Australia and New Zealand CLT Market

Australia and New Zealand Cross Laminated Timber (CLT) Market Size and Share:

The Australia and New Zealand cross laminated timber (CLT) market size was valued at USD 125.7 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 563.6 Million by 2033, exhibiting a CAGR of 18.14% from 2025-2033. The market is expanding due to the rising demand for sustainable construction materials government support for low-carbon buildings and advancements in prefabrication. The widespread adoption in residential and commercial projects, along with investments in domestic CLT production is driving market growth.

The Australia and New Zealand cross-laminated timber (CLT) market is expanding due to increasing demand for sustainable construction materials. Government initiatives promoting low-carbon buildings, stringent environmental regulations and incentives for mass timber construction are key drivers. Increasing investments in domestic CLT production, advancements in prefabrication technology, and growing adoption in residential and commercial projects are further strengthening the Australia and New Zealand CLT market share. CLT's strength, lightweight nature and seismic resilience make it a preferred choice for residential and commercial buildings. For instance, starting in 2025, the New Zealand government announced its plans to enforce mandatory carbon counting for construction projects, focusing on reducing both embodied and operational carbon emissions. Architects and builders must integrate carbon assessments and use verified materials to meet new regulations, promoting sustainability and innovation in the industry while aligning with climate goals. Rising awareness of embodied carbon reduction and green certifications such as Green Star and NABERS are influencing developers to adopt CLT in sustainable building projects.

Advancements in timber processing technology and local manufacturing capacity are further supporting market growth. According to the report published by the Department of Agriculture, Fisheries and Forestry, the Australian Government launched the Accelerate Adoption of Wood Processing Innovation Program, committing $100.72 million in grants to 33 recipients. The program aims to enhance the forestry sector's sustainability by co-funding up to 40% of project costs, promoting innovative practices, facility upgrades, and reduced carbon footprints in wood processing. Increased investment in CLT production facilities and research into fire resistance and durability are enhancing material acceptance. The construction sector’s focus on prefabrication and modular building techniques is boosting demand due to CLT’s ease of assembly and reduced construction time. Additionally, a growing preference for biophilic design and natural aesthetics is driving adoption in interior applications and high-rise timber structures. These factors are collectively creating a positive Australia and New Zealand CLT Market outlook.

Australia and New Zealand Cross Laminated Timber (CLT) Market Trends:

Growing Adoption in Sustainable Construction:

Growing demand for green building materials is pushing the use of cross-laminated timber (CLT) in commercial and residential development in Australia and New Zealand. For instance, in December 2024, the Green Building Council of Australia (GBCA) encouraged the Australian Government’s National Urban Policy highlighting its potential to create sustainable and equitable cities. CLT has a low carbon rating, is sustainable, and energy efficient, which makes it a popular substitute for conventional steel and concrete. Developers and architects are increasingly using CLT in green buildings to comply with environmental codes and gain sustainability certifications. Moreover, CLT's prefabricated and lightweight characteristics improve construction efficiency, lowering labor and waste costs while promoting sustainable urban development.

Increased Use in High-Rise Buildings

Cross-laminated timber (CLT) is increasingly being used in high-rise buildings due to its strength, durability and fire resistance making it a viable alternative to traditional concrete and steel structures. Its lightweight nature reduces foundation loads allowing for faster construction with prefabricated panels. For instance, in November 2023, Australia approved C6 set to be the world’s tallest hybrid-timber tower at 183 meters in South Perth. The carbon-neutral design incorporates cross-laminated timber (CLT) and sustainable features including solar power and community spaces. The project aims to sequester 10.5 million kilograms of carbon while promoting urban sustainability. CLT’s fire-resistant properties achieved through charring layers that slow combustion enhance safety in multi-story developments. With growing sustainability concerns developers are incorporating CLT into tall residential and commercial buildings benefiting from its structural stability and environmental advantages.

