Global Cross-Laminated Timber Market Report and Forecast 2024-2032

Global Cross-Laminated Timber Market Size

The global cross-laminated timber market attained a value of USD 1,574.10 million in 2023. The market is expected to further grow at a CAGR of 11.4% in the forecast period of 2024-2032 to reach USD 4,142.33 million by 2032.

Cross-Laminated Timber Market Outlook

• In 2022, the NYC Department of Buildings redefined its Building Codes, including a definition of cross-laminated timber and structural composite lumber, thus laying the ground for mass timber's proliferation.

• In 2024, Timberlab Inc. announced its plans to build and operate a cross-laminated timber manufacturing facility with leading-edge technology in Oregon's Mid-Willamette region, to be developed upon obtaining all required state and local approvals.

• In 2023, Shigeru Ban collaborated with the municipality of Lviv to design an extension to Lviv Hospital using cross-laminated wood and joints inspired by traditional wooden construction methods.

• With the growing demand for cross-laminated timber, it could prove to be an environmentally sustainable construction material in light of increased consumer awareness about the environmental damage being caused by the cement and brick manufacturing processes.

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Cross-Laminated Timber Market Growth

The cross-laminated timber market is currently being driven by the increasing construction activities and the rising demand coming from the education sector and residential and non-residential applications. These are putting pressure on the supplies of traditional materials and prompting developers to look for speedier alternatives like cross-laminated timber and hence bolstering the cross-laminated timber demand.

Another significant driver of the market is the increasing demand for biophilic design in architecture. Cross-laminated timber exploits the trend of incorporating natural elements into urban environments with its aesthetic appeal, which is natural. Added health benefits, such as improvement in air quality and enhancement of well-being, are also aligned with the trend. This design approach tends to support both sustainability and occupant satisfaction, hence propelling the growth of the cross-laminated timber market.

Key Trends and Recent Developments

Sustainable building practices, technological advancements, and high-density developments are some of the factors opening up new cross-laminated timber market opportunities.

June 2024

Mayr-Melnhof Holz decides on the investment in a fully automated state-of-the-art high-frequency press for standard glulam components at its Olsberg location in Germany. With its new pressing system, Olsberg is taking a qualitative leap into the automated processing of production orders and is timely state-of-the-art in providing the straight components required for the glulam standard business.

September 2023

The New York City Economic Development Corporation (NYCEDC) announced the creation of the New York City Mass Timber Studio: "a technical assistance program to support active mass timber development projects in the early phases of project planning and design."

November 2022

Stora Enso and Voodin Blade Technology GmbH have partnered to develop wooden wind turbine blades as part of their sustainability drive. The companies make commitments to develop sustainable alternatives for wind turbine blades and establish a competitively reliable supply chain.

October 2022

Stora Enso has opened a new production unit for cross-laminated timber in Ždírec, the Czech Republic. Following an investment of EUR 79 million, this new CLT unit will be one of the most modern in the world and will support the Stora Enso strategy to grow within wooden building solutions.

Sustainable Building Practices

There is a need for eco-friendly construction, and thus the demand of the cross-laminated timber market is induced. With reduced carbon footprint and renewable material use, among others, cross-laminated timbers support global sustainability goals and pressures from regulators.

Technological Advancements

Improvements to the production process and construction techniques for cross-laminated timber continue to increase material performance and design flexibility, from a variety of manufacturing process improvements through new applications in taller structures, further broadening the use of CLT in a wide array of building types.

Urbanization and High-Density Development

Increasing urbanisation is creating demand for cross-laminated timber in mid-rise and high-rise buildings and hence boosting the cross-laminated timber market revenue. The light weight of the material and efficient construction methods make cross-laminated timber ideal to meet the increasing demand for high-density, sustainable housing and commercial space needs of growing cities.

Growing Market Adoption

There is increasing adoption of cross-laminated timber across regions, with positive policies and a rise in awareness of the material's advantages being promoted. Factors pushing the growth of cross-laminated timber industry include the increase in production capacities, growth in the number of projects using cross-laminated timber, and further integration in the use of residential, commercial, and public buildings.

Cross-laminated Timber Market Trends

Cross-laminated timber (CLT) is engineered wood used as building material and designed to complement the light- and heavy-timber framing options. Owing to its dimensional stability and high strength, it can be used as an alternative to steel, concrete, and masonry in many building types. It is more economical, environmentally friendly as it emits less greenhouse gas, it is easy and fast to install as it is prefabricated and provides flexibility in design as it is lightweight and strong.

A key trend of the cross-laminated timber market is the increasing integration of advanced digital technologies into design and construction. Building information modelling (BIM) and other digital technologies help realise CLT projects with better precision, efficiency, and personalization. This enables increasingly complex and innovative applications in modern architecture.

