Thermowood Market Size, Share, Growth and Industry Analysis, By Type (Hardwoods and Softwoods), By Application (Interior and Exterior Applications), and Regional Forecast to 2032

THERMOWOOD MARKET REPORT OVERVIEW

The global Thermowood market size was USD 0.439 billion in 2023 and the industry is projected to touch USD 0.65 billion by 2032, exhibiting a CAGR of 4.7% during the forecast period.

With emphasis made upon Sustainable concept in construction and architecture, acclaim for the Thermowood market is gradually increasing. Due to the new properties which include moisture and decay resistance the wood is appropriate for the outdoors besides it is naturally green. Another benefit of the presented material is its rather dark colour with a peculiar texture which also considers the aesthetic and functional perspectives appreciated by architects and designers. From the increase in the market shown below it can be attributed to increased demand from architects, builders and end users who prefer weather resistant, low maintenance woods.

The findings on the Thermowood market features a plethora of information regarding the global market share and the forecast with descriptions provided in numbers and words. It also contains market measurements in terms of its sales volume and sales revenue, the past statistics from the years 2019 up to 2023 and future projections to 2032. This report will enable the industry participants to understand the regional markets, product types, applications, competition and key players to be able to come up with business strategies.

GLOBAL CRISES IMPACTING THERMOWOOD MARKET COVID-19 IMPACT

Thermowood Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The global pandemic disrupted the stability of supply chain and forced shutdowns in many industries that deals in construction and woods. The COVID-19 had an impact on the Thermowood market mainly during the nascent phases of the pandemic with regards to project execution and decreased business activities. However, with increased economic growth & construction activities the demand of sustainable & eco-friendly building materials like Thermowood is forecasted to grow rapidly.

Latest Trends

"More use of Thermowood on structures built in external environment and on areas of landscaping"

This particular area is good for the Thermowood market since one of the essential trends for the construction industry is a focus on environmental protection and sustainability. While construction industry seeks to find materials that are more eco-friendly, Thermowood is occupying more and more sectors’ interest because of the way it is processed-thermal modification increases its endurance without resorting to chemicals. This trend is set to continue as more policies support green building materials hence increasing the use of Thermowood in both residential and commercial uses outside structures.

MARKET SEGMENTATION

By Type

• Hardwoods: Hardwoods are very hard, tough and are applied in fancy exterior uses, such as flooring decks as well as cladding. With regard to this, the process of thermal modification aims to increase the wood’s ability to resist decay thereby making it suitable for use in areas where there are unfavourable climates.
• Softwoods: Softwoods are relatively cheaper and less dense usually used in construction of fences, buildings roofs and other external structures. Thermal modification of softwoods enhances the stability of the material and can be used at lesser cost than non-treated woods.

By Application

• Interior Applications: Thermally treated timber is widely applied in interior uses such as floorings and wall lamination because of their steadfastness and resistance to moisture of thermally modified woods compared with untreated woods.
• Exterior Applications: Thermowood is utilized mostly in external purposes for example in decks, facades, and parks as well as furniture. It is highly resistant to moisture, does not decay and is also resistant to insect damage and therefore, it can be used for exterior work.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"High stringency of environmental standards within construction projects leads to higher demand for Thermowood especially in the countries with strict green building standards"

Concerning the external factors, there are specific environment regulations that companies have to adhere to when they intend to expand their business to new markets. This is so especially in the Europe and North American regions where the environs are tightening a clamp down on the use of materials that are environmentally unfriendly. Thermowood can be the best option here mainly because the outcome is effectively predicate modified so as to increase stability and resistance in usage while not having toxic chemicals. The consumption of Thermowood has risen since architects and construction experts search for material with sustainability approvals to work in outdoor settings.

"Increases the usage of Thermowood for construction of beautiful, weather resistant products used in outdoor precincts"

Market demand for durable with minimal need for further processing wooden products from consumers is the key to market expansion. There has been a growing concern over the impact of products on the environment and this has made customers opt for relatively longer lasting and easy to maintain construction materials. Thermowood is also long lasting, low on maintenance and can beautify the outlook of structures that are built or can be re-modelled such as; the furniture’s used out door, decks and cladding for buildings. It also makes it look unique by having a dark look while still being able to have a grain on it that allows the designers to come up with better designs of eco-friendly outdoor facilities.

RESTRAINING FACTOR

"Thermal modification process is costly this may act as a hindrance to the expansion of Thermowood markets"

Besides, the high cost of production is another weakness of the industry owing to high production expenses including but not limited to high labor costs, high costs of materials, and high costs of capital. A major threat that can be identified in the Thermowood market is a high cost of manufacturing. The thermal modification process includes the use of sophisticated technology and equipment hence making the final product to be expensive as compared to untreated or chemically treated wood. This therefore means that the prices of its products will be slightly higher which can reduce the number of customers which can be a major drawback to the market.

