The global wood based panel market size was estimated at USD 144.67 billion in 2019 and is anticipated to expand at a revenue-based CAGR of 6.9% from 2020 to 2027. Low product cost coupled with superior properties including strength and durability is the key factor driving the demand for wood based panels for 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 the construction sector in emerging economies such as India, China, and Saudi Arabia are likely to support the market growth.
U.S. dominated the North America market for wood based panels in 2019 with a share of 85.52% 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 are other factors likely to drive the regional product demand 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 concern for the market participants.
Key market players 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 meet the increasing domestic demand for wood based panels.
Rising concerns such as dust, total organic carbon, and formaldehyde emission during product manufacturing are anticipated to hamper the growth to an extent. However, increasing efforts made by the manufacturers to develop innovative manufacturing processes and to reduce the environmental impact is likely to favor the market growth.
Plywood emerged as the most popular category of products in 2019. It is manufactured by gluing multiple thin layers of veneer. Superior properties, such as high strength, durability, and impact, chemical, fire, and moisture resistance offered by the product are expected to drive the wood based panel market over the forecast period.
Particleboard is denser and more uniform than traditional wood products and plywood, which is expected to have a positive impact on the demand over the forecast period. Particleboards are available in various grades and are gaining high demand in various applications including furniture, flooring, roofing, and an insulation material.
MDF wood-based panel segment was valued at USD 25.6 billion in 2019 and is likely to progress at a CAGR of 6.4% over the forecast period. The product is considered to be a better alternative to traditional products as it is free from rings and knots, which makes it uniform. 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 7.8%, in terms of revenue, over the projected period. These products are manufactured using rectangular-shaped wood strands and waterproof heat-cured adhesives. The strands are arranged in cross-oriented layers, enabling more strength and better product performance as compared to plywood.
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, the rising preference for traditional furniture for bedrooms and living rooms is expected to propel the demand for the products over the forecast period. Increasing product demand for manufacturing small accent pieces and Ready-to-Assemble (RTA) furniture is expected to boost the growth in the forthcoming years.
The application of wood based panels in the construction industry in China was valued at USD 19.23 billion in 2019 and is likely to ascend at a CAGR of 9.8% during the forecast 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 the demand in the forthcoming years.
The demand in construction application is likely to progress at a CAGR of 8%, in terms of revenue, over the forecast period. Increasing consumer purchasing power coupled with low interest rates has led to an increase in building projects in emerging economies. Furthermore, increasing investments in the construction of new commercial spaces are likely to spur the market growth in the near future.
Asia Pacific accounted for the largest market share of 54.34% in 2019 and is estimated to expand at a CAGR of 7.9% over the projected period. Emerging economies, such as China, India, and Japan, are estimated to fuel demand for the product in packaging and construction applications. China is the largest producer and consumer for wood based panels in the Asia Pacific on account of population growth, which demands high investments in the construction. A rise in packaging applications is supporting the demand for the products owing to increasing industrial exports from the country.
Europe accounted for over 24.12 % of the total market share in 2019. The regional demand is mainly driven by Germany, which is the leading furniture market in the region. The growth of the furniture industry in the region is also anticipated to positively influence the demand for particleboard in the forthcoming years.
Increasing R&D activities by regional players in Middle East and Africa to develop cost-effective and high-performance wood-based panels are estimated to boost market growth. The distribution cost in Middle Eastern countries is higher than that of the countries in the Asia Pacific and North America, owing to low production.
The market is highly competitive in nature, on account of the presence of numerous manufacturers. The players are primarily concentrated in North America and Europe. The companies compete based on production volumes and product quality. Increasing market rivalry and continuously ascending wood prices are likely to affect the profit margins. The key players focus on integration across the value chain through mergers and 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 U.S. and western Canada, to strengthen its distribution network in North America.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Volume in Thousand cubic meters, Revenue in USD Million and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
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
Volume forecast, revenue forecast, competitive landscape, growth factors and trends
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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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global wood based panel market report based on product, application, and region:
Product Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2016 - 2027)
Medium density fiberboard (MDF)
High density fiberboard (HDF)
Oriented Strand Board (OSB)
Application Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2016 - 2027)
Regional Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million; 2016 - 2027)
Central & South America
Middle East & Africa
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The global construction industry once booming due to the residential and commercial construction in China and the U.S., has been affected by the suspension of the construction activities across the impacted economies. The construction industry in the U.S. is expected to take a major hit due to labor shortages and the lockdown imposed by the government during COVID-19, which is expected to be aggravated by the resulting supply chain issues and financing pressures due to the non-adherence to the completion times. The report will account for Covid19 as a key market contributor.