The global laminated veneer lumber market reached a volume of 5,116.8 thousand cubic meters (CBM) in 2023. Growing at a compound annual growth rate (CAGR) of 4.0% during the forecast period from 2024 to 2032, it is expected to achieve a volume of 7,256.3 thousand CBM by 2032. This blog explores the market dynamics, key trends, segmentation, and regional insights that are shaping the future of the LVL market.
Market Overview and Growth Drivers
LVL is an engineered wood product known for its strength and durability, making it comparable to traditional construction materials like steel and concrete. Its lightweight nature, combined with sustainability attributes, has led to increased adoption in both residential and commercial construction.
Environmental Initiatives and LVL Adoption
- Green Building Goals: The World Green Building Council (World GBC) aims for all new buildings, infrastructure, and renovations to have at least 40% less embodied carbon by 2030. Additionally, all new buildings should achieve net zero operational carbon. This emphasis on sustainability drives the demand for LVL, which serves as a carbon stock, storing CO2 throughout its lifecycle.
- China and Singapore: By 2030, China aims for 50% of its new construction to be green, while Singapore targets 80%. Such ambitious goals are expected to boost the use of sustainable materials like LVL in these regions.
LVL’s Environmental Benefits
LVL is produced in an eco-friendly manner compared to energy-intensive materials like cement, iron, and steel. The CO2 stored in the wood remains in LVL products throughout their lifecycle, contributing to substantial CO2 substitution effects. Engineered wood products, including LVL, are accredited by various sustainable certifications, such as LEED, enhancing their adoption in green building projects.
Key Market Trends and Developments
The LVL market is influenced by several key trends and developments:
- Increasing Wood Adoption in Construction: The rising popularity of wood as a construction material is driven by its lightweight and sustainable properties. LVL is highly efficient, enabling increased prefabrication and faster construction times.
- Unique Furniture Designs: LVL’s ability to be designed into a variety of shapes makes it ideal for innovative furniture designs, meeting the demand for aesthetic and functional furniture in homes and commercial spaces.
- Diverse Raw Material Use: LVL can be manufactured from various common woods like pine, acacia, eucalyptus, and rubberwood, which are widely available and cost-effective.
Recent Developments in the LVL Market
Several notable developments have occurred in the LVL market, reflecting its growth and adoption:
- VMG Lignum Construction: In February 2024, VMG Lignum Construction launched operations at a new facility in Lithuania, aiming to produce EUR 150 million worth of LVL and I-beams annually for major markets including Scandinavia, North America, and Australia.
- Boise Cascade Investments: In January 2024, Boise Cascade announced new investments in Alabama and Louisiana to enhance its engineered wood products growth strategy.
- Raute Corporation and Metsä Wood: In November 2023, Raute Corporation signed a contract with Metsä Wood to deliver technology for a new LVL mill in Finland, enhancing Metsä Wood’s production capacity.
LVL as a Sustainable Building Material
LVL’s environmental benefits are significant compared to traditional building materials:
- Carbon Stock: LVL acts as a carbon stock, storing CO2 and not releasing it back into the carbon cycle.
- Reduced Construction Time: LVL’s lightweight nature and ease of transportation reduce build time, leading to faster construction and fewer errors on site.
- Energy Efficiency: LVL offers impressive strength and insulating properties, enabling the construction of more energy-efficient structures.
Market Segmentation
The global LVL market is segmented based on application, end use, and region:
By Application
- Residential: The residential sector accounts for a significant share of the LVL market, driven by the popularity of wood-based construction in Europe and other regions.
- Commercial
- Others
By End Use
- Construction: Including new construction and replacement, the construction sector is a major contributor to LVL market revenue.
- Non-Construction
By Region
- North America: The United States is witnessing rapid adoption of engineered wood, with numerous completed or planned construction projects using LVL.
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Market Share and Regional Insights
Europe
Europe shows a rising trend in wood-based construction, with around 70% of the wood consumed used in construction and furnishings. LVL is widely deployed in permanent structural applications. As of August 2023, Germany held the largest housing stock in Europe, followed by France and Spain.
North America
North America, particularly the United States, is a leading market for LVL. The adoption of engineering wood in construction projects is driven by the need for lower carbon footprints and cost-effectiveness.
Asia Pacific
China’s emphasis on sustainability and low-carbon environmental protection is boosting the application of engineered wood. The trend of ‘carbon neutrality’ and ‘carbon peaking’ is promoting the use of LVL in construction projects.
Leading Market Players
The LVL market features several prominent players focusing on providing high-quality products:
- Murphy Company: Specializes in hardwood and softwood plywood, engineered wood, and veneer, with a strong presence in the United States.
- METSÄ Group Companies: An international operator in sustainable bioeconomy, sourcing wood primarily from Finland.
- Roseburg Forest Products Co.: Engaged in providing engineered wood, lumber, composite panels, and hardwood, with operations in the United States.
- STEICO SE: Develops and markets ecological construction products made of renewable raw materials, with operations in Germany, Poland, and France.
Other notable players include Stora Enso Oyj, Boise Cascade Company, Weyerhaeuser Company, Pacific Woodtech Corporation, and Juken New Zealand Ltd.
The laminated veneer lumber market is poised for significant growth, driven by the increasing adoption of sustainable construction materials and the global emphasis on reducing carbon emissions. LVL’s strength, durability, and environmental benefits make it an ideal choice for both residential and commercial construction projects. With ongoing developments and investments in the LVL market, the future looks promising for this engineered wood product. As sustainability goals become more stringent, LVL’s role in the construction industry is expected to expand, offering a viable alternative to traditional building materials.
