Cross Laminated Timber Market Size, Share & Trends Analysis Report By Product (Adhesive Bonded CLT, Mechanically Fastened CLT), By Application (Residential, Institutional), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global cross laminated timber market size was estimated at USD 944.9 million in 2021 and is expected to register a CAGR of 13.8% from 2022 to 2030. This growth is attributed to the growing demand for lightweight, durable, and sustainable construction materials in residential, institutional, and commercial applications. In addition, growing awareness regarding energy conservation and sustainability is likely to fuel the industry growth.The COVID-19 outburst across the globe severely impacted the trade relations of major players. Supply of raw materials and finished goods related to cross laminated timber has been hampered owing to restrictions on trade and manufacturing in some economies. However, gradual resumption of industrial activities and trade operations to smoothen economic conditions, several economies are offering ease in trade operations, thus, positively impacting the cross laminated timber market.

The U.S. observes the high demand and consumption of wood products for several applications. Factors such as high disposable income, large construction market size, the ability of established players to mass-produce, and an extensive range of products are expected to boost the market growth in the region. Additionally, as a large number of towns in the country are modifying their buildings to cut down emissions from them, the number of sustainable buildings is anticipated to increase in the U.S. in the coming years. This is expected to fuel the demand for cross laminated timber in the country during the forecast period.

Cross laminated timber is widely used in various applications in residential, commercial, institutional, and other segments owing to its intrinsic properties such as high thermal performance, sound insulation, earthquake resistance, fire resistance, lightweight, durability, and low manufacturing costs. The product is being used extensively in augmenting applications, particularly in Europe, where the preferable climatic conditions and timber availability are driving the industry.

The product offers superior design flexibility, and the installation process is faster in comparison to other building materials. The industry is expected to witness growth opportunities in emerging markets like North America, where awareness among consumers regarding the advantages of cross laminated timber over other alternate building materials. The aforementioned factor is anticipated to fuel the demand for cross laminated timber in residential, commercial, institutional, and other constructions in North America.

Product Insights

The adhesive bonded cross laminated timber segment led the market and accounted for the largest revenue share of 88.3% in 2021. Adhesive bonded cross laminated timber is produced by stacking and gluing three or more layers of wood in a perpendicular cross-section. The layered wooden planks are then pressed in large vacuum or hydraulic systems to form a high-strength interlocked assembly. Then, the panels are shaped in large automated CNC machines to achieve the desired shape for usage in various construction applications.

The adoption of adhesive bonded CLT panels is rising owing to the manufacturing cost of adhesive bonded CLT is less as compared to mechanically fastened CLT, owing to less usage of machinery. In addition, the adhesive bonded CLT panels can be converted to biofuel pellets at the end of their life cycle. These panels are custom manufactured to their final dimensions, as per the construction needs, leading to less wastage of wood.

Mechanically fastened cross laminated timber is expected to be the fastest growing market with a CAGR of 14.3% over the forecast period. Mechanically fastened cross laminated timber (CLT) is produced by joining three or more layers of lumbers with nails and screws using mechanical systems. The making of such cross laminated timber does not involve the usage of adhesives and press machines. The mechanically fastened CLT market is still in its nascent stage and has limited adoption in some developed countries in Europe & North America.

The mechanically fastened CLT is expected to grow over the forecast period owing to strict regulations regarding the usage of adhesives in the construction industry. In addition, the industry growth is expected to be boosted by investments by several companies such as StructureCraft, SmartLam, and Structurlam in the development of low-priced and efficient mechanically fastened cross laminated timber production systems.

Application Insights

The residential segment led the market and accounted for the largest revenue share of 45.4% in 2021. The use of Cross Laminated Timber (CLT) in residential construction is expected to rise, owing to the rising adoption of eco-friendly construction materials as a substitute for non-biodegradable and recyclable materials such as cement. Cross laminated timber has an excellent seismic bearing capacity and is expected to result in increased consumption in earthquake-prone areas, such as Japan, India, and Mexico, over the coming years.

