Timber construction market set to more than double as engineered wood rises

Global, September 23, 2025

News Summary

The global timber construction market is projected to more than double as engineered wood adoption accelerates. Future Market Insights forecasts growth from USD 17.7 billion to USD 44.2 billion by 2035 with a 9.6% CAGR, driven by residential demand, CLT, glulam and LVL technologies, and policy shifts toward net-zero buildings. The early phase adds significant value, while 2030–2035 is expected to deliver the largest share of growth. Regional leaders include China, India and parts of Europe. Challenges such as fire safety and code limitations are being addressed through innovation and hybrid construction approaches.

Timber construction market set to more than double by 2035

Global timber construction market projected to grow from USD 17.7 billion in 2025 to USD 44.2 billion by 2035 (Future Market Insights figures). This is the top-line projection from a recent market study and it captures the pace and scale of expected growth in timber use for buildings worldwide.

Key numbers up front

Market forecast CAGR (FMI): 9.6% between 2025 and 2035. The study shows an Absolute increase projected (2025–2035, FMI): USD 26.54 billion and a Total growth projected (2025–2035, FMI): 150.1%. The report also notes the market is expected to grow by nearly 2.5X between 2025 and 2035 (FMI).

Report detail and timing

Date on one item: September 23, 2025. The published study is described with a Report/page count note: 250 pages (mentioned with the September 23, 2025 item).

How the growth breaks down

The market expansion is presented in two phases. In the nearer term, the 2025–2030 phase (FMI): market projected to expand from USD 17.68 billion to USD 27.94 billion. That phase shows a Value increase in 2025–2030 (FMI): USD 10.26 billion and is said to account for 38.6% of the total 2025–2035 forecast growth (FMI).

From 2030 onward, the 2030–2035 phase (FMI): market forecast to grow from USD 27.9 billion to USD 44.2 billion. The later phase carries a larger share of the expansion with a Value increase in 2030–2035 (FMI): USD 16.7 billion, which constitutes 61.4% of the 2025–2035 expansion (FMI).

Main growth drivers and industry shifts

Analysts point to a rising focus on green design and the push for low-carbon materials. Core drivers listed include an increasing focus on green architecture, demand for environmentally friendly building materials, rising adoption of timber in modern architectural designs. Policymakers and builders are moving timber into projects to meet net-zero targets and circular economy aims.

Engineered wood products are highlighted as a technical turning point. The report notes expansion in cross-laminated timber (CLT), glued laminated timber (glulam), laminated veneer lumber (LVL), which enable larger and taller timber buildings once limited to steel and concrete.

Segmentation: who is buying and what types lead

Residential segment projected to account for 61.9% of the timber construction market in 2025 (FMI). Reasons cited include timber frame use in single-family homes, multi-family housing and low-rise residential projects, plus consumer preference for green housing and faster construction timelines.

Softwood projected to represent 54.7% of timber construction demand in 2025 (FMI). Popular softwood species listed include pine, spruce and fir. Softwood advantages named are abundance, cost-effectiveness and strong supply chains in major producing regions.

Technology, business moves and regional outlook

The later phase of growth is expected to be driven by widespread adoption of engineered wood products, advancement in timber construction technologies, development of high-rise timber buildings (FMI). Governments are cited as offering incentives and green standards that speed timber adoption.

Country growth CAGRs through 2035 include specific national figures: China leading at 13% CAGR; India 12%; Germany 11%; France 10%; UK 9.1%. Separate lines give more precise country data: Revenue from timber construction in China projected CAGR 12.96% through 2035 (FMI — specific figure). Additional country projections include Revenue from timber construction in India projected CAGR 12.0% (FMI), Demand in USA projected CAGR 8.2% (FMI), Revenue from timber construction in Germany projected CAGR 11.04% through 2035 (FMI), Revenue from timber construction in the UK projected CAGR 9.1% through 2035 (FMI), and Revenue from timber construction in France projected CAGR 10% through 2035 (FMI).

Market participants range from large forest-product firms to new modular builders. The report lists a group of established producers and mass-timber specialists, and states that companies are investing in production capacity, product innovation and green forest management.

Challenges and innovations

Barriers include concerns about fire safety, durability perceptions and building code limits in some regions. Innovations addressing those issues include fire-resistant treatments, hybrid systems combining timber with steel or concrete, improved connection systems, and offsite prefabrication.

Other research figures and examples

A separate research estimate puts the market at different base and end points: global timber construction market estimated at USD 16.13 billion in 2024 and a forecast in that dataset expects the market expected to reach USD 36.49 billion by 2033. That study also uses a 9.6% CAGR for part of its forecast window and highlights similar drivers: sustainability, engineered wood advances and changing regulations.

Practical examples of timber innovation appear in pilot projects. One startup project in Germany uses modular wooden blocks made with recycled wood. Facts noted about that project include blocks that fit together with wooden dowels, hybrid foundations, use of timber from nearby forests, and that wooden construction materials cost roughly 10% more than traditional concrete. Another experimental home is a dismantlable, glue-free timber prototype built on an 80 square meter footprint and designed for reuse and scalability.

What this means for builders, planners and buyers

The outlook points to more timber in housing, commercial and institutional work, wider use of engineered wood, and more offsite methods. Where building codes and incentives support timber, adoption is likely to accelerate. Where codes lag or fire concerns remain, growth may slow until standards and treatments advance further.

FAQ

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Key features at a glance

Deeper Dive: News & Info About This Topic

Additional Resources

• Grand View Research: Timber Construction Market Report
• Wikipedia: Timber framing
• Interior Daily: Prefabricated timber homes see record approvals in Germany
• Google Scholar: prefabricated timber homes Germany
• designboom: Dismantlable wooden residence modular prototype (Germany)
• Google Search: dismantlable wooden residence modular prototype Germany
• DataCenterDynamics: Yorizon and Hochtief break ground on timber edge data center (Bad Lippspringe)
• Encyclopedia Britannica: timber data center
• ArchDaily: Wooden parking garage Wendlingen — Herrmann + Bosch Architekten
• Google News: wooden parking garage Wendlingen

Author: Construction NY News

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