Wooden Decking Market Analysis

Wooden Decking Market Analysis

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Based on wood type, the market is segmented into pressure-treated wood, redwood, cedar, tropical hardwood, wood-plastic composites, and others such as mahogany, teak, and tigerwood. In 2023, the pressure-treated wood segment emerged as the dominant force, commanding a substantial market share of 36.1% and is projected to reach USD 3.40 billion by 2032. Pressure-treated wood offers a cost-effective solution for decking projects while providing decent durability and resistance to rot and insects, making it a popular choice among homeowners and contractors. Its widespread availability and ease of installation further contribute to its market dominance. Moreover, advancements in pressure-treating technologies have enhanced the lifespan and performance of pressure-treated wood, sustaining its appeal in the market despite growing competition from alternative materials.

However, the market experienced a notable drop in 2023 compared to 2022 owing to the economic uncertainties, including fluctuations in housing markets, inflation in raw material prices, etc. During the COVID-19 pandemic lumber prices spiked due to the disruption in supply chains, which pushed up the  cost of wooden decking materials. Furthermore, as supply chains normalized, lumber prices began to stabilize in 2022 and continued to decrease in 2023. This made wooden decks less expensive but also potentially reduced urgency for some deck projects.

Based on category, the wooden decking market is bifurcated into indoor and outdoor categories. In 2023, the indoor segment notably dominated the market, generating a revenue of USD 3.15 billion and is expected to reach USD 5.36 billion by 2032. Firstly, the increasing trend of indoor-outdoor living spaces, particularly in urban areas with limited outdoor space, has fueled demand for indoor wooden decking solutions.

Additionally, advancements in wood treatments and finishes have made indoor decking more durable, resistant to wear, and aesthetically pleasing, further driving its popularity among homeowners and commercial spaces alike. Moreover, the versatility of wooden decking allows for customization to match various interior design styles, enhancing its appeal and contributing to its sustained growth in the market.

Based on application, the wooden decking market is segmented into railing, floor, wall, and others. In 2023, the floor segment emerged as the dominant force, generating a revenue of USD 2.39 billion. This segment's prominence is attributed to several factors, including the widespread use of wooden decking for outdoor flooring solutions in residential, commercial, and hospitality sectors. Wooden decks offer a natural and aesthetically pleasing outdoor flooring option, enhancing outdoor spaces' appeal while providing a durable and versatile surface for various activities. Additionally, the growing trend of outdoor living spaces, coupled with increased investments in residential and commercial construction projects, further fueled the demand for wooden decking in the floor segment. Due to these factors, the floor segment is projected to reach USD 3.81 billion in revenue by 2032, indicating sustained growth opportunities within the market.

The North America wooden decking market is expected to reach USD 2.79 billion by 2032. Firstly, the region has a strong tradition of outdoor living and recreational activities, driving significant demand for wooden decking in residential, commercial, and hospitality sectors. The culture of hosting outdoor gatherings and enjoying backyard spaces has led to widespread adoption of wooden decks as a preferred outdoor flooring solution.

Additionally, North America benefits from a robust construction industry, with a high volume of residential and commercial construction projects incorporating wooden decking for its aesthetic appeal and durability. As per the United States Census Bureau, the residential construction industry in the United States was valued at USD 929.7 billion in July 2022 compared to USD 815.5 billion in July 2021, registering a growth of 14%. Rising home prices in the country have also encouraged homeowners to spend more on home improvements. Moreover, favorable economic conditions, including steady GDP growth and high disposable incomes, have further bolstered the market's expansion in the region.

There is a decrease in the North American market owing to the decline in sales prices and volumes and the increase in wood raw material prices. For instance, Metsa Group’s pulp and sawn timber industry sales decreased by a significant amount in North America and Europe compared to 2022.

In terms of country, US is dominating the North America wooden decking market with revenue of around USD 1.21 billion in the year 2023 and expected to reach around USD 1.97 billion by 2032. The U.S. boasts a vast land area with diverse climates, providing ample opportunities for outdoor living and recreational activities year-round, thus driving demand for wooden decking. Secondly, the country has a strong tradition of homeownership and a culture that values outdoor spaces, leading to widespread adoption of wooden decks in residential properties.

Furthermore, the U.S. benefits from a thriving construction industry, with a high volume of residential and commercial construction projects incorporating wooden decking for its aesthetic appeal and functional benefits. For instance, according to the Associated General Contractors of America (AGC), there were more than 919,000 construction establishments in the U.S. in the 1st quarter of 2023. Also, as per the statistics provided by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, the building permits in the U.S. for August 2023 were 6.9% higher than that of July 2023. Additionally, favorable economic conditions, including steady GDP growth and high consumer spending, contribute to sustained demand for wooden decking in the U.S. market. Finally, the presence of well-established manufacturers, distribution networks, and a robust regulatory framework further solidify the U.S.'s position as the leader in the North American wooden decking market.

In terms of country, the U.K. is dominating the Europe market with revenue of around USD 290.7 million in the year 2023 and expected to reach around USD 455.1 million by 2032. The UK's temperate maritime climate encourages outdoor living, making wooden decking a popular choice for enhancing outdoor spaces. Additionally, the UK boasts a strong tradition of garden culture, with a high value placed on outdoor leisure and entertainment, driving the demand for wooden decking in residential properties.

Moreover, the country's robust construction industry, fueled by urbanization and infrastructure development projects, provides ample opportunities for the incorporation of wooden decking in both residential and commercial construction projects. Furthermore, stringent environmental regulations and a growing emphasis on sustainable practices have prompted the adoption of certified sustainably sourced wood, further boosting the market for wooden decking in the UK.

In terms of country China dominated with the overall market share of around 22.3% in the Asia Pacific market and is expected to reach USD 654.9 million by 2032. This is due to the nation's rapid urbanization and burgeoning construction industry, which has propelled the demand for outdoor living spaces and eco-friendly building materials.

With a massive population and a growing middle class seeking to enhance their quality of life, there's a significant appetite for residential properties with outdoor amenities like wooden decks. Moreover, China boasts a rich tradition of using wood in construction and landscaping, providing a cultural foundation for the widespread adoption of wooden decking. Additionally, the government's push for sustainable development and green building practices has spurred the use of certified sustainable wood products in construction projects, further driving the market. For instance, the Chinese government outlined ambitious development plans that included preparations for moving 250 million people to its new megacities over the next ten years.