Oriented Strand Board Market is forecast to reach $27.10 billion by 2025, after growing at a CAGR of 13.9% during 2020-2025. Superior and beneficial properties such as low cost, high strength and long-life for OSBs are anticipated to spur demand. The terahertz technology is used for moisture and wood density measurement is anticipated to develop advanced products. Due to its sensitivity to the internal structure of fibre, the device is more used to measure fiber orientation of OSBs. Further, enhance the overall market demand for Oriented Strand Board during the forecast period.
- Oriented Strand Board are an affordable choice for building homes. OSB costs USD 800 less than plywood for a standard 2400 sq. ft. home according to the National Association of Certified Home Inspectors (NACHI).
- When it comes to floor tiles, wood panels are considered relatively more costly than OSB. OSB floors are more convenient than hardwood because they lead to home interior design in a more organic and decorative way. In addition, the entire area with hardwood is quite expensive to floor. Enhances, the market demand for Oriented Strand Board during the forecast period.
- OSB market is anticipated to drive the growing construction industry through the forecast period.
Grade – Segment Analysis
OSB/1 segment held the largest share in the Oriented Strand Board Market
in 2018. Because of its use in various applications, including interior fitment of residential and commercial buildings like decking Particle board, the OSB/1 type is used extensively. OSB/1 can also be adjusted to accommodate specific thickness, density, panel size texture of the layer, strength and stiffness. Therefore, designers and contractors embrace and prefer OSB/1.
Application – Segment Analysis
Construction sector has been the primary market for Oriented Strand Board is growing at a CAGR of 6.17%. Wood panels are crucial in construction industries, used as roofs, floors, walls, beams, doors, staircases, etc. has high structural durability. They produce a stronger and stiffer panel in OSB panels than other products used in similar construction types. The material removes rings and knots, thus enhancing consistency. Its structure provides OSB with a high level of strength, which makes it suitable for a wide range of applications, especially in load-bearing applications. In various emerging economies of the Asia-Pacific and South American regions, the building and construction sectors are currently a thriving industry, which is expected to promote OSB use, minimizing infrastructure failures.
Geography – Segment Analysis
North America dominated the Oriented Strand Board Market with a share of more than 45.4%, followed by APAC and Europe. With a per capita income of USD 62,500 in 2018, the US is the largest and most powerful economy in the world. In 2018, the economy grew at 2.9% and is projected to fall to 2.3% in 2019. In the US, the construction industry was estimated at US$ 1293,256 million in 2018, according to the US Census Bureau. Approximately USD 545,388 million was valued in the residential sector and USD 747,868 million was attributed to the non-residential sector. The residential and non-residential sectors had seen 2.58% and 4.69% respectively, from 2017 to 2018. The overall value of the US construction industry grew by 3.7% over the period from 2017 to 2018. The growth of the construction sector is expected to significantly increase demand for the Oriental Standard Board during the forecast period.
Drivers – Oriented Strand Board Market
- Rising imports and exports demand for packaging
Increasing imports and exports are expected to create enormous packaging demand. Increasing focus on economic efficiency and increased demand for recycled packaging materials, in pallet and box form, over the projected timeframe, to drive demand for product consumption. The product is used for many other applications, including decoration of the interior and furnishings. High features such as humidity resistance, durability and long-lasting, are anticipated to accelerate demand for interior design applications. However, the OSBs are lightweight and their demand for furniture applications is further increased.
Challenges – Oriented Strand Board Market
- Increasing construction infrastructure
The growing demand for wood panels for interior design and furniture applications has increased as a result of the growth of construction infrastructure. High preference for OSB, owing to its low cost, led to an increase in industry player’s investment in capacity expansion and acquisitions to meet the increasing demand. The presence of several well-established companies considerably reduces the chances of new firms in the market. Therefore, the entry of new companies can be further discouraged by high capital costs and a dependency on the varying annual growth of consumers.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Oriented Strand Board market. In 2018, the market of Oriented Strand Board has been consolidated by the top five players accounting for xx% of the share. Major players in the Oriented Strand Board Market are Sonae Indstria, SGPS, S.A., EGGER Group, COILLTE, Kronopspan, SWISS KRONO Group, Norbord, Tolko Industries Ltd., Louisiana-Pacific Corporation, Georgia-Pacific, Weyerhaeuser, among others.
IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to firstname.lastname@example.org to discuss more about our consulting services.
Mr. Venkat Reddy