Cross Laminated Timber Market Trends

Growth Drivers

• Growing demand for eco-friendly buildings: The rapidity of domestic applicability in the cross laminated timber market will be driven by increasing demand for more innovative wooden residential buildings with greater design freedom and aesthetic appeal such as multigenerational flats and single-family homes these demands for eco-friendly homes are friendly to nature and drives the market growth. The green building sector all across the globe is expected to have the potential to cut energy consumption by about 49% by 2050. When compared to non-green buildings, green buildings see an asset value rise of approximately 6%.

• Ongoing surge of construction according to trend: As a result of increasing awareness about the product's advantages, for instance, design flexibility, fire resistance, greater thermal performance, cost efficiency, and some others, cross laminated timber has become increasingly popular in construction applications. Also, by replacing materials like steel or concrete with CLT, building and construction are becoming more and more energy-efficient, with a correspondingly less environmental impact. Businesses have also come to see the value of implementing sustainable or green practices. Furthermore, this demand has been supported by the use of a clean & noise-free construction method, reduced building time, and low costs.
• Increasing Demand for Clean Labelled Products – Consumers have exhibited a strong concern for product integrity and functionality, which is a major deciding factor in their decision to buy these goods. Businesses can rely on clean labels and natural certification, which demonstrate the product's genuineness. The validity of the raw materials used in the finished product, which were supplied by an authorized body, is further increased by these labels. Manufacturers of cross-laminated wood who invest in this certification label should see a large rise in demand.

Challenges

• Limited End-Use Industries in Cross Laminated Timber Market - There are just a few end-use industries for cross-laminated timber, and each of them has its own set of rules for using the timber. To comply with the rules, manufacturers cannot change the product's specs. Each industry receives products of nearly identical quality from many manufacturers. As a result, there is no room for product differentiation in the market for cross-laminated timber, which is a significant hindrance to the industry's expansion internationally.

• Fire and moisture resistance May Become a hindrance to the Growth of the Market
• High Initial Cost of the Cross Laminated Timber May Hamper the Market Growth