Mass Timber Construction Market Research, 2031
The global mass timber construction market was valued at $857.1 million in 2021, and is projected to reach $1.5 billion by 2031, growing at a CAGR of 6% from 2022 to 2031. Mass timber construction is a more environmentally friendly approach towards the construction of high-rise buildings over steel and concrete constructed buildings. It helps in reducing the carbon footprint and helps the construction industry to attain sustainability. The mass timber construction makes use of timber which derives from different trees such as oak, bamboo, cherry, cedar, mahogany, and birch. In addition, such a form of construction makes use of timber panels in massive amounts for the construction of the primary or main structure of a building.
The global mass timber industry is experiencing significant growth and is expected to grow at a faster pace in coming years. The major factor driving the growth of mass timber construction industry is the growing demand by construction sector in order to reduce the amount of pollution caused due to the use of steel and concrete. The mass timber panels makes use of the multiple load bearing and solid wooden panels been bound together that helps the mass timber panel to achieve strength and stability. Thus, this is growing the adoption of mass timber panels for construction of high rise buildings and are replacing steel and concrete. The panels are bound together by the use of glue, nails and dowels. In addition, apart from the sustainability, mass timber construction offers the same performance and durability as been offered by concrete and steel structures. Moreover, major players in the industry are adopting advanced technologies for increasing the efficiency along with the load bearing capacity of mass timber panels to stand with the competition in the mass timber construction market.
Growth in concern towards environmental degradation forced different sectors for innovating and reinventing the old methods of operations. The construction sector is experiencing huge growth which in turn is growing its demand for the environment-friendly and sustainable products such as mass timber, that further drives the demand for mass timber construction. Construction with mass timber is cheaper and faster in comparison with steel and concrete construction which in turn is growing the adoption of mass timber constructed buildings . In addition, the presence and availability of the various types of wood used for the preparation of timber helps in offering variety of new options. Thus, such factor is anticipated to drive demand in the mass timber construction market. However, water damage, insect infestation along with fungal attack on mass timber panels reduce the life of such construction. This is one of the restraining factors which hinders the growth of the mass timber construction market. However, technological advancements in the mass timber construction design tools have enhanced the usability of mass timber in construction. This is expected to grow the demand and create lucrative opportunities for the mass timber construction market during the forecast period that inturn is helping in expansion of market mass timber construction market size.
By construction type: On the basis of construction type, the mass timber construction market is bifurcated into 1-8 stories and above 8 stories. In 2021, 1-8 stories segment registered the highest revenue and above 8 stories segment is expected to grow at a significant CAGR. There is a growth in adoption of mass timber for construction of smaller buildings along with the growth in preference by the owners for houses that are made from lightweight material that helps in saving the cost of construction. In addition, there is a growth in preference for the use of materials that helps in construction of buildings in smaller space. The mass timber panels used for smaller building helps in providing maximum resistivity toward fire with maximum strength. Moreover, it helps in maintaining the temperature inside building, which helps in saving cost of ventilation for price-oriented consumers.
Many private and public entities are looking forward for making creative and sustainable buildings that help in meeting the environmental needs. For instance, in January 2020, Brookfield Properties decided to construct the largest mass timber commercial building in North America as a part of its 28-acre Pier 70 waterfront development in San Francisco. Moreover, different strategies such as business expansion strategies helps in assisting and enhancing the geographic footprint of any company which further helps in gaining significant market share. For instance, one of the largest mass timber manufacturer in North America named Structurlam Mass Timber Corporation, announced the expansion of its operations in U.S., with a new plant in Conway, Ark. The facility will further help in improving the service offerings for thee mass timber in the U.S. Moreover, SmartLam announced the plans towards the expansion of its presence in North America. It operated in Alabama and Montana in the U.S. and further planned to establish three new plants by the 2022. Thus, this would help in boosting the production capacity of cross-laminated timber (CLT) to more than 17.2 million cubic feet. Thus, such strategies in turn drive the mass timber construction market growth..
By material: On the basis of material, the mass timber construction market is bifurcated into cross-laminated timber(CLT), glue-laminated timber(GLT), nail-laminated timber(NLT), and others. In 2021, cross-laminated(CLT) segment registered the highest revenue and nail-laminated timber(NLT) segment is expected to grow at a significant CAGR. The cross-laminated timber (CLT) is used for all kinds of structures ranging from houses, barns, power line towers, churches, and bridges to high-rise apartment and office buildings. CLT is primarily used as a substitute for concrete, masonry, or steel in mid-rise multistory buildings. This has led to a rise in demand for CLT in the market; thus, the production of CLT has increased in the past few years. For instance, Kalesnikoff Lumber Co. Ltd. started construction of a new plant by investing around $35 million in Vancouver, Canada which is anticipated to manufacture Cross laminated timber. Furthermore, in 2020, the technology used to manufacture CLT by Katerra was upgraded for more ease in applications of high performance, low-carbon buildings. Such strategies adopted by the CLT manufacturers are anticipated to boost the growth of the CLT construction market during the forecast period.
.However, during the outbreak of the COVID-19 pandemic, the construction, manufacturing, hotel, and tourism industries were majorly affected. Construction activities were halted or restricted. This led to a decline in mass timber construction and the demand for construction in the market, thereby restraining the growth of the mass timber construction market. However, industries have gradually resumed their regular services with the launch of vaccines and reduction in number of COVID-19 cases. Thus, this helped the companies to work with maximum capacity which in turn helped the mass timber construction market to recover by the end of 2021.
