Wood based panel industry is expected to exhibit a strong 8% CAGR over the forecast period from 2018 to 2023

Global wood based panel industry is expected to exhibit a strong 8% CAGR over the forecast period from 2018 to 2023, according to the latest research report from Market Research Future (MRFR). The global wood-based panels market is mainly driven by the growing demand for green construction, which has become a key trend in the global construction industry with the rising environmental awareness among the global population.

The global wood-based panels market has exhibited rapid growth over the last few years due to the growing demand for environmentally viable materials in the global construction industry. The growing awareness about the adverse impact of construction activities on the environment has led to a growing appeal for the use of environmentally conscious materials. This has been a major driver for the global wood-based panels market due to the viability of wood to be made into panels of varying dimensions with a range of other materials. While the timber industry always formed a crucial part of the construction industry, the use of wood-based panels to ensure the use of environmentally sound materials is a new initiative for the construction industry and is likely to gain strength over the forecast period.

The growing government support for green buildings is likely to be a major driver for the global wood-based panels market over the forecast period. Governments in various countries have made ecological viability of their actions a key item on their agenda, which has resulted in an onslaught of regulations aimed at favoring the use of environmentally sound materials in construction processes. This is likely to remain a key driver for the global wood-based panels market over the forecast period.

Competitive Analysis:

Leading players in the global wood-based panels market include Norbord Inc., Weyerhaeuser Company, Caihong Wood Co. Ltd., Kronospan, Klenk Holz AG, Dongwha Group, and ante-Group.

Industry Updates:

In May 2019, researchers at Empa (The Swiss Federal Laboratories for Materials Science and Technology) developed a new additive that can make wood products more resistant to fire. Given that the major risk with wood-based panels is a threat of fire, this is likely to be a key development in the global wood-based panels market over the forecast period.

In May 2019, news emerged that a group of villagers in China is taking legal measures against Guangxi Lee & Man Forestry Technology Ltd., a leading timber company in China whose eucalyptus plantations on the outskirts of Yong’an village are allegedly causing the village’s water supplies to run dry. Such instances also reveal the need for the wood-based panels market to think about the ecological consequences of their actions, as planting new trees to gain timber may disturb local ecosystems, irreparably in some cases.

Segmentation:

The global wood-based panel market is segmented on the basis of product and application.

By product, the global wood-based panels market is segmented into MDF, HDF, OSB, particleboard, softwood, plywood, and others. The MDF (medium-density fiberboard) segment dominated the global wood-based panels market in 2017 and is likely to retain dominance throughout the forecast period due to the favorable performance of medium density fiberboard in a wide variety of applications. The MDF segment accounted for around 45% of the global wood-based panels market in 2017.

By application, the construction industry dominates the global wood-based panels market and is likely to continue its dominance over the forecast period due to the growing demand for wood-based materials in the construction industry. The demand for wood-based panels in furniture construction is also likely to grow over the forecast period.

Regional Analysis:

Asia Pacific is likely to dominate the global wood-based panels market over the forecast period, led by China, which has emerged as the leading consumer and producer of wood-based panels in the world. The growing construction industry in Asia Pacific is likely to provide ample fodder for the global wood-based panels market over the forecast period, as the rising urbanization in the region and the growing rate of rural migration has driven up the need for sustainable, environmentally sound housing.

North America and Europe are also likely to account for significant shares in the global wood-based panels market due to the presence of several leading players in the region and the growing government support for environment-friendly actions in the construction industry.