The high structural strength and recyclability of cross laminated timber are expected to drive market growth in the residential sector. Rising investments by governments across various countries in the Asia Pacific, North America, and Europe, toward the adoption of environment-friendly materials for the reduction of the carbon footprint of the construction industry, are expected to drive the market growth of cross laminated timber market.

The cross laminated timber is used in various institutional places such as schools, colleges, and research institutes for the building of walls, floors, and ceilings in classrooms, libraries, laboratories, and amphitheaters. This is attributed to the excellent acoustic properties and aesthetic appeal of the material. In addition, rising emphasis on the usage of energy-efficient and eco-friendly construction materials is expected to drive the growth of cross laminated timber market over the forecasted period.

The usage of cross laminated timber in several commercial buildings such as offices, malls, hospitals, and restaurants is expected to rise over the forecasted period, owing to its wide benefits such as fast installation, design flexibility, and high fire resistance. As cross laminated timber is prefabricated as per predefined measurements, the usage involves the installation of cross laminated timber at the required application, which reduces the construction time.

Regional Insights

Europe region dominated the market and accounted for a revenue share of 57.9% in 2021. Europe is projected to bolster on account of strong demand from applications such as residential homes under single-family and multi-family segments is further likely to support the demand for cross laminated timber products

North America cross laminated timber market is anticipated to experience rapid growth on account of the well-established construction industry in the region, coupled with rising demand for wooden panels from the construction and furniture industries is expected to boost the growth over the forecast period. The housing sector in Canada and the U.S. is likely to witness a surge in demand thus positively impacting the market for cross laminated timber. Moreover, the commercial constructions for offices and public utility places are expected to support the demand for the product in the estimated time.

Commercial construction activities in Austria are expected to witness growth in the coming years owing to positive economic development taking place in Austria. A rise in corporate-related construction activities for the development of commercial facilities, industrial hubs, and offices is projected to have a positive impact on the growth of cross laminated timber market in Austria in the projected years.

Middle East and Africa is expected to be the fastest market with a CAGR of 16.6% during forecast period. This is owing to the emphasis by major countries such as Saudi Arabia, UAE, Qatar, and South Africa on the development of the residential and commercial construction industries. In addition, the promotion of green building construction by governments in these countries for an increase in energy efficiency, reduction in waste generated, and minimization in the carbon footprint of the construction industry, is expected to promote the usage of eco-friendly construction materials such as cross laminated timber.

Key Companies & Market Share Insights

The global cross laminated timber market is characterized by the presence of a large number of players, with established players leading the market trends. The majority of these companies focus on forward integration by providing their products directly to end-users across different industry verticals. Some of these companies also use an established distribution and sales network to connect with their customers across regions easily.

Some key players also own forest land and use it to source timber for the manufacture of their processed products. For instance, Mayr-MelnhofHolz Holding AG has achieved a high value-added chain with vertical integration by sourcing wood from its forest and manufacturing engineered wood in its production facility to maintain the economies of scale to the highest level. Some of the prominent players in the cross laminated timber market include:

• Stora Enso Oyj

• Mayr-MelnhofHolz Holding AG

• Binderholz GmbH

• XLam

• Sterling Company

• SchilligerHolz AG

• KLH Massivholz GmbH

• B&K Structures

• Eugen Decker & WebMan

• Structurlam Mass Timber Corporation

• SmartLam NA

• MEIKEN LAMWOOD Corp

Cross Laminated Timber Market Report Scope

Global Cross Laminated Timber Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cross laminated timber market report based on product, application, and region:

• Product Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2017 - 2030)

  • Adhesive Bonded CLT

  • Mechanically Fastened CLT

• Application Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2017 - 2030)

  • Residential

  • Institutional

  • Commercial

  • Others

• Regional Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Austria

    • Germany

    • Switzerland

    • Italy

  • Asia Pacific

    • New Zealand

    • China

    • Japan

    • Australia

  • Central & South America

  • Middle East & Africa