In a world where sustainable practices are increasingly becoming a strategic priority, the market for cross-laminated timber stands as a promising opportunity for those involved in building and construction. This rapidly evolving sector has been underpinned by the rising demand from the residential segment and its adaptability in offering not just strength and durability but also flexible designs and stylish architecture.
However, challenges remain. The moisture-absorbing capacity of wood and a deficit of consumer awareness pose potential inhibitions to the industry's expansion. Yet, with the advent of advanced adhesives and resins, the potential for overcoming these barriers looks promising. As the dominant force in the cross-laminated timber market, Europe continues to hold the largest consumption, led by UK and Germany. This report will provide you with a comprehensive outlook on the current global state of the cross-laminated timber market and its trends, alongside an in-depth competitor analysis, enhancing your strategic decision-making process.
COVID-19 negatively impacted the market in 2020 since construction work and other activities were put on hold to curb the spreading of the virus. However, the market is projected to grow steadily, owing to increased construction activities in 2021.
- Over the short term, the increasing demand from the residential sector and adaptability in flexible designs and stylish architecture are major factors driving the growth of the market studied.
- However, the moisture-absorbing capacity of wood and the dearth of awareness among consumers are the key factors anticipated to restrain the growth of the target industry over the forecast period.
- Nevertheless, the development of advanced adhesives and resins is likely to create lucrative growth opportunities for the global market soon.
- Europe dominates the cross-laminated timber market across the globe with the largest consumption from the United Kingdom and Germany.
Cross Laminated Timber Market Trends
Increasing Demand from the Residential Sector
- Cross-laminated timber is a structured wood panel made from glueing layers of solid-sawn lumber, usually oriented perpendicular to adjacent layers in a symmetric way which are 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 sector dominated the use of cross-laminated timber in construction. Japan leads in the usage of cross-laminated timber globally, followed by Germany, the United Kingdom, Italy, and Canada.
- Over the past few years, Japan has been witnessing a shift 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 the Japanese Ministry of Land, Infrastructure, Transport, and Tourism (MLIT), In 2021, wooden structures were the leading structures utilized for housing construction in Japan, with 502300 construction dwelling units built with timber structures when compared to 469300 units in 2020.
- According to the US Census Bureau, the value of new private home construction reached USD 628.9 billion in 2020 and registered a growth rate of 23.4% when compared to USD 776.21 billion in 2021.
Europe 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 in the region.
- 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 the production of cross-laminated timber are Binderholz GmbH, Pfeifer Group, Stora Enso, Mayr-Melnhof Holz, and HASSLACHER Holding GmbH.
- According to the UK Housing Fit For Nature, about 1.5 million new houses made of timber are planned to be constructed by 2022.
- 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 for the cross-laminated timber market.
- According to Statistisches Bundesamt, the number of building permits for residential buildings in Germany reached 129,000 in 2021 and registered growth when compared to 125,000 in 2020.
- As per ISTAT, in Italy's residential buildings, the number of dwellings increased in the first quarter of 2022 when compared with the previous quarter at 4.0%.
- According to Groupe BPCE, in 2022, there were over 180,000 residential buildings under construction in France destined for sale on the real estate market. During the same year, roughly 28,000 residential units were being constructed to offer subsidized rental housing for middle-income individuals or families.
Cross Laminated Timber Market Competitor AnalysisThe cross laminated timber market is fragmented in nature. The major players include Binderholz GmbH, PFEIFER GROUP, Stora Enso, Mayr-Melnhof Holz Holding AG, HASSLACHER Holding GmbH among others (not in any particular order).
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Table of Contents1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Increasing Demand from the Residential Sector
4.1.2 Adaptability In Flexible Designs And Stylish Architecture
4.2.1 Moisture Absorbing Capacity of Wood
4.2.2 Dearth of Awareness Among Consumers
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Degree of Competition
5 MARKET SEGMENTATION (Market Size in Value)
5.1.2 Mechanically Fastened
22.214.171.124 Other Applications
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.3.2 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
5.3.4 South America
22.214.171.124 Rest of South America
5.3.5 Middle-East and Africa
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share/Ranking Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Binderholz GmbH
6.4.2 Eugen Decker Holzindustrie KG
6.4.4 KLH Massivholz GmbH
6.4.5 Mayr-Melnhof Holz Holding AG
6.4.6 PFEIFER GROUP
6.4.7 SCHILLIGER HOLZ AG
6.4.8 Stora Enso
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Development of Advanced Adhesives and Resins
7.2 Other Opportunities
A selection of companies mentioned in this report includes:
- Binderholz GmbH
- Eugen Decker Holzindustrie KG
- KLH Massivholz GmbH
- Mayr-Melnhof Holz Holding AG
- PFEIFER GROUP
- SCHILLIGER HOLZ AG
- Stora Enso