Wooden decking market is estimated to be valued at USD 8.08 Billion in 2024, growing at a CAGR of 3.1% over the forecast period (2024-2031). The market is driven by the rising residential construction activities across both developed and developing economies. Furthermore, there is a growing consumer preference for aesthetically designed and functional outdoor spaces in residential properties which is augmenting the demand for wooden decking materials.
The global wooden decking market is expected to witness considerable growth over the forecast period owing to two key drivers - increasing residential construction projects globally and growing consumer preference for aesthetically appealing outdoor spaces. The rising construction of new residential buildings as well as remodeling of existing properties is driving the demand for wooden decking materials. Additionally, consumers today are increasingly interested in enhancing their outdoor living areas and want wooden decks and porches to make the outdoor spaces more useful and visually appealing. This growing focus on outdoor design amongst homeowners is another major factor propelling the global wooden decking market forward over the coming years.
High Demand for Outdoor Living Spaces Drives the Global Wooden Decking Market
The increasing popularity of outdoor living has become a major driver for the global wooden decking market in recent years. As more people spent leisure time at home due to the pandemic, having an attractive outdoor space became a high priority. Wooden decks are a popular way to expand living areas outside and create spaces for entertaining guests or simply relaxing in nature. Deck builders have seen a surge in demand as homeowners renovate their backyards to include a new deck. This high demand is expected to continue being a long-term driver for wooden decking sales globally.
Population Growth and Construction Activities Fuel Additional Demand
Rising population levels around the world present another driver for the wooden decking industry. As more residential and commercial construction occurs to house growing populations, decks are being incorporated into new building designs at higher rates. Whether for patios, balconies, or outdoor seating areas, decking enhances the functionality and aesthetic appeal of structures. Its widespread use in construction ensures steady demand from the building sector complements demand from homeowners.
Volatility in Raw Material Prices Presents a Challenge
Fluctuating wood prices can act as a restraint on the global wooden decking market. As a raw material-based industry, decking manufacturers have little control over the cost of lumber, which is subject to supply and demand pressures in timber markets. Periods of high wood costs pose margin risks, forcing companies to carefully monitor pricing trends. They may need to limit production or pass costs to customers during times of rapid price increases for wood. Overall market growth can slow if decking becomes less affordable. Minimizing exposure to raw material volatility is an ongoing challenge the industry aims to address.
International Trade Issues Restrict Supply
Trade disputes and tariffs on lumber imports present another restraint. The wooden decking industry relies heavily on transnational shipments of materials and finished goods. Issues disrupting global supply chains, such as the long-running softwood lumber dispute between Canada and the U.S., can restrict the supply of critical components. Costs rise and availability suffers when countries place import taxes on one another's wood products. These trade challenges introduce supply security concerns that limit businesses' ability to meet demand reliably. Resolving trade conflicts will help remove barriers holding the industry back.
Eco-friendly Materials Open New Opportunities
The growing appetite for sustainable products worldwide offers an opportunity for decking manufacturers. As consumers increasingly prioritize green building, composite decking made partly or entirely from recycled plastic or other eco-friendly materials captures more of the market. These innovative alternatives allow companies to expand their offerings while appealing to environmentally conscious customers. By developing high-performance yet sustainable material formulations, companies can gain market share and premium pricing in this lucrative segment. With sustainability priorities rising globally, environment-friendly decking presents an attractive long-term growth avenue.
Multi-purpose Designs Expand Addressable Markets
Another opportunity lies in versatile decking designs that expand the product's functions beyond traditional outdoor spaces. For example, decking formulated for use as flooring indoors as well as outdoors broadens the addressable construction market. Multi-purpose styles give builders and homeowners additional flexible options to consider decking for more projects. This enhanced functionality helps decking compete against other flooring materials by opening up new potential applications and customer bases. Decking companies pioneering design innovations will succeed in expanding into higher-growth market segments.
*Link: https://www.coherentmarketinsights.com/market-insight/wooden-decking-market-5296
Key Developments
- In 2023, Metsä Wood, a leading Finnish wood products company, and SRV, a prominent construction company, signed an agreement to construct a Kerto LVL (Laminated Veneer Lumber) mill in Äänekoski, Finland. This collaborative effort aims to expand the production capacity of Kerto LVL, a high-performance engineered wood product widely used in various construction applications, including residential wooden decking.
- In 2023, MoistureShield, a renowned manufacturer of composite decking materials, broadened its distribution network in the states of Illinois, Missouri, Iowa, and Kansas through a partnership with Mid-Am Building Supply, Inc. This strategic move aimed to increase accessibility to MoistureShield products in the Midwest region, catering to the growing demand for high-quality composite decking solutions.
- In 2022, The AZEK Company announced new sustainable outdoor living products including furniture debut, from TimberTech and StruXure
- In October 2022, Deckorators Inc., a U.S.-based company that makes composite decking, railing, and other products, announced two new colors for its Venture Decking product line: Sandbar, a medium brown, and Saltwater, a smokey-taupe
Key Players
Trex Company, Inc. , AZEK Building Products , Fiberon , TimberTech , Cali Bamboo , DuraLife Decking & Railing Systems , MoistureShield , Deckorators , Green Bay Decking , UPM ProFi , Accoya , Kebony , Thermory , Osmo Holz und Color GmbH & Co. KG , Silvadec , Millboard , Metsä Wood , Outdure , Ecodek , and Kayu International
