Global Engineered Wood Market to expand at a CAGR of 6.52% by 2030

Introduction

Engineered wood, commonly referred to as composite wood, and consists of various wood products made by gluing veneers, particles, fibers, and wood strands to create a synthetic composite. Engineered wood is a derivative product created by connecting or attaching strands, particles, etc., with adhesives or other fixing methods to build composite materials. They include a variety of materials, from plywood to roof trusses. Due to certain benefits, engineered wood furniture may be favored over solid wood furniture. This type of furniture is designed to meet application-specific requirements. Another benefit is its adaptability and wide availability in a variety of thicknesses. Compared to solid wood, it is relatively simple to cut, drill, route, join, glue, and fasten. The most significant advantage of engineered wood furniture is that it is considerably less expensive than solid wood furniture.

The primary factor driving the demand for engineered wood is the rise in the rehabilitation and remodeling of older homes. In addition, the need for engineered wood is driven by the development of new homes. In addition, because engineered wood is a cost-effective and environmentally-friendly alternative to other wood and cement products, its use as a building material substitute should increase. Moreover, engineered wood generates fewer toxic byproducts than emission-intensive materials such as concrete, steel, and aluminum. It is therefore expected that modified wood will reduce greenhouse gas emissions. In addition, the adhesives and resins used in engineered wood are eco-friendly and do not release greenhouse emissions. This has increased engineers' and architects' adoption of engineered wood.

Market Dynamics

The Growing Usage of Engineered Wood and Advancements in Reconstruction, Renovation, and Remodeling of Old Buildings to Drive the Global Engineered Wood Market

There is a growing demand for housing as the world's population increases. This has increased the development of new residences, particularly in developing nations where urbanization is growing quicker. This will boost the need for construction materials such as concrete, steel, and aluminum, the manufacture of which causes greenhouse gas emissions. In contrast to these other building materials, engineered wood is environmentally stable and generates no greenhouse gases; hence, it is environmentally helpful. A part of manufactured wood is produced from wood waste. In addition, this substance is renewable, biodegradable, non-toxic, energy-efficient, and recyclable. Raised adoption of green buildings in countries such as the United States, Germany, and France has increased the demand for environmentally friendly building materials, such as engineered wood.

It is predicted that approximately 60% of new construction projects will adhere to green building requirements. Moreover, engineered wood is cheaper than regular wood and cement goods. Consequently, it reduces the project costs of the buildings, which encourages builders and architects to prefer engineered wood over conventional building materials. Currently, these reasons are driving the global market for engineered wood. Increasing urbanization increases the demand for optimal urban land utilization. Antiquated infrastructures are being demolished to make way for the construction of new, contemporary facilities. In addition, several old buildings and constructions are no longer safe for living. The owner or government must demolish the current structure to construct a new structure.

In addition, there is a growing desire to repair or renovate existing homes by utilizing cutting-edge technologies to enhance their visual appeal. These household and commercial renovations require engineered wood for flooring, walls, and roofing. Most of these reconstructions, renovations, and remodeling initiatives occur in prosperous countries. These factors contribute to the global growth of the engineered wood industry.

Low Infiltration of MDF in Emerging Economies to Create Global Engineered Wood Market Opportunities

In Asia-Pacific and developing African nations, furniture and other wood-based manufactured goods have a low market share. In addition, the majority of plywood utilized in these regions is often low-cost, unorganized-market Tier 2 and Tier 3 plywood. This creates a substantial opportunity for materials such as Medium-Density Fibreboard (MDF), a potential appropriate solution for low-cost and low-quality plywood. MDF is affordable, resistant to moisture, quickly produced, and more attractive than poor plywood. In addition, it is expected that the MDF market in India will treble between 2018 and 2025. In addition, the transition from an unorganized to an organized furniture sector in these developing nations supports MDF's market penetration. Therefore, considerable potential exists for MDF in developing countries.

Regional Insights

The Asia Pacific will command the market with the largest share while advancing at a CAGR of 6.5%. This region has one of the most significant populace; hence, wood products are in high demand. In developing nations, rapid urbanization and global market expansion are occurring. The essential factors creating expansion opportunities for the Asia-Pacific engineered wood markets are the ambitious expansion goals, firms building a globally competitive position, abundant human resources, and fast urbanization. In addition, the Pradhan Mantri Awas Yojana of the Indian government aimed to construct 30,000 affordable homes by 2021. This raised the market need for produced wood in India. Similarly, the Shenzhen Municipal Government in China intends to build one million inexpensive homes by 2035. It is projected that government initiatives of this sort will raise the demand for engineered wood over the projection period.

North America will advance at a CAGR of 6% and hold USD 69,221 million. In the United States and Canada, wood has been an integral component of the building industry. The demand for engineered wood results from technological advances and the manufacture of more efficient wood products. Engineered wood is one of the principal applications in North America for wooden flooring. Furthermore, the rise of the market for engineered wood in the U.S. and Canada is primarily driven by the increase in green building construction. Over 60% of new building construction in the United States and Canada is predicted to be green by 2025. In addition, the Mexican construction industry rapidly adopts the green building trend. As a result, the North American market for engineered wood products is projected to experience tremendous development.

 Key Highlights

• The global engineered wood market had a revenue share of USD 276,838 million in 2021, envisioned to reach USD 458,855 million growing at a CAGR of 6.52% during the forecast period.
• Based on type, the others segment is projected to advance at a CAGR of 6.5% and hold the largest market share.
• Based on application, the furniture segment is projected to advance at a CAGR of 6.6% and hold the largest market share.
• Based on end-user, the residential section is projected to advance at a CAGR of 6.3% and hold the largest market share.
• Based on regional analysis, the Asia Pacific will command the market with the largest share while advancing at a CAGR of 6.5%.

Competitive Players

 Competitive Players in the Market

• Boise Cascade Company
• Celulosa Arauco y Constitucion SA
• Huber Engineered Woods LLC
• Louisiana-Pacific Corporation (LP)
• Norbord Inc.
• Patrick Industries, Inc.
• Raute Group
• Shenzhen Risewell Industry Co., Ltd
• Universal Forest Products, Inc.
• Weyerhaeuser Company.

Recent Developments

 Market News

• In 2022, Boise Cascade Company agreed to acquire Coastal Plywood Company. 
• In 2022, Patrick Industries, Inc. completed the acquisition of Diamondback Towers, LLC.

Segmentation

 Global Engineered Wood Market: Segmentation

 By Type

• I-Beams
• Plywood
• Laminated Veneer Lumber (LVL)
• Glulam (Glued Laminated Timber)
• Oriented Strand Boards (OSB)
• Cross-Laminated Timber (CLT)
• Others 

 By Application

• Construction
• Furniture
• Flooring
• Packaging
• Others

 By End-user

• Residential
• Commercial & Industrial

 By Region

• North America 
• Europe
• Asia Pacific 
• LAMEA