The global cross laminated timber (CLT) market is experiencing rapid growth as the construction industry accelerates its shift toward low-carbon, sustainable building materials. According to a new report from Persistence Market Research, the market is valued at $1.6 billion in 2025 and is projected to reach $3.8 billion by 2032, representing a compound annual growth rate of 13%.
CLT is an engineered wood product created by bonding layers of solid lumber at right angles, a process that delivers exceptional structural strength, dimensional stability, and fire resistance. These characteristics have positioned CLT as a viable alternative to traditional construction materials such as concrete and steel, particularly for low-rise and multi-story buildings.
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The report highlights sustainability and carbon reduction as key drivers behind CLT adoption. Unlike energy-intensive materials, CLT is renewable, recyclable, and capable of storing carbon throughout its lifecycle. Supportive government policies, green building certifications, and updated building codes across Europe and North America have further accelerated market momentum.
North America currently dominates the project pipeline, driven by heavy investment from major hyperscalers and growing demand for edge data centers supporting latency-sensitive applications. Western Europe and North-East Asia also represent significant growth regions, supported by established timber construction practices and rising urbanization.
Technological advances in prefabrication and digital design are expanding CLT’s application across walls, roofs, beams, and floor systems, enabling faster construction timelines and reduced labor costs. While challenges such as higher upfront costs and supply chain constraints remain, continued innovation and policy support are expected to strengthen CLT’s role in next-generation construction.
As global cities prioritize sustainability and resilient infrastructure, cross laminated timber is increasingly transitioning from a niche material to a mainstream solution shaping the future of building design and development.
Originally reported by Persistence Market Research in Open PR.
