PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1453693
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1453693
Global cross laminated timber market is projected to witness a CAGR of 10.44 during the forecast period 2024-2031, growing from USD 1.25 billion in 2023 to USD 2.77 billion in 2031. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
The global cross laminated timber (CLT) market has experienced remarkable growth in recent years, driven by the increasing demand for sustainable and eco-friendly construction materials. CLT, a versatile wood product made from layering and bonding lumber in perpendicular directions, has gained prominence as a viable alternative to traditional construction materials like concrete and steel. The market's expansion is fueled by its commendable structural strength, seismic resistance, and excellent thermal performance, making it an attractive choice for architects and builders aiming to meet stringent environmental standards. Government initiatives promoting green building practices and the rising awareness of carbon footprint reduction further propel the adoption of CLT in the construction industry.
North America and Europe have emerged as key regions witnessing substantial CLT market growth, with a surge in tall wood building projects and a preference for sustainable construction solutions. Additionally, technological advancements and innovations in manufacturing processes contribute to the market's evolution, enhancing the efficiency and cost-effectiveness of CLT production. As the global construction sector continues to prioritize sustainability and resilience, the CLT market is poised for sustained expansion, offering a compelling solution for environmentally conscious and forward-thinking construction projects worldwide.
For instance, in February 2024, researchers at Washington State University have been awarded a two-year grant to develop stronger and longer-lasting building materials using thermally treated cross laminated timber (CLT) and recycled carbon fiber. The USD 360,000 grant originates from the Composite Recycling Technology Center (CRTC) as part of their award from the U.S. Department of Defense's Army Corps of Engineers. Additionally, Bahmani has obtained a grant from the U.S. Department of Housing and Urban Development to focus on modular mass timber construction, aiming to enhance housing affordability in the United States.
Growing Demand for Sustainable Construction
The global cross laminated timber market is experiencing a surge in demand driven by a growing global emphasis on sustainable construction practices. As environmental awareness intensifies, there is a heightened preference for eco-friendly building materials, with CLT emerging as a frontrunner. Architects, developers, and governments worldwide are increasingly recognizing the importance of reducing carbon footprints and adopting construction solutions that align with green building standards. CLT, with its renewable nature and low-carbon characteristics, addresses these concerns, making it a sought-after choice for sustainable construction projects. The increasing recognition of CLT as a key material in the pursuit of environmentally conscious building practices is propelling its market growth on a global scale.
For instance, on September 1, 2023, the La Conner Swinomish Library, a community-driven project, introduced CLT to La Conner, Washington. Both native and non-native communities joined forces to create the innovative library, which stands as one of the initial publicly funded structures to incorporate cross laminated timber throughout its entire building framework. The interior of the La Conner Swinomish Library showcases completely uncovered Cross-Laminated Timber walls, which are enhanced through daylighting approaches. Sustainable designs implemented within the structure encompass a roof-top solar array, an energy-efficient building shell and heating, ventilation, and air conditioning (HVAC) system, as well as the utilization of safe and non-toxic construction materials and coatings. With the additional advantage of carbon sequestration offered by CLT, the library has achieved LEED Silver certification.
Tall Wood Building Trend
The global cross laminated timber (CLT) market is significantly influenced by the upward trend in tall wood buildings. As architects and developers seek sustainable and innovative construction solutions, there is a notable shift toward incorporating CLT in the design and construction of tall structures. The trend is driven by CLT's exceptional structural properties, such as high strength-to-weight ratio and seismic resistance, making it a reliable choice for vertical construction. Tall wood buildings showcase the versatility of CLT and align with the broader goals of environmentally conscious urban development. The increasing acceptance and successful implementation of CLT in tall structures worldwide contribute to the market's growth.
For instance, on October 3, 2023, the world's tallest hybrid timber building, known as the C6 tower and designed by Fraser and Partners, was approved for construction on the Swan River in South Perth. This 51-storey building, named after the element carbon, will stand at 183 meters tall, surpassing other hybrid timber buildings in Australia. It will be in Charles Street, South Perth, nearing a proposed railway station and an existing ferry wharf. The USD 350 million project is set to be three meters taller than Atlassian's hybrid timber tower near Central Station in Sydney, designed by Shop Architects and BVN.
