Laminated Veneer Lumber Market Trends

Global Laminated Veneer Lumber Market Overview

Laminated Veneer Lumber Market Size was valued at USD 3154.9 million in 2021. The laminated veneer lumber industry is projected to grow from USD 3577.65 Million in 2022 to USD 8627.60 million by 2030, exhibiting a compound annual growth rate (CAGR) of 4.72% during the forecast period (2024 - 2030). There is an increase in the adoption of new construction projects in the residential, commercial, and infrastructure sectors due to rising income levels and the expanding global population, which are the key market driver enhancing market for laminated veneer lumber.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Laminated veneer lumber Market Trends

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  Growing use in the construction industry to boost the market growth

  
  

With rising income levels and an expanding global population, more new building projects are being undertaken in the residential, commercial, and infrastructural sectors. One of the most significant factors driving market for laminated veneer lumber is this. LVL construction takes less time than conventional materials like concrete and bricks, which benefits overall sales. This is because it requires less time to install and shrinks more quickly. Additionally, the production of LVL uses heavy-duty glue, which offers stability and strength in addition to advantages like waterproofing and resistance to rot, insects, and mold. All of these factors help to support a positive market outlook. Furthermore, because the LVL production process is environmentally friendly, numerous governments are pressuring end users to transition to these wood panels. Crafted from thin layers of wood, laminated veneer adds a touch of elegance to any surface.

The main forces behind the expansion of the construction sector include rising housing activity and expanding residential, non-residential, and infrastructural projects brought on by urbanization and population growth. LVL is an engineered wood product in which adhesives combine several layers of thin wood. As a cost-effective solution, LVL products are largely used in residential and commercial construction. House beams, concrete formwork, scaffold boards, purlins, truss chords, and other building materials are made of LVL. The market for laminated veneer lumber is expanding as more LVL is used in residential and commercial construction. Because LVL has many advantageous structural characteristics, its use in creating large prefabricated structures and distinctive wooden homes has grown. In a poll of the real estate market conducted in January 2022, it was discovered that 89 percent of respondents preferred luxury properties such as vacation homes, city apartments, and bungalows above premium commercial property.

With 69 percent of respondents, the price range between USD 13 and USD 34 million was the most popular for a luxurious city apartment or villa. 10% of buyers want to buy in the USD 35 million brackets, while about 21% like to buy in this area. For illustration, The PM Gati Shakti Master Plan for Expressways will be implemented in 2022–2023 to provide quicker transit. At the cost of INR 20,000 crore, the National Highway network would be extended by 25,000 kilometers in 2022–2030. Therefore, it has enhanced the laminated veneer lumber market CAGR globally in recent years.

However, accelerated industrialization and urbanization during the projection period are driving forces behind the global business infrastructure. Additionally, it is anticipated that expanding investment infrastructure and the rehabilitation of established project plants are other factors driving the growth of the laminated veneer lumber market revenue.

Laminated veneer lumber Market Segment Insights

Laminated Veneer Lumber Product Type Insights

Based on product type, the global laminated veneer lumber market segmentation includes cross-banded veneer lumber and laminated strand lumber (LSL). The cross-banded laminated veneer lumber segment held the majority share in 2021, contributing to around ~55% of the global laminated veneer lumber market revenue. The crucial aspect accelerating the laminated veneer lumber market expansion is the rise in emerging nations' rapid urbanization.

Laminated Veneer Lumber Application Insights

Based on application, the global laminated veneer lumber market segmentation includes residential and commercial buildings. The residential buildings segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Due to their growing use as bearing structures in the building of walls, floors, and roofs, laminated veneer lumber is in high demand in the residential sector in emerging nations due to rapid urbanization. All these factors promote the laminated veneer lumber market growth.

Commercial building was the fastest-growing segment. Laminated veneer lumber is utilized more frequently in structural applications because of its remarkable strength, high dimensional stability, and impact bending characteristics.

Figure 2: Global Laminated veneer lumber Market by Application, 2021 & 2030 (USD Million)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Laminated veneer lumber Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Laminated veneer lumber market accounted for USD 1302.97 million in 2021 and is expected to exhibit a significant CAGR growth during the study period. As a result of the rising usage of wood in the building sector, North America has enormous potential for LVL. The greatest market in North America is predicted to be the US. A healthy economy and real estate sector results in an even more positive forecast for wood building in North America over the next few years.