Advancements in Prefabrication Technology

Advancements in prefabrication technology are enhancing the use of cross-laminated timber (CLT) panels by improving construction speed, efficiency, and cost-effectiveness. Prefabricated CLT panels are manufactured off-site with precise engineering, reducing on-site labor, material waste, and project timelines. These ready-to-install panels streamline assembly, minimizing delays and ensuring higher quality control. The lightweight nature of CLT allows for easier transportation and installation, making it an attractive option for developers looking to achieve faster project completion, lower costs, and improved sustainability in modern construction. According to the Australia and New Zealand CLT market forecast, the adoption of prefabricated CLT panels is expected to grow significantly, driven by increasing demand for sustainable construction, government incentives, and expanding domestic production capacity.

Australia and New Zealand Cross Laminated Timber (CLT) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Australia and New Zealand cross laminated timber (CLT) market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on application.

Australia Cross Laminated Timber Industry:

Analysis by Application:

• Detached Houses
• Residential
• Non-Residential Units

The Australian cross-laminated timber (CLT) market is experiencing high demand in different applications, with non-residential sector dominating the market. Offices, schools, commercial buildings, and public infrastructure projects adopting CLT because of its eco-friendliness, strength and fire-resistant properties. Prefabricated CLT panels have the added advantage of accelerating construction pace and efficiency and are suitable for major developments. Government policy support for green buildings also fuels uptake in the non-residential market. As the awareness of low-carbon building increases, CLT is becoming increasingly popular in institutional and commercial developments.

New Zealand Cross Laminated Timber Industry:

Analysis by Application:

• Residential
• Commercial

The New Zealand cross-laminated timber (CLT) industry is experiencing strong growth with residential applications leading the market. Homeowners and developers are increasingly choosing CLT for sustainable, energy-efficient and durable housing solutions. The material’s lightweight nature and prefabrication benefits enable faster construction reducing labor costs and waste. Rising awareness of ecofriendly building practices and government incentives for sustainable housing further boost demand. As the focus on carbon-neutral construction grows CLT continues to be a preferred choice for modern residential developments in New Zealand.

Competitive Landscape:

The Australia and New Zealand cross-laminated timber (CLT) market is becoming increasingly competitive as manufacturers focus on expanding production capacities, enhancing product quality, and improving supply chains. Companies are investing in advanced prefabrication technologies to streamline construction processes and reduce project timelines. Growing demand for sustainable and low-carbon building materials has led to innovations in fire-resistant coatings, structural performance, and durability. Market players are strengthening partnerships with construction firms, architects, and developers to promote CLT adoption in residential and commercial projects. Additionally, government regulations supporting green building initiatives are driving competition among manufacturers to offer cost-effective and high-quality CLT solutions.

The report provides a comprehensive analysis of the competitive landscape in the Australia and New Zealand cross laminated timber (CLT) market with detailed profiles of all major companies, including:

• Stora Enso Oyj
• KLH Massivholz GmbH
• Binderholz GmbH
• XLam Australia Pty Ltd

Latest News and Developments:

• In February 2025, NeXTimber announced that it has completed the supply of Cross Laminated Timber (CLT) panels for Flinders University’s Factory of the Future and Tonsley Technical College in South Australia. Nearly 200 panels, delivered across 22 truckloads highlighting sustainability and innovation in construction.
• In October 2024, T3 Collingwood was recognized as Australia’s leading commercial timber office building, receiving awards at the Australian Timber Design Awards. Designed by Jackson Clements Burrows Architects, this 15-storey mass timber structure is part of Hines Global Real Estate’s initiative to promote sustainable and innovative construction in major cities.
• In March 2024, Timberlink opened its $70 million NeXTimber facility in Tarpeena, South Australia, to manufacture cross-laminated and glue-laminated timber from local radiata pine. The facility aims to support the construction of wooden high-rises and is expected to expand its workforce from 27 to 50 employees over the coming years.

Australia and New Zealand Cross Laminated Timber (CLT) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia and New Zealand cross laminated timber (CLT) market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Australia and New Zealand cross laminated timber (CLT) market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia and New Zealand cross laminated timber (CLT) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.