Wooden Decking Market

Market Overview

The global wooden decking market size was valued at USD 7.74 billion in 2022. It is estimated to reach USD 8.62 billion by 2031, growing at a CAGR of 1.21% during the forecast period (2023–2031).

Decking is a unique method of home construction and modification that improves the outdoor area, making it more attractive and practical. Decking is made of hardwood planks nailed to the ground and used for foot traffic in gardens and other outdoor spaces. It entails building an outdoor floor made primarily of durable outdoor lumber that is not easily harmed by the environment outside. Many advantages come with wooden decking for homes. Wood decking is a fantastic addition to the home and is simple to construct and maintain with the appropriate advice. It provides a chance to combine the home's interior and external design elements. High-quality timber decking must be installed to reduce maintenance expenses and achieve the desired visual appeal.

Due to its ability to expand home and encourage outdoor living, wooden decks are becoming more and more popular. Wooden decking is used in many homes to build patios, landscape gardens, or enlarge the living space due to its simplicity in design flexibility and adaptation to varied purposes. The urban population's rising disposable incomes enable the development of new homes in urban locations, increasing demand for wooden decks. The rise in renovation and remodeling projects, as well as the rising demand for housing and opulent infrastructure in developed nations like the United States and Canada, are the reasons propelling the expansion of the wooden decking industry.

Market Dynamics

Global Wooden Decking Market Drivers

The Growing Market in Remodeling and Refurbishment Activities

The world's construction market is expanding steadily. Due to the multiple opportunities in these countries, the rising need for structures, and the expanding populations, Asia-Pacific, North America, the Middle East, and Africa are seeing significant investments in the construction and restoration industries. People accept wooden or timber decking because it can be utilized in various ways as part of garden landscaping to expand the living area of a house and as a substitute for stone-based features like patios. This is due to rising living standards throughout the world.

Furthermore, "green spaces" or "sky parks" are frequently created using urban landscaping techniques on high-rise office and residential structures with rooftop decks. Due to the growing popularity of outdoor living, many landscape architecture firms concentrate on the planning, creation, and upkeep of these areas. Wooden decking is frequently used in the residential sector to build new structures, repair existing ones, and renovate existing ones. In residential construction, wooden decking is used for various functions, including flooring, paths, swimming pool decks, cladding, and siding. The Chinese government, for instance, unveiled ambitious development plans that included preparations for relocating 250 million people to its new megacities over the following ten years.

As a result, there may be a significant market opportunity for wooden decking to be employed in the future for various building construction applications, improving the overall quality. Because of the events held there, the building sector in Japan is anticipated to flourish. Office, hotel, residential, retail, and educational facilities, as well as office, retail, and residential space, are all part of the Yaesu redevelopment project, which is scheduled to be finished in 2023. The market for wooden decking may see increased demand due to these expanding development projects. Given the rising global remodeling and refurbishing activities, such developments and plans are projected to increase demand for wooden decking.

Global Wooden Decking Market Restraints

Substitute of Composite Decking

For a long time, wood decks were the most common, but composite decks have been gaining popularity for building decks and outdoor living spaces. Composite decking is made to be incredibly durable, unrivaled beautiful, simple, and easy to maintain. With no high care requirements or tiresome regular upkeep, composite decking offers all the advantages of timber materials. A high-quality composite deck can survive harsh weather and extreme heat. It is more desired than wood since it is resistant to wear and splintering. It is a more sensible choice because it is eco-friendly and delivers the appearance and feel of wood thanks to recycled wood and plastics in its construction.

In the last three years, the demand for and utilization of composite materials in contemporary construction have grown exponentially. Composite materials are projected to have a vast growth potential due to the increasing need for sustainable structures on a global scale, particularly in the commercial sector. Composites are used in railings, windows, doors, outside siding, interior molding, fences, and flooring because of their superior qualities. Additionally, it is anticipated that the industry will be supported in the anticipated time frame by India's ambitions to establish 100 Smart Cities. Thus, these factors are going to restrain the wooden decking market.

Global Wooden Decking Market Opportunities

Wood Modification Required for Enhanced Properties

Over the past few years, significant advancements in the field of wood modification have been made. These changes came about as a result of growing environmental concerns and rising demand for wood products of high and consistent quality. A chemical procedure called acetylation is used to give wood specific qualities. Acetylation chemically alters wood as opposed to pressure treatment, which injects preservatives like ammoniacal copper quaternary compounds into the wood. Several businesses are increasing the production of acetylated wood and releasing new goods.

Acetylated wood is used in a variety of ways. Less warping than in other woods is present for window frames and shutters. It offers better thermal insulation and energy efficiency depending on how it is assembled. It works well for siding, façades, and cladding pleasing to the eye. Manufacturers of acetylated wood offer warranties of 25 years underground and 50 years above ground. When its lifecycle is finished, it can be recycled or used as a clean fuel source, providing sustainability. In light of these factors, the acetylation of woods can create a sizable market for wooden decking in the years to come.

