Engineered Wood Market Expected to Reach $427.3 Billion by 2033

According to a new report published by Allied Market Research, titled, “Engineered Wood Market," The engineered wood market size was valued at $254.2 billion in 2023, and is estimated to reach $427.3 billion by 2033, growing at a CAGR of 5.3% from 2024 to 2033.

Engineered wood, also known as composite wood or man-made wood, is a category of building materials made from reconstituted wood fibers, veneers, or strands that are bonded together using adhesives, heat, and pressure. This manufacturing process results in a product that has enhanced strength, stability, and durability compared to traditional solid wood. Engineered wood is widely used in construction, furniture, and cabinetry due to its versatility, cost-effectiveness, and eco-friendly properties.

Common types of engineered wood include particle board, plywood, medium density fiberboard (MDF), cross laminated timber (CLT), laminated veneer lumber, oriented strand board, and glue laminated timber (glulam). Out of these types, plywood segment dominated the market in 2023 in terms of revenue, primarily due to its high strength and versatility is usage. In addition to this, these engineered woods are used for applications such as construction, flooring, furniture, transport, packaging, and others. Among these applications, engineered wood are largely used in construction sector, as engineered wood can be sourced sustainably and are aesthetically appealing. Moreover, out of the two end users i.e., residential and non-residential, residential sector dominated the engineered wood market share in 2023, and is also expected to grow with a higher CAGR during the forecast period.

The engineered wood market is witnessing a rapid rise owing to various factors ranging from growing construction, growing popularity for home renovation and others. There is a rising demand for engineered wood due to the increasing global population and urbanization, particularly in developing countries. Engineered wood is favored over traditional materials like concrete, steel, and aluminum because it is environmentally friendly, producing no greenhouse gases and often being made from wood waste. It is renewable, biodegradable, nontoxic, energy-efficient, and recyclable. Its low cost compared to cement and other woods encourages builders to adopt it, especially as around 60% of new construction projects are following green building norms. Moreover, urbanization is also driving the renovation and remodeling of old buildings. As old structures become unsafe, they are often demolished or updated with modern materials, including engineered wood for flooring, walls, and roofs. This trend is particularly prominent in developed nations. The cost-effective and eco-friendly characteristics of engineered wood make it an attractive choice for these projects, and help in engineered wood market growth.

Moreover, major players are adopting various strategies to expand their market presence either by product launch or acquisition. For example, in December 2022, Boise Cascade expanded its distribution network by acquiring two major land parcels: a 45-acre site in Walterboro, South Carolina, and a 34-acre parcel in Hondo, Texas. These acquisitions are aimed at enhancing the company's service capabilities in key regions, including South Carolina and Texas.

Engineered wood is widely used across the world, where Asia-Pacific held a major market share attributed to its larger construction sector and availability of forests to source wood from. In North America, U.S. held a higher Market share, as a majority of homes are built using timber. Furthermore, Asia-Pacific  is expected to dominate engineered wood market forecast by growing with the highest CAGR.

However, substitutes like plastic laminates and vinyl flooring are gaining popularity, which poses a threat to the engineered wood market. Strict regulations on logging also limit the availability of raw materials, pushing prices higher. Despite these challenges, there is a significant opportunity for Medium-Density Fiberboard (MDF) in developing nations, where its penetration is currently low. MDF is a cost-effective and aesthetically pleasing alternative to low-quality plywood, and its engineered wood market is expected to grow significantly as the furniture industry shifts from unorganized to organized sectors.

The Engineered wood market is segmented on the basis of type, application, and region. Depending on type, the market is segregated into particle board, plywood, medium density fiberboard (MDF), cross laminated timber (CLT), laminated veneer lumber, oriented strand board, and glue laminated timber (glulam). By application, it is categorized into construction, flooring, furniture, transport, packaging, and others. By end user industry, it is bifurcated into residential, and non-residential. By region, it is analyzed across North America, Europe, Asia-Pacific, Latin America and Middle East & Africa.

KEY FINDINGS OF THE STUDY

• The report provides an extensive engineered wood market analysis of the current and emerging engineered wood market trends and dynamics. 
• Depending on type, the plywood segment held the largest market share in terms of revenue in 2023.
• By application, the construction segment accounted for the highest market share in 2023.
• By end user industry, in 2023, the residential segment held the largest market share in terms of revenue. Moreover, the same segment is expected to grow with a higher CAGR during the forecast period.
• Asia-Pacific is projected to register the highest growth rate in the coming years.
• The key players within the engineered wood market are profiled in this report, and their strategies are analyzed thoroughly, which helps understand competitive outlook of the engineered wood market.
• The report provides an extensive analysis of the current trends and emerging opportunities in the market. 
• In-depth engineered wood industry analysis is conducted by constructing estimations for the key segments between 2024 and 2033.