Cross Laminated Timber Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Cross Laminated Timber Market size is estimated at 2.15 Million cubic meters in 2025, and is expected to reach 3.69 Million cubic meters by 2030, at a CAGR of 11.45% during the forecast period (2025-2030).

The COVID-19 pandemic negatively impacted the market in 2020 since construction work and other activities were put on hold to curb the spreading of the virus. However, the market is projected to grow steadily, owing to increased construction activities in 2021.

Key Highlights

• Shifting consumer preferences towards sustainable building materials and the growing modular construction with government financial support are the major factors driving the growth of the cross-laminated timber market.
• However, the moisture-absorption-related risks of the material are the key factors anticipated to restrain the growth of the target industry during the forecast period.
• However, the technological advancements and innovations in CLT manufacturing will soon create growth opportunities in the global market.
• Europe dominates the cross laminated timber market globally, with the largest consumption from the United Kingdom and Germany.

Cross Laminated Timber Market Trends

Residential Segment to Dominate the Market

• Cross-laminated timber (CLT) is considered as the concrete of the future. CLT is a resilient engineered wood formed by gluing layers of solid-sawn lumber and is increasingly being used in modern architecture and design. Unlike concrete, which is rigid, CLT boasts a high degree of flexibility, requiring significant deformation before breaking or collapsing. This unique characteristic, combined with its warmth and natural properties, makes CLT a preferred choice in construction.
• CLT was added to the International Building Code (IBC) in 2015. In a significant move, the ICC approved 14 code changes in the 2021 IBC, permitting mass timber structures to rise up to 18 stories. These changes introduced three new construction types—IV-A, IV-B, and IV-C—highlighting the association of heavy timber, whether sawn lumber or structural glue-laminated timber, with Type IV construction.
• Laminated timber joins boards to create a unified structural unit. CLT enhances this by stacking boards in perpendicular layers, enabling the creation of expansive plates, surfaces, or walls. Traditionally, constructing a high-rise requires materials like iron, steel, cement, and concrete—known for their strength and durability but also for their significant carbon footprint. However, some builders are now turning to conventional materials, like wood, to erect these towering structures.
• The Ascent in Milwaukee, the world's tallest timber-concrete hybrid building, exemplifies this trend. It features 19 stories of mass timber over a six-story concrete parking structure. The architect highlights CLT's benefits, including significant carbon sequestration. The Ascent offsets 7,200 metric tons of CO2, equivalent to removing 2,400 cars from the road for a year.
• CLT locks carbon into buildings and avoids emissions from steel and cement, which produce 15% of global greenhouse gases. However, sustainable forest management is crucial. CLT is still rare in the United States, but changes in building codes and projects by multinational companies are driving momentum. There are currently 15 tall CLT projects in the United States, with more planned, including a new high-rise in St. Louis by AHM Group. Such projects aim to inspire similar climate-friendly constructions.
• In January 2025, Polyhaus was introduced as a metal-clad cross-laminated timber (CLT) system to create low-cost, high-quality housing in California. The system optimizes space with a truncated polyhedron shape, resulting in a 440-square-foot ground floor and a 100-square-foot mezzanine. The structure uses 64 Douglas fir CLT panels, reducing redundancy compared to traditional stud-frame houses. The designers plan to license the Polyhaus system to builders, aiming to address housing shortages and promote flexible, multigenerational living spaces.
• Considering the above-mentioned facts and figures, the increasing demand for cross laminated timber in the residential construction segment will likely have the most significant impact during the forecast period.

Europe is Expected to Dominate the Market

• Europe dominates the global market share. With the growing construction sector in countries such as the United Kingdom, Germany, Italy, and France, the utilization of cross-laminated timber is increasing.
• In Germany, the design and application of CLT structures follow the guidelines of DIN EN 1995-1-1 (Eurocode 5), which focuses on timber structure design. DIN EN 1995-1-1 states that CLT elements are apt for service classes 1 and 2. This designation indicates their suitability for fully enclosed, heated structures or covered open structures shielded from direct weather.
• Regarding fire safety, CLT elements fall under building material class B2 per DIN 4102-1 and fire behavior class D-s2,d0 according to EN 13501-1. By augmenting wall thickness or increasing layers, CLT's fire resistance can be boosted to last between 60 and 90 minutes.
• In October 2024, responding to surging demand for cross-laminated timber (CLT), Pfeifer, a prominent wood processing company, ramped up its production in Schlitz, Germany. Recently, Pfeifer delivered approximately 1,500 m³ of CLT for the "Food Garden", a new culinary attraction at the Main-Taunus-Zentrum open-air shopping center.
• In the United Kingdom, cross-laminated timber (CLT) construction adheres to strict standards to guarantee safety and durability. CLT panels must meet the BS EN 16351:2021 standard, which details requirements for timber structures, covering both performance and manufacturing.
• The National House Building Council (NHBC) offers comprehensive guidance on CLT usage. NHBC Standards mandate that CLT panels be produced and marked in accordance with BS EN 16351. Depending on their use, panels should be crafted from naturally durable materials or treated. For external walls, CLT must be used under service class 1 conditions, akin to traditional timber frames, and should be covered with plaster or fire boards to align with fire safety guidelines. NHBC limits CLT usage to residential buildings, capping them at seven storeys or 18 meters in height.
• In February 2025, Construction Scotland Innovation Centre (CSIC) unveiled the UK's inaugural cross-laminated timber (CLT) crafted from hardwood. This innovative material is set to grace the London Design Festival's flagship pavilion at the Victoria and Albert's Sackler Courtyard which will be named MultiPly.
• MultiPly, a highlight of the London Design Festival, seeks to demonstrate how modular systems, built from sustainable materials, can tackle climate change challenges and the pressing housing shortage.
• Additionally, in March 2024, work commenced on a new seven-storey building in Cardiff city centre, designed as a cross-laminated timber (CLT) structure. This CLT block will include 39 affordable apartments for social rent and two commercial units.
• Considering the above-mentioned facts and figures, Europe will likely dominate the market during the forecast period.

Cross Laminated Timber Industry Overview

The cross laminated timber market is consolidated in nature. The major players in the market (not in any particular order) include Binderholz GmbH, Stora Enso, Mercer International Inc., Mayr-Melnhof Holz Holding AG, and KLH Massivholz GmbH, among others.

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