The global wood-based panel market is estimated to witness a healthy growth, at an estimated CAGR of over 6%, over the forecast period. Increasing demand from the infrastructure sector in developing economies are expected to drive the market growth.
- Stringent government regulations are likely to hinder the markets growth.
- Potential growth in residential construction in the Asia-Pacific region projected to act as an opportunity for the market’s growth in the future.
- Asia-Pacific is estimated to witness a healthy growth over the assessment period in wood-based panel market due to the wide usage of wood-based panels in end-use application segments, such as furniture, construction and packaging due to their desirable properties.
Key Market Trends
Increasing Demand from Construction Industry
- Wood-based panels are crucial to the construction industry, providing high structural durability to roofs and floors, walls, beams, doors, staircase, etc.
- The building and construction industry are currently a thriving industry in several emerging economies of Asia-Pacific and the South American region, and this is expected to drive the use of wood-based panels, minimizing infrastructure failures.
- Oriented strand boards are a cost-effective alternative for home construction. As per the National Association of Certified Home Inspectors (NACHI), OSB costs USD 700 less than plywood for a typical 2400-square foot home.
- The factors driving the building and construction industry are the ever-increasing population, rapid urbanization, as well as, the rise in the purchasing power. As a result of the aforementioned factors, investments in infrastructure are being made and are included in plans.
- In OSB panels, they produce a stronger and stiffer panel than other products used in similar types of construction projects. The material eliminates rings and knots, which makes it more uniform. Its structure provides OSB a great deal of strength, which means it can be used in a broad range of applications, particularly for load-bearing applications.
- All the above-mentioned factors are expected to drive the market for wood-based panels market in the coming years.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share. With growing construction activities and the increasing demand for furniture in the countries, such as China, India, and Japan, the demand for wood-based panels is increasing in the region.
- India is one of the largest markets for wood-based panels in the region.The construction sector in the country has been growing rapidly, with an increased investment by the government. The Indian government's ‘Housing for All by 2022’ is also a major game-changer for the industry.
- The country is likely to witness an investment of around USD 1.3 trillion in housing, over the next seven years, during which the country is likely to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise around by 70%, by 2024.
- India is expected to become the third largest aviation market in terms of domestic and international passenger traffic, soon. This has led the Airport Authority of India (AAI) to increase and improve its current airport infrastructure. The government of India has announced its plans to build 100 airports before 2032, to meet the growing needs. An investment of about USD 60 billion is expected to flow into this, and this is expected to help the rapid increase of the commercial construction.
- The aforementioned factors are contributing to the increasing demand for wood-based panels consumption in the region during the forecast period.
The market for wood-based panels is fragmented, with numerous players. The major players include Kronoplus Limited, Norbord, West Fraser, Georgia-Pacific Wood Products LLC, and EGGER Group, among others.
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