Cross Laminated Timber Market – By Raw Material, By Press Type, By Application, By Distribution Channel and Forecast, 2024 - 2032

Cross Laminated Timber Market Size

The global cross laminated timber market was valued at USD 1.3 billion in 2023 and is estimated to grow at a CAGR of over 8.2% from 2024 to 2032.
 

The demand for cross laminated timber (CLT) in the construction market is driven by several interconnected factors that reflect the global shift towards more sustainable, energy-efficient, and innovative building practices. One of the primary demand drivers is the growing focus on sustainability within the construction sector. As governments, businesses, and consumers become more aware of the environmental impacts of traditional construction materials, there has been an increased push for the adoption of eco-friendly alternatives.
 

CLT, being made from renewable wood sources, is considered a highly sustainable building material. Unlike concrete and steel, which have a significant carbon footprint due to their energy-intensive production processes, CLT has a much lower environmental impact. The material is carbon-neutral, and the wood used in CLT stores carbon dioxide absorbed during the growth of trees, which means CLT contributes to reducing the overall carbon footprint of a building. Furthermore, CLT is biodegradable and can be recycled at the end of its lifecycle, making it a key player in the global effort to transition to greener construction practices.
 

Cross Laminated Timber Market Trends

The global shift towards sustainable building practices is one of the most influential trends driving the adoption of CLT. Governments, architects, and developers are increasingly prioritizing green building certifications such as LEED, BREEAM, and WELL. CLT, being a renewable and low-carbon material, fits perfectly within these frameworks. Its ability to store carbon throughout its lifecycle positions it as a leading material in efforts to create carbon-neutral buildings. The push for sustainable urban development is pushing builders to seek materials that have low environmental impact, and CLT, with its environmental benefits of carbon sequestration and recyclability, is becoming a top choice.
 

Cross Laminated Timber Market Analysis

CLT compatibility with modular and prefabricated construction techniques increases its popularity in the construction industry. By enabling panels to be pre-cut and prefabricated in controlled off-site environments, CLT significantly reduces on-site construction time, minimizes waste, and enhances overall efficiency. As the industry increasingly adopts modular construction to cut costs and timelines, CLT alignment with this approach further boosts its appeal.

Based on raw material, the market can be segmented into spruce, fir, pine, larch and others. The spruce segment accounted for revenue of around USD 1.1 billion in the year 2023 and is estimated to grow at a CAGR of around 8.1% from 2024 to 2032. Spruce is one of the most commonly used raw materials in CLT production due to its excellent strength-to-weight ratio, making it ideal for structural applications in both low- and high-rise buildings. This wood is relatively lightweight, which reduces transportation and handling costs, while still providing substantial strength, durability, and resistance to bending. The increasing trend towards green building practices and eco-friendly construction materials further drives the demand for spruce based CLT, as spruce is abundant and sustainably sourced, particularly in Northern Europe and North America.
 

Based on the press type, the cross laminated timber market is categorized as hydraulic, vacuum, pneumatic, nails and others. The metal segment held around 61% of the total market share in 2023 and is anticipated to grow at a CAGR of 8.3% during the forecast period. The hydraulic press is one of the most widely used types of presses in CLT production due to its ability to apply very high pressure uniformly across the entire panel. This uniform pressure ensures consistent bonding of the wood layers, leading to CLT panels with superior strength and stability.
 

The hydraulic press is especially favored in large-scale production facilities where high volume manufacturing is required. One of the main demand drivers for hydraulic presses is the increasing preference for high-performance CLT products in large-scale, high-rise construction projects. The hydraulic press is capable of producing CLT panels that meet stringent strength and durability requirements, making it ideal for use in buildings with heavy load-bearing structures or those that need to comply with rigorous fire resistance and structural integrity standards.
 

In terms of the country, the U.S. dominates with an overall market share of around 67% in the North America cross laminated timber market. In both the U.S. and Canada, there is growing support for sustainable construction practices through various government-backed incentives and funding programs. This includes grants, tax credits, and financing options for developers and construction firms that use environmentally friendly building materials like CLT. The availability of financial support encourages builders to consider CLT as a viable and economically feasible option, particularly for larger projects. For instance, the U.S. Forest Service has supported research into mass timber and offers funding for projects that utilize CLT, while Canadian incentives such as the “Wood First” initiative in British Columbia help foster the adoption of wood products in construction.
 

Cross Laminated Timber Market Share

In 2023, key companies like Binderholz, Brettstapel, Hasslacher Norica Timber, Katerra, KLH Massivholz, Lignotrend, Mayr-Melnhof Holz and Nordic Structures held a combined market share of 5%-10%. These companies are actively engaging in mergers, acquisitions, facility expansions, and collaborations to enhance their product portfolios, reach more customers, and strengthen their market positions.
 

Resellers that consistently deliver high-quality products and reliable performance often secure a competitive advantage. Upholding stringent testing and refurbishment standards is crucial for earning customer trust. Introducing warranties or return policies can distinguish resellers in the market. By offering customer support and repair services, resellers bolster buyer confidence, rendering them more appealing. A robust online presence, characterized by user-friendly websites and active social media engagement, enables resellers to connect with a wider audience. Strategic marketing initiatives can further differentiate them from their competitors.
 

Cross Laminated Timber Market Companies

Major players operating in the cross laminated timber industry are:

• Binderholz
• Brettstapel
• Hasslacher Norica Timber
• Katerra
• KLH Massivholz
• Lignotrend
• Mayr-Melnhof Holz
• Nordic Structures
• Schilliger Holz
• Stora Enso
• UFP Industries
• Weber Beam & Engineering
• Wood Horizon
• XLam
• Züblin Timber
   

Cross Laminated Timber Industry News

• In March 2024, HASSLACHER Holding GmbH has taken a stake in Element5, aiming to bolster mass timber production capacity and make inroads into the North American market.
   
• In June 2023, Mercer International Inc., through its subsidiary Mercer Mass Timber, acquired Structurlam Mass Timber Corporation along with its subsidiaries. This strategic acquisition is set to bolster Mercer Mass Timber's production capacity and solidify its status as a top-tier supplier of mass timber products.
   
• In October 2022, Stora Enso inaugurated its cross-laminated timber (CLT) production facility in Ždírec, Czech Republic. The facility, backed by a EUR 79 million investment, stands as one of the world's most advanced CLT sites, aligning with Stora Enso's strategy to expand its wooden building solutions.
   

This cross laminated timber market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & volume (Thousand Square Feet) from 2021 to 2032, for the following segments:

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Market, By Raw Material

• Spruce
• Fir
• Pine
• Larch
• Others

Market, By Press Type

• Hydraulic
• Vacuum
• Pneumatic
• Nails
• Others

Market, Application

• Residential
• Commercial
• Industrial

Market, Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa