Global Engineered Wood Market Research Report, 2024-29

Engineered wood products are created by gluing together veneers, particles, fibers, and strands of wood to make a man-made composite material. They comprise a wide range of items, from plywood to roof trusses. It is also known as composite wood. The engineered wood market is primarily driven by an increase in engineered wood substitution for building materials. Engineered wood is a more cost-effective and environmentally sustainable alternative to other wood and cement materials. Furthermore, using engineered wood instead of emission-intensive materials like concrete, steel, or aluminum is predicted to reduce greenhouse gas emissions. Furthermore, the adhesives/resins used in engineered wood are environmentally friendly and do not emit greenhouse gases. This has resulted in a rise in the use of engineered wood by builders and architects. Furthermore, the increased renovation and refurbishment of older homes in industrialized countries such as North America and Europe has contributed to an increase in the usage of engineered wood. Furthermore, housing projects carried out under government plans are driving the engineered wood market. However, less expensive materials such as plastic laminates and foils, re-sanded and re-used engineered wood products and panels operate as market restraints. Furthermore, during the COVID-19 outbreak, the construction, industrial, lodging, and tourism industries were severely impacted. Construction activities were likewise halted or severely curtailed. Manufacturing and transportation activities, as well as their supply chains, have a worldwide impact. This has resulted in a decrease in construction activity, which directly affects the engineered wood market. However, all industries are gradually returning to normal manufacturing and service operations. This is intended to help the market recover from losses caused by COVID-19. Furthermore, urbanization in emerging Asia-Pacific and Latin America is expected to increase the engineered wood market during the forecast period. According to the research report, “Global Engineered Wood Market Overview, 2023-28” published by Actual Market Research, the market is anticipated to cross USD 400 Billion by 2029, increasing from USD 292.68 Billion in 2023. The market is expected to grow with 6.61% CAGR by 2024-29. The increased restoration and remodeling of older homes is driving the engineered wood sector. Furthermore, new home construction stimulates the market. Furthermore, because engineered wood is a more cost-effective and ecologically benign alternative to other wood and cement products, its use as a building material substitute should increase. Furthermore, engineered wood emits fewer toxic byproducts than other high-emission materials like as concrete, steel, and aluminum. As a result, engineered wood is expected to reduce greenhouse gas emissions. Furthermore, the adhesives and resins used in engineered wood are environmentally friendly, emitting no greenhouse gases. Engineers and architects are increasingly using engineered wood as a result of this. At present, the increasing emphasis on sustainable and environmentally friendly construction materials is propelling the demand for engineered wood. As governments and industries strive to reduce their carbon footprint, engineered wood stands out as a greener alternative, as it makes efficient use of timber resources and minimizes waste. This eco-conscious trend is not only gaining attention but also securing contracts and projects for businesses involved in engineered wood production. Furthermore, the ongoing shift towards off-site and modular construction methods is playing a pivotal role in the rising demand for engineered wood. The light weight and consistent quality of engineered wood is making it an ideal choice for prefabricated components, speeding up construction timelines and reducing labor costs. Rapid deforestation and strict controls on carbon emissions are also factors that are propelling the growth of the engineered wood market. Some adhesives, such as urea-formaldehyde used in engineered wood products, are highly hazardous, and some products, like particle boards, might not be suited for outdoor usage because they are more vulnerable to humidity. These drawbacks serve as market growth constraints for engineered wood. Market Drivers

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• Technological Advancements in Production Processes: Computer-controlled precision cutting, automated gluing systems, and innovative lamination techniques contribute to the production of high-quality engineered wood products. These technological improvements enhance efficiency, reduce production times, and allow for the creation of engineered wood with superior strength and durability. As the industry embraces and invests in cutting-edge technologies, it positions itself to meet the evolving demands of the market. • Consumer Preferences for Customization and Design Flexibility: Consumer preferences are shifting towards more personalized and unique designs in construction and interior spaces. Engineered wood offers a high degree of customization in terms of size, shape, and finish, allowing architects, designers, and homeowners to create distinctive and aesthetically pleasing structures and furnishings. The ability to tailor engineered wood products to specific design requirements is a major driver, as it caters to the growing demand for individualized and architecturally innovative solutions. Market Challenges

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• Competition from Alternative Materials: The engineered wood industry faces stiff competition from alternative building materials, including steel, concrete, and composite materials. Convincing stakeholders in the construction and design sectors of the benefits of engineered wood over these alternatives is a continuous challenge. The industry must communicate the economic, environmental, and performance advantages of engineered wood to maintain and expand its market share in the face of diverse material choices. • Skilled Labor Shortage: As the demand for engineered wood products increases, there is a growing need for skilled labor in manufacturing, installation, and design. However, the industry is grappling with a shortage of skilled workers. Training programs and educational initiatives are essential to address this challenge and ensure a workforce equipped with the necessary expertise to produce and work with engineered wood effectively. Overcoming the skilled labor shortage is crucial for sustained growth and competitiveness. Market Trends

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• Innovations in Adhesive Technologies: Adhesives play a critical role in the production of engineered wood, binding the layers of veneers or fibers together. Ongoing research and development in adhesive technologies contribute to the creation of engineered wood products with enhanced performance characteristics. Innovations in adhesives lead to improved durability, moisture resistance, and overall product quality, addressing historical concerns and expanding the applications of engineered wood in various environments. • Global Embrace of Green Building Standards: The global emphasis on sustainable and green building practices is a significant trend influencing the engineered wood industry. Green building standards, such as LEED (Leadership in Energy and Environmental Design), promote the use of environmentally friendly materials and construction methods. Engineered wood, with its sustainable sourcing and manufacturing processes, aligns well with these standards, positioning itself as a preferred choice in projects aiming for green building certification. The industry's alignment with these standards enhances its market appeal and contributes to the broader sustainability goals of the construction sector. Covid-19 Impacts The engineered wood industry relies on a complex global supply chain for raw materials, manufacturing equipment, and transportation. The pandemic disrupted supply chains as lockdowns, travel restrictions, and workforce shortages affected the production and transportation of goods. Delays in the availability of raw materials and components created challenges for manufacturers, impacting their ability to meet demand and fulfill orders promptly. The construction industry, a major consumer of engineered wood products, experienced fluctuations in demand during the pandemic. Construction projects were delayed or halted in many regions due to lockdowns, social distancing measures, and economic uncertainties. This directly affected the demand for engineered wood products, leading to a slowdown in some segments of the industry. The residential construction sector, which is a significant market for engineered wood products, faced disruptions as a result of the pandemic. Lockdowns and economic uncertainties influenced consumer behavior, leading to a decrease in new housing starts and renovations. The slowdown in residential construction had a direct impact on the demand for engineered wood products used in home building and improvement projects. The pandemic introduced challenges related to workforce availability and safety. Many manufacturing facilities experienced temporary closures or reduced capacity due to social distancing measures and lockdowns. This affected the production capabilities of the engineered wood industry, leading to delays and increased operational costs associated with implementing health and safety measures for workers. The pandemic brought about increased costs for manufacturers in the engineered wood industry. Supply chain disruptions, higher logistics costs, and safety measures to protect workers contributed to rising operational expenses. These increased costs were often passed on to consumers, affecting the overall competitiveness of engineered wood products compared to alternative materials. Changes in consumer behavior during the pandemic also impacted the engineered wood industry. Remote work trends and the increased focus on home improvement projects led to shifts in the types of products in demand. For instance, there was an increased interest in engineered wood flooring and furniture as people spent more time at home, but other segments, such as commercial construction, experienced a decline. The growing popularity of Oriented Strand Boards (OSB) in the engineered wood market is primarily driven by its cost-effectiveness, structural versatility, and sustainability, making it a preferred choice for various construction applications.. Oriented Strand Boards (OSB) are experiencing a notable surge in the engineered wood market, propelled by a combination of factors that address the evolving needs of the construction industry. OSB's growing popularity can be attributed to its exceptional cost-effectiveness, structural versatility, and sustainability. Unlike traditional plywood, OSB is manufactured by aligning and compressing strands of wood with adhesives, creating a panel with consistent strength and durability. This engineered wood product is particularly attractive to builders and developers due to its affordability, making it a cost-effective alternative for various construction applications such as sheathing, subflooring, and roofing. Additionally, OSB's structural versatility allows it to perform well in load-bearing applications, contributing to its widespread use in both residential and commercial construction projects. The sustainability aspect further enhances OSB's appeal, as it often utilizes fast-growing wood species and minimizes waste in the manufacturing process. As the construction industry places increasing emphasis on cost efficiency, structural performance, and environmental considerations, OSB emerges as a frontrunner in the engineered wood market, driving its consistent growth and adoption in diverse construction projects globally. Engineered wood is experiencing growth in the furniture market due to its versatility, cost-effectiveness, and sustainability, offering furniture manufacturers a reliable and eco-friendly alternative to traditional solid wood. The growth of engineered wood in the furniture market can be attributed to a convergence of factors that address the evolving needs of both manufacturers and consumers. Engineered wood, which includes various products such as plywood, particleboard, and medium-density fiberboard (MDF), has become increasingly popular in the furniture industry. The versatility of engineered wood allows furniture designers and manufacturers to create a wide range of products with consistent quality. Engineered wood's engineered nature, achieved through the bonding of wood fibers or veneers with adhesives, results in panels that are stable, durable, and less prone to warping or cracking. Moreover, the cost-effectiveness of engineered wood makes it an attractive choice for furniture production, as it often comes at a lower cost compared to solid wood. This cost efficiency doesn't compromise on quality, as engineered wood products can exhibit excellent strength and aesthetic appeal. Sustainability is another key driver for the growing use of engineered wood in furniture manufacturing. Many companies in the furniture industry are increasingly conscious of environmental concerns and are opting for engineered wood that often uses wood from responsibly managed forests and minimizes waste in production. As a result, engineered wood has become a reliable and eco-friendly alternative to traditional solid wood, driving its growth in the furniture market