Cross Laminated Timber Market to Worth USD 2,066.1 Million by 2028 | Fortune Business Insights™
Fortune Business Insights
Updated 8 min read
Fortune Business Insights
The global cross laminated timber market covered major segments by Bonding Technology (Adhesive Bonded and Mechanically Fastened), By Application (Residential Buildings, Non-Residential Buildings, and Others) and regional forecast.
Pune, India, May 10, 2023 (GLOBE NEWSWIRE) -- According to Fortune Business Insights™, the global cross laminated timber market size is projected to reach USD 2,066.1 million in 2028, exhibiting a CAGR of 14.4% during the forecast period. CLT's extensive adoption in building structures and constructions is likely to facilitate market growth. Fortune Business Insights™ provides this information in its report titled "Cross Laminated Timber Market, 2021-2028."
Cross-laminated timber, also known as CLT, is a form of engineered wood lumber that consists of several structural composite timber and solid-sawn layers. This innovative material is used extensively in both on-site building and prefabricated building structures due to its superior properties.
One of the primary advantages of CLT is its excellent seismic performance. Its unique construction provides significant stability and durability, making it an ideal choice for buildings in areas prone to earthquakes. Additionally, CLT offers impressive design flexibility, allowing architects and builders to create stunning and innovative structures with ease.
Furthermore, CLT provides exceptional thermal and acoustic insulation, making it an ideal choice for energy-efficient buildings. Its increasing popularity has led to manufacturers incorporating soft and temperate wood, making CLT even more environmentally friendly.
The market for bonding technology can be segmented into two categories: mechanically fastened and adhesive bonded. These two methods differ in the way they join materials together, with mechanical fastening involving screws, bolts, or other hardware, while adhesive bonding uses chemical adhesives.
Applications of bonding technology are categorized into non-residential buildings, residential buildings, and others. Non-residential buildings include commercial and industrial structures such as office buildings, warehouses, and factories. Residential buildings, on the other hand, include homes, apartments, and other types of housing. The "others" category encompasses a range of applications, including bridges, infrastructure, and transportation.
Geographically, the market for bonding technology is segmented into four regions: Europe, North America, Asia-Pacific, and the Rest of the World. Europe and North America are currently the largest markets for bonding technology, driven by the significant demand for non-residential construction in these regions. The Asia-Pacific region, on the other hand, is expected to see significant growth in the coming years, driven by the increasing demand for residential and commercial structures.
Impact of COVID-19
Manufacturing Constraints and Lack of Demand from Construction Sectors to Hinder Market Progress
This market is expected to be affected negatively during the forecast period because of manufacturing constraints and the lack of demand for CLT from the construction industry. The spike in COVID-19 infections has provoked governments to impose stringent regulations against construction, manufacturing, and transport. The lack of raw materials and manufacturing restraints are likely to hinder CLT's demand. However, the adoption of reduced capacities and production machinery may enable manufacturers to re-gain their position globally. These factors are likely to fuel the market growth during the pandemic.
Highlights of the Report:
This report offers an exhaustive examination of the market's most prominent segments, delving into the latest trends and revealing key insights that can inform strategic decision-making. A thorough analysis of the market's driving and restraining forces is provided, as well as an in-depth evaluation of the pandemic's impact on the market. Regional developments are also closely scrutinized, providing valuable information for companies looking to expand their operations. Furthermore, the report sheds light on the strategies employed by the market's key players, giving readers a competitive edge in the marketplace.
Due to its eco-friendly qualities and efficacy in construction applications, cross laminated timber (CLT) has become widely utilized in various green constructions. Governments worldwide are supporting the use of CLT in construction sectors because of its environmentally friendly properties. In 2020, India's Public Works Department lifted the ban on the usage of timber in building constructions, allowing for the increased use of CLT. In addition to being sustainable, CLT provides superior acoustic and thermal insulation compared to conventional materials. With the growing emphasis on sustainable construction materials, both manufacturers and governments are heavily invested in the development of CLT. As a result, the cross laminated timber market is expected to experience significant growth.
However, the material's non-reliable moisture and fire resistance may hinder the market progress.
Regional Insights:
Extensive Adoption of CLT in Medium and Small Sized Houses to Boost Market in Europe
Europe is poised to take the lead in the cross laminated timber market share due to its widespread adoption in numerous medium and small-sized houses. With the market valued at 445.2 million in 2020, it is expected to grow rapidly in the coming years. The region accounts for more than 65% of the worldwide construction of CLT, indicating its prominence in the industry. Additionally, CLT offers superior insulation against cold environments, which could lead to increased demand from construction projects. These factors are expected to significantly drive market growth in the region.
The North American market is set to experience significant progress, with the widespread adoption of CLT in hybrid building constructions playing a key role. Additionally, the region's increasing investments in infrastructure developments are expected to further fuel market growth.
The Asia-Pacific market is expected to experience significant progress, with the growing demand for construction materials that offer excellent seismic performance driving market growth. Additionally, the incorporation of locally grown cross-laminated timber in constructions is anticipated to further fuel market progress in the region.
Competitive Landscape:
To strengthen their market position, leading companies in the industry are establishing manufacturing plants across several regions. A prime example of this is Mayr Melnhof Holz Holding AG, which invested approximately USD 145 million in January 2020 to construct a state-of-the-art CLT manufacturing facility in Leoben, Austria. This strategic move was intended to bolster the company's market position in the European industry and facilitate forward integration development. Additionally, the adoption of research and development initiatives could enable companies to improve their product quality and enhance their brand image.
Fortune Business Insights™ delivers accurate data and innovative corporate analysis, helping organizations of all sizes make appropriate decisions. We tailor novel solutions for our clients, assisting them to address various challenges distinct to their businesses. Our aim is to empower them with holistic market intelligence, providing a granular overview of the market they are operating in.