The mass timber construction market is segmented into construction type, material, application, and region. On the basis of construction type, the market is bifurcated into 1-8 stories and above 8 stories. On the basis of material, the market is segmented into cross-laminated timber(CLT), glue-laminated timber(GLT), nail-laminated timber(NLT), and others. On the basis of application, it is classified into residential, commercial, and industrial. On the basis of region, it is studied across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
By application: On the basis of application, the mass timber construction market is bifurcated into residential construction, commercial construction and industrial construction. In 2021, residential construction segment registered the highest revenue and commercial construction segment is expected to grow at a significant CAGR. The robust housing activity is seen in the present period with nearly 50% of all mass timber products utilized in new single-family and multi-family housing units. In residential construction, glulam and I-beams have been utilized mainly allowing for long spans without intermediate supports indoor headers, floor beams, and ridge beams. On average, residential construction accounts for about one-third of all wood products consumed. On the contrary, plywood finds its application basically in the interiors of houses.
In 2021, Europe was the highest contributor to the global mass timber construction market share, and LAMEA is anticipated to secure a leading position during the forecast period.
On the basis of material, in 2021 the cross-laminated timber segment dominated the mass timber construction market, in terms of revenue, and the Nail-laminated timber segment is expected to witness growth at the highest CAGR during the forecast period. On the basis of construction type, in 2021, the 1-8 stories segment led the mass timber construction market, and the above 8 stories segment is expected to exhibit the highest CAGR in the near future. By application, the residential segment led the market in 2021, in terms of revenue and the industrial segment is anticipated to register the highest CAGR during the forecast period.
By region: On the basis of region, the market is bifurcated into North America, Europe, Asia-Pacific and LAMEA. The Europe dominated the market in terms of revenue and LAMEA is expected to grow at a highest CAGR. European Union targets net-zero carbon buildings by 2050. This is anticipated to entail use of environment-friendly building materials such as engineered wood for construction of the buildings. Moreover, in Europe, around 35% of buildings are over 45 years old, and 75% of buildings are energy inefficient. Renovation, remodeling, and reconstruction of these buildings increase the demand for engineered wood in the Europe region. This includes the use of mass timber for roofing, flooring, panels, and beams. These factors boost the growth of the market in Europe during the mass timber construction market forecast period.
Competition Analysis
Key companies profiled in the mass timber construction market report include Canadian Timberframes Ltd., Hearthstone Homes, Hochstetler Milling Ltd., Honest Abe Log Homes, Inc., Lancaster County Timber Frames Inc., Mill Creek Post & Beam Company, American Post & Beam, British Columbia Timberframe Company, Blue Ridge Timberwrights and Davis Frame Co.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the mass timber construction market analysis from 2021 to 2031 to identify the prevailing mass timber construction market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the mass timber construction market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global mass timber construction market trends, key players, market segments, application areas, and market growth strategies.
Mass Timber Construction Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 1.5 billion |
 Growth Rate | CAGR of 6% |
 Forecast period | 2021 - 2031 |
 Report Pages | 189 |
 By Construction Type |
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 By Material |
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 By Application |
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 By Region |
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 Key Market Players | Lancaster County Timber Frames Inc., Hearthstone Homes, Inc., Honest Abe Log Homes, Inc., Canadian Timberframes Ltd., Davis Frame Company, American Post & Beam, British Columbia Timberframe Company, Blue Ridge Timberwrights, Mill Creek Post & Beam Company, Hochstetler Milling, Ltd. |
Analyst Review
The mass timber construction market is driven mainly by the growth in the construction activity of sustainable and eco-friendly houses. In addition, timber construction offers better cost-effective and eco-friendly alternatives over the other wood and steel products that drive the growth of the market.
However, the growing threat of the substitutes such as steel and cement panels that offers better strength along with durability is a factor restraining the growth of the mass timber construction market.
On the contrary, growing urbanization in different developing countries is the major factor for the mass timber construction market growth during the forecast period
Major companies in the market have adopted strategies such as acquisition, agreement, business expansion, and product launch to offer better services to customers in the mass timber construction market. Players operating in the market have adopted acquisition, partnership, and product launch as their key growth strategies to gain a stronger foothold which is expected to offer lucrative opportunities for the growth of the market.
The global mass timber construction market was valued at $857.1 million in 2021, and is projected to reach $1,542.2 million by 2031, registering a CAGR of 6.0% from 2022 to 2031.
The forecast period considered for the global mass timber construction market is 2022 to 2031, wherein, 2021 is the base year, 2022 is the estimated year, and 2031 is the forecast year.
The latest version of global mass timber construction market report can be obtained on demand from the website.
The base year considered in the global mass timber construction market report is 2021.
The top companies holding the market share in the global mass timber construction market report are Canadian Timberframes Ltd., Hearthstone Homes, Hochstetler Milling Ltd., Honest Abe Log Homes, Inc., Lancaster County Timber Frames Inc., Mill Creek Post & Beam Company, American Post & Beam, British Columbia Timberframe Company, Blue Ridge Timberwrights and Davis Frame Co.
The top ten market players are selected based on two key attributes - competitive strength and market positioning.
The report contains an exclusive company profile section, where leading companies in the market are profiled. These profiles typically cover company overview, geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
By type, the cross-laminated timber (CLT) segment is the highest share holder of mass timber construction market.
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