Europe Oriented Strand Board Market - Growth, Trends, and Forecasts (2023 - 2028)

The oriented strand board (OSB) market in Europe is projected to register a CAGR of over 3% during the forecast period.

COVID-19 negatively impacted the market in 2020. Owing to the pandemic scenario, the construction works were put on hold during the government-imposed lockdown, which decreased the oriented strand boards (OSB) consumption. However, the conditions recovered in 2021, and construction industry growth stimulates the demand for the OSB panel market in the coming years.

Key Highlights

• Over the short term, the desirable properties of OSB and the growing prominence of OSB as a substitute for plywood are expected to drive the growth of the market studied.
• On the flip side, volatile organic compounds (VOC) emissions, such as formaldehyde, are expected to hinder the market's growth.
• Increasing the application of OSB in structurally insulated panels is likely to act as an opportunity in the future.
• Germany dominated the European market, with the most significant consumption of OSBs and high demand from construction and packaging industries replacing plywood.

Europe Oriented Strand Board Market Trends

Soaring Demand from the Construction Industry

• Oriented strand boards are wood-based panels that are crucial to the construction industry. OSB panels provide high structural durability to roofs, floors, walls, beams, doors, staircases, etc. OSB panels offer a more substantial and stiffer panel than other products used in similar construction projects.
• OSB panels are a cost-effective alternative for home construction. As per the National Association of Certified Home Inspectors (NACHI), OSB costs USD 700 less than plywood for a typical 2,400-sq ft home.
• According to the European Panel Federation, Europe produced 7.2 million meters cube of OSB panels in 2021, an increase of 2% from the previous year. 80% of the OSBs created were used in the construction industry.
• OSB panels absorb moisture from the air, changing their density and panel size. The European Panel Federation categorizes OSB panels into four grades by moisture content in the material. OSB panel grades like OSB/3 and OSB/4 have higher moisture resistance to size change than OSB/1 and OSB/2.
• Overall, the growing construction market across the region is expected to drive the OSB market through the forecast period.

Germany to Dominate the Market

• Germany's construction industry is a significant contributor to the country's economy. In 2021, the commercial construction sector was responsible for roughly 40% of the total construction output in Germany, while the residential sector was responsible for approximately 60%. The commercial construction sector is growing steadily, driven by strong demand from businesses and investors.
• Germany includes the most significant construction industry in Europe. The construction industry in the country is growing at a slow pace, majorly driven by increasing new residential construction activities. The non-residential and commercial buildings in the country are expected to witness significant growth prospects during the forecast period.
• According to Federal Statistical Office (Destatis), in December 2021, the turnover in building completion work increased by 9.1% in the third quarter of 2021 compared to the previous year's third quarter. 248,688 new building permits, a record number, were approved in Germany in 2021, a 6.6% rise over the year before.
• The German government initiated the construction of the Digital Park Fechenheim on a 10.7 ha area, with a gross floor area of 100,000 sq m in Frankfurt-Fechenheim, Hesse, Germany, with an investment of USD 1,179 million. The construction work started in Q3 2021 and is expected to get completed in Q4 2028.
• The German protective packaging industry uses OSB panels in manufacturing crates and pallets. Protective packaging helps to maintain goods without getting damaged while in transport. OSB panels are strong and less expensive than plywood. The protective packaging industry prefers OSB panels.
• According to Eurostat, Germany was the leading exporter of motor cars, with over USD 125,000 million in 2021. More than 60.6 % of all cars exported from the EU originated from Germany, boosting OSB protective packaging sector.
• All the factors mentioned above, in turn, are boosting the demand in the OSB market in the country.

Europe Oriented Strand Board Market Competitor Analysis

The oriented strand board (OSB) market in Europe is consolidated. Some of the major players in the market include Kronospan, SwissKrono, West Fraser, Egger Group, Sonae Arauco, Coillte, and others.

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