Cross Laminated Timber Market: Global Industry Analysis and Forecast (2023-2029)

Cross Laminated Timber Market size was valued at US$ 1.23 Bn. in 2022 and the total Cross Laminated Timber revenue is expected to grow at 14.2% from 2023 to 2029, reaching nearly US$ 3.12 Bn.
Cross Laminated Timber Market Overview:
The Cross Laminated Timber (CLT), which is popular in Europe and is progressively gaining popularity abroad, stands out for its strength, appearance, adaptability, and sustainability. It's a sustainable material since it's made of wood, a renewable resource (typically from reforestation), and it doesn't involve the use of fossil fuels in the manufacturing process. It has been utilized for infrastructure and support on huge building sites, as forms for concreting bridges, and even as supports for tractors during dam construction in difficult terrain. Its unusual appearance and structural strength have drawn attention to its possibilities for smaller buildings. Skyscrapers are now being constructed using CLT components.

Construction on-site for CLT projects usually lasts only a few days. It is a rapid and clean procedure that produces very little trash. Although the material is expensive, features such as faster building time, improved quality control, and cleanliness are considered when choosing CLT as construction material. Another issue is one of culture. Wooden homes are still seen as a lower-class element in developed countries. However, given the construction industry's continued reliance on non-renewable resources, Laminated Cross Timber can be an ideal choice for building materials.
Report Scope:
The Cross Laminated Timber market is segmented based on Type, Application, End-Use, and Region. The growth of various segments helps report users in acquiring knowledge of the many growth factors expected to be prevalent throughout the market and develop different strategies to help identify core application areas and the gap in the target market. The report provides an in-depth analysis of the market and contains meaningful insights, facts, historical data, and statistically supported and industry-validated market statistics. It also includes estimates based on an appropriate set of assumptions and methodologies.

The bottom-up approach has been used to estimate the market size. Major Key Players in the Cross Laminated Timber market are identified through secondary research and their market revenues are determined through primary and secondary research. Secondary research included a review of annual and financial reports of leading manufacturers, while primary research included interviews with important opinion leaders and industry experts such as skilled front-line personnel, entrepreneurs, and marketing professionals. Some of the leading key players in the global Cross Laminated Timber market include Stora Enso Oyj, Mayr-MelnhofHolz Holding AG, Binderholz GmbH, and XLam. They are continuously strategizing on mergers and acquisitions, strategic alliances, joint ventures, and partnerships for the growth of their market shares. To know about the Research Methodology :- Request Free Sample Report
Cross Laminated Timber Market Dynamics:
Current initiatives and funding for mass timber-based projects is the primary driver of market growth

Mass timber construction previously needed an additional clearance process under the International Building Code (IBC), which increased project costs and durations. The 2021 IBC changes, on the other hand, eliminate this barrier by permitting wood structures of up to 18 floors. Various nations and states are improving fast to integrate this new code for mass timber projects, particularly in places with historically strong timber output. Building rules in certain European nations have already been amended to allow for much higher wood structures.

Policymakers have also attempted to speed up the development of mass timbers through mandates or incentives. France recently decreed that all public buildings be made out of 50% wood by 2022. A tax credit for construction with materials that minimize energy usage and store carbon, such as CLT, was suggested by the US Congress in 2021.

Recent project developments demonstrate mass timber's ever-expanding capabilities. The T3 Tower in Minneapolis, the first mass timber office building in the United States, boosted its environmental benefit by procuring wood from trees designated as garbage due to a mountain pine beetle infestation. A collaboration between the industry and the University of California, Berkeley is demonstrating how lower-value, small-diameter logs can be milled into mass timber panels, with benefits for forest restoration and fire management. To honor its 350th anniversary in 2041, Japan's Sumitomo Forestry Company has proposed a 70-story mass timber and steel skyscraper across the Pacific.

The industrial drawbacks of CLTs are a major restraint in the market growth

1. Higher production costs – CLT is not widely produced because it is relatively new material. Also, as compared to standard stud walls, the fabrication of CLT panels necessitates a significant amount of wood and other components.

