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Cross Laminated Timber Market Analysis

  • Report ID: GMI4096
  • Published Date: Dec 2024
  • Report Format: PDF

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.
 

Cross Laminated Timber Market Revenue Share, By Press Type, (2023)

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.
 

U.S. Cross Laminated Timber Market Size, 2021 - 2032 (USD Million)

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.
 

Authors: Avinash Singh, Sunita Singh

Frequently Asked Questions (FAQ) :

The global market size for cross laminated timber was valued at USD 1.3 billion in 2023 and is projected to reach USD 2.7 billion by 2032, driven by a CAGR of over 8.2% from 2024 to 2032.

The spruce segment accounted for approximately USD 1.1 billion in revenue in 2023 and is estimated to grow at a CAGR of around 8.1% from 2024 to 2032, driven by its excellent strength-to-weight ratio and sustainability.

The North America market, led by the U.S., generated around 67% of the market share in 2023, driven by government-backed incentives and funding programs supporting sustainable construction practices.

Major players in the industry include Binderholz, Brettstapel, Hasslacher Norica Timber, Katerra, KLH Massivholz, Lignotrend, Mayr-Melnhof Holz, Nordic Structures, Schilliger Holz, and Stora Enso.

Cross Laminated Timber Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 180
  • Countries covered: 18
  • Pages: 220
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