Engineered Wood Market Report 2026

The engineered wood market size has grown strongly in recent years. It will grow from $293.23 billion in 2025 to $313.08 billion in 2026 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to expansion of residential and commercial construction, improved wood processing technologies, increased use of composite wood panels, availability of plantation timber resources, growing demand for cost-effective building materials.

The engineered wood market size is expected to see strong growth in the next few years. It will grow to $402.31 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to increasing demand for sustainable construction materials, rising adoption of modular and prefabricated buildings, expansion of green building certifications, growing use of engineered wood in infrastructure, increasing innovation in wood composite technologies. Major trends in the forecast period include increasing adoption of engineered wood in construction, rising use of cross-laminated timber structures, growing demand for lightweight structural panels, expansion of prefabricated building components, enhanced focus on material strength and stability.

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 companies operating 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, Lamiwood Designer Floor.

North America was the largest region in the engineered wood market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the engineered wood market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the engineered wood market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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