Wood Based Panel Market Size, Share & Trends Report

Wood Based Panel Market Size, Share & Trends Analysis Report By Product (Plywood, Particleboard, MDF, HDF, OSB, Hardboard), By Application (Furniture, Construction), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Aug, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-180-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 198

Industry Insights

The global wood based panel market size was estimated at USD 137.1 billion in 2018 and is anticipated to progress at a CAGR of 6.4% from 2019 to 2025. Low cost and superior properties such as strength and durability are the key factors driving the demand for wood based panels in ceiling, cladding, roofing, flooring, and furniture applications.

Increasing investments in residential and commercial construction activities across the major geographies are expected to propel the demand for wood based panels. Moreover, increasing public-private partnerships for the development of construction sector in emerging economies such as India, China, and Saudi Arabia are likely to support the market growth over the forecast period.

U.S. Wood Based Panel market

The U.S. dominated the North American wood based panel market in 2018 with a share of 85.1% owing to the robust growth in residential construction spending in the country. Rising consumer spending on aesthetically appealing furniture products and significant growth in single-family housing constructions in the region are likely to drive the demand for wood based panels over the projected period.

Raw materials essential for manufacturing wood-based panels including fiber wood and timber are procured from sawmills, log merchants, and recycled fiber brokers. Price fluctuations and inconsistency in the supply of raw materials are expected to be key areas of concerns for the market participants.

Key players in the market are focusing on capacity expansion to cater to the rising demand for wood-based products from end-use industries and to gain a competitive edge. For instance, in 2017, Dongwha Group invested in a new MDF production line in Vietnam to cater to the increasing domestic demand for the product.

Concerns associated with dust, total organic carbon, and formaldehyde emission during the manufacturing process of wood-based panels are ascending. However, increasing efforts taken by the manufacturers to develop innovative manufacturing processes and reduce the environmental impact are likely to favor the market growth.

Product Insights

Plywood emerged as the most popular category of wood based panels in 2018. It is manufactured by gluing multiple thin layers of veneer wood. Superior properties such as high strength, durability, and impact, chemical, fire, & moisture resistance offered by the product are expected to drive the market over the forecast period.

Particleboard is denser and more uniform as compared to traditional wood products and plywood, which is expected to have a positive impact on its demand over the forecast period. Particleboards are available in various grades and are gaining high demand in various applications including furniture, flooring, roofing, and as an insulation material.

MDF wood-based panel segment was valued at USD 24.5 billion in 2018 and is likely to progress at a CAGR of 5.8% over the projected period. The product is considered to be a better alternative to traditional wood as it is free from rings and knots, which makes it uniform. Furthermore, the product is expected to witness a rise in demand as it has a consistent particle size and good strength.

OSB panel segment is likely to ascend at a CAGR of 7.9%, in terms of revenue, over the projected period. These wood based panels are manufactured using rectangular-shaped wood strands and waterproof heat-cured adhesives. The wood strands are arranged in cross-oriented layers, enabling more strength and better product performance as compared to plywood.

Application Insights

High impact resistance and strength offered by wood based panels make them an ideal packaging material, especially for long-distance transportation. Rising product utilization as environment-friendly packaging material to replace non-recyclable packaging materials such as plastics is expected to drive the market over the forecast period.

Furthermore, rising preference for traditional furniture for bedrooms and living rooms is expected to propel the demand for wood based panels over the forecast period. Increasing product demand to manufacture small accent pieces and ready-to-assemble (RTA) furniture products is expected to boost the market growth over the forecast period.

Global wood based panel market

The use of wood based panels in construction industry in China was valued at USD 18.1 billion in 2018 and is likely to ascend at a CAGR of 8.6% over the projected period. The availability of wood based panel products in a wide range of colors, grades, and sizes is expected to have a positive impact on their demand.

The demand for wood based panels in construction application is likely to progress at a CAGR of 7.5%, in terms of revenue, over the projected period. Increasing consumer purchasing power and low-interest rates have led to an increase in building projects in the emerging economies. Furthermore, increasing investments in the construction of new commercial spaces are likely to spur the market growth over the projected period.

Regional Insights

Asia Pacific accounted for the largest market revenue share of 54.7% in 2018 and is estimated to move ahead at a CAGR of 6.9% over the projected period. China is the largest producer and consumer of wood-based panel products in Asia Pacific on account of high population growth, which translates into a demand for and high investments in construction activities.

Europe accounted for over 23.8% of the total market revenue share in 2018. The demand for wood based panels in Europe is primarily driven by Germany, which is among the leading furniture markets in the region. The growth of furniture industry in the region is also projected to have a positive impact on the demand for particleboards over the projected period.

Increasing R&D activities by regional players in the Middle East & Africa to develop cost-effective and high-performance wood-based panels are expected to boost the market growth over the projected period. The region is primarily dependent on imports owing to the lack of raw material availability for manufacturing wood-based products.

Wood Based Panel Market Share Insights

The market is highly competitive on account of the presence of numerous manufacturers. The players are primarily concentrated in North America and Europe. Industry participants compete based on production volumes and product quality. Increasing industry rivalry and continuously ascending wood prices are likely to affect the profit margins of the market participants.

Key players in the market focus on integration across the value chain through mergers & acquisitions as well as joint ventures. For instance, in April 2019, CanWel Building Materials Group Ltd. acquired Lignum Forest Products LLP, a distributor of lumber and forest products in the U.S. and western Canada, in order to strengthen its distribution network in North America.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Volume in Thousand m3, Revenue in USD Million and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, U.K., Spain, Italy, France, Russia, China, India, Japan, South Korea, Singapore, Australia, Malaysia, Thailand, Indonesia, Vietnam, Philippines, Pakistan, Taiwan, Brazil, Argentina, Saudi Arabia, South Africa, Qatar, UAE, Kuwait, Oman, Iran, Israel, Algeria, Egypt, Lebanon

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global wood based panel market report on the basis of product, application, and region:

  • Product Outlook (Volume, Thousand m3; Revenue, USD Million; 2014 - 2025)

    • Medium density fiberboard (MDF)

    • High density fiberboard (HDF)

    • Particleboard

    • Oriented Strand Board (OSB)

    • Softboard

    • Hardboard

    • Plywood

  • Application Outlook (Volume; Thousand m3, Revenue, USD Million; 2014 - 2025)

    • Furniture

    • Construction

      • Windows & doors

      • Flooring & decking

      • Siding

      • Others

    • Packaging

  • Regional Outlook (Volume, Thousand m3; Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Spain

      • Italy

      • Russia

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

      • Singapore

      • Australia

      • Malaysia

      • Thailand

      • Indonesia

      • Vietnam

      • Philippines

      • Pakistan

      • Taiwan

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • SouthAfrica

      • Saudi Arabia

      • Qatar

      • UAE

      • Kuwait

      • Oman

      • Iran

      • Israel

      • Algeria

      • Egypt

      • Lebanon

Key questions answered by the report
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