Global Oriented Strand Board (OSB) Market Size, Share & Trends Analysis Report, Grade, End-user Application, By Region Forecasts, 2023 - 2030

Global Oriented Strand Board (OSB) Market Size, Share & Trends Analysis Report, Grade, End-user Application, By Region Forecasts, 2023 - 2030

Global Oriented Strand Board (OSB) Market was valued at US $ 28.7 Billion in 2022 and is expected to reach US $ 45.1 Billion by 2030 growing at a CAGR of 5.8% during the forecast period 2023 – 2030.

The construction and building materials industry's oriented strand board (OSB) market is characterised by the manufacture, distribution, and application of OSB, an adaptable engineered wood panel material. Wood strands are compressed and bonded together, usually using adhesives, to produce OSB, a sturdy and reasonably priced building material. This market includes a range of OSB product grades and varieties, each intended for a particular use in the manufacturing, residential, and construction industries. The manufacturing procedures, suppliers, end users who depend on OSB for applications such wall sheathing, roofing, subflooring, and structural components, and distribution networks are important parts of the OSB market. By using recycled materials and sustainable forestry techniques, the market aligns itself with sustainability goals and contributes to cost-effective building. It is also impacted by things like the need for energy-efficient building supplies, legal compliance, and advancements in OSB manufacturing methods. The OSB market provides products and services to a worldwide clientele that includes building companies, manufacturers, contractors, and individuals working on residential and commercial projects.

The market is expanding as a result of the increasing usage of OSB (Oriented Strand Board) in sustainable housing. Because of its superior thermal insulation qualities, OSB is a must for environmentally friendly, energy-efficient building. It appeals to households that want to use less energy and have a smaller environmental effect. Green certifications such as BREEAM and LEED promote the use of OSB. Because it is made from repurposed wood, it is sourced sustainably and supports ethical forest management. Strong and adaptable, OSB is suitable for a range of housing applications. Demand for OSB in sustainable housing increased in 2022 as private building in the US increased by 10.47%, driven by a 13.3% increase in residential spending. Governmental incentives increase its allure even further.

“OSB/3 segment, by grade, to be dominating market from 2023 to 2030.”

The OSB/3 grade of oriented strand board (OSB) has become well-known and has grown quickly in the market because of its remarkable qualities and versatility. OSB/3, a high-performance grade that fulfils a variety of structural and non-structural purposes, is well-known for its strength and adaptability, making it a popular option in the manufacturing and construction sectors. Its affordability, which provides a less expensive option to more conventional materials like plywood, adds to its allure. Additionally, OSB/3 frequently conforms to strict building requirements and regulations, which makes it a great option for projects with high standards. OSB/3's environmentally conscious production techniques, such as using recycled wood resources and sustainable forestry practices, support the company's expansion and are in line with environmental concerns as sustainability gains importance. The OSB/3 grade is in high demand due to a robust construction industry, innovative products, and successful marketing strategies. This solidifies OSB/3's position as the market's leading and fastest-growing grade.

“Construction segment, by end user application, to be dominating market from 2023 to 2030.”

In 2022, the construction industry emerged as the leading application segment, with a noteworthy valuation of USD 9.48 billion. There is a strong correlation between the rising housing demand in the United States and the rise in OSB utilisation in building applications such as mezzanine decks, wall and ceiling sheathing, panel sheathing, industrial containers and single-layer flooring. Strength, stiffness, resistance to moisture, absence of knots and core voids, and an affordable price point are the attributes of the product that support this need. Furthermore, OSB is in a favourable position to be used in packing and crating for exports abroad due to its exemption from ISPM-15 rules. The versatility of this material is further enhanced by its ease of handling, cutting, assembling, nailing, and drilling.

“North America to be largest region in Oriented Strand Board (OSB) market.”

North America was the leading regional market in 2022, with a significant This supremacy was fueled by the growing use of cutting-edge products, like bio-adhesives as a more environmentally friendly resin substitute than ones made from crude oil. This change is expected to lessen the effects of changes in crude oil prices, which will eventually support the expansion of the business in North America. In the meantime, OSB manufacturing in Europe showed a steady upward trend, with Germany and Poland emerging as the major participants in this industry. For example, the construction business in the United States is enormous and has a big impact on a lot of different sectors. It includes building for commercial, industrial, institutional, residential, infrastructure, energy, and utilities. Construction expenditures were projected to reach a significant seasonally adjusted annual rate of USD 1,677.2 billion in January 2022. Furthermore, the United States' construction spending in February showed a notable 1.3% increase over the seasonally adjusted annual pace of USD 1.677 trillion in January 2022.

Oriented Strand Board (OSB) Competitive Landscape

The competitive landscape of the Oriented Strand Board (OSB) market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Oriented Strand Board (OSB) technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Oriented Strand Board (OSB) market is highly competitive, with numerous companies vying for market share. Prominent companies in the Oriented Strand Board (OSB) Market include:

Weyerhaeuser Company, RoyOMartin Lumber Company, Sonae Industria SGPS SA, Produits Forestiers Arbec Inc., Louisiana-Pacific Corporation, Norbord Inc., KronoSwiss, Kronospan Limited, Georgia-Pacific Wood Products LLC, Huber Engineered Woods LLC, EGGER Group, West Fraser, Koch Industries, Coillte, Suncrest Plydecor, Opal Solutions, Divine Overseas, Ainsworth Lumber Co. Ltd, Boise Cascade, Flylen Technology Private Limited, and others.

Recent Developments:

Georgia-Pacific said in August 2022 that they intended to upgrade their oriented strand board (OSB) manufacturing facility in Alcolu, South Carolina, with a considerable investment of $40 million. With this calculated move, the company hopes to increase its production capacity for OSB products by a significant 150 million square feet.

West Fraser completed a significant acquisition in December 2021 when it acquired an oriented strand board factory located close to Allendale, South Carolina. In addition to marking a significant regional expansion for West Fraser, this acquisition increases the company's entire production capacity, strengthening its position as a key player in the market.

When West Fraser announced in February 2021 that it had successfully acquired all of Norbord's issued and existing common shares, it revealed yet another revolutionary breakthrough. The company saw a significant transformation as a result of this acquisition, which expanded its line of products and created the framework for future expansion and diversification.