Market Trends of Cross Laminated Timber Industry
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.
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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.
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