Engineered Wood Market

Engineered Wood Market Size:

The global engineered wood market size reached 289.5 Million Cubic Metres in 2023. Looking forward, IMARC Group expects the market to reach 459.8 Million Cubic Metres by 2032, exhibiting a growth rate (CAGR) of 5.1% during 2024-2032. The increasing popularity of intricate flooring patterns, custom cabinetry, and visually striking structural designs, along with a surge in construction projects such as residential complexes, commercial buildings, and public infrastructure, and the growing need for affordable solutions, are key factors driving the market.

Engineered Wood Market Analysis:

• Major Market Drivers: The engineered wood market growth is driven by increasing construction activities, the rising demand for eco-friendly and sustainable building materials, and the growing preference for cost-effective alternatives to traditional hardwood. The superior strength, durability, and versatility of engineered wood make it suitable for residential and commercial projects. Additionally, rising awareness about environmental conservation and the advantages of engineered wood in reducing deforestation are boosting market growth.
• Key Market Trends: Key trends shaping the engineered wood market include the rise of sustainable construction practices, innovation in wood paneling designs, and technological advancements in manufacturing processes. Engineered wood's aesthetic appeal and adaptability to modern architectural trends are enhancing its use in flooring, furniture, and cabinetry. The increasing demand for green buildings, combined with an emphasis on reducing carbon footprints, is also pushing the adoption of engineered wood products.
• Geographical Trends: Asia Pacific dominates the engineered wood market due to rapid urbanization, a booming construction industry, and high infrastructure development in countries like China, India, and Southeast Asia. The region’s large population and expanding middle class are driving the demand for affordable housing and commercial spaces. Additionally, government initiatives promoting green building materials and increasing foreign investments in the region's construction sector are propelling the growth of engineered wood market.
• Competitive Landscape: Some of the major market players in the engineered wood industry include Boise Cascade Company, Havwoods Ltd, Huber Engineered Woods LLC (J.M. Huber Corporation), Louisiana-Pacific Corporation, Mayr-Melnhof Holz Holding AG, Nordic Structures, Pacific Woodtech Corporation (Daiken Corporation), Roseburg Forest Products Co. (Wilsonart), Stora Enso Oyj, UFP Industries Inc., West Fraser Timber Co. Ltd, and Weyerhaeuser Company, among many others.
• Challenges and Opportunities: Opportunities in the engineered wood market include the growing demand for sustainable building materials and increasing investment in construction sectors worldwide. Technological advancements in production processes are also expanding product applications. However, challenges like fluctuating raw material prices, deforestation concerns, and competition from alternative materials, such as steel and concrete, can hinder market growth. Addressing environmental regulations and ensuring product quality consistency are also critical for market players to navigate these challenges effectively.
   

Engineered Wood Market Trends:

Growing Demand for Sustainable Building Materials

As environmental awareness increases, there is a shift toward using sustainable and eco-friendly materials in construction. Engineered wood is favored due to its efficient use of wood resources, lower carbon footprint, and recyclability. The material helps reduce deforestation by utilizing smaller trees and wood byproducts, making it an attractive option for builders and consumers seeking to minimize environmental impact, driving significant demand in both the residential and commercial sectors. For instance, according to industry reports, 34% of home builders in the United States classified over half of their projects as green in 2023, while 22% of remodelers reported similar engagement.

Moreover, in August 2024, researchers at the University of Maryland have genetically modified poplar trees to create high-performance wood without chemicals or energy-intensive processing. This engineered wood has a 12.8% lower lignin content as compared to wild-type trees, allowing it to store carbon for longer periods while being more durable. When compressed, the genetically modified wood achieved a tensile strength comparable to aluminum alloy 6061, showing potential as a sustainable alternative to steel and concrete. This innovation could significantly reduce emissions from the construction industry.

Cost-Effectiveness and Versatility

Engineered wood is widely valued for its cost-effectiveness compared to traditional hardwood. Its layered structure provides durability, stability, and resistance to warping, making it ideal for various applications such as flooring, furniture, and structural components. With its lower production and installation costs, alongside aesthetic flexibility, engineered wood offers an affordable alternative for construction projects, encouraging its adoption across diverse industries, including real estate and furniture manufacturing. As per recent studies, using green building materials like engineered wood reduce energy consumption by 30-40% and water use by 20-30%, with CO2 emissions cut by up to 35%. Additionally, green buildings offer a 10.5% first-year cost saving and a 9% higher asset value.

Rising Construction Activities Worldwide

The global boom in construction, particularly in developing economies, is fueling the engineered wood market growth. Increased investments in infrastructure, housing, and commercial buildings are driving the demand for reliable, durable, and sustainable materials. Engineered wood’s enhanced strength and stability, compared to solid wood, make it suitable for large-scale construction projects, further contributing to its widespread use as countries focus on rapid urbanization and expanding residential and commercial sectors. For instance, according to industry reports, in July 2024, the construction spending of the United States reached a seasonally adjusted annual rate of $2.1627 trillion, a 6.7% increase from July 2023’s $2.0274 trillion. Private construction spending was $1.6787 trillion, with residential construction at $941.6 billion and non-residential at $737.2 billion. Public construction was estimated at $484.0 billion. Year-to-date, construction spending totaled $1.2375 trillion, 8.8% higher than the $1.1374 trillion in the same period in 2023.

Engineered Wood Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, application, and end user.

Breakup by Type:

• I-Beams
• Plywood
• Laminated Veneer Lumber (LVL)
• Glulam (Glued Laminated Timber)
• Oriented Strand Boards (OSB)
• Cross-Laminated Timber (CLT)
• Others
   

Plywood dominates the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes I-beams, plywood, laminated veneer lumber (LVL), glulam (glued laminated timber), oriented strand boards (OSB), cross-laminated timber (CLT), and others. According to the report, plywood represented the largest segment.

