Market Trends of Oriented Strand Board (OSB) Industry
The Construction Segment to Dominate the Market
- Oriented strand boards are widely used in the construction sector for applications such as flooring, walls, roof sheathing, and subflooring. Their versatility makes them suitable for various residential, commercial, and industrial construction projects.
- Oriented strand boards offer excellent structural strength and dimensional stability, making them suitable for load-bearing applications. OSBs can withstand the rigors of construction and provide long-lasting performance in various environmental conditions.
- According to data from the European Commission, construction production grew by 1.9% in December 2023 compared to December 2022 across the euro area and 2.4% across the European Union. The year-on-year average increase in construction production in 2023 compared to 2022 was 0.2% for the euro area and 0.1% for the European Union.
- According to Eurostat, the annual average production of buildings in the euro area and the European Union increased by 0.2% and 0.1%, respectively, in 2023 compared to 2022.
- According to the National Bureau of Statistics (NBS), in China, the construction industry’s business activity index (BASI) rose to 56.9 as of December 2023 from 55.9 in November 2023. A BASI score above 50 indicates growth in the industry, and the October 2023 BASI score was 53.5.
- India’s construction industry is projected to grow to USD 1.4 trillion by 2025. By 2030, an estimated 600 million people will live in urban centers, resulting in a need for 25 million additional mid- and ultra-luxury units. Under the National Investment Plan (NIP), India has an infrastructure investment budget of USD 1.4 trillion, with 24% of the budget earmarked for renewable energy, roads and highways, and urban infrastructure and 12% for railways.
- According to the latest estimate released by the Ministry of Land, Infrastructure, Transport and Tourism in January 2024, in 2023, construction works for around 366.8 thousand detached houses and 379.71 apartments were launched in Japan.
- Thus, in the upcoming years, the oriented strand boards market is expected to be driven by the growing construction market in all regions.
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North America to Dominate the Market
- North America has a robust construction industry, with a high demand for building materials like oriented strand boards in residential, commercial, and industrial construction projects. The region's large population and urbanization trends drive continuous construction activity, contributing to the dominance of the oriented board market.
- North American construction practices often favor wood-based building materials due to their availability, cost-effectiveness, and ease of installation. OSB, being an engineered wood product, fits well with this preference, leading to its widespread use across various construction applications.
- The United States has a massive construction industry, which plays an important role in the establishment of businesses, industries, institutions, homes, infrastructure, energy, and public utilities. The country's annual construction expenditure from January to December 2022 was estimated at USD 1,677.2 billion. In addition, construction spending in the United States increased by 1.3% in February, compared to a seasonally adjusted annual rate of USD 1.677 trillion in January 2022.
- According to the estimate released by the US Census Bureau, the total value of building and construction activities in the United States increased by more than USD 131 billion in 2023.
- Furthermore, according to the estimate released by the US Census Bureau, the number of new privately owned residential houses in the United States was approximately 1.4 million units in January 2024.
- All the factors mentioned above are expected to boost the growth of the market studied in North America.
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