Engineered Wood Market, Till 2035: Distribution by Type of Product, Type of Bonding Material, Area of Application, End User, and Geographical Regions: Industry Trends and Global Forecasts

The global engineered wood market size is estimated to grow from USD 306 billion in the current year to USD 569 billion by 2035, at a CAGR of 6.37% during the forecast period, till 2035. The new study provides a comprehensive global engineered wood industry analysis, detailed market forecast analysis, and providing actionable strategic recommendations.

The use of solid wood in furniture and construction significantly contributes to deforestation, and these woods are also susceptible to moisture problems that can lead to structural failure. To address these environmental and safety issues, engineered wood, a form of wood bio-products, is gaining popularity. Engineered wood is produced by binding wood fibers or particles with adhesives for secure assembly. These products offer excellent moisture resistance and utilize wood waste in their production.

Advancements in construction techniques, such as the creation of lightweight materials for weight reduction, have significantly influenced the market's growth. Additionally, the emergence of prefabricated building materials like laminated veneer lumber (LVL) and wood I-joists has shaped the market. Notably, the production of plywood and oriented strand board (OSB), which allows for moldability and shape transformation, has accelerated the use of engineered wood in both residential and commercial construction. Furthermore, due to their cost-effectiveness and ease of handling, the manufacturing of furniture using engineered wood is increasing.

The global engineered wood market is projected to experience substantial growth during the forecast period, driven by the rising demand for sustainable construction materials. Moreover, the increasing use of engineered wood in structural applications due to advancements in wooden beams and columns will significantly contribute to market expansion. Additionally, the high durability and strength of these materials are playing a crucial role in influencing architectural design trends in wood construction.

Engineered Wood Market: Key Takeaways

Competitive Landscape: Companies Involved in Engineered Wood Market

The competitive landscape of the engineered wood market is characterized by a mix of large multinational corporations and specialized regional players, making the industry moderately consolidated but diverse. Key market leaders include companies like Boise Cascade, Georgia-Pacific, Louisiana-Pacific Corporation, Weyerhaeuser Company, West Fraser Timber Co., and Stora Enso, which dominate through integrated operations, advanced manufacturing technologies, and sustainability initiatives.

Meanwhile, smaller engineered wood companies are consistently refining their products to address specific niche markets by understanding consumer preferences, or they are providing specialized services. These industry participants are concentrating on implementing competitive strategies, such as creating innovative solution techniques, establishing strategic alliances and partnerships to broaden their portfolios and international reach. Additionally, they are investing in recent advancements and new product launches to improve their engineered wood offerings.

Engineered Wood Market: Key Drivers Propelling Growth

The primary factors propelling the engineered wood market include a rising global demand for eco-friendly construction materials stemming from environmental concerns and awareness of deforestation. The swift pace of urbanization and infrastructure growth, particularly in developing nations, is driving the need for engineered wood in both residential and commercial projects. Innovations in technology such as cross-laminated timber (CLT), laminated veneer lumber (LVL), and superior adhesives improve product strength, durability, and versatility, expanding their range of applications. The affordability and ease of installation in comparison to traditional wood make engineered wood a favored choice among builders and architects. Further, the expansion of furniture production and the rise of prefabricated / modular construction are significant sectors advancing the market.

Impact of US Tariffs: Rising Costs and Strategic Shifts Redefine Industry Dynamics

US tariffs on wood products, which include engineered wood and laminates, have greatly disrupted the industry by elevating import duties, leading to increased expenses and uncertainties in the supply chain. These tariffs, claimed to be protective measures for domestic manufacturing, have resulted in higher costs for import-dependent sectors in the US, pressuring builders' profit margins and affecting the housing market. Key exporting countries are negatively impacted, facing declines in market share and revenue, while consumer prices in the US and around the world are climbing due to elevated tariffs and shifted supply routes. Additionally, retaliatory measures by trade partners and ongoing policy shifts threaten long-term trade stability, with some foreign suppliers redirecting exports to alternative markets or adjusting supply chains to mitigate tariff impacts.

Engineered Wood Evolution: Emerging Trends in the Industry

The engineered wood sector is experiencing remarkable developments and expansion due to the increasing need for eco-friendly and high-performance construction materials. A prominent trend is the growing use of cross-laminated timber (CLT) and glued laminated timber (glulam) in multi-story residential and commercial buildings, attributed to their superior strength, fire resistance, and moisture protection. Additionally, there is a significant movement towards environmentally friendly adhesives and binders that minimize formaldehyde emissions, in line with stricter environmental standards.

Innovations in technology, including the incorporation of AI in design and production, enhanced bonding methods, and modular construction techniques, are boosting product longevity and construction efficiency. Moreover, market growth is further supported by government incentives promoting sustainable building practices and the increasing urbanization around the globe.

