Persistence Market Research states that the global cross laminated timber market is expected to witness a CAGR of 6.6% between 2020 and 2030.
The global cross laminated timber market is driven by the growing awareness amongst people regarding environmental hazards caused due to cement concrete being used in building construction (cement causes soil erosion, flooding, water pollution). As such, call for green homes is keeping the cash registers ringing for cross laminated timber market.
Extending the above-mentioned point further, the construction industry is witnessing a paradigm shift from “concrete-based” to “wood-based”. Cross laminated timber also renders a shorter construction time. Moreover, wooden residential buildings like multi-family apartments and single-family homes are found to have flexibility in terms of design along with aesthetic appeal.
How about fathoming the Depth of Cross Laminated Timber Market?
Cross laminated timber is known for its high stiffness along with out-of-plane and in-plane bearing capacity. This renders it best-suited as wall or floor panels.
Cross laminated timber market, as far as products are concerned, comprise mechanically fastened and adhesive bonded. The latter one is in more demand due to exceptional resistance to fire coupled with good insulation. Coming to application, there are “industrial” and “commercial”. The emerging economies will witness a higher demand for cross laminated timber in “industrial” sector due to rapid industrialization therein. On the other hand, the developed economies will witness the same demand in “commercial” sector due to increasing green construction activities.
The outbreak of Covid-19 has literally compelled the entire world (construction industry, in particular) to re-think on their business strategies. The worldwide income has gone in for a toss, with zillions of people suffering from job losses. With this uncertainty lurking around, people will definitely put their plans to buy houses on hold. Even companies will think atleast twice before going for any commercial plot, as employees have been working from homes since Mar 2020 and the manufacturing sector has started operating with merely 20% of the capacity.
However, with the “unlock” phase progressing gradually, and construction industry trying to be on tracks, the demand for cross laminated timber is expected to increase manifold as cost-effectiveness as well as environmental-friendliness is assured of. The healthcare experts have been harping on importance of clean air, fresh air all through. Intake of fresh air helps in building a strong immune system, thereby combating pandemics like Covid-19. As such, the period till the end of 2020 and also going forward will witness an upswing in cross laminated timber market.
Europe is expected to lead the cross laminated timber market. This could be attributed to immediate adoption on the part of cross laminated timber by Germany and Austria. The central European economies are home to advanced timber processing industries. The other rapidly developing countries in cross laminated timber market include China, Japan, New Zealand, the US, and Canada.
The key players in the cross laminated timber market include SmartLam, B & K Structures, Structurlam, Eugen Decker Holzindustrie KG, KLH Massivholz GmbH, Sterling Lumber, Schilliger Holz AG, XLaam Ltd., Binderholz, Mayr-Melnhof Holz, and Stora Enso. Expansion is being focused on to sustain themselves. For instance - Derix Group, in Jul 2018, did announce expanding its production capacity by having built an extra cross laminated timber hall in its premises in Germany.