Cross Laminated Timber (clt) Market

The global Cross Laminated Timber (clt) Market is valued at USD 1.2 Billion in 2022 and is projected to reach a value of USD 3.5 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 14% between 2023 and 2030.

Premium Insights

According to MDPI, compared with reinforced concrete-framed buildings, wooden-framed constructions consume approximately 80% more energy during the material production stages and release about 100–200% more. Regarding CLT, a seven-story CLT building may result in a 29.4% energy saving (equivalent to 24.6% carbon reduction) compared to a reinforced concrete building in the operational stage. With an increasing focus on sustainability in the construction industry, CLT is gaining popularity as a substitute for concrete and steel in building applications. In addition, CLT is considered a sustainable building material as it is made from renewable resources and has a low carbon footprint. For instance, the Brock Commons House at the University of British Columbia is the best example of CLT construction in BC. Construction of high rise using mass timber is an example of sustainable and innovative building options, revolutionizing the CLT market.

• Rising inclination towards sustainability and developing newly constructed CLT buildings, particularly in replacement for a steel floor structure, will bolster the market growth
• Europe accounted for the largest growth with a revenue share of 43.7% in 2022
• North America is expected to dominate the market during the forecast period
• The Adhesive Bonded segment accounted for the largest market growth and contributed more than 43.5% of the total revenue share in 2022 due to the Use of High-Strength Adhesives Used for the Bonding of Planks
• The Non-Structural segment revealed the most significant market growth and contributed more than 67.3% of the total revenue share in 2022.
• Based on Industry, Non Residential segment accounted for the potential market growth with more than 46.2% of the total revenue share in 2022
• Europe dominates global sales owing to the increasing acceptance of contemporary medical technologies

Top Market Trends

1. With climate change and sustainability becoming increasing concerns for the construction industry, CLT has become a popular choice for building projects. The T3 Building, short for "Timber, Transit, Technology," is a seven-story office building located in Minneapolis, Minnesota. It is a prime example of how CLT has been embraced for its sustainable benefits. Completed in 2016, the T3 Building was one of the first modern tall timber buildings in the United States.
2. The CLT industry is expanding in these countries, and local manufacturers produce their own CLT materials and prefabricated panels. For instance, in 2020, KLH Massivholz GmbH, a major European CLT manufacturer, announced the construction of a new production plant in Hungary to increase its capacity.
3. As CLT becomes more popular, new and innovative ways of building with the material are emerging. For example, some builders combine CLT with concrete and steel to create hybrid structures that benefit both materials. For example, the International Code Council (ICC) in the United States approved a proposal in 2022 to allow taller CLT buildings. (Source: Engineering News-Record).
4. With the rise of modular construction, builders are prefabricating CLT panels off-site and assembling them on-site, reducing construction time and costs. For instance, in 2020, a 100-meter-tall building named "Hoho Tower" in Vienna, Austria, was completed using CLT, highlighting the growing acceptance of CLT in high-rise construction.
5. Government organizations across various countries, such as the U.S., are focused on improving the CLT supply chain in conjunction with the private sector.
6. Advancements in technology, such as the development of CAD/CAM designs by the architect, which will help in analyzing where and how to cut the CLT panels is aiding the growth potential

Economic Insights

CLT offers several economic benefits. It is quick to manufacture and assemble, reducing construction time and labor costs. The lightweight nature of CLT also helps to lower transportation and foundation costs. These factors make CLT attractive for builders and developers looking for efficient, cost-effective construction solutions. The global supply chain of CLT involves several stages. First, timber is sourced from sustainably managed forests and processed into lumber. The lumber is then transformed into CLT panels through the lamination process. Finally, the CLT panels are distributed to construction sites for assembly. Changes in the world economy can impact the CLT market in several ways. Economic downturns can lead to an overall decrease in construction activity and, thus, a reduction in demand for CLT. Conversely, economic growth and increased investment in infrastructure projects can spur demand for CLT as a construction material. Changes in exchange rates, trade policies, and tariffs can also affect the CLT availability and cost across various regions.

