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Global Cross Laminated Timber (CLT) Market to Reach US$2.1 Billion by the Year 2026

Cross-laminated timber (CLT) represents an engineered wood option that is rapidly emerging as an intriguing and sustainable substitute for steel and concrete in both residential and commercial construction. The product features multilayer panels that are made through cross-stacking and gluing of solid wood boards together. The cross-laminated structure leads to enhanced dimensional stability, rigidity and mechanical characteristics. Growth in the global market is attributed to rising uptake across residential, commercial and industrial construction. The global market for cross-laminated timber is propelled by rising demand from the residential sector, high uptake in aesthetically-appealing architecture and flexible designs, along with faster installation and lower buildup cost in comparison to traditional materials like precast concrete. One of the prominent drives for the market is increasing focus of governments and consumers on sustainability and green buildings. CLT presents a highly cost-effective and sustainable substitute for mainstream construction materials like concrete and steel as well as boasts lower carbon emissions. Rising investments in infrastructure development and ongoing transition of contractors away from cement concrete owing to environmental risks are anticipated to further benefit the cross-laminated timber market. Future expansion of the market is anticipated to be also favored by increasing investments in infrastructure related to the commercial sector and high uptake of sophisticated construction techniques.

Amid the COVID-19 crisis, the global market for Cross Laminated Timber (CLT) estimated at US$1.2 Billion in the year 2022, is projected to reach a revised size of US$2.1 Billion by 2026, growing at a CAGR of 13.8% over the analysis period. Adhesive Bonded, one of the segments analyzed in the report, is projected to grow at a 14.1% CAGR to reach US$2.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Mechanically Fastened segment is readjusted to a revised 11.6% CAGR for the next 7-year period. This segment currently accounts for a 12.6% share of the global Cross Laminated Timber (CLT) market. Adhesively-bonded timber is known for lower manufacturing cost in comparison to mechanically-fastened timber as it involves less use of machinery. Adhesively-bonded panels can be customized for dimensions to address specific requirements of construction projects, reducing wood wastage. Moreover, these cross-laminated timber panels can be effectively converted into biofuel pallets following end of their useful life. Adhesive-bonded panels are anticipated to continue finding acceptance owing to their superior performance and durability.

The U.S. Market is Estimated at $214.9 Million in 2022, While China is Forecast to Reach $181 Million by 2026

The Cross Laminated Timber (CLT) market in the U.S. is estimated at US$214.9 Million in the year 2022. The country currently accounts for a 17.5% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$181 Million in the year 2026 trailing a CAGR of 16.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 14.4% and 13.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.5% CAGR while Rest of European market (as defined in the study) will reach US$401.3 Million by the end of the analysis period. While North America and Western Europe remains the primary markets, CLT panels are slated to benefit from rapid urbanization in Africa and Asia. Consumer focus on upscale apartments and increasing popularity of sustainable residential structures are likely to bolster the market growth. Factors such as increasing residential construction activity, robust demand for mass timber, favorable regulations and growing penetration of CLT are bound to create compelling opportunities in the coming years.