Engineered Wood Market: Key Market Segmentation

Type of Product

• Glulam
• I-beams and Cross Laminated
• Laminated Veneer Lumber (LVL)
• Plywood
• Timber (CLT)

Type of Bonding Material

• Adhesives / Resin
• Wood Fibers / Particles

Area of Application

• Construction
• Flooring
• Furniture
• Packaging
• Transport
• Other Applications

End User

• Commercial
• Residential

Geographical Regions

• North America
• US
• Canada
• Mexico
• Other North American countries
• Europe
• Austria
• Belgium
• Denmark
• France
• Germany
• Ireland
• Italy
• Netherlands
• Norway
• Russia
• Spain
• Sweden
• Switzerland
• UK
• Other European countries
• Asia
• China
• India
• Japan
• Singapore
• South Korea
• Other Asian countries
• Latin America
• Brazil
• Chile
• Colombia
• Venezuela
• Other Latin American countries
• Middle East and North Africa
• Egypt
• Iran
• Iraq
• Israel
• Kuwait
• Saudi Arabia
• UAE
• Other MENA countries
• Rest of the World
• Australia
• New Zealand
• Other countries

Engineered wood Market: Key Market Insights

Which Type of Product Will Dominate the Market?

Based on the type of product, the global market is segmented into glulam, I-beams and cross laminated, laminated veneer lumber (LVL), plywood and timber (CLT). According to our estimates, currently, plywood segment captures majority share of the market. This growth is due to its lower manufacturing costs and shorter production time compared to solid wood. Plywood's properties, such as being waterproof, fire-resistant, and termite-proof, make it suitable for multiple applications, including building construction and furniture making.

Which Bonding Material Will Grow at a Higher CAGR?

Based on the type of bonding material, the global market is segmented into adhesives / resins and wood fibers / particles. According to our estimates, currently, wood fibers / particles capture majority share of the market. However, the adhesives / resins are expected to grow at a higher CAGR during the forecast period. This is due to the robust and lasting bond of adhesives and sealants, which can easily endure high stress and different weather conditions.

Regional Analysis: Asia to hold the Largest Share in the Market

Asia currently captures a significant share of the engineered wood market. This can be linked to various factors, including rapid urbanization and increasing demand for affordable housing in emerging economies such as China, India, South Korea, and Japan. This demand necessitates quick and cost-effective construction solutions, which are provided by engineered wood. Additionally, the growing use of engineered wood in structural applications due to its high durability and strength has contributed to this dominance.

It is important to note that the strong emphasis on sustainability and environmental issues is likely to support the growth of the engineered wood market. The presence of major companies, including Action TESA and Shenzhen Risewell, is also driving market expansion through innovation and swift advancements. As a result, significant investments in research and development have been crucial in maintaining this dominance.

Engineered Wood Market: Report Coverage

The report on the engineered wood market features insights on various sections, including:

• Market Sizing and Opportunity Analysis: An in-depth analysis of the engineered wood market, focusing on key market segments, including [A] type of product, [B] type of bonding material, [C] area of application, [D] end user, and [E] geographical regions.
• Competitive Landscape: A comprehensive analysis of the companies engaged in the engineered wood market, based on several relevant parameters, such as [A] year of establishment, [B] company size, [C] location of headquarters and [D] ownership structure.
• Company Profiles: Elaborate profiles of prominent players engaged in the engineered wood market, providing details on [A] location of headquarters, [B] company size, [C] company mission, [D] company footprint, [E] management team, [F] contact details, [G] financial information, [H] operating business segments, [I] portfolio, [J] recent developments, and an informed future outlook.
• Megatrends: An evaluation of ongoing megatrends in the engineered wood industry.
• Patent Analysis: An insightful analysis of patents filed / granted in the engineered wood domain, based on relevant parameters, including [A] type of patent, [B] patent publication year, [C] patent age and [D] leading players.
• Recent Developments: An overview of the recent developments made in the engineered wood market, along with analysis based on relevant parameters, including [A] year of initiative, [B] type of initiative, [C] geographical distribution and [D] most active players.
• Porter’s Five Forces Analysis: An analysis of five competitive forces prevailing in the engineered wood market, including threats of new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitute products and rivalry among existing competitors.
• SWOT Analysis: An insightful SWOT framework, highlighting the strengths, weaknesses, opportunities and threats in the domain. Additionally, it provides Harvey ball analysis, highlighting the relative impact of each SWOT parameter.
• Value Chain Analysis: A comprehensive analysis of the value chain, providing information on the different phases and stakeholders involved in the engineered wood market.

Key Questions Answered in this Report

• What is the current and future market size?
• Who are the leading companies in this market?
• What are the growth drivers that are likely to influence the evolution of this market?
• What are the key partnership and funding trends shaping this industry?
• Which region is likely to grow at higher CAGR till 2035?
• How is the current and future market opportunity likely to be distributed across key market segments?

Reasons to Buy this Report

• Detailed Market Analysis: The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
• In-depth Analysis of Trends: Stakeholders can leverage the report to gain a deeper understanding of the competitive dynamics within the market. Each report maps ecosystem activity across partnerships, funding, and patent landscapes to reveal growth hotspots and white spaces in the industry.
• Opinion of Industry Experts: The report features extensive interviews and surveys with key opinion leaders and industry experts to validate market trends mentioned in the report.
• Decision-ready Deliverables: The report offers stakeholders with strategic frameworks (Porter’s Five Forces, value chain, SWOT), and complimentary Excel / slide packs with customization support.

Additional Benefits

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