Regional Analysis

The region segmentation of the global wooden decking market includes Europe, Asia Pacific, North America, and the rest of the world.

North America and Europe will dominate the regional market

North America is forecasted to command the regional wooden decking market while expanding at a CAGR of 5.63%. The economy of Canada is a sophisticated mixed economy. 2019 saw a 1.9% GDP growth for the nation. Canada's manufacturing sectors were expanding at a healthy rate due to good business policies for both domestic and international markets and a robust research & development infrastructure throughout the nation. The Canadian Construction Association claims that the construction industry is one of Canada's largest employers and a critical factor in the prosperity of the nation's economy. 7% of the nation's GDP is contributed by this sector (GDP). Both the residential and commercial sectors have recently experienced consistent growth in Canada. As a result, the market for wooden decking is growing favorably.

Mexico, governed by NAFTA, is the center of North American manufacturing. Due to Mexico's strategic location for material transportation, climatic conditions, and connectivity between the land and the coast, all international companies decided to locate their production facilities there. The foundation of the Mexican economy is the building and construction industry. The nation urbanized more quickly than most OECD (Organization for Economic Co-operation and Development) nations over the past five decades. In the short- and medium-term, new government programs like Programa Nacional de Infraestructura (PNI) will support the nation's new housing units in major cities. These elements contribute to the market expansion for wooden decking.

Europe is predicted to proliferate at a CAGR of 5.41% and holds USD 33,503 million. The robust performance of the construction industry is anticipated to drive demand for wood for use in construction applications. The rising demand for real estate increased investments in buildings, and increased government spending on infrastructure is favorable for European construction companies. The European Central Bank's ultra-low interest rates, an increase in the number of people living in cities, and high immigration over the previous five years have contributed to the construction upswing. The sector is also assisting in accelerating global economic expansion. The demand for new residential construction is being boosted by the country's rising immigration rate.

Segmental Analysis

The global wooden decking market is classified based on the type, application, end-user, and region.

Per the type, the segments are Pressure-treated Wood, Redwood, Tropical Hardwood, Cedar, Wood-plastic Composites (WPC), and Other Types.

The pressure-treated wood section is projected to advance at a CAGR of 4.77% and hold the largest revenue share. Pressure-treated wood is produced through a unique application of pressure, which increases its susceptibility to decay, mold, and water damage and improves its durability. It can be fire-resistant with additional pressure treatment, making it suitable for various projects. People have a variety of pressure-treated wood sizes to choose from, depending on the project type. The different kinds of wood can be used for both indoor and outdoor projects.

The wooden plastic composites section will hold the second-largest share. Wood fiber and thermoplastic substances like PVC, polylactic acid, polyethylene, or polyethylene are combined to form wood-plastic composites (WPC). These are considered new addition to the industry compared to other wood types. These don't absorb water and are incredibly resistant to corrosion, rot, and decay. Given that it can be made from recycled plastic and by-products of the wood industry, WPC is regarded as a sustainable material.

Per the application, the segments are Railing, Floor, Wall, and Other Applications.

The floor section is forecasted to advance at a CAGR of 5.7% and holds the largest revenue share. Outdoor surfaces are typically covered with wooden deck flooring. Decking is a cost-effective, simple, and adaptable design option for furnishing homes or rooms with outdoor areas. A sustainable option that is also excellent for terraces, gardens, and poolside areas. The main benefit of decking is that it is environmentally friendly, which ensures long-term success. It can be installed on any surface due to its good drainage capacity.

The railing section will hold the second-largest share. The most traditional and least expensive kind of deck railing is made of wood. Oak, pine, maple, cypress, and mahogany are just a few options that can be used for wood railings that can be crafted into a variety of designs. Wooden deck rails are made up of a variety of components. Guardrails can be built using various techniques and materials for decks, but most wooden rails are built with similar parts.

Per the end-user, the segments are Residential and Non-residential.

The residential section is forecasted to advance at a CAGR of 5.51% and holds the largest revenue share. Wooden decking is employed in the residential segment for renovations and new construction. In residential construction, it is used for a wide range of things, including flooring, pathways, swimming pool decks, and cladding and siding. Over the forecast period, the market for wooden decking is anticipated to be driven by the rising demand for residential construction projects worldwide.

The non-residential section will hold the second-largest share. The demand for wooden decking in this market is growing at a reasonable rate due to the expansion of non-residential construction due to the global increase in commercial activity. The education sector is multiplying as more people worldwide enroll in school. In recent years, this factor has made it easier for an increasing number of educational institutions to be founded. The public and private sectors are both increasing their investments in education. The market for wooden decking is anticipated to grow due to this factor.

Recent Developments

• In 2022, The AZEK Company Inc. unveiled a new line of products under the TimberTech and StruXure brands. These items, which include a new cabana model, new decking colors, new railing options, and a debut furniture collection, will go on sale in 2023 and debut at the PGA TOUR Champions event known as the TimberTech Championship in 2022.