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 as residential and softwood lead; engineered wood rises

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). The projection shows an overall market expansion that could reshape building materials choices worldwide as timber gains traction for low-carbon construction and prefabricated building systems.

Top-line numbers

Absolute increase projected (2025–2035, FMI): USD 26.54 billion. The forecast implies a total growth projected (2025–2035, FMI): 150.1% and a Market forecast CAGR (FMI): 9.6% between 2025 and 2035. The market is expected to grow by nearly 2.5X between 2025 and 2035 (FMI).

How growth is expected to unfold

The projection breaks the decade into two phases. In the near 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 accounts for 2025–2030 growth accounts for 38.6% of the total 2025–2035 forecast growth (FMI). FMI links this early expansion to accelerating adoption of mass timber technologies, government support for green architecture initiatives, and recognition of timber’s carbon sequestration benefits.

From 2030 onward, momentum accelerates in engineered products and taller timber projects: the 2030–2035 phase (FMI): market forecast to grow from USD 27.9 billion to USD 44.2 billion. That phase shows a Value increase in 2030–2035 (FMI): USD 16.7 billion and makes up 2030–2035 growth constitutes 61.4% of the 2025–2035 expansion (FMI). FMI expects this period to be characterized by: widespread adoption of engineered wood products, advancement in timber construction technologies, development of high-rise timber buildings (FMI).

Why timber is growing

Growth drivers include an increasing focus on green architecture, demand for environmentally friendly building materials, rising adoption of timber in modern architectural designs (FMI). Timber’s environmental case is highlighted: Timber sequesters carbon throughout its lifecycle and has a strong strength-to-weight ratio and design flexibility (FMI).

Engineered wood product development—cross-laminated timber (CLT), glued laminated timber (glulam), laminated veneer lumber (LVL)—is expanding structural capabilities and enabling larger, taller, and more complex buildings previously limited to steel or concrete (FMI). Prefabrication, offsite construction and digital design tools are also cited as important trends (several sources).

Market mix and segments

Residential segment projected to account for 61.9% of the timber construction market in 2025 (FMI). The projection attributes residential dominance to timber frame adoption in single-family homes, multi-family housing and low-rise buildings, plus timber’s natural insulation, aesthetics and faster build times (FMI).

Softwood projected to represent 54.7% of timber construction demand in 2025 (FMI). Softwood species cited include pine, spruce and fir. Softwood’s advantages are listed as abundance, favorable mechanical properties, cost-effectiveness and well-established supply chains (FMI).

Regional and country outlook

The outlook is global, with different growth rates by country. Noted country CAGRs through 2035 include China leading at 13% CAGR; India 12%; Germany 11%; France 10%; UK 9.1% (FMI summary). A separate line cites revenue from timber construction in China projected CAGR 12.96% through 2035 (FMI — specific figure). Other specific rates given are Revenue from timber construction in India projected CAGR 12.0% (FMI) and Demand in USA projected CAGR 8.2% (FMI).

Industry players and activity

Several established manufacturers and newer specialists are expanding production and partnerships to serve demand, with names noted among leading companies and mass timber specialists. Firms are investing in production capacity, technological innovation, green forest management, and building system development (FMI/GVR).

Barriers and innovations

Challenges include concerns about fire safety, durability perceptions and building code limitations in some regions (FMI). Innovation areas the market is pursuing include timber engineering, fire-resistant treatments, hybrid construction systems (timber combined with steel or concrete), improved connection systems, and prefabrication methods (FMI/GVR).

Comparing sources

Multiple market studies show similar growth trends. One estimate places the global timber construction market at USD 16.13 billion in 2024 and forecasts growth to USD 36.49 billion by 2033 at a near-identical CAGR figure for overlapping windows. Different baseline years and horizon lengths explain the variation between studies.

Real-world projects and newcomers

Examples of on-the-ground innovation include modular wooden block housing from a startup using recycled and locally sourced coniferous timber in a German city, and a dismantlable glue-free timber house prototype in Augsburg that emphasizes reuse and serial construction principles. A new timber parking garage project designed to improve mobility and include e-charging and bike parking is another instance of timber applied to public infrastructure.

What this means for the building industry

Expect more residential timber frame projects, faster adoption of engineered wood in mid- and high-rise construction, stronger policy support where green building incentives exist, and continued tech-driven advances in prefabrication and mass timber systems. The market size numbers and segment shares indicate a material shift toward timber solutions for builders, developers and policymakers focused on low-carbon construction.

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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 TX News

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