Middle East & Africa Engineered Wood Market Outlook, 2029

The engineered wood market in the Middle East and Africa region is formed by a confluence of economic, environmental, and cultural variables that influence the adoption and growth of engineered wood products in this varied region. The Middle East & Africa-engineered wood industry is growing slowly but steadily, thanks to a number of factors. Rapid urbanization, along with a thriving building industry, has spurred demand for innovative and sustainable construction materials in nations such as the United Arab Emirates (UAE), Saudi Arabia, and South Africa. Engineered wood, with its environmentally favorable properties and many applications, has emerged as a compelling alternative to address these objectives.

The Middle East, in particular, has seen a construction boom, characterized by large infrastructural projects and urban development programs. Engineered wood products such as laminated veneer lumber (LVL), particleboard, and medium-density fiberboard (MDF) are becoming increasingly popular in the residential, commercial, and hospitality sectors. The structural strength, aesthetic appeal, and flexibility of the region's different architectural styles fuel demand for these materials. Sustainability is an important factor in defining the Middle East & Africa-engineered wood market. With a rising emphasis on environmentally friendly building and sustainable practices, engineered wood appears as an appealing option.

As these countries aim to diversify their economies and minimize their reliance on conventional industries such as oil and gas, the building industry's shift toward sustainable materials aligns with broader sustainability goals. The Middle East & Africa-engineered wood market has enormous growth potential, owing to rising urbanization, infrastructural expansion, and a shift toward sustainable building methods. Investments in R&D, combined with innovative production techniques, are projected to boost the market even further. Engineered wood is poised to become an integral component of the Middle East and Africa's construction landscape, contributing to the region's evolving architectural and infrastructural fabric as governments and industries in the region prioritize sustainability and eco-consciousness.

According to the research report 'Middle East & Africa Engineered Wood Market Outlook, 2029', the Middle East & Africa Engineered Wood market is projected to reach market size of more than USD 21 Billion by 2029. The Middle East & Africa region's architectural styles are a mix of traditional and modern, with elaborate motifs, geometric patterns, and decorative embellishments. Engineered wood products in this region adapt to these various design styles by offering a variety of surfaces and textures that mimic traditional wood species while utilizing modern building techniques. This ability to smoothly mix modern materials, such as engineered wood, into heritage-inspired designs is a distinguishing feature of the region's architectural fusion.

The Middle East & Africa region has a wide range of climates, from arid deserts to coastal regions and mountainous hills. In this region, engineered wood products are built and engineered to endure extreme climatic conditions like high temperatures, humidity, and sandstorms. Engineered items are designed by manufacturers to provide longevity, stability, and resistance to environmental conditions. The Middle East & Africa region is increasingly adopting novel technologies and construction methods. Engineered wood firms in the region use innovations in production techniques and materials to improve product quality, performance, and design capabilities.

This emphasis on innovation enables engineered wood to be customized to fit the specific needs of the region's construction industry, contributing to the region's expertise in embracing cutting-edge technologies. Engineered wood products in the Middle East & Africa region frequently emphasize cultural heritage preservation while adopting new construction ideas. These materials make it possible to incorporate historic architectural aspects and craftsmanship into modern buildings and structures. The capacity of engineered wood to approximate the appearance of traditional wood species promotes the incorporation of cultural aesthetics into modern architectural projects, ensuring a harmonious blend of heritage and innovation.

Major Drivers

Rapid urbanization and infrastructure development: The Middle East and Africa region is seeing significant urbanization, which is accompanied by ambitious infrastructure development projects. The growing population, combined with rising economic activity, has resulted in an increase in demand for residential, commercial, and industrial areas. Engineered wood products have developed as a critical component in satisfying the construction needs prompted by urban growth. Engineered wood's versatility, structural strength, and aesthetic appeal make it an appealing alternative for architects, builders, and developers aiming to design sustainable, modern, and cost-effective structures in this changing urban setting.

Sustainability and green building initiatives: Sustainability has become a key focus in the Middle East & Africa region, with an increasing emphasis on ecologically friendly construction materials and techniques. Engineered wood, derived from responsibly managed forests and manufactured using environmentally responsible procedures, coincides with these sustainability aims. The region's growing awareness of the effects of climate change and the necessity for resource-efficient building materials has prompted the use of engineered wood in green building efforts. It provides a solution that balances environmental responsibility with structural integrity, thus contributing to the development of environmentally conscious and energy-efficient buildings throughout the region.

Major Challenges

Market penetration and competition with traditional materials: The Middle East & Africa region has traditionally relied on traditional building materials such as concrete, steel, and natural wood. Engineered wood products compete with these well-established materials that are deeply embedded in the construction sector. Convincing stakeholders to switch from traditional materials to engineered wood necessitates overcoming opposition and mistrust. Demonstrating engineered wood's better features, structural performance, and cost-efficiency over traditional materials is critical to establishing market traction and effectively infiltrating the building sector.

Price sensitivity and economic factors: The adoption of engineered wood products is heavily influenced by price sensitivity and economic reasons. While engineered wood is less expensive than other traditional materials, initial prices or perceptions of affordability still limit its use in certain market sectors. Economic volatility, currency depreciation, or changes in raw material prices can all have an impact on the cost-effectiveness of engineered wood, limiting its market penetration. In order to address these economic concerns, it is critical to demonstrate long-term cost reductions and the entire value proposition of engineered wood.

