Global Cross Laminated Timber (CLT) Market Insights Forecasts to 2032

• The Global Cross Laminated Timber (CLT) Market Size was valued at USD 1.28 Billion in 2022.
• The Market is growing at a CAGR of 14.6% from 2022 to 2032
• The Worldwide Cross Laminated Timber (CLT) Market Size is expected to reach USD 5.03 Billion by 2032
• North America is expected to grow the fastest during the forecast period

The Global Cross Laminated Timber (CLT) Market Size is expected to reach USD 5.03 billion by 2032, at a CAGR of 14.6% during the forecast period 2022 to 2032.

Cross Laminated Timber (CLT) is a wood-based engineering material made up of multiple layers of kiln-dried dimension timber (often three, five, seven, or nine layers) or at least three layers orientated at right angles to one another and bonded together to make structural frames. CLT can be utilized as a replacement for concrete for constructing a building's exterior walls, roofs, floors, and ceilings, and is especially well-suited to multistorey higher timber structures. This can comprise pre-insulated wall and roof parts. Some additional uses include cantilevered floors and balconies, load-bearing elevator shafts, and stairs.

Cross Laminated Timber is a robust material with remarkable structural stability due to its across construction. It can be used as a concrete substitute, substituting a highly carbon-intensive resource with a renewable, low-carbon equivalent. According to a recent study, CLT might prove cost-competitive as an alternative to concrete structures and for buildings taller than six stories. Its decreased weight results in lower foundation costs, easier site transfer, and faster prefabricated assembly. In comparison to concrete, cross laminated timber constructions can be constructed offsite and installed in less time, at any time of year.

The key market player in the Global Cross laminated timber (CLT) Market include XLam NZ Limited, KLH Massivholz GmbH, Stora Enso, Binderholz GmbH, Hasslacher Holding GmbH, SmartLam NA, Sterling Company,

Structurlam Mass Timber Corporation, and B&K Structures. To expand their uses, these firms compete on product characteristics which include wood thermal resistance, surface gloss, and price. Furthermore, due to the changing needs of commercial as well as residential consumers around the world, a strong emphasis was placed on partnerships and new product development.

For instance, on June 2023, Mercer will pay $81.1 million for the assets of Structurlam Mass Timber Corp. and its subsidiary. The planned acquisition will boost Mercer's cross-laminated timber (CLT) capacity to roughly 210,000 cubic meters and add 45,000 cubic meters of glued laminated timber (glulam) manufacturing capacity.

Driving Factors

Cross laminated timber (CLT) has established itself as a widely recognized engineered timber product that has worldwide significance. Increased economic activity in developing nations, increased infrastructure investment, severe conservation laws, expanding disposable income, and increasing consumer demand for green and ecologically friendly materials are all driving the cross laminated timber (CLT) market growth. Cross laminated lumber is becoming more widely used in the construction and building industries to replace materials such as steel or concrete, resulting in increased energy savings and a much lower environmental effect. Because the majority of the cross laminated timber panels are prefabricated, there is little waste generated on the job site. Furthermore, producers re-use scrap to make staircases or other modular parts.

Cross laminated timber is becoming more popular in building applications as more people become aware of its benefits, which include versatility in design, resistance to fire, higher thermal efficiency, cost-efficiency, and others as well. Furthermore, a clean and noiseless construction method, shorter construction time, and reduced pricing have contributed to rising demand. The increased consumer awareness of the advantageous properties of cross laminated lumber in the building industry is expected to fuel cross laminated timber (CLT) market expansion. Cross laminated timber panels and other wood-based construction materials are increasingly being used by major construction enterprises around the world. These reasons are likely to promote the expansion of the cross laminated timber market.

Restraining Factors        

However, cross laminated timber has a restricted number of industries for its final use, each with its own set of rules for using these timbers. Different manufacturers produce nearly identical quality products for every one of the industries. As a result, there is no demand for distinct products in the cross laminated timber market, which poses a significant impediment to the market's global expansion. In addition, the wood-based material is vulnerable to fire and moisture damage. Water accumulation in walls, floors, and structures can lead to the growth of mold and microbial organisms which can be harmful to the infrastructure. As a result, these variables are crucial in restraining cross laminated timber (CLT) market growth.

Market Segmentation

By Product Type Insights

The adhesive bonded segment is dominating the market with the largest revenue share over the forecast period.

On the basis of product type, the global cross laminated timber (CLT) market is segmented into the adhesive bonded and mechanically fastened. Among these, the adhesive bonded segment is dominating the market with the largest revenue share of 76.8% over the forecast period. Cross-Laminated Timber (CLT) usually uses adhesive bonding because it produces strong bonds between the layers of wood, which is crucial for the material's long-term stability. The widespread adoption of high-strength adhesives for plank bonding is expected to drive demand across a variety of different application industries, including the private sector, organizational, commercial, and others. Adhesive bonded CLT has a lower manufacturing cost than mechanically fastened CLT since less machinery is used. Furthermore, at the conclusion of their expected lifespan, the adhesive bonded CLT panels are able to be recycled into biofuel pellets.

