Market Trends of Cross Laminated Timber Industry
This section covers the major market trends shaping the Cross Laminated Timber Market according to our research experts:
Increasing Demand from the Residential Sector
- Cross-laminated timber is a structured wood panel made from glueing layers of solid-sawn lumber, usually oriented perpendicular to adjacent layers in a symmetric way which are used as load-bearing parts for building frames, such as walls, floors, and roofs. Cross-laminated timber is also used in façade cladding and interior lining.
- It has been noted that the building and construction sector has shown tremendous growth in the past few years.
- The residential sector dominated the use of cross-laminated timber in construction. Japan leads in the usage of cross-laminated timber globally, followed by Germany, the United Kingdom, Italy, and Canada.
- Over the past few years, Japan has been witnessing a shift from concrete construction materials to sustainable alternatives like cross-laminated timber. This can be attributed to the rising environmental concerns coupled with the advantageous properties of cross-laminated timber which include lightweight, strength, durability, stability, design variety, enhanced insulation, and fire resistance.
- According to the Japanese Ministry of Land, Infrastructure, Transport, and Tourism (MLIT), In 2021, wooden structures were the leading structures utilized for housing construction in Japan, with 502300 construction dwelling units built with timber structures when compared to 469300 units in 2020.
- According to the US Census Bureau, the value of new private home construction reached USD 628.9 billion in 2020 and registered a growth rate of 23.4% when compared to USD 776.21 billion in 2021.
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Europe to Dominate the Market
- Europe dominates the global market share. With the growing construction sector in countries such as the United Kingdom, Germany, Italy, and France, the utilization of cross-laminated timber is increasing in the region.
- Since cross-laminated timber reduces the construction cost, time, and risk during earthquakes, the demand for cross-laminated timber has been increasing rapidly.
- The largest producers of cross-laminated timber are located in Europe. Some leading companies in the production of cross-laminated timber are Binderholz GmbH, Pfeifer Group, Stora Enso, Mayr-Melnhof Holz, and HASSLACHER Holding GmbH.
- According to the UK Housing Fit For Nature, about 1.5 million new houses made of timber are planned to be constructed by 2022.
- More than 50,000 affordable homes will be built in Greater Manchester by 2038 under new plans to tackle the region's housing crisis creating a major scope for the cross-laminated timber market.
- According to Statistisches Bundesamt, the number of building permits for residential buildings in Germany reached 129,000 in 2021 and registered growth when compared to 125,000 in 2020.
- As per ISTAT, in Italy's residential buildings, the number of dwellings increased in the first quarter of 2022 when compared with the previous quarter at 4.0%.
- According to Groupe BPCE, in 2022, there were over 180,000 residential buildings under construction in France destined for sale on the real estate market. During the same year, roughly 28,000 residential units were being constructed to offer subsidized rental housing for middle-income individuals or families.
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