OPPORTUNITY

"More pressure to Adopt Environmentally Friendly Building Materials"

People are becoming more sensitive to environmental issues hence the need to find sustainable building solutions. This has created a new opportunity for the expansion of Thermowood market as people look for eco-friendly products that can last long of outside use. Increasingly in the different sectors, such as construction and architecture, topics related to sustainability became more relevant and the request for materials that are more environmentally friendly also increased. Among all, Thermowood, which contains the thermal modification process and ecological character, can be considered the most suitable one. The growing importance of green building standards especially in Europe and North America means big opportunities for Thermowood to be used in commercial and house constructions to become the leader in shift to sustainable architecture.

CHALLENGE

"High initial cost thus makes production expensive and this in turn affects the production cost and thus the cost of the product affecting its affordability"

The thermally modified process is sophisticated hence costs more to produce than other types of timber. This also has the effect of making the absorption of price-sensitive markets difficult for the Thermowood market and hence is not as competitive as cheaper materials. Currently, among the major obstacles that affect the Thermowood market, there is a high cost of production. The procedure of thermally modifying wood requires complex equipment and sophisticated technologies which also add its high price. This can make Thermowood less affordable in markets where the price plays a crucial role of costly in the implementation specifically in the developing nations. As a result of this, different manufacturers have been able to appreciate what sustainable and durable products entails but have been able to conquer the challenge of the cost barrier.

REGIONAL INSIGHTS

• North America

The uses for Thermowood in North America have been growing at a constant rate over the recent past because of the rising demand for eco-friendly products. This is particularly the case in the United States where there is growing consciousness regarding the use of green construction materials and sustainable design in such areas as, outdoor decking, cladding, and landscaping which are increasingly incorporating Thermowood material. Many contractors are developing their buildings to become environmentally friendly by using products such as Thermowood, and thus growing the market within the region.

• Europe

Some of the largest consumers of Thermowood are in Europe with countries such as Finland, Sweden and Estonia as producers. The higher importance towards sustainability in the region and the codes & standard that sets preference to use Thermowood has led towards its demand. Commonly applied in the ambi outdoors, it has a beautiful appearance; therefore, it is the favourite of architects and designers.

• Asia-Pacific

Asian-Pacific region, thanks to the countries like Japan, South Korea and Australia is rapidly replacing other type of woods with Thermowood. Thermowood is becoming more popular in outdoor constructions in the region because of its resistance to moisture and decay which is vital for concerned area. The opportunities of market growth in this region are the increasing popularity of using ecological materials in construction, especially in big cities.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The market for Thermowood products is rapidly growing with many key players existing across the world. Some of the market players that dominate this sector include Oy Lunawood Company from Finland, Thermoarena Company from Poland, and Thermory Company from Estonia owing to offering improved products and expanded networks in the market. To compete effectively these players, offer their time and resources towards research and development with a view of coming up with products that are durable and environmentally friendly. Joint venture is also usual, in order that companies can broaden the market area and consolidate their power of the industry. Rising need for environment-friendly materials will further entail these players to dominate the Thermowood market in the future.

LIST OF TOP COMPANIES

• Oy Lunawood (Finland)
• Thermoarena (Poland)
• Thermory (Estonia)
• Stora Enso (Finland)
• Oy SWM-Wood (Finland)
• Westwood Heat Treated Lumber (USA)
• Nowwwood (Finland)
• Ducerf Group (France)
• HeatWood (Sweden)
• Tantimber (Turkey)
• Thermalwood Canada (Canada)
• Thermory USA (USA)

KEY INDUSTRY DEVELOPMENTS

July 2022: Some new trends in the Thermowood market are new techniques in the thermal modification that can be used for higher efficiency and lower cost of production. Manufacturers are using automation and energy efficient technologies for minimizing the effects of environmental costs on the production process. Furthermore, development in Thermowood technology on new application such as furniture, interior designing is opening up newer markets for the Thermowood. There is also a trend of working closer together with manufacturers to selling the Thermowood as a part of large-scale projects for construction companies.

July 2024: Stora Enso bought a smaller thermowood manufacturer to complement its product line and expand its business in the emerging markets, especially in Asia​

September 2024: Metsä Wood unveiled its new energy-efficient thermowood treatment process, reducing the carbon emissions linked to it, and further boosting the durability of treated wood products​

REPORT COVERAGE

Historical data analysis and future prospects from the year 2023-2032 of the Thermowood market size have been included in the report. It comprises types of products such as hardwoods and softwoods, applications such as interiors and exteriors and regions of the globe. This report also provides markets shares, product type, and recent activities of key players in the global soft tissue repair market. Besides, such information gives information on demands, new technologies and strategies of competitors.

The market size report on Thermowood also covers analysis of the available upstream and downstream supply chain in the industry. It analyses the factors that drive the market, the factors that restrain it or the challenges that the manufacturers are likely to encounter in the market. The report also discusses few recent M&A and strategic business development deals that have defined the market dynamics. Thus, the provided report is very useful for companies that are interested in the expansion of their Thermowood market.