Timber Construction Market Size, Share & Trends Analysis Report By End Use (Residential, Non-residential), By Timber Type (Softwood, Commercial, Engineered Wood), And By Segment Forecasts, 2025 - 2033

Timber Construction Market Summary

The global timber construction market size was estimated at USD 16.13 billion in 2024 and is projected to reach USD 36.49 billion by 2033, growing at a CAGR of 9.6% from 2025 to 2033, driven by increasing global focus on sustainable building practices. As a renewable and carbon-sequestering material, timber is gaining prominence over concrete and steel, which are associated with higher carbon emissions.

Growing awareness of environmental concerns and government regulations to reduce the construction industry's carbon footprint has fueled demand for timber-based building solutions. In addition, timber construction supports green certifications such as LEED and BREEAM, further driving adoption across residential, commercial, and institutional sectors.

Urbanization and the need for affordable housing propel demand for faster, more efficient building methods, where timber offers notable advantages. Prefabricated timber structures reduce construction timelines significantly and require less labor, making them attractive in cost-sensitive and labor-constrained environments. This is particularly evident in developed economies with aging construction workforces and rising labor costs. Furthermore, timber buildings offer excellent thermal insulation properties, reducing energy consumption and operational costs over time.

Technological advancements in engineered wood products such as cross-laminated timber (CLT) and glulam are also key growth drivers. These innovations allow timber to be used in multi-story and large-scale commercial buildings, expanding its application range. Modern timber products improved fire resistance, strength, and durability, alleviating earlier safety concerns and earning greater acceptance among architects and structural engineers. This has enabled timber construction to move beyond small-scale residential use to mid- and high-rise urban projects.

Global Timber Construction Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the segments from 2018 to 2030. For this study, Grand View Research has segmented the global timber construction market based on end use, timber type, and region:

• End Use Outlook (Revenue, USD Billion, 2021 - 2033)
• Residential
• Non-residential
• Timber Type Outlook (Revenue, USD Billion, 2021 - 2033)
• Softwood
• Hardwood
• Engineered Wood
• Regional Outlook (Revenue, USD Billion, 2021 - 2033)
• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Italy
• Spain
• Asia Pacific
• China
• Japan
• India
• South Korea
• Central & South America
• Middle East & Africa

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