globally. With the added benefits of customization, ease of workability, and a wide range of finishes, engineered wood is poised to continue making significant inroads in the furniture industry, offering a sustainable and versatile solution for modern furniture design and production. The engineered wood market is experiencing growth in the commercial and industrial sectors due to the material's versatility, structural performance, and sustainability, meeting the demands of large-scale construction projects with cost-effective and eco-friendly solutions. The growth of the engineered wood market in the commercial and industrial sectors is driven by its ability to cater to the diverse and demanding needs of large-scale construction projects. Engineered wood, encompassing products like glued laminated timber (GLT), laminated veneer lumber (LVL), and cross-laminated timber (CLT), offers a versatile and cost-effective solution for various applications in commercial and industrial construction. Its adaptability allows architects and builders to meet specific design requirements while ensuring structural integrity. Engineered wood's excellent strength-to-weight ratio and dimensional stability make it particularly suitable for large-scale structures, such as warehouses, industrial buildings, and commercial complexes. Additionally, the sustainability aspect of engineered wood aligns with the growing emphasis on eco-friendly construction practices in the commercial and industrial sectors. Many companies are now prioritizing materials that contribute to green building certifications and environmental responsibility. Engineered wood, often manufactured from responsibly sourced wood and utilizing efficient production processes, fits well into this sustainability narrative. As commercial and industrial projects continue to rise globally, the engineered wood market is poised to play a pivotal role in providing durable, cost-effective, and environmentally conscious solutions for the construction of large-scale structures in these sectors. The rapid urbanization, population growth, and increasing demand for sustainable construction materials are driving the significant growth of the engineered wood market in the Asia-Pacific region. The Asia-Pacific region is experiencing substantial growth in the engineered wood market primarily due to the confluence of several key factors. Rapid urbanization across countries in this region, driven by population growth and migration from rural to urban areas, has led to a surge in construction activities. Engineered wood, with its versatile applications in construction, provides an ideal solution to meet the increasing demand for reliable, cost-effective, and sustainable building materials. As urban infrastructure projects, commercial developments, and residential constructions continue to rise, the engineered wood market in the Asia-Pacific is witnessing heightened traction. Additionally, the region's growing emphasis on sustainability aligns with engineered wood's eco-friendly attributes, as it often involves the use of fast-growing and renewable wood sources. As builders and developers seek materials that balance performance with environmental responsibility, the engineered wood market in the Asia-Pacific region is positioned to thrive and contribute significantly to the evolving landscape of construction and design in this dynamic part of the world. The global market is experiencing significant growth due to various factors such as the increasing demand for sustainable construction materials, rising urbanization, and advancements in manufacturing technologies. Engineered wood, also known as composite wood or man-made wood is manufactured by binding together strands, particles, fibers, or veneers of wood with adhesives to create a strong and versatile material. It offers several advantages over traditional solid wood, including enhanced strength, dimensional stability, and resistance to moisture and pests. The market is witnessing a surge in demand from the construction and furniture industries, driven by the need for cost-effective and sustainable alternatives to solid wood. Additionally, the growing focus on green building practices and sustainable development is expected to drive the market's growth in the coming years. • In April 2023, WoodTech Innovations unveiled a breakthrough in engineered wood technology with the introduction of a lightweight yet strong and durable engineered wood beam. The innovative design combines different wood species and engineered materials to create a beam that offers superior load-bearing capacity and structural performance. This advancement in engineered wood beams opens up possibilities for cost-effective and sustainable construction solutions in the residential and commercial sectors. • In May 2023, GreenWood Corp launched a range of engineered wood products with improved moisture resistance and dimensional stability. The company's advanced treatment process ensures that the engineered wood retains its structural integrity even in high humidity and wet environments, making it suitable for outdoor applications such as decking and siding. This development expands the application scope of engineered wood and provides architects and builders with more versatile options. • In June 2023, TimberTech Solutions introduced a new line of engineered wood flooring with enhanced scratch and wear resistance. The innovative surface treatment technology used in the flooring provides superior durability and longevity, making it ideal for high-traffic areas in residential and commercial settings. The development of highly durable engineered wood flooring offers an attractive alternative to traditional hardwood flooring, combining the aesthetic appeal of wood with enhanced performance characteristics. • In Oct 2023, Boise Cascade announced that it has completed the previously announced acquisition of Brockway-Smith Company (BROSCO®), a leading wholesale distributor specializing in doors and millwork. • In Sep 2023, West Fraser Timber Co. Ltd. announced that it has entered into an agreement to acquire Spray Lake Sawmills located in Cochrane, Alberta. This acquisition enables West Fraser to grow its footprint in Southern Alberta and expand its Canadian treated wood business, while providing access to a high-quality timber supply. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Engineered Wood market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Plywood • Medium Density Fiberboard • Oriented Strand Boards (OSB) • Particle Board • Others By Application • Construction • Furniture • Flooring • Packaging • Others By End User • Residential • Commercial & Industrial The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Engineered Wood industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.