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The engineered wood products market size is forecast to increase by USD 6.69 billion at a CAGR of 6.78% between 2023 and 2028. The market is experiencing notable growth, largely propelled by increased residential and commercial construction activities. Developed economies like the US are earmarking significant investments for infrastructural development, which is expected to further boost the demand for engineered wood products. Additionally, the focus on infrastructural and real estate development, along with the construction of new residential and commercial spaces, is anticipated to drive sales in the wood products and furnishings sector. Another contributing factor to market growth is the rise in wages witnessed in key manufacturing hubs, spurred by rapid urbanization and industrialization in emerging economies like China, India, the Philippines, Vietnam, and Indonesia.
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The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market share growth by the structural wood I-beams segment will be significant during the forecast period. Structural I-beams are long timber beams. These beams are of high strength and are used to manufacture supporting structures and in load-bearing commercial and residential applications. They have high straightness, constant depth, and high dimensional stability. I-beams are produced using a combination of timber products; therefore, they are economical to produce.
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The structural wood I-beams segment showed a gradual increase in market share with USD 5.36 billion in 2018. Many regional and international quality standards must be followed for structural wood I-beams. For instance, in Australia and New Zealand, these wooden beams must comply with the quality standards imposed by the AS/NZ 4063 Structural Products, Strength and Stiffness Evaluation. Such factors will create a demand for structural wood I-beams, which, in turn, will fuel the growth of the global engineered wood products market during the forecast period.
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Europe is estimated to contribute 37% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The region is characterized by high disposable incomes, a growing working population, and steady economic growth, which fuels the demand for consumer goods, along with furniture and furnishings for home decor. Owing to the high purchasing power, the demand for premium and personalized wooded products made from high-quality raw materials is increasing, which is estimated to be one of the key drivers for the market in the region. Europe experiences a high rate of immigration when compared with other regions. With the rising number of people migrating to Europe, the demand for office furniture will also increase. The increase in disposable incomes and construction activities will boost the growth of the market in Europe. Economic growth in European countries, such as Germany and the UK, has fueled the growth of the market in the region in the past few years.
In the market, various components play crucial roles, including columns and staircases, which are essential for structural integrity and accessibility. Shopping centers are prominent projects in this sector, requiring meticulous planning and execution to accommodate diverse commercial needs. Cross-laminated timber emerges as a sustainable choice, offering strength and eco-friendliness, while advancements in adhesives/resins enhance durability. Plywood finds widespread use in packaging, commercial, and industrial applications, serving as a versatile material for constructing chairs, tables, and even wooden beds. From restoration activities to modern construction ventures, these elements collectively shape the landscape of the construction industry, facilitating growth and innovation.
Increasing residential and commercial construction activities are notably driving market development. Developed economies such as the US are planning to invest significantly in infrastructural development. The rising focus on infrastructural and real estate development, as well as the construction of new residences and offices, is expected to increase the sales of new wood products and furnishings. The rising demand for wood products is also complemented by the increase in the number of renovation and modification projects across key countries such as the US, China, and India.
The rise in the number of multinational and global companies, as well as technology and business parks due to favorable trade relations between countries and government policies, such as relaxation in FDI norms, is estimated to increase the demand for wood products in offices and other commercial spaces during the forecast period. The real estate industry is growing significantly in key countries such as the US due to the increasing construction of offices, commercial complexes, and residences. This will drive the growth of the regional as well as the global wood products market during the forecast period. Hence, the growth of the real estate industry across the world will drive the growth of the market during the forecast period.
Rising wages in key manufacturing hubs are a key trend influencing market development. The primary factor contributing to rising wages is rapid urbanization and industrialization in emerging economies, especially in countries such as China, India, the Philippines, Vietnam, and Indonesia. The growth of the global economy, driven by growth in the GDP of countries such as China and India, also leads to increased wages. In addition, urbanization is a key factor for rising wages. With the growth in urbanization, people in low-income countries are opting for a high quality of life, which is driving the trend of rising wages in these countries.
Several government initiatives across emerging economies have encouraged urbanization, which is directly impacting wage growth. For instance, initiatives by the Indian government, such as the Smart Cities Mission and the Sardar Patel National Urban Housing Mission, aim to improve the standard of living of the people, which is expected to contribute to an increase in wages. This is expected to be a trend in the market during the market growth analysis period.
High volatility in raw material prices may impede the engineered wood products market growth. The cost of wood has increased considerably in recent times. In addition, the prices of raw materials such as chipboard, timber, foam, polish chemical materials, color paints, and hardware used in making furniture have increased. The cost of wood particleboard has increased because of volatility in the input and transportation costs, as well as the continuous downsizing of furniture manufacturers' production capacities.
The fluctuations in raw material prices are estimated to have an adverse effect on profitability, the cost of sales, and the ability of Companies to address the demands of consumers effectively. Furthermore, plastic and polymers, which are extensively used to produce furniture products, are derivatives of crude oil products. Fluctuating crude oil prices have a direct adverse effect on the pricing strategies of raw material suppliers. Hence, they have an adverse impact on companies. Thus, the volatility in raw material prices is estimated to be a key challenge for the market during the market research and growth period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Boise Cascade Co. - The company offers engineered wood products such as Versa Lam LVL.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
Boise Cascade Co, Celulosa Arauco y Constitucion SA, Georgia Pacific LLC, Greenply Industries Ltd., Huber Engineered Woods LLC, J M Huber Corp., Kahrs, Lampert Lumber, Louisiana Pacific Corp., Lowes Co. Inc., M.Y. Timber Co. Ltd, Raute Corp., RH Group, Rockshield Engineered Wood Products ULC, Roseburg Forest Products Co., Universal Forest Products Inc., UPM Kymmene Corp., West Fraser Timber Co. Ltd., and Weyerhaeuser Co.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
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The market is pivotal in modern construction, addressing environmental concerns and meeting diverse application insights needs. Engineered wood, such as Oriented Strand Boards (Oriented Strand Board) and Laminated Veneer Lumber (LVL), offers eco-friendly alternative to traditional building materials, reducing formaldehyde emissions and supporting sustainable practices. These products find extensive use in both non-residential sector and residential construction sectors for walls, flooring, doors, roofs, cabinets, and engineered sub-floor. The market benefits from advancements like Cross Laminated Timber (CLT) and composite wood, enhancing energy conservation and reducing greenhouse gas emissions compared to conventional materials. Builders and architects increasingly favor engineered wood for its structural integrity and versatility, while drones and unmanned aerial vehicles aid in precision manufacturing and construction monitoring. As the construction sector prioritizes sustainable development and mitigates deforestation impacts, engineered wood product type play a crucial role in shaping the future of green building practices worldwide.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 6.69 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, UK, China, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Boise Cascade Co, Celulosa Arauco y Constitucion SA, Georgia Pacific LLC, Greenply Industries Ltd., Huber Engineered Woods LLC, J M Huber Corp., Kahrs, Lampert Lumber, Louisiana Pacific Corp., Lowes Co. Inc., M.Y. Timber Co. Ltd, Raute Corp., RH Group, Rockshield Engineered Wood Products ULC, Roseburg Forest Products Co., Universal Forest Products Inc., UPM Kymmene Corp., West Fraser Timber Co. Ltd., and Weyerhaeuser Co. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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