The global balsa wood market is anticipated to reach a valuation of USD 217.23 Mn by 2023, as per a new report by Market Research Future (MRFR). It is expected to exhibit a 5.89% CAGR from 2017 to 2023 (assessment period). Balsa wood is one of the fastest-growing trees, popular due to its lightweight nature in commercial timber. Increasing consumption of balsa wood from aerospace & defense and wind energy sectors is anticipated to boost its market growth over the assessment period.
Drivers and Restraints
Rapid pace of urbanization and rising energy demand are factors anticipated to drive the Balsa Wood Market over the forecast period. Strict regulations pertaining to wood processing and expansion plans of reputed firms are expected to fuel the market demand in the coming years. Increasing demand for equipment in aerospace and defense sectors is predicted to influence the market. Changing designs of equipment and emphasis on sandwich structures is expected to induce demand for balsa wood.
Lightwood composite manufacturers prefer using balsa wood as their core for manufacturing wooden toys and furniture. For instance, Green Dot Bioplastics is using balsa wood with other materials to produce composites for architectural purposes. Another instance includes 3A Composites AG which has acquired Forest Stewardship Council (FSC) certification for its products – AIREX, BANOVA, and BALTEX. These composites can be used in producing semi-finished goods.
The balsa wood market is segmented by type, application, and region. Types of balsa wood are segmented into ‘Grain A’, ‘Grain B’, and ‘Grain C’. The Grain B segment accounted for nearly 41% market volume in 2016. It is anticipated to dominate among other segments due to being commercially used in all wooden items.
Major market applications include industrial construction, renewable energy, marine, aerospace & defense, road & rail, and others. The aerospace & defense segment is predicted to generate nearly USD 77.76 Mn by 2023 due to lightweight nature of balsa wood. Wood-based composites offer higher ballistic protection and weigh less than conventional materials. Production of ships, aircraft, and land-based shelter ships are expected to drive segment demand over the review period.
The renewable energy segment is projected to grow robustly due to the boom in the wind energy sector. Production of various equipment coupled with an abundance of raw materials is anticipated to augur segment growth.
The worldwide market covers regions such as Latin America (LATAM), North America, Middle East & Africa (MEA), Asia Pacific (APAC), and Europe.
The APAC market valuation is set to touch USD 71.25 Mn by 2023 owing to a large number of wood processors, continuous growth of applications, and low labor costs. It is anticipated to exhibit a CAGR of 5.97% during the assessment period due to expansion of various end-use industries. China is expected to display a 6.16% CAGR during the forecast period owing to increase in military budgetary spending and an uptick noticed in the renewable energy sector.
North America commands the second position after APAC, followed by Europe. Demand for wood is anticipated to rise due to major consumption by industries in the U.S. Europe may experience a moderate CAGR till 2023. Countries such as Poland and Germany can contribute to its revenue due to being host to various end-use industries.
Prominent market players include 3A Composites PNG Balsa Ltd.; DIAB International AB; CoreLite Inc.; The Gill Corporation; and Gurit Holding AG. Partnerships between firms have seen an upsurge owing to tough competition. For instance, Gurit Holding was awarded a contract worth USD 645 Mn from a prominent turbine manufacturer, creating opportunities for the market. Coating systems are being developed by companies to minimize resin uptake required by balsa wood for sealing its pores.
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