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Market Segmentation

The global Cross Laminated Timber (clt) market can be categorized as Product, End-use, Industry, and Region. Based on the Product, the market can be categorized into Adhesive-Bonded and Mechanically Fastened. Furthermore, based on End-Use, the market can split further into Structural and Non-Structural. Likewise, by Industry, the market is classified into Residential and Non-Residential. Finally, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product

The Adhesive Bonded Segment to Lead Maximum Market Share Due to the Use of High-Strength Adhesives Used for the Bonding of Planks

In 2022, adhesive-bonded Cross Laminated Timber (clt) dominated the market. High-strength adhesives used for the bonding of planks are projected to propel its demand across various application industries, including residential, institutional, commercial, and others. Furthermore, the adhesive-bonded CLT panels can be converted to biofuel pellets after their life cycle. These panels are custom manufactured to their final dimensions, as per the construction needs, leading to less wastage of wood.

Based on Application

Residential Segment Expects Dominion Owing to the Growing Geriatric Population

The residential segment will experience the greatest market growth during the forecast period. The expanding use of eco-friendly construction materials and seismic carrying capability will likely result in higher demand in earthquake-prone areas such as Japan, India, and Mexico. Rising government investments across Asia Pacific, North America, and Europe in using environmentally friendly materials to reduce the building industry's carbon footprint will likely fuel market expansion.

Based on Region

Europe to Dominate Global Sales Owing to the Increasing Acceptance of Contemporary Medical Technologies

Europe dominated the market in 2022 due to the green building movement that began in the Region. Furthermore, trends in using wooden materials in construction applications will likely drive market growth during the projection period. According to Groupe BPCE, in 2022, over 180,000 residential buildings were under construction in France destined for sale on the real estate market. During the same year, roughly 28,000 residential units were constructed to offer subsidized rental housing for middle-income individuals or families. Thus, increasing building construction activities in this region is likely to propel the regional growth of the market.

The Cross Laminated Timber (clt) industry in North America is rapidly gaining popularity. CLT offers a sustainable and cost-effective alternative to traditional building materials like concrete and steel, and its flexibility and performance make it an attractive option for a wide range of applications.

Competitive Landscape

The global Cross Laminated Timber (clt) business is less competitive due to a few producers consolidated in the European Region, servicing key economies worldwide, such as North America and Asia-Pacific. To expand their uses, these firms compete on product characteristics such as wood thermal resistance, surface gloss, and price.

The key players in the global Cross Laminated Timber (clt) market include - Stora Enso (Finland), Mayr Melnhof Holz Holding AG (Austria), Binderholz GmbH (Austria), Xlam Ltd. (Australia), Sterling Company (U.S.), Schilliger Holz AG (Switzerland), KLH Massivholz GmbH (Austria), B&K Structures (UK), Eugen Decker Holzindustrie KG (Germany), Structurlam Mass Timber Corporation (Canada), Smartlam NA (U.S.), Freres Lumber Co. Inc. (U.S.), Katerra (U.S.), IB EWP Inc. (Canada), Nordic Structures (Canada), StructureCraft Builders Inc. (Canada), DRJ Wood Innovations (U.S.), PFS Corporation (U.S.) among others.

Recent Market Developments

• In October 2022, stora Enso inaugurated its new production site in Czechia, Europe, which produces cross-laminated timber (CLT) with an estimated annual production capacity of 120,000 m³. The company has strengthened its presence in the competitive market through expansion.
• In October 2022, Stora Enso invested EUR 79 million on a new production unit for Cross Laminated Timber (clt) in Ždírec, the Czech Republic to reinforce its growth strategy in wooden building solutions.
• In September 2022, ‘SmartLam North America,’ a leading largest CLT manufacturer in the North American region, announced the construction of a $50 million glulam production facility in Dothan, Ala.

Segmentation of the Global Cross Laminated Timber (clt) Market