Engineered Wood Market

• Growing demand from the non-residential sector is driving the market growth.

India has allocated a budget of USD 429.55 million for the Revitalizing Infrastructure and Systems in Education (RISE) program by 2022. The MEA region is set to witness the construction of approximately 709 healthcare projects worth USD 65 billion, according to the BNC Network. Moreover, under the "Let Girls Learn" initiative, developing countries like Jordan receive funding from the United States to construct 25 new schools. This factor drives Market CAGR.

Additionally, manufacturers are actively promoting its benefits with the increasing demand for engineered wood. Engineered wood offers superior quality and durability compared to solid natural wood at a lower cost. It is also easier to maintain, making it an attractive choice for kitchen cabinets. The expanding use of engineered wood in modern kitchen applications presents promising market opportunities. Additionally, the adoption of unmanned aerial vehicles (UAVs) or drones is anticipated to contribute to the growth of the engineered wood market

The Global Engineered Wood Market Industry is projected to experience substantial growth over the coming years. With a market size anticipated to reach 322.9 USD Billion in 2024 and further expand to 694.5 USD Billion by 2035, the industry is on a robust upward trajectory. This growth is underpinned by a compound annual growth rate of 7.21% from 2025 to 2035, indicating strong demand across various sectors. The increasing adoption of engineered wood in residential, commercial, and industrial applications reflects a broader trend towards sustainable construction practices and innovative building solutions.

The increasing emphasis on sustainable building practices drives the Global Engineered Wood Market Industry. Engineered wood products, such as cross-laminated timber and laminated veneer lumber, are recognized for their lower carbon footprint compared to traditional materials like concrete and steel. This shift towards sustainability is evident as governments worldwide implement stricter building codes and regulations promoting eco-friendly materials. For instance, many countries are setting targets for carbon neutrality, which further propels the demand for engineered wood. As a result, the Global Engineered Wood Market is projected to reach 322.9 USD Billion in 2024, reflecting the growing preference for sustainable construction solutions.

Regulatory support for wood-based products plays a crucial role in shaping the Global Engineered Wood Market Industry. Governments are increasingly recognizing the benefits of engineered wood in promoting sustainable forestry practices and reducing greenhouse gas emissions. Policies that incentivize the use of engineered wood in construction projects are becoming more prevalent, encouraging builders to adopt these materials. This regulatory backing not only fosters market growth but also aligns with global sustainability goals. As such, the Global Engineered Wood Market is poised for expansion, driven by favorable regulations that support the adoption of eco-friendly building materials.

Rapid urbanization and infrastructure development are pivotal factors influencing the Global Engineered Wood Market Industry. As populations in urban areas continue to swell, the demand for housing and commercial spaces rises correspondingly. Engineered wood offers a lightweight yet robust alternative to traditional building materials, facilitating faster construction timelines and reduced labor costs. Countries in Asia-Pacific, particularly China and India, are experiencing significant growth in urban infrastructure projects. This trend is expected to sustain the market's expansion, with projections indicating a market size of 694.5 USD Billion by 2035, driven by the ongoing need for innovative building solutions.

The growing demand for prefabricated construction methods is a significant driver of the Global Engineered Wood Market Industry. Prefabrication allows for components to be manufactured off-site and assembled on-site, which can lead to reduced construction time and costs. Engineered wood products are particularly well-suited for prefabrication due to their versatility and ease of handling. This trend is becoming increasingly popular in residential and commercial projects, as builders seek to optimize efficiency and minimize waste. The rise in prefabricated construction is expected to bolster the market, aligning with the overall growth trajectory of engineered wood products.

Technological advancements in wood processing significantly enhance the efficiency and quality of engineered wood products, thereby impacting the Global Engineered Wood Market Industry. Innovations such as advanced adhesive technologies and precision manufacturing techniques allow for the production of stronger and more durable engineered wood materials. These improvements not only increase the performance of engineered wood but also expand its applications in various sectors, including residential, commercial, and industrial construction. As these technologies continue to evolve, they are likely to attract more investments and drive market growth, contributing to a projected CAGR of 7.21% from 2025 to 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Europe's Engineered Wood market area will dominate this market due to the rising infrastructure development and growing construction projects. Further, the German Engineered Wood market held the largest market share. The Engineered Wood market in the UK experienced significant growth and emerged as the fastest-growing market in Europe.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: ENGINEERED WOOD MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

North America accounts for the second-largest market share. This is due to the use of farming equipment and sophisticated construction equipment.

The Asia-Pacific Engineered Wood Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the rising number of investors emerging into the power and utilities, agriculture, transport, and logistics sectors. Moreover, China’s Engineered Wood market held the largest market share. The Engineered Wood market in India witnessed rapid growth and became the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the engineered wood market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Engineered Wood industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Engineered Wood industry to benefit clients and increase the market sector. The Engineered Wood industry has offered some of the most significant advantages recently. Major players in the Engineered Wood market include CelulosaArauco y Constitución (Chile), Boise Cascade Company (U.S.), Lowe's Companies, Inc.(U.S.), Roseburg Forest Products (U.S.), Weyerhaeuser (U.S.), Georgia Pacific Wood Products, LLC (U.S.), Universal Forests Products, Inc. (U.S.), Huber Engineered Wood LLC (U.S.), CST Timber Co (U.S.), Rockshield Engineered Wood products ULC (U.S.) and Kahrs Group (Sweden).

Boise Cascade Company, a leading manufacturer of wood products and distributor of building materials, has expanded its distribution centers in Walterboro, SC, and Hondo, Texas. With a strong presence in North America, Boise Cascade continues to grow its operations and meet the increasing demand for wood products and building materials.

Norbord Inc., a prominent Canadian manufacturer of wood-based panels, including oriented strand boards, particleboard, and medium-density fiberboard, has been acquired by West Fraser. West Fraser, a diversified wood products company in western Canada and the southern US, produces a wide range of wood products, such as lumber, laminated veneer lumber (LVL), plywood, pulp, and more. The acquisition strengthens West Fraser's position in the industry and expands its product portfolio.