Cross Laminated Timber Market Analysis, By Type (Adhesive Bonded and Mechanically Fastened), By Region (North America, Europe, Asia Pacific, South & Central America, MEA), And Segment Forecasts 2018 - 2025

Market Size and Trends

The global cross laminated timber market size was valued at USD 558.6 million in 2016 and is projected to grow at a CAGR of 15.7% over the forecast period. Global sustainability concerns coupled with rising awareness about wood as a building material among consumers are the factors likely to boost market growth in the coming years. Transitioning consumer preferences for wood-based construction along with low cost, high thermal performance, and insulation properties are expected to drive the market growth over the forecast period.

The demand for cross laminated timber is witnessing an increase as wood is evolving as a low-cost and sustainable alternative to steel and concrete. The growing popularity of cross laminated timber, considering its ease of construction and durability, is likely to propel the demand for the market over the next eight years. Rising popularity and awareness in regions such as North America, Europe, and Asia Pacific is anticipated to positively impact the market.

U.S. cross laminated timber market revenue, by Type, 2014 - 2025 (USD Million)

Adhesively bonded type dominated the market in light of enhanced durability and performance. The segment is expected to account for a significant market share over the forecast period.   

Key attributes of cross laminated timber, such as fire and earthquake resistance ability, are projected to fuel the market growth. Major players in the industry are constantly striving toward technological advancements to manufacture quality products and increase efficiency.

The tendency of wood to absorb moisture from the atmosphere is expected to pose a challenge to the industry growth. Specific climatic conditions are a prerequisite for spruce and pine to grow and thus adverse climatic conditions may hinder raw material availability for the market. Manufacturers are required to conform to the regulations laid by numerous timber authorities in different regions. 

Product Insights

Adhesive bonded segment accounted for 88.0% of the global market share in 2016. This segment is expected to witness a considerable demand over the next eight years on account of greater strength and seismic performance. However, growing environmental concerns regarding the use of adhesives, due to its carbon emission properties, are anticipated to hamper its demand.

Mechanically fastened segment was valued at USD 63.7 million in 2016 and likely to emerge as the fastest-growing product segment over the forecast period owing to its effective recycling. The shift in consumer trend toward environment-friendly products is expected to push the product demand in the coming years. Mechanically fastened segment is likely to gain considerable market share in light of increasing demand from the European and North American regions. 

Global cross laminated timber market revenue, by type, 2016 (%)

Regional Insights

In 2016, Austria and Germany cumulatively accounted for 68.29% of the European market revenue owing to the growing awareness toward wood as a building material. Austria is a rich source of softwood spruce and pine and accounts for the largest production of cross laminated timber across the globe. The increasing use of cross laminated timber in residential and commercial applications is anticipated to spur the industry growth over the next eight years.

The demand for cross laminated timber in North America was valued at USD 118.8 million in 2016. The abovementioned growth can be attributed to the increasing use of cross laminated timber in institutional as well as residential applications. The growing consumer demand for stylish and luxury apartments is likely to have a positive impact on the industry growth. Ascending product use in residential applications such as walls, floors, and ceilings is also expected to account for market growth. North America is likely to remain the second-largest market from 2017 to 2025.

Shifting manufacturing facilities to Australia and New Zealand is expected to fuel higher production. Growing awareness of cross laminated timber in emerging economies like China and Japan is likely to result in high rise residential apartments along with commercial buildings.  

Competitive insights

Key players in the market include Stora Enso, Mayr-Melnhof Holz, Binderholz GmbH, XLam Limited, SmartLam, and Sterling Lumber. In 2016, Stora Enso invested USD 890 million in a plant in Guanxi, China to strengthen its presence in the country.

Manufacturers of cross laminated timber continue to focus on technological advancements in the product. Such developments coupled with competitive pricing are likely to assist the in increasing their market share over the forecast period. Companies are investing heavily in the research and development to overcome the barriers faced while using cross laminated timber and enhance product quality. 

Report Scope

Segments covered in the report:

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the cross laminated timber market on the basis of product and region:

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Adhesive Bonded

  • Mechanically Fastened

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Austria

    • Germany

    • Switzerland

    • Italy

    • Rest of Europe

  • Asia Pacific

    • New Zealand

    • Japan

    • China

    • Rest of Asia Pacific

  • South & Central America

  • The Middle East and Africa