PLYWOOD MARKET ANALYSIS

Plywood Market Size and Trends

The plywood market is estimated to be valued at USD 61.47 Bn in 2024 and is expected to reach USD 95.53 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.

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The market has been witnessing consistent growth over the past few years owing to rising applications in the construction, packaging, and furniture industries.

Market Driver - Growth in construction industry

The construction industry has been growing rapidly over the past few years and this growth has significantly contributed to the rising demand for plywood. As the number of new residential and commercial construction projects increases, there is a parallel rise in the consumption of wood-based materials like plywood. It is widely used in flooring, roofing, furniture making, and other applications in buildings. Whether it is a small housing project or a large commercial complex, plywood remains one of the most versatile and cost-effective wood panel products.

Driven by the rising population, rapid urbanization and increasing income levels, there is constant pressure on real estate developers to build new residential units in cities and towns. This has created a huge housing requirement across both developing and developed nations. At the same time, the commercial real estate sector is also expanding steadily with growing demand for retail space, office space, warehouses and other constructions. All these new residential and non-residential building activities have translated to higher volumes of plywood sales. Its adoption is further bolstered by the material advantages of plywood like strength, durability and stability compared to other substitutes.

The growth momentum is visible even in the public infrastructure segment like hospitals, schools, transport hubs and government buildings. Many countries are undertaking large construction of operational facilities to cater to the needs of a rising population. For example, in the education sector, both construction of new school buildings as well as renovation and expansion of existing institutions is driving plywood demand. Similarly, the healthcare infrastructure is witnessing a massive revamp across both rural and urban regions. All such public infrastructure projects incorporate significant usage of engineered wood products like plywood for floors, walls, roofs and other applications requiring strength.

Rise in infrastructure development projects

Infrastructure development has become a top priority for governments worldwide in recent years. There is a concentrated effort towards modernizing roads and highways network, upgrading rail transport, expanding airports, and building new ports. All such large infrastructure schemes involve phase-wise construction activities lasting several years. This sustained rise in infrastructure spending creates multi-year opportunities for wood panel producers catering to these project requirements.

Whether it is massive road expansion plans across countries like India, China, and the U.S. or new high-speed rail corridors coming up globally, plywood finds extensive usage in construction of bridges, tunnels and other civil works. Its rigidity, nail-holding capacity and resistance to pressure make it suitable for making shuttering plates and shuttering panels used in casting of concrete and highways construction. Similarly, in the expansion and modernization of airports and ports, engineered wood flooring and wall panelling made of plywood plays a major role.

Urban infrastructures like metro railway networks and bus rapid transit systems are also seeing significant investments to enhance the mobility and transport facilities in cities. Massive projects underway in Asian and African cities depend on quality plywood sheets in the construction of stations, terminals, overhead tracks, and platforms. Even in rural areas, infrastructure like schools, hospitals, warehouses and government offices incorporate versatile plywood board usage. Multi-year infrastructure development missions launched by nations fuel sustained growth opportunity for plywood producers, fabricators and suppliers in meeting such large-scale construction requirements.