By Vertical Insights

The non-residential segment accounted for the largest revenue share of more than 57.2% over the forecast period.

On the basis of vertical, the global cross laminated timber (CLT) market is segmented into residential and non-residential. Among these, the non-residential segment is dominating the market with the largest revenue share of 57.2% over the forecast period. Cross laminated timber (CLT) is widely utilized in non-residential construction such as commercial, public, and industrial buildings. Cross laminated wood is in considerable supply among non-residential construction companies due to its mechanical, durability, and aesthetic benefits. The non-residential construction market offers significant opportunities for cross laminated wood as it offers the advantages in design and meeting environmental regulations necessary in the office, public, institutional, and hotel segments. As a result, the non-residential sector offers tremendous opportunities and is expected to account for a sizable portion of the cross laminated timber (CLT) market over the forecast period.

Regional Insights

Europe dominates the market with the largest market share over the forecast period.

Europe is dominating the market with more than 63.7% market share over the forecast period. Europe is among the world's leading producers of cross laminated timber. The European market is primarily driven by the increasing rise of residential buildings. The increased knowledge of the benefits of using lumber-based goods as a result of their lightweight design and simplicity in remodeling is predicted to stimulate demand for cross laminated timber and stimulate manufacturers to make investments throughout the region. Furthermore, developments regarding the use of wooden materials in construction-related industries are likely to drive market growth during the projection period.

North America, on the contrary, is expected to grow the fastest during the forecast period. The growing market for cross-laminated timber in North America is primarily fueled by demand from the United States. The rapid expansion of application sectors in Canada and Mexico is also expected to boost the local market for CLT products. The region's thriving tourism has resulted in an increased demand for hotels, dining establishments, and food chains, fueling industry expansion. As a result, the demand for cross laminated timbers market is fast expanding in the North American region.

The Asia Pacific market is expected to register a substantial CAGR growth rate during the forecast period, owing to the implementation of green building rules by multiple government organizations. Because the region's climate is frequently defined by high temperatures and adverse weather patterns, customers in the region favor the use of concrete over timber construction, which is expected to limit the cross aminated timber market growth.

List of Key Market Players

• XLam NZ Limited
• KLH Massivholz GmbH
• Stora Enso
• Binderholz GmbH
• Hasslacher Holding GmbH
• SmartLam NA
• Sterling Company
• Structurlam Mass Timber Corporation
• Schilliger Holz AG
• B&K Structures
• Eugen Decker Holzindustrie KG
• MEIKEN LAMWOOD Corp
• Mayr-Melnhof Holz Holding AG
• DRJ Wood Innovations
• Nordic Structures
• PFS Corporation

Key Market Developments

• On March 2023, Mercer International Inc. announced the signing of its first major mass timber project contract with a major consumer goods store. Over the course of 2023, the project, which consists of cross-laminated timber panels, glue-laminated beams, and connector parts, is scheduled to consume four months of capacity at Mercer's Spokane site on a one-shift basis.

• On February 2023, Hines, a global developer, has signaled its sustainability aspirations with its flagship T3 Collingwood building. The tower, designed by Jackson Clements Burrows, will be constructed entirely of Cross Laminated Timber (CLT) and Glue Laminated Timber (GLT). It is estimated that the use of both timber products will cut building emissions by 34% when compared to concrete and steel. The materials for construction will be supplied by XLam Australia and Australian Sustainable Hardwood. T3 is a 15-story building on Melbourne's Wellington Street with 18,200 square feet of A-grade commercial floorspace.

• In April 2022, Mayr-Melnhof Holz is developing its Leoben sawmill facility with a cutting-edge cross-laminated timber plant, a high-performance re-sorting and planing mill, and a fully automated high-bay warehouse for sawn timber storage. The 190-million-euro investment will be erected right after the sawmill. All load-bearing timber construction elements, such as the roof structure, walls, and ceiling elements, are built from PEFC-certified wood in Mayr-Melnhof Holz' own timber processing factories.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Cross Laminated Timber (CLT) Market based on the below-mentioned segments:

Cross Laminated Timber (CLT) Market, Product Type Analysis

• Adhesive Bonded
• Mechanically Fastened

Cross Laminated Timber (CLT) Market, Vertical Analysis

• Hydraulic
• Vacuum
• Pneumatic
• Nails
• Others

Cross Laminated Timber (CLT) Market, Vertical Analysis

• Residential
• Non-Residential

Cross Laminated Timber (CLT) Market, Technology Analysis

• Spruce
• Fir
• Pine
• Larch
• Others

Cross Laminated Timber (CLT) Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa