Global Laminated Timber Market Size, Share and Analysis - Report Forecast Trends and Outlook (2024-2032)

Laminated Timber Market Growth

Surging Use of Wood in the Construction Industry to Bolster the Market Growth

The rise of the global population has led to rapid urbanisation and increasing developments of infrastructure across the globe. This has resulted in the thriving construction industry, which is also driving the market growth for laminated timber. It also provides high thermal insulation properties, ease of use, durability, and flexibility and is cost-effective, which further propels the market growth. Moreover, it is widely used in interior design for providing not only superior quality but also aesthetic design. The construction using laminated timber can decrease carbon footprints in the building sector. The rising demand for high-quality and sustainable furniture also provides impetus to the market. The increasing number of green buildings and the rising focus on sustainability are also boosting the laminated timber demand growth.

The rising investments in the research and development of laminated timber and its increasing applications in various industries are positively impacting the market growth. Increasing demand for laminated timber, especially in North America and Europe due to the rising awareness and technological advancement, is also driving the market. The recent report by the Food and Agricultural Organisation of the United States (FAO) also promotes the use of wood as a construction material, therefore contributing to the development of the bioeconomy, providing further impetus to the market growth.

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Key Trends and Recent Developments

Use of eco-friendly materials, manufacturing advances and demand for green building construction are a few factors carving the laminated timber market dynamics and trends.

March 2024

Timberlab Inc announced plans for the construction and operation of a state-of-the-art cross-laminated timber manufacturing facility in the mid-Willamette region of Oregon, pending state and local approval.

Use of eco-friendly materials

A key trend in the laminated timber market is the demand for green buildings. It falls into the categories of green construction since it is renewable and has a lower carbon footprint; thus, it finds its place in modern sustainable architecture and urbanism.

Advances in manufacturing

Manufacturing techniques are continuously improved to offer better performance and applications for laminated timber. Improved adhesive technologies and precise cutting methods are opening more possibilities for this material in complicated and high-rise constructions.

Urbanisation and green building

Cities now need more sustainable building solutions with increased urbanisation. Laminated timber is gaining favour in an attempt to address both the aesthetic and structural requirements that come with modern, environmentally conscious construction projects, pushing the laminated timber market opportunities ahead.

Laminated Timber Market Trends

The Use of Laminated Timber as a Substitute for Steel and Concrete to Boost Market Growth

The excellent properties of laminated timber, such as thermal insulation and acoustic applications, enable its usage in the ceiling tile industry, one of the rapidly flourishing and evolving markets. Engineered wood products such as cross-laminated timber function as an eco-friendly substitute for fossil-based materials such as steel and concrete in the construction industry. Therefore, they are increasingly used in the construction of high-rise buildings, pavilions, parking structures, and bridges, among others; trends such as this are majorly boosting the market for laminated timber. It provides resilience in seismic-prone areas and is also effective for fire safety; this can contribute to the laminated timber industry growth in countries such as Japan and New Zealand.

Moreover, governments across the globe are emphasising on the use of biodegradable and recyclable products owing to the increasing awareness about the rapid climate change. They are hence promoting the use of laminated timber, which is produced from renewable resources, further propelling the market growth. A new international Congress was created in 2017 to bring together international actors in economic and technological development in the field of wood construction, therefore exhibiting the benefits of laminated timber as a construction material and hence promoting market growth. Various initiatives such as Wood First in Europe and Wood Works in Canada also aim to increase the use of wood-based materials, further aiding the market growth.

Industry Outlook

The global construction market will increase from USD 4.5 trillion between 2020 and 2030 to USD 15.2 trillion, with USD 8.9 trillion in emerging markets by 2030. Sub-Saharan Africa will have the fastest regional construction growth, followed by emerging Asia. The four countries of China, India, the US, and Indonesia will comprise 58.3% of global construction growth. Urbanisation is expected to drive growth in emerging markets, with as many as 2.5 billion additional urban dwellers possible by 2050, approximately 90% of whom could reside in both Asia and Africa.

As the United States Census Bureau estimated, new residential construction in May 2024 showed a mix of directions within different levels of this construction phase. Building permits issued came in at 1,386,000 units. At the same time, housing starts showed at 1,277,000 units, also a slight drop consistent with stabilisation since early 2023. In contrast, housing completions posted at 1,514,000 units, also increasing from the previous months, pointing to good completion of the construction projects received so far. This has been relatively stable since 2021, reflecting the completion of residential units in time. These factors present the significant trends of the laminated timber market.

The global market for laminated timber has also been experiencing robust growth, with the demand for sustainable building materials on the rise. With the expansion in the construction industry, a growing demand for laminated timber arises owing to its being eco-friendly and its structural benefits. The market for this product is said to grow exponentially with innovations in techniques of manufacture that increase the materials' efficiency and uses. Laminated timber is thus likely to see strong adoption in the emergent markets of Asia and Africa, where developments will gradually shift toward greener building practices and urbanisation. Moreover, new advantages for sustainable materials are likely to drive the expansion of the market.

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Laminated Timber Industry Segmentation

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

The major types of laminated timber are:

• Cross Laminated Timber (CLT)
• Glue Laminated Timber (Glulam)
• Nail Laminated Timber (NLT)
• Others

The market can be broadly categorised based on end use into:

• Residential    
• Institutional
• Commercial

By region, the market is divided into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Laminated Timber Market Share

Cross-Laminated Timber Is Expected To Gain Pace For Its Effectiveness In Large-Scale Constructions

As per laminated timber market analysis, CLT, being versatile, strong, and effective in large-scale and high-rise constructions, is likely to catch up with great momentum. The layered structure of CLT, which provides excellent structural stability and fire resistance, makes the material one of the preferred choices for sustainable and innovative building designs. It can also reduce construction time while offering greater aesthetic appeal, boosting its popularity in the market and aligning it with growing demand for eco-friendly and modern construction solutions.

Increasing Sustainable Construction Projects Are Strengthening The Global Laminated Timber Market.

• The laminated timber market is growing based on increasing demand from sustainable construction projects as a response to low carbon emissions.
• As per laminated timber industry analysis, this kind of timber is used in residential and commercial buildings to replace wood and steel beams, thus encouraging superior strength-to-weight ratios.
• Improvement in quality and versatility by increasing applications in furniture manufacture and in interior designs is promoting several developing areas.

High Production Costs And Supply Chain Disruptions Are Likely To Hamper The Global Laminated Timber Market

• High production cost of procuring and processing good quality wood.
• Sustainably sourced raw materials are still unreliable in some regions seeking to create reliance on such sources.
• Specialised machinery required along with qualified labour to maintain productive efficiency and quality of the product.
• Price competitive and cost-effective laminated timber products expected to be put up against a volatile nature of the prices of the raw materials.

Increasing Investment In Green Building Projects Offers Opportunities For Laminated Timber As An Environmentally Friendly Building Material.

• Expanding urban building projects are driving demand for laminated timber in multi-story buildings.
• Increasing interest in prefabricated building solutions provides access to new markets for laminated timber panels and structures, propelling the laminated timber market growth.
• Advances in adhesive technologies are reducing production cost and environmental impact.
• Increasing awareness of, and regulatory support for, sustainable forestry practices and certified timber products.
• Entering the non-exploited markets in developing regions where urbanisation and construction are increasingly gaining ground.
• More opportunities for cooperation with architectural offices and research institutions in new application development in laminated timber.

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Laminated Timber Regional Analysis

The laminated timber industry in Europe will drive more attention to the global market due to the commitment of the region in sustainable construction and higher demands environmentally. Some European countries have been trying to cut carbon footprints by adopting green building materials like laminated timber in constructing eco-friendly architecture. Therefore, the region probably will show higher demand because of the advanced technologies in the building sector and favourable government policies. By putting a greater emphasis on design and urban development projects, Europe can claim world leadership in the adoption of laminated timber as a modern, sustainable solution for present-day construction.

Competitive Landscape

Key participants in the laminated timber market report are involved in the development of value-added products, extension of their application areas, and also focus on sustainability using state-of-the-art technologies and environmentally friendly practices, in parallel with increasing construction demand.

Ace Hardware Corporation, founded in 1924 and headquartered in Oak Brook, Illinois, provides a diversified product portfolio in hardware, tool, and home improvement materials. These include paint, gardening supplies, and seasonal items that appeal to both do-it-yourself and professional contractors.

Century Furniture LLC, founded in 1947 and based out of the United States, is among the leading high-end and custom furniture companies. Century offers a gamut of upholstered and wood products with increasing emphasis on luxury and craftsmanship for both residential and commercial premises.

Forever Patio, also known as Forever Patio LLC, was established in 2009 and is based in Houston, Texas, United States of America. It manufactures various products related to outdoor furniture, such as but not limited to, patio sets, loungers, and dining furniture that must be both durable and stylish for outdoor settings.

Other key players in the laminated timber market report are Haworth, Inc. and Nilkamal Furniture, among others.

Key Price Indicators in the Global Laminated Timber Market

• Fluctuations in the Cost of Timber: Global changes in forestry supply and demand determine fluctuations in the cost of timber; this, in turn, has a direct impact on the prices of laminated timber products.
• Research and Development Expenses: Investments in research and development are the basis for the prices of the advanced laminated timber products with value-added features.
• Transportation and Logistics Costs: Transportation and logistics, especially to remote construction sites, remain key variables in the overall price determination of the products, affecting the laminated timber market revenue. 
• Influence of Trade Policies and Regulations: International trade policies, tariff, and import/export regulations influence the global pricing structure of laminated timber in the market.
• Government Subsidies and Incentives: Government subsidies and incentives toward the promotion of sustainable construction reduce costs and hence make laminated timber affordable.

Key Demand Indicators in the Global Laminated Timber Market

• Growing urbanisation and construction demand: The growing demand for quality residential and commercial buildings, coupled with groundwork, is expanding the use of laminated timber.
• The furniture and interior design industries: As the growing furniture and interior design industries demand versatile and aesthetically suitable materials, the demand in the laminated timber market is boosted.
• Green Building Movement: The increasing green building movement is gradually translating into wider demand for green, earth-friendly construction materials, such as laminated timber.
• Seasonality and Economic Cycles: The seasonal nature, combined with economic cycles, influences purchasing decisions and demand in the construction and furniture industries.