PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1733994
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1733994
Global Mass Timber Construction Market to Reach US$1.3 Billion by 2030
The global market for Mass Timber Construction estimated at US$990.4 Million in the year 2024, is expected to reach US$1.3 Billion by 2030, growing at a CAGR of 4.8% over the analysis period 2024-2030. 1 - 8 Storey Construction, one of the segments analyzed in the report, is expected to record a 5.7% CAGR and reach US$848.0 Million by the end of the analysis period. Growth in the Above 8 Storey Construction segment is estimated at 3.1% CAGR over the analysis period.
The U.S. Market is Estimated at US$269.8 Million While China is Forecast to Grow at 8.8% CAGR
The Mass Timber Construction market in the U.S. is estimated at US$269.8 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$276.4 Million by the year 2030 trailing a CAGR of 8.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.9% and 3.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.8% CAGR.
Global Mass Timber Construction Market - Key Trends & Drivers Summarized
Why Is Mass Timber Construction Gaining Ground as a Sustainable Alternative to Concrete and Steel?
Mass timber construction is rapidly emerging as a transformative building methodology that combines sustainability, structural performance, and aesthetic appeal. Comprising engineered wood products like cross-laminated timber (CLT), glued laminated timber (glulam), nail-laminated timber (NLT), and dowel-laminated timber (DLT), mass timber is being used to construct mid- and high-rise buildings that traditionally relied on steel and concrete. Unlike conventional lumber, mass timber panels are structurally robust, dimensionally stable, and capable of bearing significant vertical and lateral loads-making them suitable for multi-story urban structures, schools, offices, and even tall towers.
The surge in demand is driven by the environmental imperative to reduce embodied carbon in construction materials. While concrete and steel are major contributors to global greenhouse gas emissions, mass timber acts as a carbon sink, storing more carbon than it emits during production when sustainably sourced. Additionally, prefabricated mass timber components enable faster on-site assembly, reduced waste, quieter construction, and lower foundation requirements. These benefits, when combined with rising urban densification and green building certifications, are positioning mass timber as a compelling solution for climate-resilient urban architecture.
How Are Material Science and Digital Design Enhancing Mass Timber Applications?
The adoption of mass timber is being accelerated by breakthroughs in material science and digital construction technologies. Modern CLT and glulam products are manufactured using high-precision lamination techniques, adhesive chemistry, and moisture control systems that ensure fire resistance, acoustic performance, and structural integrity. Innovations in fire engineering have shown that thick mass timber chars on the outside while retaining structural strength inside-meeting fire code requirements and increasing safety confidence among regulators and insurers.
Simultaneously, digital design tools such as Building Information Modeling (BIM), parametric modeling, and digital twin platforms are enabling architects and structural engineers to model complex timber geometries with millimeter precision. This digital workflow facilitates efficient off-site fabrication and on-site assembly, drastically reducing construction time and labor requirements. CNC milling, robotic panel joining, and automated fastening systems are also being integrated into the prefabrication phase. These technologies not only reduce error margins and material waste but also empower design flexibility in ways not previously feasible with traditional heavy materials.
Which Geographic Regions and Building Segments Are Leading Mass Timber Adoption?
Europe remains the pioneer and largest adopter of mass timber, with countries like Austria, Germany, and the Nordic region having established codes, manufacturing capacity, and design expertise. North America is witnessing rapid growth, particularly in Canada and the U.S. Pacific Northwest, where mass timber is gaining regulatory support and market acceptance for commercial, institutional, and multifamily buildings. In British Columbia and Oregon, pilot projects and incentives have encouraged the construction of timber high-rises and hybrid wood-concrete towers.
Asia-Pacific, particularly Australia and Japan, is also embracing mass timber in response to earthquake resilience and sustainable construction goals. The hotel and hospitality sector is adopting timber for its natural aesthetic and biophilic appeal, while educational and civic institutions prefer it for its speed of assembly and environmental credentials. Additionally, developers targeting net-zero buildings, low-carbon campuses, and affordable housing are increasingly specifying mass timber due to its lower lifecycle emissions and streamlined supply chain. These diverse applications across climates, cultures, and building types demonstrate the material’s versatility and momentum.
What Is Driving the Long-Term Growth of the Mass Timber Construction Market?
The growth in the mass timber construction market is driven by a combination of climate policy alignment, urban housing needs, supply chain modernization, and investor interest in green building innovation. Regulatory frameworks promoting embodied carbon accounting-such as the U.S. Clean Construction Act, European Green Deal, and Canada’s Low Carbon Building Strategy-are incentivizing developers to opt for bio-based materials like mass timber. Moreover, municipalities and universities are beginning to mandate or incentivize mass timber usage in public projects.
Private capital is flowing into the space, with green REITs, institutional investors, and ESG-focused developers backing mass timber projects for their long-term cost efficiency, faster completion cycles, and tenant appeal. Timber innovation hubs and regional manufacturing ecosystems are scaling up production capacity, reducing costs, and enabling cross-border standardization. Ongoing R&D in connection systems, hybrid structures, and sound insulation is also expanding structural capabilities and addressing concerns around noise, fire, and vertical expansion.
With supply chains becoming more transparent and climate risk embedded into real estate valuation, mass timber is well-positioned to disrupt conventional construction paradigms. As mass timber transitions from boutique projects to mainstream adoption, it represents not only a low-carbon material solution but also a symbol of how the built environment can adapt to sustainability imperatives without compromising architectural ambition or structural performance.
SCOPE OF STUDY:
The report analyzes the Mass Timber Construction market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Construction Type (1 - 8 Storey, Above 8 Storey); Material (Cross-Laminated Timber, Nail-Laminated Timber, Glue-Laminated Timber, Other Materials); Application (Residential Construction, Commercial Construction, Industrial Construction)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 39 Featured) -
TARIFF IMPACT FACTOR
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APRIL 2025: NEGOTIATION PHASE
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JULY 2025 FINAL TARIFF RESET
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