Wooden Decking: Global Demand Leads Market Players to Innovation
As per the International Monetary Fund, there are 52 developing nations with a current population of 6.53 billion people, accounting for 85.09% of the global populace. The significant population and rapid urbanization drive a large-scale proliferation in construction activities, thus accelerating the demand for wood decking. Moreover, due to structural expansion opportunities available in North America, Asia-Pacific, and the Middle East & Africa, the construction and renovation sectors are witnessing substantial investments, as well.
According to our expert analysis, the global wooden decking market is set to grow with a CAGR of 4.93% over the forecast years of 2022 to 2030. Furthermore, in view of the segmentation analysis, Inkwood Research has also studied the global market on the basis of interference by end-users, innovative applications, and different wood decking types.
Global Advancements Attributed to Regional Trends & Opportunities
As per the Wall Street Journal, the housing market in the United States was 3.8 million houses short of what was necessitated to satiate the country’s demand in 2020. This projection implies a 52% increase in the housing shortfall in the United States compared to 2018. Likewise, Spain’s National Statistics Institute (INE) forecasts that net residential buildings will increase at a rate of approximately 135,000 units annually on average between 2019 and 2025. Hence, the significant rise in residential projects is set to boost the North America and Europe wooden decking market.
Wooden decking is also used for new construction and renovations, including cladding and flooring within the residential sector, which is the fastest-growing end-user. Hence, aligning with these applications, the floor segment is set to grow with the highest CAGR of 5.06% during the forecast period.
North America to Acquire 36.77% revenue share by 2030
- North America is home to well-established wooden decking companies such as UFP Industries Inc, Humboldt Sawmill Company LLC, Trex Company Inc, West Fraser Timber Co Ltd, and others.
- The United States wooden decking market also has the largest construction industry globally, with a considerable rise in private construction investments. Also, various structural expansion activities, such as residential, infrastructure, and industrial projects, are likely to drive market development in the region.
- Moreover, product innovation in compliance with environmental regulations has also introduced decking components with recycled plastic content and composite materials. For instance, the decking manufacturing processes of Fiberon, a wooden decking company in the United States, are highly sustainable. Furthermore, it results in a 98.5% recovery rate of production material waste.
- Hence, numerous active building plans and sustainable innovations supported by leading players are set to boost the regional market.
Asia-Pacific dominates the Market with a 5.31% CAGR
- Countries in the Asia-Pacific, including Japan and India, are mainly focusing on infrastructure development, a factor integral to the region’s market growth. The increasing family income levels, in addition to the growing number of individuals relocating to urban regions from rural areas, are set to contribute to the regional market’s expansion.
- Moreover, the Asia-Pacific wooden decking market is set to record substantial growth as the number of logistical centers, information technology (IT) towers, and universities increases in the region.
- Regulators in developing nations such as China are attempting to implement green, sustainable, and energy-efficient practices in both established and new buildings. Wood-plastic composite (WPC) is deemed a sustainable material in this regard, as it can be made from recycled plastics and wood industry waste. Hence, this factor plays a vital role in establishing the wood-plastic composite segment as the leading type over the forecast period.
In Closing | Competitors Strategized Response to Challenges
The global wooden decking market is fragmented owing to the considerable presence of domestic as well as international players, particularly in Europe and North America. These primarily include Metsä Group, UPM-Kymmene Oyj, Setra Group AB, Vetedy Group, and others. A key characteristic of operating companies is that they offer end-user deck installation and maintenance amenities, including chemical treatment of wood planks as well as periodic maintenance services.
Further complementing this aspect entails the proper upkeep of wooden decking products and regular inspection against rot. Also, it helps build stronger endurance against external factors like adverse weather and temperatures. This factor is highly essential for countering the limitation of switching to alternative materials, thus providing the global wooden decking market with expansion opportunities.
Which is the dominating type in the global wooden decking market?
With a share of 39.37%, pressure-treated wood is set to be the dominating type in the global wooden decking market.
Which factors contribute to the floor segment capturing the highest revenue share?
Since flooring is the most common use of wooden decking, increasing investments in commercial as well as residential structures propel its demand. As a result, the floor segment is anticipated to grow rapidly over the forecast years.