2. Limited track record – Because CLT is a relatively new material, it has not been utilized in many construction projects. A significant amount of technical study has been conducted on CLT, but it takes time to integrate new methods and findings into the construction industry due to the path-dependent culture of the building industry, which opposes straying from existing norms.

3. Acoustic performance – More CLT panels must be utilized to attain acceptable acoustic performance. The CLT manual states that two CLT panels with mineral in between meet the international construction criterion for sound insulation in walls.

4. Flammability - Wood, unlike other construction materials such as steel, is naturally combustible, even when utilized in massive beams. When exposed to intense heat, exposed steel may lose its load-bearing ability first, as opposed to wood, which will burn at a predictable pace before losing stiffness.

Regulatory Landscape for CLT in Construction:

CLT products made following the ANSI/APA PRG-320: Standard for Performance Rated Cross-Laminated Timber is recognized by the 2015 International Building Code (IBC) and 2015 International Residential Code. CLT at the appropriate size is indicated in the 2015 IBC for prescribed usage in Type IV structures.

the CLT may be utilized in any form of flammable construction—that is, whenever combustible framing or heavy wood components are permitted. The IBC refers to the National Construction Specification (NDS) for Wood Construction as the norm for structural wood design, including CLT. The 2012 IBC does not officially recognize CLT, however, the CLT provisions in the 2015 IBC can serve as a foundation for its application under alternative method provisions. CLT has been approved for structures up to 18 storeys in Type IV-A, IV-B, and IV-C in the 2021 IBC.
Cross Laminated Timber Market Segment Analysis:
By Type, the adhesively bonded CLT segment is expected to grow at a CAGR of 6.8% during the forecast period. The usage of high-strength adhesives for plank bonding is expected to drive demand across a variety of application industries, including residential, institutional, commercial, and others. Because less machinery is used, the manufacturing cost of adhesive bonded cross-laminated wood is lower than that of mechanically fastened CLT. Also, towards the end of their life cycle, the adhesive-bonded cross-laminated wood panels may be converted to biofuel pellets. These panels are custom-made to their final size based on the building requirements, resulting in minimal wood waste.

Mechanically fastened CLT is made by mechanically attaching three or more layers of lumber using nails and screws. The use of adhesives and press machines is not required in the production of such CLT. The mechanically fastened CLT market is in its early stages, with limited acceptance in several developed European and North American nations. Mechanically attached cross-laminated wood manufacturing is more difficult than adhesive-bonded CLT production due to the necessity for highly experienced workers to operate the attaching machinery. The possibility of raw material waste is especially considerable in this instance, as poor screw application at one point might cause issues throughout the assembly.By Application, the residential application segment accounted for more than 40% of the global revenue share in 2022, owing to the rising use of eco-friendly construction materials and seismic capacity and it is expected to have increased consumption in earthquake-prone areas, such as Japan, and Mexico, over the forecast period. CLT's superior structural strength and recyclability are likely to drive market growth in the residential sector. Rising government investments in the Asia Pacific, North America, and Europe for the use of ecologically friendly materials to reduce the carbon footprint of the building sector are likely to drive segment growth.Cross-laminated wood is used in schools, colleges, and research organizations to construct walls, floors, and ceilings in classrooms, libraries, labs, and amphitheaters. This is due to the material's great acoustic qualities and visual appeal, which benefits market growth. Cross-laminated wood is expected to be used more in commercial structures such as offices, malls, hospitals, and restaurants throughout the forecast period due to its numerous advantages such as quick installation, design flexibility, and excellent fire resistance. CLT is prefabricated, and its use entails installing cross-laminated wood at the appropriate application, which decreases construction time.
Regional Insights:
CLT has evolved from an idea to a well-recognized product and building technology that is changing the use of massive timber in construction. The CLT industry is focused in Alpine Europe, where the technology was created and where the majority of CLT is now manufactured. Despite widespread interest, the rate of implementation of CLT technology in the United States is modest, expressing concern about whether European models can be effectively adapted to the American economic climate.

