Engineered Wood Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Engineered Wood Market is segmented by Type (Plywood, Oriented Strand Board (OSB), Glulam, Cross-laminated Timber (CLT), Laminated Veneer Lumber (LVL), Particleboard, and Other Types), Application (Non-residential and Residential), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for engineered wood in volume (thousand cubic meters) for all the above segments.

Market Snapshot

 Engineered Wood Market Overview
Study Period: 2016 - 2026
Base Year: 2021
Fastest Growing Market: North America
Largest Market: Asia-Pacific
CAGR: 5 %

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Market Overview

The engineered wood market was valued at 229,120 thousand cubic meters in 2020 and is expected to register a CAGR of 5% during the forecast period.

Since governments worldwide implemented lockdowns and halted domestic and foreign shipping systems to control the COVID-19 pandemic, it had a major effect on the forestry sector’s supply chain, particularly the wood processing and production industries. Since the demand for engineered wood is associated with the construction sector, which, in turn, is directly linked to GDP growth, this has been instrumental in creating challenges for the global engineered wood market. For instance, Europe, like the rest of the world, is facing an extended economic crisis. Also, according to IMF predictions, the European Union contracted by 6.1% in 2020. The EU economy was expected to recover and register a growth of more than 4.4% in 2021, returning to its 2019 level only in 2022. This has severely impacted the demand, supply, and value chains. This situation was expected to persist throughout the year, negatively affecting the region's engineered wood demand. There is still huge uncertainty for the near future, which can negatively affect the engineered wood market over the forecast period.

· Over the medium term, growing demand from the non-residential sector and increasing use of cross-laminated timber (CLT) as a construction material are likely to drive the market. The usage and manufacturing of engineered wood require less energy than conventional building materials like concrete and steel. As engineered woods are man-made, they are designed to meet requirements while reducing wastage, time, and overall costs.

· On the flipside, stringent environmental concerns related to formaldehyde emissions are likely to hinder the market growth.

· The Asia-Pacific region is likely to dominate the global market and is expected to witness the highest consumption of engineered wood during the forecast period.

Scope of the Report

Engineered wood is a man-made wood product manufactured by binding strands, fibers, and wood chips with adhesives to make composite wood structures. The growing use of wood composites in commercial and industrial applications is driving the market. It is made up of several layers of wood called ply reformed with heat, glue, and pressure. Each layer runs in various directions, making it highly durable and with better properties than hardwood. The market is segmented based on type, application, and geography. By type, the market is segmented into plywood, oriented strand board (OSB), glulam, cross-laminated timber (CLT), laminated veneer lumber (LVL), particleboard, and other types. By application, the market is segmented into non-residential and residential. The report also covers the market size and forecasts for the engineered wood market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (thousand cubic meters).

Application
Non-residential
Residential
Type
Plywood
Oriented Strand Board (OSB)
Glulam
Cross-laminated Timber (CLT)
Laminated Veneer Lumber (LVL)
Particleboard
Other Types
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Growing Demand from the Residential Sector

· Engineered wood is used for a wide range of applications, including furniture, walls, flooring, doors, roofs, cabinets, columns, beams, and staircases, among others.

· 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 to that, there are now 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, examples being the German, Italian, and Nordic furniture companies, which act as a benchmark in the field of high-class design.

· In the US, several residential construction projects are in the pipeline, creating opportunities for increased furniture consumption.

· The population in Canada is rapidly increasing due to the presence of migrants and students from across the world, and the residential construction industry is quickly growing. In 2019, the total residential construction in August was valued at USD 6,293,456, an increase over the USD 3,967,198 recorded in April 2019, which depicts the huge increase in investments. Moreover, this factor is expected to drive the market studied.

· The Indian government announced an investment worth USD 31,650 billion for the construction of 100 cities under its Smart Cities plan. One hundred smart cities and 500 cities are likely to invite investments worth INR 2 trillion (~USD 28.18 billion) over the coming five years.

· The growing applications of engineered wood in residential applications and renovation and repairs are estimated to drive the market during the forecast period.

· However, the COVID-19 pandemic has slowed down residential construction activities due to lockdowns and disruptions in the supply chain. The ongoing pandemic has negatively affected the market studied, which is estimated to recover and grow during the later part of the forecast period.

Engineered Wood Market - Segmentation

The Asia-Pacific Region to Dominate the Market

· The Asia-Pacific region is expected to dominate the engineered wood market during the forecast period due to an increase in demand for construction activities in the region.

· According to the IMF, in 2020, China’s GDP recorded a growth rate of 2.3%, indicating signs of a V-shaped recovery. According to the IMF’s forecast, the country was expected to record a GDP growth of 8.4% in 2021.

