Oriented Strand Board (OSB) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Oriented Strand Board (OSB) Market is segmented by Grade (OSB/1, OSB/2, OSB/3, and OSB/4), End-user Application (Furniture, Construction, and Packaging), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Oriented Strand Board (OSB) Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >4 %
Oriented Strand Board (OSB) Market Top Companies

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Market Overview

The oriented strand board (OSB) market size was estimated at over 31.2 million cubic meters in 2020, and the market is projected to register a CAGR of more than 4% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Owing to the pandemic scenario, the construction works were put on hold during the government-imposed lockdown, which led to a decrease in the consumption of oriented strand boards (OSB). However, construction related to the healthcare sector has been increased significantly due to the pandemic situation, and considering the post-COVID scenario, the overall construction industry is picking up the pace, which, in turn, stimulates the demand in the OSB market in the coming years.

  • Over the short term, desirable properties of OSB and the growing prominence of OSB as a substitute to plywood are expected to drive the growth of the market studied.
  • On the flipside, emissions of volatile organic compounds (VOCs), such as formaldehyde, are expected to hinder the growth of the market studied.
  • The construction segment dominated the market with a share of more than 40%, and it is expected to grow at the fastest rate during the forecast period, owing to the increasing applications, such as floor and roof, walls, etc.
  • Increasing application of OSB in structural insulated panels is likely to act as an opportunity in the future.
  • North America dominated the market across the world, with the largest consumption from the United States.

Scope of the Report

Oriented strand board (OSB) is a strong, stiff structural wood-based panel product, which poses a cross-oriented pattern similar to plywood. OSB is characterized by its constituent strand elements, which vary in size and aspect ratio. The oriented strand board (OSB) market is segmented by grade, end-user application, and geography. By grade, the market is segmented into OSB/1, OSB/2, OSB/3, and OSB/4. By end-user application, the market is segmented into furniture, construction, and packaging. The report also covers the market size and forecasts for the oriented strand board (OSB) market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (meter cube).

By Grade
OSB/1
OSB/2
OSB/3
OSB/4
End-user Application
Furniture
Residential
Commercial
Construction
Floor and Roof
Wall
Door
Column and Beam
Staircase
Other Constructions
Packaging
Food and Beverage
Industrial
Pharmaceutical
Cosmetics
Other Packaging
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Rest of Middle-East and Africa

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Key Market Trends

Soaring Demand from the Construction Segment

  • Wood-based panels are crucial in the construction industry, providing high structural durability to roofs and floors, walls, beams, doors, staircases, etc. In OSB panels, they produce a stronger and stiffer panel than other products used in similar types of construction projects. The material eliminates rings and knots, which makes it more uniform. Its structure provides OSB a great deal of strength, allowing it to be used in a broad range of applications, particularly for load-bearing applications.
  • The building and construction industry is currently a thriving industry in several emerging economies of the Asia-Pacific and the South American regions, which is expected to drive the use of OSB, thus minimizing infrastructure failures.
  • Oriented strand boards are a cost-effective alternative for home construction. As per the National Association of Certified Home Inspectors (NACHI), OSB costs USD 700 less than plywood for a typical 2400-square foot home.
  • Tiles, plywood, and wooden boards are considered relatively more expensive than OSB when it comes to flooring. OSB floors are more suitable than hardwood, as they add a more natural and decorative effect to the home interior design. Furthermore, the total cost of flooring the entire area with hardwood is quite high.
  • The Chinese construction industry was valued at about USD 1,097 billion in the year 2019, with a growth rate of about 14.5% compared to the previous year, which, in turn, stimulates the oriented strand board (OSB) market.
  • In 2019, the total value of new construction put in place was about USD 1365 billion in the United States. Next-generation Nycha Permanent Affordability Commitment Together (PACT) sites in Manhattan (USD 7,500 million), Vallco Town center in Sacramento, California (USD 3,500 million), and The 78 in Chicago, Illinois (USD 6,500 million) are some of the major residential construction projects in the country.
  • Overall, the growing construction sector is expected to drive the OSB market through the forecast period.
Oriented Strand Board (OSB) Market Share

