The global wooden decking market size was valued at USD 20,851.70 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.27% from 2022 to 2030. Wooden decking is becoming increasingly popular for both residential and commercial buildings. Several major players have increased their product offerings and are focusing on innovation and quality wooden materials. Construction activity is an important factor driving the global wooden decking market growth. The residential sector is expected to be the fastest growing sector during the forecast period. In addition, it is likely to benefit from outsized demand for green buildings in North America and Asia Pacific. Furthermore, increased investment in new construction is expected to drive the market's growth.
Global Wooden Decking Market: Regional Insights
Regionally, North America is the leading region for the global wooden decking market. Growth in North America is attributed to the growing construction industry. Moreover, rising spending on home improvement has boosted the demand for wooden decking. Furthermore, global players are expanding their business footprint to new geographies and expanding their product range. The United States is one of the largest and most powerful economies in the world. For instance, the US economy’s growth rate was 2.3% in 2017, which increased to 3% in 2018. In 2019, the GDP growth was about 2.2%, i.e., 0.8% lower than 2018.
Asia Pacific is projected to hold second leading region in the global market owing to the presence of strong economies such as China, Japan, and India. For instance, China’s real GDP growth of 2.3 percent in 2020, and it is projected to grow by 8.0 and 5.6 percent in 2021 and 2022 respectively, largely driven by consumer spending rebound post pandemic. However, the economy looks shaky as the country is dealing with Evergrande crisis (the company has USD 300 billion of liabilities alone as of June 2021) and a full-fledged Chinese financial crisis and a recession can’t be ruled out.
Moreover, the construction industry is the second-largest industry in India, with a GDP contribution of about 9%, and it showed promising growth in 2019.
Furthermore, Japan is the world’s third-largest economy nominal GDP and fourth-largest by purchasing power parity. The Japanese GDP growth has been stagnant and hovering around 1% for the past decade. In 2018, Japan’s economy registered a growth rate of 0.6%, which slightly decreased to 0.3% in 2019, while contracting by 4.6% in 2020. However, the country observed a growth of 2.4% in 2021 and is expected to grow with 3.2 % in 2022.
Figure 1. Global Wooden Decking Market Share (%), By Region, 2021
Global Wooden Decking Market Drivers:
Growing remodeling and refurbishment activities is a prime factor driving growth of the wooden decking market. Wooden decking is majorly used in the construction of new residential sector, repair, and refurbishment of buildings. Moreover, it used for different application such as cladding and siding, swimming pool decks, pathways, flooring, etc., in residential construction. The construction sector in Asia-Pacific is projected to become the largest and fastest-growing market in the world in the residential and commercial sectors, with nearly 45% share of global construction spending from the region.
Increasing demand for housing and lavish infrastructure in developed nations is again projected to foster market growth. According to the US Census Bureau, the spending on private and public construction in the United States during 2020 was around USD 1400 billion. Moreover, as part of the ‘Investing in Canada Plan,’ the government announced plans to invest nearly USD 140 billion for major infrastructure developments in the country by 2028. In 2019-20, the government planned to approve investments worth USD 5.6 billion for new infrastructure projects in the country.
Global Wooden Decking Market Opportunities:
Increasing focus of key players on wood modification for improved properties is projected to offer significant growth opportunities for the key players. Acetylation is a chemical process which is widely used to offer specialized properties to wood. Unlike pressure treatment, where preservatives, such as ammoniacal copper quaternary compounds, are infused into wood, acetylation chemically modifies wood. The acetylation process improve various properties of wood, making it more compatible for application on wooden decking
The non-residential application segment is anticipated to contribute substantially to the market growth during the forecast period, owing to the rising demand for wood decking in hospitality, corporate offices, and retail sectors.