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

Figure 3: GLOBAL LAMINATED VENEER LUMBER MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe laminated veneer lumber market accounts for the second-largest market share due to factors such as rising environmental concerns, increased interest in cost-effective building, and the need to upgrade the current infrastructure. Further, Germany's laminated lumber market held the largest market share, and the UK laminated lumber market was the fastest-growing market in the European region.

The Asia Pacific Laminated veneer lumber Market is expected to grow at the fastest CAGR from 2022 to 2030. The demand for wooden interiors and exteriors, as well as laminated veneer lumber, is predicted to increase due to infrastructure improvements. The consumption potential of lumber in Asia has also expanded due to other geographical phenomena and natural disasters like earthquakes, floods, tsunamis, and continuous rain. Due to increased natural disasters, affordable installation, and low maintenance costs, people are now building their homes with wooden items. Most businesses are keen to see more lumber manufacturing businesses spring up in the area, boosting their chances of going worldwide. The area also gains from cheaper labor costs, lower land and production expenses, and better access to raw materials, all of which help the business expand internationally. Moreover, China laminated veneer lumber market held the largest market share, and the India laminated lumber market was the fastest-growing market in Asia-Pacific.

Laminated veneer lumber Key Market Players & Competitive Insights

Major industry players are investing significant money in R&D to expand their product offerings, which will fuel further growth in the laminated veneer lumber market. In addition, market participants are launching a new market developments, entering into contracts, acquiring companies, increasing investments, and working with other organizations, among other significant market changes, to expand their global footprint. To grow and compete in a market that is becoming more and more competitive, the laminated veneer timber industry must be affordable products able.

Making laminated veneer lumber industry locally to cut costs is one of the main business methods used by producers in the worldwide laminated veneer lumber industry to benefit customers and grow the market sect. The laminated veneer lumber market major player such as Metsä Wood, Louisiana-Pacific Corporation, Modern Lumber Technology, Nelson Pine Industries Limited, and others are working on expanding the market for laminated veneer lumber demand by investing in research and development activities.

The Metsa Group operates on international markets for the sector, making responsible and effective use of the best renewable raw resource in the world, namely northern wood. Their company, which focuses on goods like papers, pulp, wood products, paperboard, and wood supply for forestry services, spans the full value chain for wood. In March 2019, At its Punkaharju mill, Metsä Wood invested and started testing the 65,000-cubic-meter Kerto LVL line. This contributed to an approximate 50% increase in the mill's Kerto LVL production.

Also, Louisiana-Pacific Corporation, referred to as "LP," is a US manufacturer of building supplies. Building materials wholesalers, dealers, and retail home centers sell LP goods to contractors and homeowners.  In June 2019, Prefinished Staining Products, Inc. (PSPI), a prefinishing siding business in Green Bay, Wisconsin, was purchased by Louisiana-Pacific. The siding division of Louisiana-Pacific saw growth and greater market penetration because of this acquisition.

Key Companies in the laminated veneer lumber market include

• Murphy Oil Corporation


• Anderson Lumbar Company


• Boise Cascade


• Nelson Pine Industries Ltd.


• Stora Enso Oyj


• TimberHof GmbH


• Clarke Veneers & Plywood


• Brisco Manufacturing Ltd.


• Magnus Plywood Pvt. Ltd.


• Huber Engineered Woods, LLC


• Universal Forest Products


• MJB Wood Group, LLC


• Sunrise Plywood


• Louisiana-Pacific Corporation


• UFC Industries, Inc., among others

Laminated veneer lumber Industry Developments

December 2022: The International Mass Timber Conference ("IMTC") and International Mass Timber Report ("IMTR") have been purchased by Trifecta Collective LLC, which is owned and backed by GreyLion, an investment firm focused on high-growth companies in the lower middle market. Forest Business Network made the acquisition.

March 2019: Boise Cascade purchased Birmingham, Alabama-based American Lumber Distributors and Brokers, Inc. (American Lumber). American Lumber distributes high-quality lumber, plywood, oriented strand board, James Hardie siding, and engineered wood products at wholesale prices distribution network and service capabilities of Boise Cascade in Southeast Asia were improved as a result of this acquisition.

Laminated Veneer Lumber Market Segmentation

Laminated Veneer Lumber Product Type Outlook

• Cross-Banded Laminated Veneer Lumber


• Laminated Strand Lumber (LSL)

Laminated Veneer Lumber Application Outlook

• Residential Buildings


• Commercial Buildings

Laminated veneer lumber Regional Outlook

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