Cross Laminated Timber Market size is anticipated to surpass USD 7 billion by the end of 2036, growing at a CAGR of 14% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of cross laminated timber was over USD 2 billion. This market growth is estimated to grow on account of the growing need for cross laminated timers to cope with the increasing pollution around the world. The use of CLT helps in the reduction of carbon emissions from the overall construction process and promotes the use of renewable resources. Contribution of each form of renewable energy to the total primary energy consumption in the United States in 2022, 13.1% of the total energy came from renewable sources. Therefore, the growing demand for renewable sources is also driving the market growth.
Cross laminated timber, which is usually produced from sustainably harvested forests, is an environmentally friendly construction material. About 39% of yearly worldwide CO2 emissions originate from the built environment. Buildings activities account for approximately 26% of those total emissions every year, with infrastructure development and materials and construction (often referred to as embedded carbon) accounting for an additional close to 12% of the overall emissions annually. Hence, the implementation of CLTs is a major growth factor for the market development, since they help to reduce greenhouse gas emissions from the entire construction process and encourage the use of renewables.
Growth Drivers;
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
~14% |
|
Base Year Market Size (2023) |
~ USD 2 Billion |
|
Forecast Year Market Size (2036) |
~ USD 7 Billion |
|
Regional Scope |
|
Application (Residential and Non-Residential)
The non-residential segment in the cross laminated timber market is expected to hold the largest share of 54% by the end of 2036. Building construction has an influence on the environment, including the use of water and electricity. Cross laminated timber is in great demand among construction businesses for non-residential areas because of its mechanical, stiffness, and cosmetic advantages. Because of the benefits in design and following environmental requirements required in the office, public, institutional, and hotel segments, the non-residential building industry provides major prospects for cross laminated timber. The value of non-residential construction completed in the United States in 2027 is predicted to be around 646 billion US dollars based on planned construction development over the following few years. As a result, the non-residential sector provides enormous prospects and is likely to account for a significant part of the future market.
End-Use (Structural, Non-Structural)
Cross laminated timber market for the structural segment is expected to hold a share of 52% during the forecast period. Cross laminated timbers of the structural grade are utilized in engineering construction. Currently, structural-grade cross-laminated timber is mostly used in commercial structures. As global new construction and restoration operations have increased, so has the use of hardwood floor beams. The industry is also being driven by the rising demand for eco-friendly dwellings. Design flexibility, thermal properties, fire protection, acoustic performance, and seismic performance are all benefits of structural cross laminated timber. When evaluating buildings and their applications and aims, architectural adaptability is crucial given how the housing market is changing. It permits greater spans and fewer interior support components when compared to steel and concrete constructions; this can be done by thickening the panel. All these factors are driving the growth of the segment.
Our in-depth analysis of the cross laminated timber market includes the following segments:
|
Application |
|
|
Layer |
|
|
Structure |
|
European Market Forecast
The European cross laminated timber market accounted for 33% of the revenue share by 2036. The use of CLT has become increasingly popular for urban and industrial projects in this area due to its rich timber building heritage, strict construction regulations as well and an emphasis on sustainable practices. Moreover, the cross laminated timber market in Europe is further encouraged by the EU's commitment to reduce CO2 emissions and promote the sustainability of buildings. For instance, the number of dwellings in Italy's residential buildings has risen by approximately 3% for the first quarter of 2022, which represents a slight increase from the preceding quarter.
North American Market Statistics
North American cross laminated timber market is expected to hold a share of 26% during the forecast period. Cross laminated wood's capacity to endure earthquakes and fires is a major market driver in North America. According to a NOAA-funded study from 2021, climate change has proven to be the primary factor in the rise in fire weather links in the western United States. Hence, cross laminated timber is anticipated to be used in construction. The demand from the United States dominates the North American market for cross-laminated wood. Strong expansion in the Canadian and Mexican application industries is also projected to offer growth opportunities for the region's demand for CLT goods. However, several laws regarding wood goods have been passed in the area, which might impede cross laminated timber market expansion.
Author Credits: Mohd Shadab, Yashika Karodiwal
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?