Wood Manufacturing Market Report 2026

The wood manufacturing market size has grown steadily in recent years. It will grow from $476.73 billion in 2025 to $490.39 billion in 2026 at a compound annual growth rate (CAGR) of 2.9%. The growth in the historic period can be attributed to expansion of construction sector demand, growth in furniture manufacturing activities, availability of large-scale sawmilling operations, rising use of wood in packaging, increased mechanization of woodworking processes.

The wood manufacturing market size is expected to see steady growth in the next few years. It will grow to $560.68 billion in 2030 at a compound annual growth rate (CAGR) of 3.4%. The growth in the forecast period can be attributed to increasing adoption of smart manufacturing systems, rising investments in sustainable wood processing, expansion of modular and prefabricated construction, growing focus on waste reduction and resource efficiency, increasing demand for value-added wood products. Major trends in the forecast period include increasing automation in wood processing operations, rising demand for engineered wood products, expansion of prefabricated wood construction components, growing focus on production efficiency optimization, enhanced adoption of advanced woodworking machinery.

The increase in construction activities is expected to drive the growth of the wood manufacturing market in the future. Construction activities encompass the various operations and processes involved in building, renovating, and maintaining structures, infrastructure, and facilities. The wood manufacturing industry is vital to the construction sector, supplying a wide array of wood products essential for building and infrastructure development. For example, in July 2024, the Bureau of National Statistics, a government agency in Kazakhstan, reported that in 2023, the total value of construction services reached 7.61 trillion tenge, marking a 15.1% increase compared to 2022. Thus, the rise in construction activities is fueling the growth of the wood manufacturing market.

Major companies in the wood manufacturing market are prioritizing the development of advanced products featuring hydraulic and servo drive systems to enhance operational efficiency, minimize downtime, and improve the precision of wood processing. These systems are advantageous in wood manufacturing as they increase accuracy, accelerate operational speed, and boost machinery efficiency, leading to higher productivity and better product quality. For example, in June 2024, Wood-Mizer, a US-based machinery company, introduced the WM2500 industrial sawmill, designed for high production of pallet boards, grade lumber, and dimensional lumber. With a powerful 30 HP motor, robust construction, and efficient hydraulic log handling, this sawmill significantly improves operational effectiveness. Its competitive pricing makes the WM2500 a key player in the wood manufacturing market, enabling businesses to maximize production and log yield without compromising quality.

In January 2025, UFP Industries Inc., a US-based manufacturing company, acquired C&L Wood Products, Inc. for an undisclosed sum. Through this acquisition, UFP Industries intends to broaden its product portfolio and reinforce its presence in the North American wood products market. C&L Wood Products, Inc. is a US-based manufacturer specializing in high-quality hardwood and softwood products for residential, commercial, and industrial applications.

Major companies operating in the wood manufacturing market are Stora Enso Inc., Binderholz Inc., KLH Massivholz GmbH, HASSLACHER Holding GmbH, Lignotrend Inc., Eugen Decker Holzindustrie KG, Schilliger Holz AG, Structurlam Mass Timber Corporation, Moser Woods Products LLC, Holzwerke Bullinger GmbH & Co., SCHNEIDE GmbH, Pfeifer Holz GmbH, Weyerhaeuser Company, Novawood AS, Andersen Corporation, Arauco North America, Boise Cascade Company, Canfor Corporation, Columbia Forest Products Inc., Georgia-Pacific LLC, Hampton Lumber, Huber Engineered Woods LLC, Interfor Corporation, Louisiana-Pacific Corporation, LP Building Solutions, Moelven Industrier ASA, Murphy Company, Norbord Inc., PotlatchDeltic Corporation, Rayonier Advanced Materials Inc., Resolute Forest Products Inc., Roseburg Forest Products, Sierra Pacific Industries, Svenska Cellulosa Aktiebolaget SCA, Timber Products Company, Tolko Industries Ltd., Universal Forest Products Inc., West Fraser Timber Co. Ltd.

Asia-Pacific was the largest region in the wood manufacturing market in 2025.Asia-Pacific is expected to be the fastest-growing region in the global wood manufacturing market report during the forecast period. The regions covered in the wood manufacturing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the wood manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The wood manufacturing market consists of sales of plywood, sawn wood, and fiberboard. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.