Advancement In Technology
Technological advancements play a pivotal role in shaping the global cross laminated timber (CLT) market. Ongoing innovations in manufacturing processes, precision engineering, and digital design tools contribute to the increased efficiency and scalability of CLT production. State-of-the-art technologies enable manufacturers to optimize resource utilization, reduce waste, and enhance the overall cost-effectiveness of CLT, making it more competitive in the construction market. Additionally, advancements facilitate the customization of CLT products to meet specific project requirements, expanding its applicability across diverse architectural designs. The integration of automation and digital solutions further streamlines production processes, ensuring consistent quality and faster turnaround times. As technology continues to evolve, it remains a driving force behind the growth and adoption of CLT as a sustainable and technologically advanced construction material on a global scale.
Growing Demand from Residential Sector
The global cross laminated timber market is witnessing a notable surge in demand from the residential sector. As sustainability becomes a paramount consideration in construction, CLT emerges as an attractive choice for residential projects. Homeowners, developers, and builders are increasingly opting for CLT due to its eco-friendly nature, versatility, and aesthetic appeal. The inherent structural advantages of CLT, including its strength, durability, and thermal performance, align with the demands of modern residential construction. Moreover, the speed of construction offered by CLT contributes to meeting the growing need for efficient and timely project delivery in the residential sector. The rising preference for sustainable and innovative building materials positions CLT as a key player in shaping the future of residential construction globally.
For example, on October 16, 2023, De Groot utilized approximately 28,000 m2 of CLT panels from Pfeifer. Due to the extensive prefabrication of the timber modules, construction is advancing rapidly, and 185 apartments are expected to be ready for occupancy by early 2024.
Government Regulations
Government regulations are playing a crucial role in shaping the global cross laminated timber market. Across various regions, there is a noticeable shift towards endorsing sustainable construction practices, with stringent building codes and regulations encouraging the use of eco-friendly materials such as CLT. Authorities worldwide are implementing measures to promote green building standards, recognizing the environmental benefits of CLT, such as its renewable nature and low carbon footprint. Incentives and certifications for sustainable construction further drive the adoption of CLT. These regulatory initiatives contribute to environmental conservation and foster the growth of the CLT market by creating a supportive framework for builders, architects, and developers to incorporate the innovative and sustainable construction material into their projects.
For instance, cross-laminated timber is created by layering dried lumber boards in alternating directions at 90-degree angles, then bonding and compressing them into solid panels. These panels offer exceptional strength and stability, suitable for use on walls, roofs, and floors. Recent assessments have demonstrated that a seven-inch CLT floor can withstand fire for up to two hours. To enable wooden structures to exceed six stories without special approval, revisions to the International Building Code are necessary. Researchers at the Forest Products Laboratory have conducted fire tests to enhance the fire performance of wood buildings, collaborating with various organizations to advance the use of CLT in construction.
Key Players Landscape and Outlook
The global cross laminated timber market features a dynamic landscape with key players playing a pivotal role in shaping its trajectory. Prominent companies such as Stora Enso, KLH Massivholz GmbH, Binderholz, and Mayr-Melnhof Holz are at the forefront, driving innovation and market growth. These industry leaders consistently invest in research and development to enhance CLT manufacturing processes and expand their product portfolios. Collaborations and strategic partnerships are becoming increasingly prevalent as companies aim to capitalize on emerging opportunities and broaden their global presence. With a positive outlook for sustainable construction solutions, these key players are expected to continue influencing market dynamics, focusing on product advancements, geographical expansion, and sustainable practices to meet the growing demand for eco-friendly construction materials in the global CLT market.
For instance, On September 20 2023, the New York City Economic Development Corporation unveiled the New York City Mass Timber Studio, a program aimed at providing technical assistance to mass timber development projects in their early planning and design stages. Mass Timber is a sustainable building material made from engineered wood products that have a low carbon footprint.
On October 12, 2023, NeXTimber, a subsidiary of Timberlink, achieved a notable accomplishment by producing their initial Cross Laminated Timber panel within their Tarpeena facility located in South Australia. The event signifies an important step towards establishing Australia's inaugural integrated CLT and Glue Laminated Timber (GLT) radiata pine mass timber production site. With the new commissioning of the CLT manufacturing line, capable of creating panels measuring up to 16 meters in length and 3.5 meters in width, Australia now possesses enhanced capabilities for fabricating large-scale wood building products.
For instance, on January 19, 2024, a groundbreaking wooden parking structure is under development in Wendlingen am Neckar, which falls within the Stuttgart metropolitan region. The innovative project encompasses exceptional architectural standards, user convenience, environmental sustainability, and economic efficiency. Pfeifer has supplied approximately 1,100 cubic meters of Cross-Laminated Timber (CLT) to facilitate this construction endeavor. The planned completion of the project is set for May 2024.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.