Construction Wood Market Report 2026

The construction wood market size has grown strongly in recent years. It will grow from $136.36 billion in 2025 to $145.57 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to availability of natural timber resources, growth of traditional residential construction, expansion of sawmill and logging industries, increasing use of wood in rural housing, development of basic wood processing technologies.

The construction wood market size is expected to see strong growth in the next few years. It will grow to $190.71 billion by 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to shift toward sustainable and low carbon building materials, rising demand for green certified construction materials, growth of urbanization and housing demand, expansion of engineered wood manufacturing capacity, increasing adoption of prefabricated construction systems. Major trends in the forecast period include increasing adoption of engineered wood for sustainable construction practices, rising demand for cross laminated timber in high rise buildings, growth of prefabricated and modular wooden construction techniques, expansion of certified sustainable and low carbon timber sourcing, advancements in wood treatment technologies for durability and fire resistance.

The growing infrastructure development is expected to drive the growth of the construction wood market going forward. Infrastructure development refers to the expansion of physical structures such as transportation networks, utilities, housing, and public facilities to support economic and population growth. Infrastructure development is rising due to increasing urban population growth and a growing need for modern housing and smart city development. Construction wood is utilized in infrastructure development for constructing bridges, utility structures, formwork, railway components, sound barriers, and structural frameworks due to its strength, versatility, and sustainability. For instance, in July 2024, according to the Office for National Statistics (ONS), a UK-based government agency, in 2023, infrastructure investment reached $17.66 billion (£13.8 billion), reflecting a 3.9% increase over 2022. Therefore, the growing infrastructure development is driving the growth of the construction wood market.

Leading companies operating in the construction wood market are focusing on developing advanced solutions, such as chemically modified wood composites, to improve durability, enhance moisture and fire resistance, increase structural strength, and promote sustainable high-performance building materials. Chemically modified wood composites refer to engineered wood materials treated with chemical processes or additives to enhance properties such as durability, dimensional stability, moisture resistance, fire resistance, and mechanical strength for construction applications. For example, in October 2025, InventWood, a US-based materials innovation company, introduced Superwood, a high-performance engineered wood material designed for structural applications. It delivers strength comparable to steel, improved fire resistance, and enhanced resistance to moisture and pests. These developments improve construction efficiency and expand the use of wood in complex projects, although high production costs and scaling challenges remain limiting factors.

In September 2023, West Fraser Timber Co. Ltd., a Canada-based provider of lumber, engineered wood products, plywood, oriented strand board, and treated wood products, acquired Spray Lake Sawmills Ltd. for $140 million. With this acquisition, West Fraser sought to expand its lumber production capacity and strengthen its treated wood business while securing long-term timber supply in Western Canada. Spray Lake Sawmills Ltd. is a Canada-based provider of dimensional lumber and treated wood products used in residential and commercial construction applications.

Major companies operating in the construction wood market are UPM-Kymmene Corporation, Stora Enso Oyj, Weyerhaeuser Company, Boise Cascade Company, West Fraser Timber Co. Ltd., EGGER Holzwerkstoffe GmbH, Canfor Corporation, Kronospan Holdings Limited, Louisiana-Pacific Corporation, Interfor Corporation, Metsäliitto Cooperative, Sierra Pacific Industries, Tolko Industries Ltd., WoodWorks, Mayr-Melnhof Holz Holding AG, WOODOO SAS, Schilliger Holz AG, Binderholz GmbH, Brown Wood Inc., Hasslacher Holding GmbH.

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

The construction wood market consists of sales of plywood, laminated veneer lumber, cross-laminated timber, glulam beams, wood flooring, and decking. 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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