Plywood is renowned for its superior strength and durability. It is made by layering thin sheets of wood, with each layer's grain direction alternating, which enhances its structural integrity. This construction makes it resistant to warping, cracking, and splitting, making it a reliable choice for various applications. It is incredibly versatile, suitable for a wide range of applications, including furniture, cabinetry, flooring, and construction. Its adaptability stems from its ability to come in various thicknesses, grades, and sizes, making it easy to find the right type for any project. It also provides a cost-effective solution for projects requiring a strong, stable, and durable material.

Breakup by Application:

• Construction
• Furniture
• Flooring
• Packaging
• Others
   

Furniture holds the largest share in the market

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes construction, furniture, flooring, packaging, and others. According to the report, furniture accounted for the largest market share.

Engineered wood products are often more cost-effective as compared to solid wood. They allow furniture manufacturers to create high-quality pieces at a lower cost, which appeals to both producers and consumers. In addition, engineered wood is less prone to warping, cracking, and shrinking compared to solid wood. This stability ensures that furniture remains in good condition over time, reducing the need for repairs or replacements. Moreover, engineered wood often utilizes recycled or fast-growing wood species and minimizes waste, making it an eco-friendly choice. Additionally, some engineered wood products are made with formaldehyde-free adhesives, reducing emissions of harmful chemicals.

Breakup by End User:

• Residential
• Commercial and Industrial
   

Residential holds the biggest share in the market

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes residential and commercial and industrial. According to the report, residential accounted for the largest market share.

Engineered wood comes in various forms, including plywood, oriented strand board (OSB), and laminated veneer lumber (LVL). Each type offers specific benefits that can be tailored to residential construction needs, whether for framing, subflooring, or finishing. In addition, engineered wood products provide uniformity in quality, texture, and dimensions. This consistency ensures that materials fit together seamlessly, enhancing the overall quality of residential projects. Its uniformity and precision make it user-friendly, reducing installation time and labor costs for residential construction or renovation. Engineered wood can be machined and molded to meet various design requirements. This flexibility is particularly advantageous in residential applications, where unique and customized designs are often desired.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest engineered wood market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific held the biggest market share due to the rapid urbanization and the rising population. As more people move to cities, there is a heightened demand for housing and infrastructure. For instance, India’s Smart Cities Mission aims to improve urban life in 100 cities across India by promoting efficient services and infrastructure. With a budget of ₹1.6 lakh crore, 90% of the 7,244 projects have been completed, accounting for ₹1.45 lakh crore. Similarly, the Shenzhen Municipal Government in China plans to build 1 million affordable homes by 2035, aiming to house 60% of its 18 million residents. It is aiming on increasing affordable housing to 30% of its housing stock, costing an estimated 2 trillion yuan by 2025. According to engineered wood market forecast, government initiatives are anticipated to increase the demand for engineered wood throughout in the upcoming years across the region. Engineered wood is an excellent choice for construction due to its cost-effectiveness, versatility, and ease of use, making it a preferred material for meeting the demands of urbanization.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the engineered wood industry include Boise Cascade Company, Havwoods Ltd, Huber Engineered Woods LLC (J.M. Huber Corporation), Louisiana-Pacific Corporation, Mayr-Melnhof Holz Holding AG, Nordic Structures, Pacific Woodtech Corporation (Daiken Corporation), Roseburg Forest Products Co. (Wilsonart), Stora Enso Oyj, UFP Industries Inc., West Fraser Timber Co. Ltd, and Weyerhaeuser Company.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• As consumers and builders are increasingly choosing engineered wood products sourced from responsibly managed forests, key manufacturers are also adopting eco-friendly production processes, emphasizing reduced emissions and waste. In addition to this, key market players are offering mass timber products, such as cross-laminated timber (CLT) and glue-laminated timber (glulam), that offer excellent structural properties, enabling taller and more sustainable buildings. They are also introducing innovative surface finishes and textures to mimic the look and feel of natural wood. These finishes cater to design-conscious consumers and architects seeking aesthetics without compromising on durability. Moreover, key players are developing fire-resistant engineered wood products to meet stringent fire codes while maintaining the structural benefits of engineered wood.
• For instance, in December 2023, Weyerhaeuser, one of the prominent producers of engineered wood, announced that it is investing $96.2 million to modernize and decarbonize its lumber mill in Winn Parish, Louisiana. The modernization includes installing three Continuous Dry Kilns (CDKs), reducing greenhouse gas emissions and enhancing mill productivity. The first two CDKs will be installed by the end of 2024, with additional equipment by mid-2025.
• In July 2024, JP Wood Accents announced that it has expanded its product offerings by entering the flooring market as a producer of wide plank engineered wood flooring. This move aims to cater to both commercial and residential clients, bringing high-quality, durable wood flooring solutions to the market.

Engineered Wood Market News:

• In Oct 2023, Boise Cascade announced that it has completed the previously announced acquisition of Brockway-Smith Company (BROSCO®), a leading wholesale distributor specializing in doors and millwork.
• In Sep 2023, West Fraser Timber Co. Ltd. announced that it has entered into an agreement to acquire Spray Lake Sawmills located in Cochrane, Alberta. This acquisition enables West Fraser to grow its footprint in Southern Alberta and expand its Canadian treated wood business, while providing access to a high-quality timber supply.

Engineered Wood Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the engineered wood market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global engineered wood market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• 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 engineered wood industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.