Cross Laminated Timber Market growing at CAGR of 11.45% by 2030, Driven by Modular Construction & Sustainable Building Demand | Mordor Intelligence

According to Mordor Intelligence, The cross laminated timber market size is estimated at 2.15 million cubic meters in 2025 and is projected to reach 3.69 million cubic meters by 2030, registering a strong CAGR of 11.45% during the forecast period.

CLT, a prefabricated wood panel made from layers of lumber arranged at right angles, has moved from being a niche product to a mainstream solution for residential and non-residential projects. Its ability to reduce embodied carbon, shorten construction timelines, and deliver superior structural performance has positioned it as a preferred choice in Europe, North America, and increasingly across Asia-Pacific.

Emerging Trends in the Cross Laminated Timber Industry

Rising Demand for Modular Construction

Government-backed initiatives in Europe, Canada, and Australia are accelerating modular construction projects that rely heavily on CLT. Prefabricated timber structures reduce labor requirements by up to 70% and cut project timelines by nearly 30%, making them attractive for housing, schools, and healthcare facilities.

Shift Toward Sustainable Building Materials

Life-cycle assessments highlight CLT’s ability to lower embodied carbon compared to concrete and steel. Projects such as Brisbane’s “25 King” demonstrated a 74% reduction in embodied carbon and nearly 46% lower operational energy use, reinforcing CLT’s role as a sustainable alternative.

Superior Structural Performance

Recent engineering studies confirm CLT’s strength and resilience. Shake-table trials in Japan and the U.S. West Coast validated its seismic performance, while hybrid systems combining CLT with concrete have proven effective in balancing fire resistance and vibration control. These findings are encouraging adoption in hospitals, data centers, and industrial facilities.

Expansion of Mid-Rise and High-Rise Timber Buildings

Building code revisions in the United States now permit 18-story mass timber towers, opening new opportunities for CLT in urban construction. Europe and North America already have a pipeline of over 6 million square meters of mid-rise timber projects in design or early construction.

• Europe remains the largest market, supported by carbon pricing policies and mature supply chains.
• North America is witnessing rapid adoption due to updated building codes and corporate sustainability mandates.
• Asia-Pacific is the fastest-growing region, with a projected CAGR of 17.33% through 2030, as countries like China, India, and Australia embrace CLT for commercial and residential projects.

Read the full report and access market snapshots that include both global views and Japan-specific analysis: https://www.mordorintelligence.com/ja/industry-reports/cross-laminated-timber-market?utm_source=industrytoday

Cross Laminated Timber Segmentation

• By Bonding Technology
• Adhesive-bonded CLT dominates with over 90% market share in 2024.
• Mechanically fastened CLT, though niche, is gaining attention for its recyclability.
• By Raw Material Species
• Spruce accounted for nearly 48% of global CLT volume in 2024.
• Douglas-Fir is expected to record the fastest growth, with a CAGR of 12.56% through 2030.
• Poplar and hardwood species are emerging alternatives due to resource constraints in spruce supply.
• By Element Type
• Wall panels lead with 54.71% revenue share in 2024, widely used in prefabricated envelopes and load-bearing walls.
• Roof panels are projected to grow at 13.02% CAGR through 2030.
• Floor panels are increasingly adopted in hybrid CLT-concrete systems.
• By Application
• Non-residential buildings held 50.08% share in 2024, driven by offices, schools, and laboratories.
• Residential applications are the fastest-growing segment, expanding at 12.34% CAGR through 2030.
• By Geography
• Europe commanded 53.61% of global volume in 2024.
• Asia-Pacific is the fastest-growing region, while North America continues to expand with tall timber projects.

Explore Competitive Landscape Details: https://www.mordorintelligence.com/industry-reports/cross-laminated-timber-market/companies?utm_source=industrytoday

Top Key Players in the Cross Laminated Timber Industry

• Binderholz GmbH

• HASSLACHER Holding GmbH

• KLH Massivholz GmbH

• Mayr-Melnhof Holz Holding AG

• Stora Enso

Conclusion:

While Europe remains the largest market, Asia-Pacific is expected to lead growth, supported by government initiatives and rising awareness of low-carbon building solutions.

Challenges such as adhesive certification for hardwood species and raw material price volatility persist, but ongoing research and supply chain diversification are expected to mitigate these risks. With strong momentum across residential, commercial, and institutional sectors, CLT is positioned as a cornerstone material in the global transition toward sustainable construction.

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