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Wood Processing Market Expansion Continues, with Forecast Valuation of $280.37 Billion by 2029
Wood Processing
Wood Processing Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The wood processing market has shown solid growth in recent years. It will increase from $205.22 billion in 2024 to $217.66 billion in 2025, with a CAGR of 6.1%.
Wood Processing Market Size Forecast: What's the Projected Valuation by 2029?
A remarkable surge is anticipated in the wood processing market size in the coming years. The market is predicted to expand to $280.37 billion by 2029, with a compound annual growth rate (CAGR) of 6.5%. The projected growth during this period stems from the escalating construction of wooden structures, a rising demand for wooden furnishings, and a global increase in construction and infrastructure projects. The forecast period is likely to witness major trends like the employment of tracking and tracing systems in timber processing, the integration of artificial intelligence (AI) in wood processing, the utilization of image processing systems in manufacturing plants, the launch of innovative products, a focus on strategic collaborations, and a spotlight on investment along with mergers and acquisitions.
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What Are the Drivers Transforming the Wood Processing Market?
The wood processing market is anticipated to expand due to the increasing demand for furniture. Factors contributing to this demand include urbanization, elevated disposable income, trends in home renovation, and the rising appeal of sustainable and customizable designs. Furniture, defined as movable objects supporting various human functions such as sitting (like chairs, sofas), sleeping (beds), working (desks), or storage (cabinets, wardrobes), is increasingly in demand. The wood processing sector supplies superior quality raw materials needed for furniture production. This allows the creation of diverse, sustainable, and aesthetically attractive furniture which satisfies the escalating consumer requirement for trendy and practical domestic and office spaces. For example, as per the Furniture Industry Research Association, a UK-based furniture association, the total revenue of the UK furniture manufacturing and furnishing sector in February 2024 was $11.35, showing an increase of 9.2 % from the previous year, garnered from 6,880 firms. Consequently, the upsurge in furniture demand propels the growth of the wood processing market.
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What Long-Term Trends Will Define the Future of the Wood Processing Market?
Surging needs for transparency in the supply chain and strict governmental controls on the timber sector have necessitated the use of tracking and tracing mechanisms. Numerous timber firms are launching their own tracking networks to ensure traceability within their wood supply chain. Electronic tracking is steadily replacing traditional paper-based systems as the method of choice among timber businesses and governmental organizations. Tools such as radio-frequency identification chips, barcodes, and sophisticated traceability software, are gaining popularity. To illustrate, the Forest Stewardship Council, a highly reputed non-profit organization, has crafted an Online Claims Platform to share real-time information about FSC products and the firms manufacturing them at no cost to FSC certificate possessors. This facilitates a digital bond between FSC certified suppliers and buyers.
Which Segments in the Wood Processing Market Offer the Most Profit Potential?
The wood processing market covered in this report is segmented -
1) By Type: Sawmills, Wood Preservation
2) By Formulation: Residential, Commercial And Industrial, Infrastructural, Other End-User Industries
Subsegments:
1) By Sawmills: Softwood Lumber Production, Hardwood Lumber Production, Timber Processing, Wood Chipping
2) By Wood Preservation: Pressure-Treated Wood, Chemically Treated Wood, Heat-Treated Wood, Fire-Retardant Treated Wood
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Which Firms Dominate the Wood Processing Market by Market Share and Revenue in 2025?
Major companies operating in the wood processing market include Canfor Corporation, West Fraser Timber Co. Ltd., Interfor Corporation, UPM-Kymmene Oyj, Weyerhaeuser Company, Sierra Pacific Industries, Inc, Western Forest Products Inc, UFP Industries, Inc, Georgia Pacific, Svenska Cellulosa Aktiebolaget, Kitply, Amandus Kahl Gmbh & Co. Kg, Hangzhou Lin`an Wood-Working Machinery Co.Ltd, Hebei Xinju Furniture Co. Ltd, Qingdao From-Wood New Energy Equipment Co.Ltd, Omni-Tsuda Inc, Izumi Corporation Co.Ltd, Koohei Bussan Co., Ltd, Shreeji Woodcraft Pvt. Ltd., Century Plyboards Ltd, Forestry Corporation of NSW, China Inner Mongolia Forestry Industry Group, Singla Timbers, Oji Group, Luli Group, China Longjiang Forest Industry, EGGER Limited, RTS Forestry, James Jones and Sons Limited, Metsähallitus Forestry Ltd, ATA Timber, Bergs Timber AB, Scottish Woodlands Ltd, Tilhill Forestry, Holmen Timber, Holzindustrie Maresch GmbH, Stora Enso Oyj, Russia Forest Products, LST a.s, Wotan Forest a.s, UNILES Inc, Segezha Group, KPPD-Szczecinek SA, Ilim Timber LLC, Pacific Woodtech, Celulosa Arauco y Constitución, Suzano Papel e Celulose, Toll Maderas SRL, Forestal Las Marías SA, Benevides Madeiras, Valdivia Sawmill, Dafaf Wood Industry LLC, Al Garib Wood Industry LLC, Interpro Wood Industries LLC, Woodworks Factory, The Building Company (Pty) Ltd, Riversdalse Handelshuis Kooperatief Ltd, Macrall Timbers, The F X Group (Pty) Ltd
Which Regions Offer the Highest Growth Potential in the Wood Processing Market?
Asia-Pacific was the largest region in the wood processing market in 2024. North America was the second largest region in the wood processing market. The regions covered in the wood processing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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