30-Nov-2022 | Zion Market Research
The global engineered wood market size was worth around USD 277 billion in 2021 and is predicted to grow to around USD 489 billion by 2028 with a compound annual growth rate (CAGR) of roughly 6.51% between 2022 and 2028.
Wood is one of the most important components in the building industry along with other related sectors like interior decoration and furniture manufacturing to name a few. Although naturally occurring wood is renewable, due to the sudden large-scale demand for wood products, many areas have undergone deforestation which has caused a severe impact on the global environment. Another important point to consider is the price range of the products that are made from hardwood as they generally lie in the upper price range.
Currently, the only substitute from naturally occurring wood is man-made or composite wood also known as engineered wood that exhibits physical appearance and properties similar to that of hardwood. In terms of flooring, when seen on the surface, engineered wood looks exactly like hardwood flooring but it is constructed using only a slim layer of hardwood with a plywood core. Hardwood flooring can be costly and engineered woods act as great substitutes as they provide almost similar physical appearance.
Due to some of the advantages associated with engineered woods, they are preferred over hardwood. Some of the benefits include the flexibility and versatility offered by composite woods. Some of the main categories of engineered wood include plywood, particle boards, blockboard, medium-density fiberboard (MDF), laminate veneer, cross-laminated timber, and oriented strand board. All of these engineered wood has certain advantages and disadvantages associated with them.
The global engineered wood market is anticipated to grow due to the growing building and construction business where engineered wood has found wide applications. Since engineered wood is available in various measurements and sizes while also offering flexibility to mold the composite wood as per consumer needs, they are one of the most preferred objects in building construction.
They are used to create space like a solid structure, or rooftop. In the construction sector, engineered woods have found applications in the manufacturing of boat hulls, beams, and other solid structures. The global market may witness higher growth due to less availability of hardwood along with its high cost rendering it unaffordable for a large section of end-consumers. With the growing use of technology, manufacturers and business players have created a large market for the attractive home or indoor decor segment with the help of engineered wood that gives the physical attributes of actual wood but at a relatively lower cost.
However, the global market growth may be restricted due to the presence of multiple substitutes like foils, laminates, and plastics. Manufacturers and suppliers of the substitutes are investing heavily in advertising and selling these products. The dearth of naturally occurring wood has caused another concern related to the availability of raw materials to create engineered wood which may also impact revenue generation in the coming years.
Although the growing number of remodeling activities may provide excellent growth moments, the lack of exact properties of hardwood is projected to challenge the market rise.
The global engineered wood market is segmented based on application, type, end-user, and region
Based on type, the global market is divided into plywood, I-beam, and laminated veneer lumber (LVL). The plywood segment is anticipated to grow at a high CAGR. In 2021, the plywood market in North America was valued at USD 15 million cubic meters. Plywood is popular due to the versatility of the product along with uniform strength and cost efficiency.
Based on end-user, the global market is segmented into industrial, residential, and commercial. In 2021, the residential sector dominated the global market and it may grow at a CAGR of 6.25% during the projection period. The segmental growth is directly propelled by the growing investments in residential spaces to meet the increasing housing demand of the population as well as the modernization of rural areas as a result of economic growth. The industrial and commercial segments also contribute heavily due to increasing remodeling work on old architecture as well as building new units as a means to grow tourism in the country.
Asia-Pacific is projected to generate the highest revenue in the global engineered wood market due to the growing building and construction sector. More than 15% of the working population in India is dependent on the construction sector and it constitutes around 4.9% of the nation’s gross domestic product (GDP). With the growing population and subsequent demand for residential space along with the increasing need for commercial units due to rampant industrialization, engineered wood is expected to create a huge consumer group in the coming years. Growth in North America and Europe is projected to be dominated by the remodeling activities undertaken to restore the old architecture of these regions.
The global engineered wood market is home to players like Boise Cascade Company, Celulosa Arauco y Constitución, Universal Forests Products, Inc., Lowe's Companies, Inc., CST Timber Co, Georgia Pacific Wood Products, LLC, Rockshield Engineered Wood products ULC, Roseburg Forest Products, and Huber Engineered Wood LLC, amongst others.
This review is based on a report by Zion Market Research, titled “Engineered Wood Market By Application (Furniture, Construction, Flooring, and Others), By Type (Plywood, I-Beam, and Laminated Veneer Lumber (LVL)), By End-User (Industrial, Residential, and Commercial), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028.”- Report at https://www.zionmarketresearch.com/report/engineered-wood-market
The global engineered wood market is segmented as follows:
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