Wood Based Panel Market: Recent Tech Advances & Innovations

Wood based panels, created by bonding wood fibers with adhesives under heat and pressure, are advancing technologically. Recent innovations include nanotechnology for strength, eco-friendly adhesives, and precision through digital manufacturing. According to Inkwood Research, the global wood based panel market is forecasted to rise with a CAGR of 6.17% during the forecast years, 2024 to 2032, reaching a revenue of $440.45 billion by 2032.

While conventional wood based panels have consistent fundamentals in construction and manufacturing, recent years have witnessed a surge in transformative technological developments in the market domain globally. The advancements not only enhance the performance and durability of these panels but also strengthen a commitment to sustainability and eco-friendly practices, positioning wood based panels at the forefront of innovative construction materials worldwide. 

Following this, as per Inkwood Research, in 2023, Asia-Pacific was the largest revenue-generating region in the global wood based panel market. Countries with well-established advanced markets, such as China, Japan, Malaysia, South Korea, etc, were at the forefront of adopting these tech evolutions.

Wood Based Panel Market - Inkwood Research

On that note, let’s view some recent technological advances in wood based panels, highlighting the alignment of advanced techs that enhance performance, sustainability, and customization –

1. Nanotechnology

Nanotechnology has revolutionized the wood based panel market by introducing advanced materials at the nanoscale. Through the integration of nanomaterials like nanocellulose and nanoclays, wood based panels now demonstrate enhanced mechanical strength, improved water resistance, air resistance, and increased flame retardancy. These nanotechnological innovations not only elevate the durability and performance of the panels but also align with sustainable practices, marking a significant progression in the evolution of high-tech, environmentally friendly wood based materials for diverse applications. 

Here are some applications and aspects of nanotechnology in wood based panels:

  • Nanoparticles in Adhesives: Nanoparticles, such as nanocellulose or nanoclays, can be added to adhesives used in the manufacturing of wood based panels. This enhances the adhesive’s strength and bonding capabilities, contributing to improved panel integrity. As per research, a decrease in air permeability was noted, with values dropping from 69,000 to 4.8 and 660 to 0.2 nm Pa−1 for unbleached paper and greaseproof paper, respectively, utilizing the rod coater.
  • Nanoparticle-Reinforced Composites: Nanoparticles can be dispersed within the wood composite material to reinforce its structure. This reinforcement at the nanoscale can lead to enhanced mechanical properties, making the panels stronger, more durable, and resistant to deformation.
  • Improved Water Resistance: Nanotechnology can improve the water resistance of wood based panels. Nanocoating or nanoparticles incorporated into the wood composite can create barriers that reduce water absorption, preventing swelling or degradation due to moisture exposure.
  • Antimicrobial Properties: Nanotechnology contributes to the development of wood based panels with antimicrobial properties. Nanoparticles with antimicrobial characteristics may be added to the composite to inhibit the growth of fungi and bacteria.
2. Digital Manufacturing

Digital manufacturing refers to the integration of digital technologies and processes in the manufacturing and production of wood based panel products. This approach involves the use of computerized systems, automation, and data-driven technologies to enhance various aspects of the manufacturing process. 

Moreover, it is employed extensively in furniture, cabinet making, packaging, architectural woodworking, interior design, and construction. In line with this, as per Inkwood Research, the packing segment under the application category is anticipated to be the fastest-growing application over the forecast years 2024-2032, with a CAGR of 6.67%.

Here are some key aspects of digital manufacturing in wood based panels:

  • Computer Numerical Control (CNC) Machining: CNC machines are employed to precisely cut, shape, and finish wood based panels according to digital design specifications. This technology allows for high precision and customization in the production of panels.
  • Automated Production Lines: Digital manufacturing often involves the use of automated production lines where robots or robotic systems handle tasks such as material handling, adhesive application, pressing, and finishing. This automation contributes to efficiency and consistency in the manufacturing process.
  • Digital Design and Prototyping: Computer-aided design (CAD) and digital prototyping evolutions are utilized to create and visualize wood based panel designs before actual production. This aids in refining designs, optimizing material usage, and reducing waste.
  • RFID and Barcoding: The use of RFID (Radio-Frequency Identification) and barcoding technologies can be integrated into digital manufacturing to track and trace materials, monitor inventory, and streamline logistics.
3. Eco-friendly Adhesives

Eco-friendly adhesives are formulations that prioritize environmental sustainability and reduce the ecological impact of wood panel manufacturing. Traditional adhesives, especially those containing formaldehyde-based resins, have raised concerns about indoor air quality and environmental harm. Eco-friendly adhesives address these issues by incorporating alternative materials that are less harmful to human health and the environment. 

  • Formaldehyde-Free: Traditional adhesives, such as urea-formaldehyde and phenol-formaldehyde, release formaldehyde, a volatile organic compound (VOC) known for its adverse health effects. Eco-friendly adhesives aim to eliminate or significantly reduce formaldehyde content, contributing to improved indoor air quality.
  • Low VOC Content: Volatile organic compounds are pollutants that can be released from adhesives into the air. Eco-friendly adhesives typically have low VOC content, minimizing their impact on both indoor and outdoor air quality.
  • Recyclable or Biodegradable: Some eco-friendly adhesives are designed to be more easily recyclable or biodegradable, contributing to a circular economy and reducing the environmental impact of waste.
  • Compliance with Environmental Standards: Eco-friendly adhesives often comply with established environmental standards and certifications, such as those set by organizations like the Forest Stewardship Council (FSC) or the GreenGuard Certification.

The technological developments and innovations in the domain of wood based panels elaborate a transformative shift in the market. Moving beyond conventional manufacturing processes, the integration of modern technologies enhances the structural integrity and performance of wood based panels but also aligns with sustainability goals. Therefore, with the increasing implementation of these advanced techniques globally, the usage of such technological evolutions is anticipated to elevate the wood based panel market growth during the forecast years.

By Harshita Kumari


Georgia-Pacific, Weyerhaeuser Co, Arauco, Swiss Krono Group, Kronospan, West Fraser Timber, Century Ply, Dexco SA, Egger Group, Evergreen Fibreboard Berhad, Kastamonu Entegre, etc are the key players in the global wood based panel market.

As per Inkwood Research, the adoption of eco-friendly building techniques, the surge in household and furniture renovation expenditure for wood based panels, and optimistic patterns in both residential and commercial construction escalate the market growth of the global wood based panel market.