushing its demand. Furthermore, aspects related to life cycle assessment and environment have helped in the growth of the non-European markets.
The regulatory environment plays a very important role in the overall cross laminated timber market expansion. Eurocodes are followed in the European region for the usage of CLT in structural applications. Similarly, the International Building Code is followed in North America and Building Standard Law in Japan.
The Covid-19 pandemic has affected the operations and dynamics of the wood and CLT industry. Many major CLT producing nations imposed lockdowns, social distancing guidelines, and travel restrictions to curb the spread of the coronavirus. Additionally, the timber industry is labor-intensive and requires significant cash to operate. The unavailability of labor and credit has affected business operations and profitability. The construction sector has also come to a standstill during lockdowns, severely impacting the product demand.
Browse key industry insights spread across 205 pages with 225 market data tables & 19 figures & charts from the report, “Cross Laminated Timber Market Size, By Raw Materials (Spruce, Fir, Pine, Larch), By Press Type (Hydraulic, Vacuum, Pneumatic, Nails), By Application (Residential, Commercial, Industrial), Industry Analysis Report, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Excellent properties will impel the growth for pine CLT
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Pinewood segment in the cross laminated timber market will register more than 14.5% growth rate till 2027. Pine is an abundant forest resource used in commercial CLT manufacturing. North American product manufacturers are particularly looking forward to using pine as a major raw material. In addition, its low cost will support its penetration in the end consumer market.
Increasing demand for CLT in emerging economies will drive segment value
The cross laminated timber market for vacuum-pressed segment will reach over 510 USD million by 2027. The product is observed rising popularity in emerging markets across the world. Vacuum presses can be used to manufacture CLT panels of varied sizes. The growing product demand globally will augment the segment growth.
Rising requirement for low-cost residential multi-family residents will fuel the product demand
The residential segment dominated more than 60% of the cross laminated timber market share in 2020. CLT panels are historically used in single and multi-family residences in North America and Europe. The demand for affordable housing in North America is rising significantly after the stock market crash of 2008. Thus, the demand for low-cost wood panel houses increased rapidly in the region. Increasing population and urbanization will boost the product demand in residential construction.
Growing residential dwellings demand will influence the European industry growth
Europe cross laminated timber market accounted for 65% of revenue share in 2020 and is predicted to reach over USD 1.49 billion by 2027 owing to emerging economies in Eastern Europe and rising multi-family residential apartments in developed western European countries. Improving regulatory environments and the use of sustainable building & construction will spur the market progression in the region.
Additional production lines will increase the production capacity of product manufacturers
In December 2019, Structurlam Mass Timber Corporation expanded in the U.S. with the introduction of a new plant in Conway, Ark. The U.S. market has tremendous market potential, which even surpasses the global production capacity and thus many manufacturers are trying to enter the U.S. market. Manufacturers will gain a significant competitive advantage by building production facilities in huge markets such as the U.S.