Cross laminated timber is engineered wood lumber composed of multiple structural composite timber and solid-sawn layers. It is used in the construction of on-site buildings and prefabricated building structures. This type of timber provides excellent seismic performance, design flexibility, and thermal and acoustic insulation. Its increasing popularity enables manufacturers to incorporate soft and temperate wood to manufacture CLT. CLT was developed in Europe’s Alpine region in the 1990s and became a reliable building material in Europe. It is gaining popularity in North America because of its benefits in construction applications. These factors are likely to bolster industry growth in the upcoming years.
This industry is expected to be affected negatively during the forecast period because of manufacturing constraints and the lack of demand for CLT from the construction industry. The spike in COVID-19 infections has provoked governments to impose stringent regulations against construction, manufacturing, and transport. The lack of raw materials and manufacturing restraints are likely to hinder CLT’s demand. However, the adoption of reduced capacities and production machinery may enable manufacturers to re-gain their position globally. These factors are likely to fuel the industry growth during the pandemic.
By bonding technology, the industry is segmented into mechanically fastened and adhesive bonded. Based on application, it is categorized into non-residential buildings, residential buildings, and others. Geographically, it is clubbed into Europe, North America, Asia-Pacific, and the Rest of the World.
The global cross laminated timber industry size is projected to reach USD 2,066.1 million in 2028, exhibiting a CAGR of 14.4% during the forecast period. CLT’s extensive adoption in building structures and constructions is likely to facilitate industry growth.
Cross laminated timber is used extensively from several green constructions because of its eco-friendly properties and effectiveness in construction applications. Governments support CLT’s use in construction sectors because of its environmentally friendly properties. For example, India’s Public Works Department lifted the ban on the usage of timber in building constructions in 2020. It provides better acoustic and thermal insulation in comparison with conventional materials. Further, manufacturers and governments focus heavily on developing sustainable construction materials. As a result, cross laminated timber is likely to drive the industry growth.
However, the material’s non-reliable moisture and fire resistance may hinder the industry progress.
Extensive Adoption of CLT in Medium and Small Sized Houses to Boost Industry in Europe
Europe is expected to dominate the cross laminated timber industry share because of the extensive adoption of CLT in several medium and small-sized houses. The industry is 445.2 million in 2020 and is expected to grow rapidly during the upcoming years. The region is accountable for the construction of over 65% CLT worldwide. It provides excellent insulation against cold environments, which may boost its demand from construction projects. These factors are likely to fuel industry growth.
In North America, extensive adoption of CLT in hybrid building constructions is likely to fuel the industry’s progress. Further, increasing investments in infrastructure developments are likely to fuel the industry development.
In Asia-Pacific, the rising demand for construction materials with excellent seismic performance for constructions is likely to fuel industry progress. In addition, the incorporation of locally grown cross-laminated timber in constructions is likely to fuel industry progress.
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Prominent Companies Set Up Manufacturing Plants to Strengthen Industry Position
The prominent companies operating in the industry set up manufacturing plants in several regions to strengthen their industry position. For example, Mayr Melnhof Holz Holding AG made a significant investment of nearly USD 145 million in January 2020 to construct a modern CLT manufacturing facility at Leoben, Austria. The company undertook this strategy to strengthen its industry position in the European industry and boost the forward integration development. In addition, the adoption of research and development may enable companies to boost their product quality and boost brand image.
Industry Development
- January 2020: Freres Lumber transformed into the first organization to install the first Taihei horizontal plywood press in the U.S. This development maximized contact pressure uniformity and energy savings, thereby boosting production efficiency
List of Key Players Profiled in the Cross Laminated Timber Industry Research
Stora Enso (Finland), Mayr Melnhof Holz Holding AG (Austria), Binderholz GmbH (Austria), Xlam Ltd. (Australia & New Zealand), Sterling Company (U.S.), Schilliger Holz AG (Switzerland), KLH Massivholz GmbH (Austria), B&K Structures (U.K.), Eugen Decker Holzindustrie KG (Germany), Structurlam Mass Timber Corporation (Canada), Smartlam NA (U.S.), Freres Lumber Co. Inc. (U.S.), Katerra (USA & India), IB EWP Inc. (Canada), Nordic Structures (Canada), StructureCraft Builders Inc. (Canada), DRJ Wood Innovations (U.S.), PFS Corporation (U.S.)