CLT technology has evolved from a concept to a competitive industry over 20 years In 2021, Austria, Germany, and Switzerland had slightly under 80% of world production capacity, with Austria alone accounting for 40%. Although acceptance of the technology outside of the Alpine cluster has been delayed, CLT facilities are now operational in several other European nations, as well as Canada, the United States, New Zealand, and Japan.The implementation of CLT technology in North America was spearheaded by Canada, which established the first two manufacturing lines: Nordic in Chibogameau, Quebec, and Structurlam in Penticton, British Columbia. The overall manufacturing capacity of Canadian firms in 2021 was projected to be around 190,000 m3. The estimated growth of operations in France, the United Kingdom, Finland, Latvia, Japan, and the United States justified an estimate of global output reaching three million cubic meters by 2025.

The APAC market is expected to grow at a CAGR of 6.1% during the forecast period. Wood construction has bright prospects in China, however, it should be highlighted that there was a significant conflict between indigenous timber supply and demand. Currently, the bulk of dimension timber used in CLT construction in China is imported. As a result, the CLT's popularity was hampered by high transportation costs and tariffs.

Although imported lumber from the international market can help to ease the existing problem of wood supply and demand, an over-reliance on imported timber is detrimental to the growth of China's construction industry. As a result, discovering novel materials for CLT production is critical. Bamboo-wood composite CLT, if developed properly using bamboo- and wood-based components would be a novel engineered composite product with Chinese features and high strength and aesthetic attributes. NFU (Nanjing Forestry University) and SCLC (Sino-Canada Low-Carbon Technology Research Institute) have jointly issued or filed for many Chinese patents on such products.
Cross Laminated Timber Market Scope: Inquire before buying



Cross Laminated Timber Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 1.23 Bn.


Forecast Period 2023 to 2029 CAGR:
14.2%
Market Size in 2029:
US $ 3.12 Bn.


 Segments Covered:
by Type
Adhesive Bonded
Mechanically Fastened


by Application
Residential
Institutional
Commercial
Others


by Raw Material Type
Spruce
Fir
Pine
Larch
Others


by End-Use
Structural
Non-structural



Key Players are:
1. Western Structures, Inc. (US)
2. Freres Lumber Co. (US)
3. Sterling Company (US)
4. DR Johnson Wood Innovations (US)
5. SmartLam NA (US)
6. DRJ Wood Innovations (US)
7. LignaTerra (US)
8. Nordic Structures (Canada)
9. StructureCraft (Canada)
10.Structurlam CLT Corporation (Canada)
11.Eugen Decker & WebMan (Germany)
12.B&K Structures (UK)
13.Taylor Maxwell Group Ltd. (UK)
14.Stora Enso Oyj (Finland)
15.Mayr-Melnhof Holz (Austria)
16.Binderholz GmbH (Austria)
17.KLH Massivholz GmbH (Austria)
18.Hasslacher Holding GMBH (Austria)
19.SchilligerHolz AG (Switzerland)
20.Essepi Srl (Italy)
21.Holmen AB (Sweden)
22.Setra Group AB (Sweden)
23.Rambøll Group A/S (Denmark)
24.XLam (NewZealand)
25.Vistek Pty Ltd (Singapore)

FAQs:

1. Which is the potential market for Cross Laminated Timber in terms of the region?
Ans. Europe is the potential market for Cross Laminated Timber in terms of the region.

2. What are the restraints for new market entrants?
Ans. The industrial drawbacks of CLTs are a major restraint in the market growth.

3. What is expected to drive the growth of the Cross Laminated Timber market in the forecast period?
Ans. Current initiatives and funding for mass timber-based projects is the primary driver of market growth.

4. What is the projected market size & growth rate of the Cross Laminated Timber Market?
Ans. Cross Laminated Timber Market size was valued at US$ 1.23 Bn. in 2022 and the total Cross Laminated Timber revenue is expected to grow at 14.2% from 2023 to 2029, reaching nearly US$ 3.12 Bn.

5. What segments are covered in the Cross Laminated Timber Market report?
Ans. The segments covered are Type, Application, End-Use, and Region.