How Big Is the Engineered Wood Market | Growth & Trends 2031

Q: What is fueling the demand for engineered wood globally?

The market is driven by sustainable building mandates, growing awareness of environmental impact, and the need for affordable, high-strength building materials in urban construction.

Q: Which segment of engineered wood is seeing the fastest growth?

Cross-laminated timber is currently the fastest-growing segment due to its application in multi-story buildings and its high strength-to-weight ratio.

Q: Which region is emerging as a key consumer of engineered wood?

Europe leads the market with strict green building regulations.

Q: How big is the engineered wood market size?

The engineered wood market is expected to reach USD 382.6 Billion by 2031.

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Code: MTA6380

Publication Date: Jul 2025

How Big Is the Engineered Wood Market?

According to 6Wresearch internal database and industry insights, the Global Engineered Wood Market was valued at USD 259.8 Billion in 2024 and is expected to reach USD 382.6 Billion by 2031, growing at a compound annual growth rate of 5.00% during the forecast period (2025-2031).

The increasing shift toward sustainable and cost-efficient building materials, rapid urban infrastructure development, and the demand for prefab and modular construction are significantly boosting the market.

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Growth Drivers of the Engineered Wood Market

Rising adoption of green buildings and low-carbon construction materials.
Growing urbanization leading to higher residential and commercial development.
Increased use of laminated veneer lumber (LVL), plywood, and oriented strand board (OSB).
Greater durability, uniformity, and load-bearing capacity over solid wood.
Expanding DIY and home renovation trends, especially in North America and Europe.
Cost-effectiveness and efficient utilization of raw materials driving popularity.

Engineered Wood Market Trends

Engineered Wood Market is experiencing notable innovation with hybrid wood composites, cross-laminated timber, and enhanced fire- and moisture-resistant variants gaining traction. There is a growing preference for prefabricated construction and sustainable alternatives to concrete and steel, particularly in Europe and North America. Digital fabrication and robotic wood framing in commercial structures are also reshaping production and design methodologies. The market is increasingly influenced by stricter deforestation laws, incentivizing the adoption of wood-based materials manufactured from fast-growing or recycled timber.

Emerging Developments in Engineered Wood Market

Engineered Wood Market is undergoing significant transformation driven by innovations in eco-friendly adhesives, cross-laminated timber (CLT), and prefabricated modular construction. Manufacturers are increasingly adopting bio-based resins to reduce formaldehyde emissions, aligning with green building certifications. Moreover, rising urbanization is fueling demand for lightweight, cost-efficient, and sustainable construction materials, encouraging the use of engineered wood in residential and commercial applications. Government incentives for green buildings and carbon-neutral construction are further accelerating market development.