Market Trends of Engineered Wood Industry
The Residential Segment to Dominate the Market
- Engineered wood is used for a wide range of applications, including furniture, walls, flooring, doors, roofs, cabinets, columns, beams, and staircases.
- The application of cross-laminated wood has been increasing rapidly. For low-rise construction, the increased loadbearing capacity of CLT wall panels adds further benefits over conventional stud-framed walls.
- Cross-laminated timber is now an established system in the mid-rise residential sector in Europe and North America. In addition, there are increasing examples of cross-laminated timber being used to construct skyscrapers for buildings over 150 meters tall.
- The growing application of OSB in various residential applications, such as walls, flooring, and roofs, is estimated to drive the market.
- All types of engineered woods are significantly used in various applications in the residential sector. With 73% of its population living in urban areas, Europe is expected to be over 80% urban by 2050.
- European furniture companies are very successful and innovative. The German, Italian, and Nordic furniture companies act as benchmarks in the field of high-class design.
- According to the data released by the United States Census Bureau, the total annual value of private construction in the country increased by 4.7% in 2023 compared to the previous year.
- The total value of construction in 2023 was USD 1,978.7 billion, which was 7% above the total value of construction in 2022.
- In December 2023, a total of USD 2,096 billion was spent compared to USD 1,840.9 billion in 2022, registering a 13.9% rise in construction spending.
- Thus, based on the aforementioned aspects, the residential segment is expected to drive the market during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific has several major countries, such as China, India, ASEAN, and Japan.
- China has been majorly driven by ample developments in the residential and commercial construction sectors and is supported by a growing economy. In China, the housing authorities of Hong Kong launched several measures to push start the construction of low-cost housing. The officials aim to provide 301,000 public housing units by 2030.
- China is also likely to witness the construction of 7,000 more shopping centers, which are estimated to start functioning by 2025.
- In India, the availability of affordable housing is expected to rise by around 70% by 2024. By 2025, India's construction industry is expected to reach USD 1.4 trillion, as per Invest India.
- Also, by 2030, more than 30% of the population is expected to live in urban India, creating a demand for 25 million additional mid-end and affordable units, thus bolstering the demand for engineered wood products during the forecast period.
- In Asia-Pacific, Japan and China have a considerable share of the OSB market. Norbond has been marketing its OSB panels in Japan for over 20 years, and it has established a track record of high performance in a variety of end-user construction.
- Hence, Asia-Pacific is expected to dominate the global market.
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