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Cross-Laminated Timber Industry Segmentation

“Global Cross-Laminated Timber Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

On the basis of application, the market is divided into:

• Residential

• Public

• Commercial

Based on product type, the industry is segmented into:

• Custom

• Blank

On the basis of element type, the industry is divided into:

• Wall Panels

• Flooring Panels

• Roofing Slabs

Based on raw material type, the industry is segregated into:

• Spruce

• Pine

• Fir

• Others

On the basis of bonding methods, the industry is divided into:

• Adhesively Bonded

• Mechanically Fastened

Based on panel layers, the market is segmented into:

• 3-Ply

• 5-Ply

• 7-Ply

• Others

On the basis of adhesive type, the industry is categorised into:

• PUR (Polyurethane)

• PRF (Phenol Resorcinol Formaldehyde)

• MUF (Melamine-Urea-Formaldehyde)

Based on press type, the industry is divided into:

• Hydraulic Press

• Vacuum Press

• Pneumatic Press

Based on storey class, the industry is categorised into:

• Low-Rise Buildings (1-4 Storeys)

• Mid-Rise Buildings (5-10 Storeys)

• High-Rise Buildings (more than 10 storeys)

Based on end-uses, the industry is segmented into:

• Structural Applications

• Non-Structural Applications

Cross-Laminated Timber Market Share

Commercial Application To Gain Significance Due To Demand In Sustainable And Cost-Effective Building Solutions

The commercial segment is expected to have a quite dominant share in the cross-laminated timber market. It is also driven by increasing demands from commercial sectors of office buildings, retail spaces, and hospitality structures for more sustainable, attractive, and economical construction methods. In commercial applications, the adoption of CLT has been especially very appealing since it allows for faster construction time and lesser environmental impacts, thus making performance versus sustainability, not an either-or proposition. Ultimately, this leads to an increase in the cross-laminated timber industry revenue globally.

Mid-Rise Buildings (5-10 Storeys) To Use CLT On A Wide Scale For Structural Efficiency

As per cross-laminated timber industry analysis, the mid-rise buildings (5-10 storeys) segment is likely to drive tremendous growth. Such a segment reaps all the benefits from the combination of CLT's structural strength with lighter weight, hence being quite perfect for buildings that are taller than low-rise and less demanding than high-rises. Applications in the mid-rise balance cost with performance and sustainability, highlighting the benefits of using CLT in residential and commercial applications. It is this growing focus on urban density and sustainable development that further drives interest in mid-rise CLT construction.

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Cross-Laminated Timber Market Regional Analysis

Europe Is Likely To Acquire Dominant Market Share Owing To Sustainable Construction Practices

The cross-laminated timber industry in Europe is expected to hold the leading share in the cross-laminated timber market. The primary reason behind this supremacy is the robust regulatory support that sustainable construction practices have been enjoying in Europe, coupled with major investments in green building technologies and an existing well-established network of producers of cross-laminated timber.

Austria, Germany, and Sweden dominate in terms of innovation and production of cross-laminated timber, including enabling policies and rising adoption of eco-friendly construction methods. Furthermore, the well-established market infrastructure in this mature market and growing concern of European nations toward reducing carbon footprints also support the region's lead in the global cross-laminated timber market.

Competitive Landscape

The key players in the cross-laminated timber market are mainly involved in developing technologies, increasing production capacities, entering into strategic partnerships, and improving sustainability performance to meet growing demand and increasingly strict environmental legislation.

The Stora Enso Group, founded in 1998 and headquartered in Helsinki, Finland, supplies a diversified portfolio of sustainable building materials, including Cross-Laminated Timber and Glulam. Their products highlight eco-friendliness with superior engineering in support of the modern needs of construction.

Binderholz GmbH, Fügen, Austria-based, was established in 1956 to specialize in Cross-Laminated Timber, Glulam, and other solid wood products. Quality and structural performance are guaranteed with the company's products, thereby promoting sustainable and innovative building solutions.

Mayr Melnhof Holz Group has been in business since 1986, with its headquarters in Leoben, Austria. It offers a comprehensive range of engineered wood products, from CLT and Glulam. Their concentration will be on linking leading technology with sustainability, adding construction effectiveness, and ecological obligation for a better future.

Schilliger Holz AG is a company founded in 1960 and located in Lenzburg, Switzerland and produces a wide array of timber products, from CLT to other wooden solutions involving engineered wood. Besides this, the firm comes up with high-grade, benign products harmonised with contemporary architecture and building demands.

Other key players in the cross-laminated timber market are KLH Massivholz GmbH, HASSLACHER Holding GmbH, Sterling Company, Structurlam Mass Timber Corporation, Nordic Structures, and Eugen Decker Holzindustrie KG, among others.

Key Highlights of the Report

Cross-Laminated Timber Market Report Snapshots

Cross-Laminated Timber Market Size

Cross Laminated Timber Market Growth

Cross Laminated Timber Market Trends

Cross Laminated Timber Market Share

Cross-Laminated Timber Market Analysis

Cross-Laminated Timber Companies

Cross Laminated Timber Market Regional Analysis