WIA_ISSUE2_2023

ATTRACTIVE OPPORTUNITIES IN THE CROSS
ATTRACTIVE LAMINATED TIMBER OPPORTUNITIES MARKET IN THE CROSS
LAMINATED TIMBER MARKET
MARKET REPORT
additional carbon. The report states
that because of CLT’s advantages in
design and how it follows environmental
requirements required in the office,
public, institution and hotel segments,
the non-residential building segment
provides major prospects for CLT.
All in all, using CLT in constructing
non-residential buildings can reduce
construction time and cost, all while
providing structural integrity, sustainable
credentials, and aesthetic satisfaction.
EUROPE
The major drivers for this market are
the increase in awareness regarding
the importance of CLT, as well as the
rising industrialisation in the region
after the economic slowdown. The
European region has the highest
number of manufacturers of CLT and
is currently leading in production due
to the presence of manufacturers
such as Mayr-Melnhof Holz. Due to the
adoption of strategies such as mergers
and acquisitions and investments and
acquisitions, further advancements in
the market are expected.
CLT itself has been in use for decades,
particularly in this region. It is used
by wood lovers to build single-family
homes, as well as multi-storey,
large-volume timber projects, according
to MarketsandMarkets. Interest in the
material is surging along with concern
about the greenhouse gas emissions
associated with concrete and steel.
The production of construction
materials such as steel, cement, and
glass accounts for 10% of global
energy-related CO2 emissions,
according to a United Nations report.
CLT and other engineered wood
products, on the other hand, can
improve the environment in three ways:
Trees collect and store carbon as they
develop; long-lived wood products lock
in carbon; and these goods may be
utilised in many circumstances instead
of high-impact materials like concrete.
EUROPE
Source: MarketsandMarkets
EUROPE
HIGHEST
CAGR (2023-2029)
Source: MarketsandMarkets
AUSTRIA
FASTEST-GROWING
MARKET IN THE REGION
CHALLENGES
However, the overall CLT market has
been impacted by the Russia-Ukraine
war. Consequences of this conflict have
been faced by all sectors, especially
the construction sector. Due to a lack
of labour and a hampered supply
chain of raw materials, the CLT market
saw a downward trend in this period.
Consumers also stopped buying goods,
which led to a decrease in demand
and the manufacturers shutting down
factories in response.
More generically speaking, CLT also
has a limited number of end-use
industries, and each of them has
different regulations for the use
of these timbers, according to the
BY END USE
2023 (USD MILLION)
DRIVING FACTORS
FOR GROWTH IN
EUROPE
Structural
Non-Structural
report. Manufacturers cannot alter
the specifications of the CLT panel
to comply with these regulations.
Almost the same quality products
are being provided to each of these
• Increased investments in building and construction
• Presence of well-established and prominent manufacturers of
cross laminated timber
industries by different manufacturers.
As such, there is no scope for product
differentiation in the CLT market,
which hinders the growth of the
market globally. WIA
References:
1. MarketsandMarkets. Cross laminated
timber market by type (adhesive bonded, and
mechanically fastened), industry (residential, and
non-residential), end use (structural, and nonstructural),
and region (North America, Europe,
APAC, South America, MEA) - Global Forecast to
2028.
WOOD IN ARCHITECTURE • ISSUE 2 – 2023 25