Wood Processing Market Report 2026

The wood processing market size has grown strongly in recent years. It will grow from $217.66 billion in 2025 to $230.67 billion in 2026 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to expansion of construction and infrastructure projects, availability of forest resources, increasing demand for sawn timber products, adoption of chemical wood treatments, growth in residential building activities.

The wood processing market size is expected to see strong growth in the next few years. It will grow to $299.71 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to increasing investments in smart sawmills, rising demand for durable treated wood, expansion of sustainable forestry practices, growing adoption of digital process controls, increasing focus on fire-retardant wood products. Major trends in the forecast period include increasing automation in sawmill operations, rising adoption of advanced wood preservation techniques, growing use of process optimization technologies, expansion of treated wood applications, enhanced focus on yield maximization and waste reduction.

The expanding residential sector is expected to drive the growth of the wood processing market in the coming years. The residential sector refers to a segment of the real estate market that includes housing units and properties primarily intended for residential use. Wood provides a combination of aesthetic, environmental, and functional benefits within this sector. Its natural beauty, sustainability, versatility, and durability make it a preferred choice for creating comfortable and visually appealing living spaces. For example, in November 2025, according to the Ministry of Housing, Communities and Local Government (MHCLG), a UK-based government department, 64,762 affordable homes were completed in England in 2024-25, representing a 1% increase compared to the previous year. Therefore, the growth of the residential sector is supporting the expansion of the wood processing market.

Major companies operating in the wood processing market are focusing on developing advanced solutions, such as flexible mobile chipping systems, to improve operational efficiency and versatility. Flexible mobile chipping systems are wood-processing machines mounted on trucks that can be deployed directly on forest roads or at terminals, enabling high-capacity biofuel chip production with minimal infrastructure requirements. For example, in September 2023, Bruks Siwertell Group, a Sweden-based company, introduced the 1006.3 RT industrial mobile wood chipper, featuring a flexible design suitable for both remote forest sites and terminal operations. The new model’s chipping unit is built on a compact frame with a slewing base and offers an optional side-positioned infeed. It can process full-length trees and logs up to 60 cm in diameter for softwood or 50 cm for hardwood, as well as brushwood. The chipper is powered by a 585 kW (796 hp) diesel engine delivering up to 3,650 Nm torque with a strong straight torque curve that reduces fuel consumption during chipping. Additionally, the 1006.3 RT features an advanced hydraulic system insert called CycloneConcept, which lowers hydraulic oil consumption, and an intelligent mobile chipping (IMC) control system that optimizes power management, fuel efficiency, and chip throughput. The machine also supports remote connectivity for online troubleshooting, further enhancing operational reliability.

In August 2024, Valmet Oyj, a Finland-based provider of pulp, paper, and energy technologies and services, acquired Demuth for an undisclosed amount. Through this acquisition, Valmet aims to enhance its wood handling technology and service capabilities in South America, expanding its market presence and improving service offerings for the wood processing industry. Demuth Máquinas Industriais Ltd. is a Brazil-based provider of wood handling technology and services, including log receiving, debarking, chipping, chip screening, and biomass handling.

Major companies operating in the wood processing market are Canfor Corporation, West Fraser Timber Co. Ltd., Interfor Corporation, Weyerhaeuser Company, UPM-Kymmene Oyj, Stora Enso Oyj, Georgia Pacific, Sierra Pacific Industries Inc, Western Forest Products Inc, UFP Industries Inc, Svenska Cellulosa Aktiebolaget, Oji Group, Holmen Timber, Segezha Group, Ilim Timber LLC, EGGER Limited, James Jones and Sons Limited, Bergs Timber AB, KPPD-Szczecinek SA, Pacific Woodtech, Celulosa Arauco y Constitución, Suzano Papel e Celulose.

Asia-Pacific was the largest region in the wood processing market in 2025. North America was the second largest region in the wood processing market. The regions covered in the wood processing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the wood processing market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The wood processing market includes revenues earned by entities by producing sawdust and a collection of bark, branches, and leaves or needles. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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