Wooden Decking Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 20,851.70 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030CAGR:||5.27%||2030 Value Projection:||US$ 30,230.00 Mn|
The AZEK Company Inc., Deckorators Inc., Deck Solutions LLC, DuraLife Decking & Railing Systems, Fiberon, Humboldt Sawmill Company LLC, Kebony AS, Metsa Wood Thermory, Trex Company Inc., United Construction Products Inc. (BISON Innovative Products), Mendocino Forest Products Company LLC, NeoTimber, Shubh Composites, and Tecnodeck (Mitera Group)
|Restraints & Challenges:||
Global Wooden Decking Market Trends:
Increasing energy prices and increased awareness about green buildings will drive demand for wooden decking. The surge in population in developing regions will also drive growth. In addition, the increasing importance of the construction industry is increasing consumer aspirations and preferences for luxury homes.
New products and innovations are likely to enter the market during the forecast period. The demand for wooden decking materials is directly related to economic conditions and consumer confidence. Factors such as population growth, employment levels, and interest rates all impact residential construction, which in turn influences overall construction market growth
Global Wooden Decking Market Restraints:
Increasing replacement of wooden decking by composite decking is projected to hamper the market growth. Composite decking is increasingly becoming popular for decking and outdoor area construction. It is designed to offer incomparable beauty, excellent long-lastingness, and low and simple maintenance.
High cost and maintenance of wooden decking is projected to hamper the market growth.
Figure 2. Global Wooden Decking Market Share (%) in terms of Values, By End Use Industry, 2021
Global Wooden Decking Market Segmentation:
The global wooden decking market report is segmented into type, application, end-user industry, and geography
Based on type, the market is segmented into Pressure-treated Wood, RedWood, Tropical HardWood, Cedar, Wood-Plastic Composites (WPC), and Other Types (Thermally Modified Wood, Acetylated Wood). Out of which, Cedar is expected to dominate the global market over the forecast period. It is one of the popular woods used for decking purpose and other housing applications. It has high durability and resistance from decay, rot, insects, and moisture. Moreover, it lasts longer for more than 15-20 years with options of various grades.
Tropical Hardwood segment is also expected to witness significant growth in the near future. It is the hardest woods from the tropical region which can last for more than 25 years. Moreover, they have a very high resistance to decay and can be recycled for fuel or woodchips, provided they are not treated chemically.
Based on application, the market is segmented into Railing, Floor, Wall, and Other Applications. Out of which, Railing is expected to dominate the global market over the forecast period. It is the most traditional form of deck railing and are also inexpensive.
Other Applications segment is also expected to witness significant growth in the near future and this is owing to the increasing demand from Screen, Gate Decor, Swing, Tables, Shelves, and Storage spaces
Based on end-user industry, the market is segmented into Residential and Non-residential. Out of which, Residential is expected to dominate the global market over the forecast period and this is attributed to the growing number of residential projects worldwide. According to the India Brand Equity Foundation, India is likely to witness an investment of around USD 1.3 trillion in housing, over the next six years, during which it is likely to witness the construction of 60 million new homes
Non-residential segment is also expected to witness significant growth in the near future and this is owing to the rise in commercial activities around the globe which is creating demand for wooden deck.
Global Wooden Decking Market: Key Developments
Global Wooden Decking Market: Key Companies Insights
The global wooden decking market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global wooden decking market are The AZEK Company Inc., Deckorators Inc., Deck Solutions LLC, DuraLife Decking & Railing Systems, Fiberon, Humboldt Sawmill Company LLC, Kebony AS, Metsa Wood Thermory, Trex Company Inc., United Construction Products Inc. (BISON Innovative Products), Mendocino Forest Products Company LLC, NeoTimber, Shubh Composites, and Tecnodeck (Mitera Group)
*Definition: Wooden decking is an excellent choice for outdoor spaces, and is often used in homes and commercial buildings. It is a great option for homeowners who are concerned with maintenance. This type of decking is durable and attractive, and is often constructed with recycled wood. Decks are typically built outdoors, elevated from the ground, and are attached to a building. The term is derived from the deck of a ship.
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