Reclaimed Lumber Market To Grow Enormously with Size Worth $16.09 Billion By 2025 |Grand View Research, Inc.
The global reclaimed
lumber market size is expected to reach USD 16.09 billion by 2025 expanding at a CAGR of 4.6%, according to a new report by Grand View Research,
Inc. Growth in the demand for recycled wood furniture on account of low cost
and environmental benefits will drive the global market over the forecast
period. Various government mandates and rising cost of landfill space to reduce
waste have encouraged the wood waste recovery. The industry has registered a
notable change from the reclamation of salvaged wood with little or no flaws to
the recovery of higher-value applications, including doors, wall panels, and
fences to increase the recovery value percentage.
Reclaimed lumber exhibits superior
quality than the sustainable harvested wood and virgin timber, but is available
at a higher price as compared to its counterparts. In addition, the industry
witnesses a significant demand-supply gap, which leads to a high consumption of
the substitute products, thereby limiting the industry growth. There is a large
number of regional companies operating across the global market. The market
entry is not capital-intensive, which is expected to intensify the competition
due to emerging companies. In addition, rising profit margins coupled with
growing demand for the product is further expected to attract new companies to
the industry.
Browse Research
Report On reclaimed lumber Market:
Further key findings from the study suggest:
·
Flooring led the market in 2017
and accounted for 25.5% of the total volume due to demand for durable and
aesthetically pleasing products in residential and commercial sectors
·
Commercial sector is expected
to be the fastest-growing segment over the forecast period due to preference
for rustic look and unique designs for applications including flooring, wall
covering, tabletops, and light fixtures
·
The industry is concentrated in
North America and is estimated to reach a revenue of USD 8.97 billion by 2025
on account of an upward trend for green building materials and positive
developments in green building code
·
Growing product demand for
structural applications including Cross-Laminated Timber (CLT) and Glued Laminated
Timber (Glulam) in Europe is estimated to fuel the regional growth
·
Global reclaimed lumber market
exhibits increased integration of companies across the value chain with the
deconstruction contractors often forward integrated to distribution, whereas product
manufacturers generally exhibiting backward integrated to processing
However, extensive use of salvaged
wood in cross-laminated timber products is expected to drive the market. In
addition, increasing use of wood in residential building construction to reduce
the carbon footprint is expected to boost the product demand further.
Additional processing coupled with high labor cost associated with
deconstruction activities leads to a rise in the product price of reclaimed
wood. Thus, high product costs may hinder market growth.
Limited availability of the
salvaged wood due to low penetration is also expected to hinder growth.
Suppliers in the industry focus on high price differentiation due to the
presence of a limited number of companies. In addition, the industry is also
heavily dependent on the number of deconstruction activities in a particular
country, leading to a high degree of uncertainty in the growth prospects.
Browse Press
Release of this report:
Furniture emerged as the
second-largest application segment in 2017. High product demand for the
production of customized furniture, including tabletops, chairs, shelves, and
cabinets, is expected to impel the growth of the this segment over the next few
years. Paneling products are manufactured using the average-grade lumber
recovered from old structures. However, they require additional weatherproofing
with a sealant or paint for exterior use, to avoid the warping of panels from
humidity. Re-milled beams and timbers are typically used in structural
applications.
Grand View Research has segmented the
global reclaimed lumber market on the basis of application, end use:
Reclaimed Lumber Application
Outlook (Volume, Million Square Meters; Revenue, USD Billion, 2014 - 2025)
·
Flooring
·
Paneling & Siding
·
Beams & Boards
·
Furniture
·
Others
Reclaimed Lumber End Use
Outlook (Volume, Million Square Meters; Revenue, USD Billion, 2014 - 2025)
·
Residential
·
Commercial
·
Industrial
The product demand is expected gain
a considerable momentum in China, owing to the incorporation of highly
efficient building methods, better energy-efficiency, and seismic performance.
Increasing effect of the green building regulations in China are further
expected to encourage the product use in residential and commercial
constructions. Germany was the largest consumer in Europe in 2017 and will
maintain its dominance over the forecast period. Product demand for
cross-laminated timber owing to superior characteristics like low moisture
content and high density and strength is anticipated to impel market growth.
About Grand View Research
Grand View Research, Inc. is a U.S.
based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies
ensuring relevant and fact-based research across a range of industries, from
technology to chemicals, materials and healthcare.
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