According to a report by Reports and Data, the global cross-laminated timber (CLT) market was valued at US$786.71 million in 2019 and is expected to reach $2,021.29m by the year 2027, at a CAGR of 12.51%.
By volume, the market is expected to reach 3,237.61 thousand cubic metres in 2027 from 1,411.55 thousand cubic metres in 2019, growing at a CAGR of 11.23%. Rising awareness regarding sustainable architectural methods, coupled with the rising number of CLT producers and increasing interest for green homes are factors augmenting the market growth.
The move from concrete-based development to wood-based development alongside government initiatives to cut down on pollution emanating from construction activities around the globe are factors impacting the market.
In addition to this, the diminishing costs of CLT due to increasing suppliers and shorter total project development time is having a positive impact on the industry. Stringent government regulations regarding the use of timber for building homes, due to the risk of fire, is expected to be a restraint to industry growth.
However, certain unique benefits like the ability to better absorb seismic shocks than concrete structures are also a reason why builders are showing an interest in this material.
A report by the Institute of Civil Engineers (ICE), UK, illustrates that the construction industry is likely to be one of the most dynamic industrial sectors in the next 10 years from 2020 and the same will be witnessed in economies globally.
The report illustrates that the volume for construction output will grow by 85% to over $15.5 trillion globally by 2030, of which the three major countries China, the US and India to account for over 57% of this growth.
China’s share of the global construction industry will increase marginally as growth slows until 2030. Comparatively, US construction will grow faster than China, growing by an average of over 5% per annum.
The same report illustrates that apart from the top three countries, the growth in the construction industry is witnessed in Indonesia, while Mexico is forecasted to overtake Brazil in the Latin America region.
Source: Digital Journal, Reports and Data