· The construction industry grew at a strong pace in 2019, but the growth was slow compared to 2018. The construction sector has supported economic growth in the country whenever major slowdowns have occurred. The country has the largest construction market in the world, encompassing 20% of all construction investments globally. China is expected to spend nearly USD 13 trillion on buildings by 2030. According to China’s National Bureau of Statistics, the construction output value in the country increased from CNY 9.6 trillion in 2010 to CNY 24.84 trillion in 2019.

· China witnesses a very strong demand for furniture due to its large population. The huge population base and the rising disposable incomes of consumers are bolstering the development of the Chinese furniture industry. Customers are willing to spend more on floor coverings and furniture. Urbanization, increasing real estate development, strong growth in GDP, and economic stability in the country are other major factors aiding the growth of the furniture sector. This is expected to further drive the demand for engineered wood in China.

· The Indian government initiated a project called “Housing for All by 2022,” which is expected to drive the country's low-cost residential construction segment throughout the forecast period. Furthermore, under the Pradhanmantri Awas Yojana scheme, the Indian government has decided to provide interest subventions of 3% and 4% for loans of up to INR 12 lakhs and INR 9 lakhs, respectively, for the lower strata of the society for buying and building homes.

· The office sector is one of the crucial markets for engineered wood. In India, the demand for office spaces is gradually rising. Growth and improvement in the business environment have benefitted several sectors in the country, with the commercial office segment being the prime benefactor. The growth of commercial real estate has been driven largely by the service sectors, especially the IT sector.

· Japan's housing sector is expected to witness a moderate growth rate due to increased investments over the past few years. The rise in household spending has increased the demand for the remodeling of houses. To make Tokyo more competitive with other global cities, many regions within the city are being redeveloped, including Shibuya, Toranomon, and Shinagawa.

· Japan imports over 25% of its manufactured furniture and homeware products. There is potential for the Japanese furniture market to grow, especially for competitively-priced items designed for small spaces, such as drawers, cabinets, and cupboards. Manufacturers offering a range of styles are likely to find an ideal market base by focusing on the tasteful use of color and offering simple designs at reasonable prices.

· These factors are expected to drive demand for the market studied in the region over the coming years.

Engineered Wood Market - Regional Trends

Competitive Landscape

The global engineered wood market is partially consolidated, with most players accounting for a marginal market share. A few companies include Weyerhaeuser Company, Boise Cascade, Georgia-Pacific, Roseburg Forest Products, and Louisiana-Pacific Corporation.

Recent Developments

· In February 2021, Norbord Inc. was acquired by West Fraser, which is a diversified wood products company producing lumber, LVL (laminated veneer lumber), MDF (medium-density fiberboard), plywood, pulp, newsprint, wood chips, other residuals, and energy with facilities in western Canada and the southern US.

· In January 2021, Boise Cascade inaugurated its second-door shop in Texas, US, which can serve approximately 900 customers. This new shop is in line with the company's strategy to expand with the help of its supplier partners.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Demand from the Non-residential Sector

      2. 4.1.2 Increasing Use of Cross-laminated Timber (CLT) as Construction Materials

    2. 4.2 Restraints

      1. 4.2.1 Stringent Environmental Concerns Related to Formaldehyde Emissions

      2. 4.2.2 Unfavorable Conditions Arising Due to the COVID-19 Outbreak

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Non-residential

      2. 5.1.2 Residential

    2. 5.2 Type

      1. 5.2.1 Plywood

      2. 5.2.2 Oriented Strand Board (OSB)

      3. 5.2.3 Glulam

      4. 5.2.4 Cross-laminated Timber (CLT)

      5. 5.2.5 Laminated Veneer Lumber (LVL)

      6. 5.2.6 Particleboard

      7. 5.2.7 Other Types

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Binderholz GmbH

      2. 6.4.2 Boise Cascade

      3. 6.4.3 Georgia-Pacific (Georgia-Pacific Wood Products LLC)

      4. 6.4.4 HASSLACHER Holding GmbH

      5. 6.4.5 Havwoods India Pvt. Ltd

      6. 6.4.6 Huber Engineered Woods LLC

      7. 6.4.7 KLH Massivholz Wiesenau GmbH

      8. 6.4.8 Kronoplus Limited

      9. 6.4.9 Louisiana-Pacific Corporation

      10. 6.4.10 Mayr-Melnhof Holz Holding AG

      11. 6.4.11 Nordic Structures

      12. 6.4.12 Pacific Woodtech Corporation

      13. 6.4.13 Resolute Forest Products

      14. 6.4.14 Roseburg

      15. 6.4.15 Stora Enso

      16. 6.4.16 West Fraser

      17. 6.4.17 Weyerhaeuser Company

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Growing Residential Construction in India and China

**Subject to Availability

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Frequently Asked Questions

The Engineered Wood Market market is studied from 2016 - 2026.

The Engineered Wood Market is growing at a CAGR of 5% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Weyerhaeuser Company , Boise Cascade, Georgia-Pacific, Louisiana-Pacific Corporation, Roseburg Forest Products are the major companies operating in Engineered Wood Market.

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