Mass timber construction market projected to reach $13.16 billion by 2035

The global mass timber construction market is expected to grow from $3.5 billion in 2025 to $13.16 billion by 2035, according to a report by Astute Analytica. This represents a compound annual growth rate (CAGR) of 14.2% between 2026 and 2035.

Growth is driven by the construction industry's focus on decarbonization and reducing embodied carbon. Mass timber, which utilizes engineered wood products like Cross-Laminated Timber (CLT), Glulam, and LVL, serves as a sustainable alternative to traditional steel and concrete. CLT currently holds the largest market share due to its dimensional stability and ability to be prefabricated for efficient on-site assembly.

Multi-family residential buildings represent the largest market segment, with most current applications focused on low-rise structures of six stories or fewer. However, advancements in fire resistance and structural design are enabling taller buildings. In the United States, international building codes now allow mass timber buildings up to 18 stories under specific conditions.

Europe currently leads the global market, supported by established manufacturing bases in countries such as Austria, Germany, and the Nordic nations. North America is identified as the region with the highest expected growth, while the Asia-Pacific region shows significant potential for expansion.