In terms of type segment market is includes plywood, medium density fiberboard, oriented strand boards (OSB), particle board and others. Oriented strand boards (OSB) type is expected to grow at fastest Middle East & Africa engineered wood market.

OSB's low cost makes it an appealing choice for the Middle East & Africa market, where economic reasons frequently affect material selection. When compared to other engineered wood products and traditional materials like plywood, OSB is a more cost-effective solution that does not sacrifice quality or structural integrity. OSB becomes an appealing choice for builders and developers in places where the emphasis is on cost-cutting in development projects. The exceptional structural strength and longevity of OSB contribute to its expanding popularity.

OSB is designed to endure a wide range of environmental conditions, including temperature variations and humidity, and it performs admirably in the varied climates of the Middle East & Africa region. Its capacity to preserve structural integrity even in difficult conditions makes it a popular choice for construction applications throughout the region. OSB's adaptability gives it an advantage in the MEA market. This engineered wood product is easily bent, cut, and manipulated to meet a variety of construction needs.

OSB's flexibility for multiple applications enables its broad use in several parts of the construction industry, from sheathing and subflooring to wall sheathing and roof decking. The increased availability of OSB in the MEA region adds to its predicted expansion. Local production or quick access to OSB manufacturing facilities shortens lead times and reduces logistical costs, making it more affordable to builders and contractors. Local production has the ability to correspond with regional preferences for sourcing materials closer to project sites, promoting its use in construction projects.

Based on application segment of the market is bifurcated into construction, furniture, flooring, packaging and others. Furniture application is projected to grow at fastest rate in Middle East & Africa engineered wood market. Based on end user segment market is segmented into residential and commercial & industrial.

Engineered wood products are well-suited for furniture manufacturing in the Middle East & Africa region due to their great design flexibility and aesthetic appeal. Engineered wood, such as medium-density fiberboard (MDF), particleboard, and plywood, can be easily shaped, laminated, and treated to seem like different wood species or textures, allowing for diverse and customized furniture designs. This adaptability appeals to the region's broad consumer tastes and design sensibilities, which include both modern and traditional furniture types.

The availability and accessibility of engineered wood materials propel their expansion in furniture manufacturing even further. Local manufacturing facilities or easy access to engineered wood goods within the Middle East & Africa region streamline the supply chain, shorten lead times, and provide furniture manufacturers with a constant and consistent supply of materials, encouraging their adoption in the industry. The desire for quick construction and efficient project schedules is boosting the use of engineered wood in commercial and industrial applications.

Off-site prefabrication of engineered wood components enables speedier construction and drastically shorter project schedules. This efficiency is critical to satisfying the demands of these industries for fast project completion for commercial buildings, warehouses, industrial facilities, and infrastructure projects. Engineered wood materials provide design diversity and adaptability, meeting the different needs of commercial and industrial buildings. These materials can be tailored to meet unique needs, enabling new architectural ideas, open-plan layouts, and flexible space utilization.

Based on the report the market is three major countries United Arab Emirates, Saudi Arabia and South Africa. Saudi Arabia is expected to grow at rapid pace in Middle East & Africa engineered wood market.

Saudi Arabia's engineered wood industry is a meeting point of heritage and innovation in the context of the kingdom's evolving building environment. In Saudi Arabia, a country known for its vast deserts, ambitious urban building projects, and rich cultural heritage, the use of engineered wood has progressively increased. This has influenced the country's construction and design industries. The growing usage of engineered wood products aligns with Saudi Arabia's aim for building sector innovation. The products' durability, adaptability, and design freedom help the kingdom's ambitious architectural initiatives, such as the futuristic Neom city and the well-known Riyadh Metro project.

The use of engineered wood in these impressive constructions emphasizes how important a part it played in forming the architectural environment of the kingdom. It's interesting to notice that Saudi Arabia's building industry prioritizes modern urban developments over safeguarding the nation's historic heritage. Because engineered wood products can mimic the look of real wood and be customized to fit traditional designs, they are helpful for maintaining and renovating old structures all across the kingdom. The kingdom's commitment to sustainability and environmental preservation has boosted the engineered wood industry.

Sustainable building practices are highly valued in Saudi Arabia's Vision 2030, and using engineered wood that is both environmentally benign and sustainably supplied is consistent with these objectives. The need for engineered wood has expanded as a result of the kingdom's adoption of green building practices, which by definition offer eco-friendly substitutes.

The Middle East and Africa market is experiencing significant growth due to various factors such as the increasing demand for sustainable construction materials, rising urbanization, and advancements in manufacturing technologies. Engineered wood, also known as composite wood or man-made wood is manufactured by binding together strands, particles, fibers, or veneers of wood with adhesives to create a strong and versatile material.

It offers several advantages over traditional solid wood, including enhanced strength, dimensional stability, and resistance to moisture and pests. The market is witnessing a surge in demand from the construction and furniture industries, driven by the need for cost-effective and sustainable alternatives to solid wood. Additionally, the growing focus on green building practices and sustainable development is expected to drive the market's growth in the coming years.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Engineered Wood market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Plywood
• Medium Density Fiberboard
• Oriented Strand Boards (OSB)
• Particle Board
• Others

By Application

• Construction
• Furniture
• Flooring
• Packaging
• Others

By End User

• Residential
• Commercial & Industrial

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Engineered Wood industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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