PORTLAND - A new report from market research firm Allied Market Research (AMR) projects that the global engineered wood market is estimated to reach $41.273 billion by 2022, growing at a compound annual growth rate (CAGR) of 24.8 percent from 2016 - 2022. North America and Europe, being the developed markets, account for nearly 70 percent of global engineered wood production, while still maintaining high CAGRs.
Engineered wood demand is expected to remain high during the forecast period as it is an alternative to concrete and hardwood. Engineered wood products are widely used by architects, builders, code officials, and building designers aware of energy-efficient framing practices that conserve energy, speed-up construction, cut labor cost, and reduce waste.
"The rising popularity of engineered wood over hardwood is attributable to its cost-effectiveness and eco-friendly aspect,” says AMR research analyst Yogiata Sharma. “Also, stringent regulations with regards CO2 emission and rapid deforestation are factors likely to propel the adoption of engineered wood. Despite the reservations, surrounding its usage due to safety concerns, composite wood has proved to be a huge commercial success.”
The market is expected to move at a higher pace in Europe and North America, owing to high disposable income and widespread awareness of the benefits of engineered wood among the populace. The engineered wood industry in Europe will be driven by the rise in demand for engineered timber, substantial use of resources, and increased import of raw wood from Asia-Pacific and LAMEA.
Other developing and emerging regions, such as Asia-Pacific, Latin America, and Africa, exploit their vast forests for timber and raw materials for various engineered wood products. In 2015-2016, countries in Asia-Pacific such as Japan, Indonesia, and India led the engineered wood market, as they are the main exporters of raw materials to North American and European countries. India is one of the emerging markets in Asia-Pacific engineered wood industry, currently accounting for 10 percent of the Asia-Pacific engineered wood market share. It is estimated to register the highest CAGR of around 25 percent from 2016 - 2022.
Brazil and Chile show significant growth in the engineered wood market, owing to the high production of raw materials. These regions are expected to grow with double-digit CAGRs and witness entry of a number of market players.
Engineered wood market is segmented based on the type of product, wherein plywood and glulam collectively account for nearly 54 percent of the global market, and with cross-laminated timber expected to grow with the highest CAGR of nearly 30 percent during the forecast period.
The report says the non-residential construction would lead the market, owing to the continuously increasing construction of multistory building and bridges, globally.
· Increasing disposable income among middle and upper economic segments and increase in technical knowledge of machinery required in engineered wood product formation are the main reasons for their growth.
· CLT segment possesses high market potential owing to its usage in building of mega structures and growth in nonresidential market segment.
· Plywood and oriented strand boards (OSB) dominate the North American engineered wood in terms of volume market share, while I-beams and glulam lead the European market.
· Overall, the non-residential segment possesses higher market share in the overall Engineered wood market
Key players profiled in this report are Celulosa Arauco Y Constitución S.A., Weyerhaeuser Company, Boise Cascade Company, Roseburg Forest Product Company, Shenzhen Risewell Industry Co., Ltd., Louisiana Pacific Corporation, Lowes Companies, Inc., Georgia Pacific Wood Products, LLC, Universal Forests Products, Inc., 84 Lumber Company, Huber Engineered Wood LLC, and Patrick industries, Inc.