Cross Laminated Timber Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.40 Billion |
| Market Size (2029) | USD 2.9 Billion |
| CAGR (2024 - 2029) | > 10.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Cross Laminated Timber Market Analysis
The Cross Laminated Timber Market size is estimated at USD 1.40 billion in 2024, and is expected to reach USD 2.9 billion by 2029, growing at a CAGR of greater than 10% during the forecast period (2024-2029).
The COVID-19 pandemic negatively impacted the market in 2020 since construction work and other activities were put on hold to curb the spreading of the virus. However, the market is projected to grow steadily, owing to increased construction activities in 2021.
- Over the short term, the increasing demand in the residential segment and adaptability in flexible designs and stylish architecture are major factors driving the growth of the market.
- However, the moisture-absorbing capacity of wood and the absence of awareness among consumers are the key factors anticipated to restrain the growth of the target industry during the forecast period.
- However, the shift toward a carbon-negative future based on cross laminated timber will soon create growth opportunities in the global market.
- Europe dominates the cross laminated timber market globally, with the largest consumption from the United Kingdom and Germany.
Cross Laminated Timber Market Trends
Increasing Demand in the Residential Segment
- Cross laminated timber is a structured wood panel made from gluing layers of solid-sawn lumber, usually oriented perpendicular to adjacent layers in a symmetric way, which is used as load-bearing parts for building frames, such as walls, floors, and roofs. Cross laminated timber is also used in façade cladding and interior lining.
- It has been noted that the building and construction sector has shown tremendous growth in the past few years.
- The residential segment dominated the use of cross laminated timber in construction. Japan leads in the global usage of cross laminated timber, followed by Germany, the United Kingdom, Italy, and Canada.
- Over the past few years, Japan has shifted from concrete construction materials to sustainable alternatives like cross-laminated timber. This can be attributed to the rising environmental concerns coupled with the advantageous properties of cross laminated timber, which include lightweight, strength, durability, stability, design variety, enhanced insulation, and fire resistance.
- According to Excellent Japanese Wood, about 80% of single-family homes are built from wood, excluding condominiums or other housing complexes. For instance, in 2023, about 454.4 thousand construction starts were made for wooden structures in the country. This represented that about 55.4% of the total dwelling construction starts were with wooden structures, according to e-Stat (Japan), the Official Statistics of Japan.
- The globally rising housing demand is also expected to play a major role in the growth of the cross laminated timber market during the forecast period. For instance, according to Axios, in 2023, the United States was short of around 3.2 million homes. Also, in India, the housing demand is estimated to grow to a requirement of 93 million houses by 2036, according to the Collaborative Real Estate Development Association of India (CREDAI).
- Considering the above-mentioned facts and figures, the increasing demand for cross laminated timber in the residential construction segment will likely have the most significant impact during the forecast period.
Europe is Expected to Dominate the Market
- Europe dominates the global market share. With the growing construction sector in countries such as the United Kingdom, Germany, Italy, and France, the utilization of cross-laminated timber is increasing.
- Since cross laminated timber reduces the construction cost, time, and risk during earthquakes, the demand for cross laminated timber has been increasing rapidly.
- The largest producers of cross laminated timber are located in Europe. Some leading companies in cross laminated timber production are Binderholz GmbH, Pfeifer Group, Stora Enso, Mayr-Melnhof Holz, and HASSLACHER Holding GmbH.
- More than 50,000 affordable homes will be built in Greater Manchester by 2038 under new plans to tackle the region's housing crisis, creating a major scope in the cross laminated timber market.
- According to Statistisches Bundesamt, from January to March 2023, 68,700 building permits for dwellings were issued. In 2022, about 354.16 thousand of such permits were issued.
- In May 2023, around 29,000 residential units started in France, slightly lower than in 2022, according to the National Institute of Statistics and Economic Studies (INSEE).
- According to Groupe BPCE, in 2022, over 180,000 residential buildings were under construction in France destined for sale on the real estate market. During the same year, roughly 28,000 residential units were constructed to offer subsidized rental housing for middle-income individuals or families.
- Considering the above-mentioned facts and figures, Europe will likely dominate the market during the forecast period.
Cross Laminated Timber Industry Overview
The cross laminated timber market is fragmented in nature. The major players include Binderholz GmbH, PFEIFER GROUP, Stora Enso, Mayr-Melnhof Holz Holding AG, and HASSLACHER Holding GmbH (not in any particular order).
Cross Laminated Timber Market Leaders
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Binderholz GmbH
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Stora Enso
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PFEIFER GROUP
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Mayr-Melnhof Holz Holding AG
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HASSLACHER Holding GmbH
*Disclaimer: Major Players sorted in no particular order
Cross Laminated Timber Market News
- March 2024: HASSLACHER Holding GmbH acquired a stake in Element5 to invest in the development and expansion of mass timber production capacity and to enter the North American market.
- June 2023: Mayr-Melnhof Holz Holding AG opened the world's first PEFC-certified cross laminated timber plant at the sawmill site in Leoben with an investment of EUR 175 million (USD 190 million).
- October 2022: Stora Enso inaugurated its new production site in Czechia, Europe, which produces cross-laminated timber (CLT) with an estimated annual production capacity of 120,000 m³. The company has strengthened its presence in the competitive market through expansion.
Cross Laminated Timber Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Demand in the Residential Segment
4.1.2 Adaptability In Flexible Designs And Stylish Architecture
4.2 Restraints
4.2.1 Moisture Absorbing Capacity of Wood
4.2.2 Dearth of Awareness Among Consumers
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
5.1 Type
5.1.1 Adhesive Bonded
5.1.2 Mechanically Fastened
5.2 Application
5.2.1 Residential
5.2.2 Non-residential
5.2.2.1 Commercial
5.2.2.2 Industrial/Institutional
5.2.2.3 Other Applications
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 India
5.3.1.3 Japan
5.3.1.4 South Korea
5.3.1.5 Thailand
5.3.1.6 Vietnam
5.3.1.7 Malaysia
5.3.1.8 Indonesia
5.3.1.9 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Spain
5.3.3.6 Russia
5.3.3.7 NORDIC
5.3.3.8 Turkey
5.3.3.9 Rest of Europe
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Colombia
5.3.4.4 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 United Arab Emirates
5.3.5.4 Qatar
5.3.5.5 Nigeria
5.3.5.6 Egypt
5.3.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share/Ranking Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Binderholz GmbH
6.4.2 Eugen Decker Holzindustrie KG
6.4.3 HASSLACHER Holding GmbH
6.4.4 KLH Massivholz GmbH
6.4.5 Mayr-Melnhof Holz Holding AG
6.4.6 PFEIFER GROUP
6.4.7 SCHILLIGER HOLZ AG
6.4.8 Stora Enso
6.4.9 Structurlam
6.4.10 Xlam
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Development of Advanced Adhesives and Resins
7.2 Other Opportunities
Cross Laminated Timber Industry Segmentation
Cross laminated timber consists of sawn, glued, and layered wood planks, where each layer is oriented perpendicular to the previous. By joining layers of wood at perpendicular angles, structural rigidity for the panel is obtained in both directions, similar to plywood but with thicker components.
The cross laminated timber market is segmented by type, application, and geography. By type, the market is segmented into adhesive bonded and mechanically fastened. By application, the market is segmented into residential and non-residential. The report also covers the market sizes and forecasts for the cross laminated timber market in 27 countries across major regions. For each segment, the market sizing and forecasts are done based on value (USD).
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Cross Laminated Timber Market Research FAQs
How big is the Cross Laminated Timber Market?
The Cross Laminated Timber Market size is expected to reach USD 1.40 billion in 2024 and grow at a CAGR of greater than 10% to reach USD 2.9 billion by 2029.
What is the current Cross Laminated Timber Market size?
In 2024, the Cross Laminated Timber Market size is expected to reach USD 1.40 billion.
Who are the key players in Cross Laminated Timber Market?
Binderholz GmbH, Stora Enso, PFEIFER GROUP, Mayr-Melnhof Holz Holding AG and HASSLACHER Holding GmbH are the major companies operating in the Cross Laminated Timber Market.
Which is the fastest growing region in Cross Laminated Timber Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cross Laminated Timber Market?
In 2024, the Europe accounts for the largest market share in Cross Laminated Timber Market.
What years does this Cross Laminated Timber Market cover, and what was the market size in 2023?
In 2023, the Cross Laminated Timber Market size was estimated at USD 1.26 billion. The report covers the Cross Laminated Timber Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cross Laminated Timber Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cross Laminated Timber Industry Report
Statistics for the 2024 Cross Laminated Timber market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cross Laminated Timber analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Cross Laminated Timber Market Report Snapshots