United States to Dominate the Global Market

  • With expenditures reaching around USD 1.4 trillion, the United States is one of the largest construction markets worldwide. Construction in the commercial and housing markets seemed to be strong again in most parts of the country.
  • While apartment construction remained elevated in the recent past, total spending is no longer climbing quickly. Single-family home construction slumped due to higher mortgage rates.
  • In 2019, the annual value of total new residential construction put in place in the country was about USD 550 billion. Commercial construction, by contrast, was red hot in several segments, including hotels, warehouses, and data centers.
  • According to the Engineered Wood Association (APA), new home construction is the primary end-user for the OSB industry in North America (especially the United States), accounting for more than 50% of the OSB consumption. Hence, the OSB demand from the furniture and construction sector may be impacted by the aforementioned factors.
  • Such factors, in turn, are boosting the demand in the OSB market in the country.
Oriented Strand Board (OSB) Market Growth Rate By Region

Competitive Landscape

The oriented strand board (OSB) market is consolidated in nature, with the top five players accounting for a significant portion in the global market. Some of the major players in the market include West Fraser, Louisiana-Pacific Corporation, Kronoplus Limited, Georgia-Pacific, and Weyerhaeuser Company, among others.

Recent Developments

  • In February 2021, West Fraser announced the acquisition of all of the issued and outstanding common shares of Norbord, which led to strengthening the company's product portfolio.
  • In March 2020, Huber Engineered Woods LLC announced the acquisition of assets from Extreme Green Building Products LLC based in Charlotte of North Carolina, which may further help in enhancing the company's business and increasing its product portfolio.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Report

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Desirable Properties of OSB

      2. 4.1.2 Growing Prominence of OSB, as a Substitute to Plywood

    2. 4.2 Restraints

      1. 4.2.1 Unfavorable Conditions Arising Due to the Impact of COVID-19

    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 (Market Size by Volume)

    1. 5.1 By Grade

      1. 5.1.1 OSB/1

      2. 5.1.2 OSB/2

      3. 5.1.3 OSB/3

      4. 5.1.4 OSB/4

    2. 5.2 End-user Application

      1. 5.2.1 Furniture

        1. 5.2.1.1 Residential

        2. 5.2.1.2 Commercial

      2. 5.2.2 Construction

        1. 5.2.2.1 Floor and Roof

        2. 5.2.2.2 Wall

        3. 5.2.2.3 Door

        4. 5.2.2.4 Column and Beam

        5. 5.2.2.5 Staircase

        6. 5.2.2.6 Other Constructions

      3. 5.2.3 Packaging

        1. 5.2.3.1 Food and Beverage

        2. 5.2.3.2 Industrial

        3. 5.2.3.3 Pharmaceutical

        4. 5.2.3.4 Cosmetics

        5. 5.2.3.5 Other Packaging

    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

        4. 5.3.2.4 Rest of North America

      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 United Arab Emirates

        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 (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Coillte

      2. 6.4.2 EGGER Group

      3. 6.4.3 Georgia-Pacific

      4. 6.4.4 Huber Engineered Woods LLC

      5. 6.4.5 Kronospan Limited

      6. 6.4.6 KronoSwiss

      7. 6.4.7 Louisiana-Pacific Corporation

      8. 6.4.8 Produits Forestiers Arbec Inc.

      9. 6.4.9 RoyOMartin

      10. 6.4.10 Sonae Industria

      11. 6.4.11 Timber Ireland

      12. 6.4.12 Tolko Industries Ltd

      13. 6.4.13 West Fraser

      14. 6.4.14 Weyerhaeuser Company

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

    1. 7.1 Increasing Application of OSB in Structural Insulated Panels (SIPS)

    2. 7.2 Recovering European Construction Industry

**Subject to Availability

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Frequently Asked Questions

The Oriented Strand Board (OSB) Market market is studied from 2016 - 2026.

The Oriented Strand Board (OSB) Market is growing at a CAGR of >4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

West Fraser, Louisiana-Pacific Corporation, Kronoplus Limited, Georgia-Pacific, Weyerhaeuser Company are the major companies operating in Oriented Strand Board (OSB) Market.

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