Engineered Wood Market Report 2025

The engineered wood market size has grown strongly in recent years. It will grow from $274.2 billion in 2024 to $293.23 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth during the historic period can be attributed to the increasing demand for cost-effective construction materials, the rising use of wood in residential housing, the scarcity of solid wood, the expansion of prefabricated housing, and environmental concerns encouraging the use of sustainable materials.

The engineered wood market size is expected to see strong growth in the next few years. It will grow to $378.3 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to the increasing adoption of green building technologies, a rising urban population, the expansion of affordable housing initiatives, the growing trend of remodeling and renovating older homes, and government-provided incentives. Key trends expected during this period include the integration of smart technologies in wood applications, the growing use of cross-laminated timber supported by advanced construction techniques, improvements in bonding technology for greater durability, a shift toward modular housing driven by prefabrication methods, and the implementation of AI-based technologies in the design and manufacturing of engineered wood.

The growth of the engineered wood market is being driven by the increase in residential construction, which is fueled by rising urbanization and housing demand. Residential construction refers to the building or renovation of living spaces such as houses, apartments, and condominiums. This increase is largely due to the ongoing urbanization trend, where more people are moving to cities, thereby creating a higher demand for housing. Engineered wood is well-suited for residential construction because of its strength, durability, and stability, making it ideal for applications such as framing, flooring, roofing, and paneling. It also resists warping better than solid wood, offering a more cost-effective and long-lasting solution. For example, in June 2024, the United States Census Bureau reported that privately owned housing completions reached a seasonally adjusted annual rate of 1,514,000 in May, marking a 1% increase from 1,499,000 in May 2023. As a result, the rise in residential construction is contributing to the expansion of the engineered wood market.

Leading companies in the engineered wood market are increasingly developing eco-friendly engineered wood products in response to environmental regulations and rising construction needs. These sustainable alternatives to solid wood are made using recycled materials and low-emission adhesives, produced through efficient manufacturing processes. Such products help conserve natural resources, reduce waste, and provide durable and adaptable solutions for both construction and furniture. For instance, in May 2025, SPAN FLOORS, an India-based premium wood flooring manufacturer, introduced a high-end line of engineered wood flooring specifically designed for staircases. This new line offers a refined alternative to traditional materials such as marble and combines the natural beauty of real wood with advanced multi-layered construction, delivering improved stability, durability, and safety. It is suitable for heavy foot traffic and changing environmental conditions. Made from responsibly sourced wood, this collection aims to enhance the look and feel of modern Indian homes while promoting environmentally conscious living.

In June 2025, Atlas Engineered Products, a Canadian company known for designing, manufacturing, and selling engineered roof trusses, acquired Truss-Worthy Construction Systems Inc. for $1.575 million. This acquisition is intended to expand Atlas’s manufacturing presence across Canada, increase its operational capacity in Eastern Ontario, reach new customers, grow its production abilities, and strengthen its role in the engineered wood market. Truss-Worthy Construction Systems Inc. is a Canadian manufacturer that produces engineered wood products and roof trusses.

Major players in the engineered wood market are Stora Enso, UFP Industries Inc., Georgia-Pacific, Boise Cascade Company, West Fraser Timber Co., Louisiana-Pacific Corporation, Roseburg Forest Products, Tolko Industries Ltd., Pfleiderer Group, Mayr-Melnhof Holz Holding AG, Setra Group, Sveza Group, Mercer Mass Timber LLC, Nordic Structures, Huber Engineered Woods LLC, Hasslacher Holding GmbH, Kronoplus Limited, Swiss Krono Group, Binderholz GmbH, SPAN FLOORS, and Lamiwood Designer Floor.

North America was the largest region in the engineered wood market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in engineered wood report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the engineered wood market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The quick escalation of U.S. tariffs and the resulting strain in trade relations in spring 2025 are considerably influencing the Paper, Plastics, Rubber, Wood And Textile sector by inflating costs for imported pulp, resin, synthetic rubber, lumber, and cotton key inputs with limited domestic substitutes. Packaging manufacturers, for example, now pay more for plastic films and corrugated materials, squeezing margins in an already price-sensitive market. Textile producers face similar challenges, as tariffs on imported yarns and dyes compound pressures from rising labor costs. Some firms are shifting to recycled materials or biodegradable alternatives, while others consolidate suppliers to negotiate bulk discounts.

Engineered wood is a manufactured product created by bonding layers of wood strands, veneers, or fibers with adhesives to form durable composite materials. It is specifically designed to improve strength, stability, and resistance to warping or shrinking. Engineered wood provides excellent versatility and cost-effectiveness, optimizing raw material use while promoting eco-friendly construction practices.

The main types of engineered wood include plywood, medium-density fiberboard (MDF), cross-laminated timber (CLT), laminated veneer lumber (LVL), oriented strand board (OSB), glue-laminated timber (glulam), and particleboard. Plywood is produced by cross-layering thin wood veneers to enhance strength, durability, and resistance to warping, making it suitable for construction and furniture applications. It is used across various sectors such as construction, flooring, furniture, packaging, transport, and others, serving end-users in non-residential, residential, and industrial markets.

The engineered wood market research report is one of a series of new reports that provides engineered wood market statistics, including the engineered wood industry global market size, regional shares, competitors with the engineered wood market share, detailed engineered wood market segments, market trends, opportunities, and any further data you may need to thrive in the engineered wood industry. This engineered wood market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The engineered wood market consists of sales of hardboard, low-density fiberboard, parallel strand lumber, and finger-jointed wood. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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