NEW YORK, April 10, 2024 /PRNewswire/ — The global engineered wood products market size is estimated to grow by USD 6349.29 mn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 6.8% during the forecast period. The engineered wood products market faces challenges from fluctuating raw material costs, particularly for wood, chipboard, timber, foam, polish chemicals, paints, and hardware. Input and transportation costs, as well as downsizing production capacities, impact the cost of particleboard. Profit margins of furniture manufacturers have been affected due to the gap between production cost increments and their ability to raise product prices. Key products include OSB, shopping centers, energy conservation, construction sector, and eco-friendly alternatives like CLT and I-beams. Applications span residential, non-residential, and building materials.
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The Product segment emerges as the fastest-growing segment in the engineered wood products market
Engineered wood products, a vital segment in building materials, witness robust Application Insights due to their versatility in various sectors. In the residential domain, these eco-friendly alternatives to traditional wood are extensively used for flooring, walls, and cabinetry. Non-residential sectors, including commercial and industrial buildings, leverage engineered wood products for structural applications like glued laminated timber, oriented strand boards, and cross-laminated timber in construction and restoration activities. Composite wood, a key product category, offers advantages such as dimensional stability and resistance to moisture. Builders and architects prefer engineered wood products for their reduced greenhouse gas emissions compared to natural wood. Adhesives and resins are essential components in manufacturing these products. Engineered wood products find extensive use in furniture, with popular items like chairs, tables, and wooden beds. In the construction sector, they are used for roofs, doors, floors, columns, beams, and staircases. Despite formaldehyde emissions concerns, stringent regulations ensure safe usage. Overall, the market for engineered wood products continues to grow, driven by the demand for sustainable building materials.
The Engineered Wood Products Market in Europe has experienced significant growth since 2005, driven by construction and restoration activities in the residential and non-residential sectors. Key products include Cross-laminated Timber (CLT), Oriented Strand Board (OSB), Plywood, Laminated Veneer Lumber (LVL), Glulam, I-beams, and Composite Wood. Formaldehyde emissions are a concern, but eco-friendly alternatives and sustainable practices are prioritized. CLT and Glulam are popular for walls, flooring, doors, roofs, cabinets, columns, and beams. Energy conservation is a focus in shopping centers and building materials. Unmanned Aerial Vehicles (UAVs) or drones are used for product type inspections. The construction sector aims to reduce deforestation and greenhouse gas emissions through engineered wood. Adhesives/resins are essential components. Builders and architects utilize engineered wood for its strength and versatility.
Commenting on the market trends, a Senior Analyst of Technavio, stated,” The engineered wood products market is facing a challenge due to rising wages in manufacturing hubs, particularly in China and India. Urbanization and industrialization are the primary causes, leading to increased labor costs and weakening the cost advantage for global vendors. Key product types include plywood, laminated veneer lumber, glulam, I-beams, cross-laminated timber, and oriented strand boards. Applications span residential and non-residential sectors, with a focus on energy conservation and sustainable practices.”
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Analyst Review
The Engineered Wood Products Market encompasses a wide range of building materials, including Cross-laminated Timber, Glued Laminated Timber, Oriented Strand Boards, Plywood, Laminated Veneer Lumber, Composite Wood, and Engineered Wood Products. These product types are increasingly popular in both the Residential and Non-residential sectors due to their sustainability and energy conservation benefits. Engineered wood products are eco-friendly alternatives to traditional building materials like concrete and steel. They are manufactured using sustainable practices, reducing the need for deforestation. However, it’s essential to consider the formaldehyde emissions from adhesives and resins used in their production. Builders and Architects are turning to engineered wood for restoration activities and new construction projects. The use of engineered wood in Walls, Flooring, Doors, and other building components contributes to energy conservation in the Construction sector. Unmanned Aerial Vehicles (drones) are also used to monitor and inspect construction sites, ensuring quality and safety. Engineered wood products have lower greenhouse gas emissions compared to other building materials, making them a preferred choice for those seeking to minimize their carbon footprint. Overall, the Engineered Wood Products Market continues to grow as more builders and consumers recognize their benefits.
Market Overview
The Engineered Wood Products market is a significant sector in the construction industry, featuring a range of actives, including cross-laminated timber, structural composites, and laminated veneer lumber. These products offer numerous benefits, such as resistance to deforestation, reduced carbon footprint, and cost-effectiveness. The market is driven by factors like increasing demand for sustainable building materials, advances in technology, and government initiatives. In recent years, the use of engineered wood products in residential and commercial construction has surged, with Europe and North America being major markets. The future of this sector looks promising, with research and development efforts focusing on improving product durability and performance. The industry is also exploring new applications, such as in the transportation sector, further expanding its reach. Overall, the Engineered Wood Products market is a dynamic and innovative industry, offering sustainable and cost-effective solutions for the construction sector.
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About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
