Cross Laminated Timber Market Outlook:
Cross Laminated Timber Market size was over USD 1.62 Billion in 2025 and is anticipated to cross USD 6.17 Billion by 2035, witnessing more than 14.3% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of cross laminated timber is assessed at USD 1.83 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.
Key Cross Laminated Timber Market Insights Summary:
Regional Highlights:
- Europe’s cross laminated timber market will dominate more than 33% share by 2035, attributed to a strong timber building heritage, strict construction regulations, and sustainable practices.
- North America’s market will account for 26% share by 2035, driven by demand for earthquake- and fire-resistant construction materials amid climate change impacts.
Segment Insights:
- The non-residential segment in the cross laminated timber market is anticipated to hold a 54% share by 2035, attributed to demand for eco-friendly design and compliance in large constructions.
- The structural segment in the cross laminated timber market is anticipated to capture a 52% share by 2035, driven by increasing global construction and demand for eco-friendly housing.
Key Growth Trends:
- Growing demand for eco-friendly buildings
- Ongoing surge of construction according to trend
Major Challenges:
- Limited End-Use Industries in Cross Laminated Timber Market
- Fire and moisture resistance May Become a hindrance to the Growth of the Market
Key Players: Stora Enso Oyj, Binderholz GmbH, KLH Massivholz GmbH, Mayr-Melnhof Holz Holding AG, Hasslacher Holding GmbH, Structurlam Mass Timber Corporation, Nordic Structures, XLam Limited, Sterling Lumber Company, Theurl Holzindustrie GmbH.
Global Cross Laminated Timber Market Forecast and Regional Outlook:
Market Size & Growth Projections:
- 2025 Market Size: USD 1.62 Billion
- 2026 Market Size: USD 1.83 Billion
- Projected Market Size: USD 6.17 Billion by 2035
- Growth Forecasts: 14.3% CAGR (2026-2035)
Key Regional Dynamics:
- Largest Region: Europe (33% Share by 2035)
- Fastest Growing Region: Asia Pacific
- Dominating Countries: United States, Germany, China, Japan, United Kingdom
- Emerging Countries: China, Japan, India, Australia, Brazil
Last updated on : 11 September, 2025
Cross Laminated Timber Market Growth Drivers and Challenges:
Growth Drivers
- Growing demand for eco-friendly buildings: The rapidity of domestic applicability in the cross laminated timber market will be driven by increasing demand for more innovative wooden residential buildings with greater design freedom and aesthetic appeal such as multigenerational flats and single-family homes these demands for eco-friendly homes are friendly to nature and drives the market growth. The green building sector all across the globe is expected to have the potential to cut energy consumption by about 49% by 2050. When compared to non-green buildings, green buildings see an asset value rise of approximately 6%.
- Ongoing surge of construction according to trend: As a result of increasing awareness about the product's advantages, for instance, design flexibility, fire resistance, greater thermal performance, cost efficiency, and some others, cross laminated timber has become increasingly popular in construction applications. Also, by replacing materials like steel or concrete with CLT, building and construction are becoming more and more energy-efficient, with a correspondingly less environmental impact. Businesses have also come to see the value of implementing sustainable or green practices. Furthermore, this demand has been supported by the use of a clean & noise-free construction method, reduced building time, and low costs.
- Increasing Demand for Clean Labelled Products – Consumers have exhibited a strong concern for product integrity and functionality, which is a major deciding factor in their decision to buy these goods. Businesses can rely on clean labels and natural certification, which demonstrate the product's genuineness. The validity of the raw materials used in the finished product, which were supplied by an authorized body, is further increased by these labels. Manufacturers of cross-laminated wood who invest in this certification label should see a large rise in demand.
Challenges
- Limited End-Use Industries in Cross Laminated Timber Market - There are just a few end-use industries for cross-laminated timber, and each of them has its own set of rules for using the timber. To comply with the rules, manufacturers cannot change the product's specs. Each industry receives products of nearly identical quality from many manufacturers. As a result, there is no room for product differentiation in the market for cross-laminated timber, which is a significant hindrance to the industry's expansion internationally.
- Fire and moisture resistance May Become a hindrance to the Growth of the Market
- High Initial Cost of the Cross Laminated Timber May Hamper the Market Growth
Cross Laminated Timber Market Size and Forecast:
Report Attribute | Details |
---|---|
Base Year |
2025 |
Forecast Period |
2026-2035 |
CAGR |
14.3% |
Base Year Market Size (2025) |
USD 1.62 Billion |
Forecast Year Market Size (2035) |
USD 6.17 Billion |
Regional Scope |
|
Cross Laminated Timber Market Segmentation:
Application Segment Analysis
The non-residential segment in the cross laminated timber market is expected to hold the largest share of 54% by the end of 2035. 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 Segment Analysis
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 |
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Layer |
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Structure |
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Vishnu Nair
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Cross Laminated Timber Market Regional Analysis:
European Market Insights
The European cross laminated timber market accounted for 33% of the revenue share by 2035. 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 Insights
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.

Cross Laminated Timber Market Players:
- Stora Enso
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Mercer International
- Semodu AG
- Melnhof Holz
- Binderholz GmbH
Recent Developments
- In October 2022, Stora Enso Oyj opened a new production site in Czechia, Europe, which produces crosslaminated timber CLT, with an estimated annual production capacity of 120 000 m3. By expanding, the company has been able to increase its presence in the competitive market.
- June 15, 2023, Mercer Mass Timber, a low-carbon advanced manufacturer of timber building materials and a subsidiary of Mercer International Inc., announced the completion of the acquisition of Structurlam Mass Timber Corporation and its subsidiaries, namely Structurlam GmbH and Structurlam GmbH, by its parent company, Mercer International.
- Report ID: 5342
- Published Date: Sep 11, 2025
- Report Format: PDF, PPT
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