The Japan Engineered Wood Market Size was estimated at 18.97 (USD Billion) in 2023.The Japan Engineered Wood Market Industry is expected to grow from 20.34(USD Billion) in 2024 to 43.01 (USD Billion) by 2035. The Japan Engineered Wood Market CAGR (growth rate) is expected to be around 7.045% during the forecast period (2025 - 2035).
In Japan, there is a noticeable shift towards sustainable construction practices in the engineered wood market due to environmental awareness. As the government focuses on eco-friendly building materials, the engineered wood products market, including laminated veneer lumber and cross-laminated timber, is growing. This development is in alignment with Japan’s objectives of reducing carbon emissions and increasing the use of renewable resources in the construction industry. Some opportunities to be pursued include the expansion of engineered wood usage in residential and commercial construction projects in light of changing preferences toward more lightweight and multifunctional building materials.
Moreover, some urban development programs in Japan have shown interest in new construction technologies using engineered wood for better structural efficiency. Other supporting factors include changes in consumer trends as manufacturers modify products to include smart technologies, which further support these changes. Appreciation of engineered wood in Japan also stems from cultural acceptance, as wood has been used extensively in traditional Japanese architectural styles. With engineered wood being a new construction material, its increasing acceptance aids in the promotion of the material. As a whole, the combination of government policies, technological advancements, and cultural traditions creates a gap in the Japan market that can be sustainably managed through innovation aimed at sustainability-conscious customers.
Improved coordination between industry players can result in innovative offerings and advanced products that complement the shifting needs of the market while serving Japan’s vision of environmental sustainability.
In Japan, there has been a significant push towards sustainable building practices driven by the country's commitment to environmental conservation. The Japanese government aims to reduce greenhouse gas emissions by 26% from 2013 levels by 2030 as part of their Nationally Determined Contributions under the Paris Agreement. This commitment results in an increased demand for eco-friendly materials such as engineered wood. Notably, organizations like the Japan Wooden Construction Association promote the use of engineered wood, highlighting its lower carbon footprint compared to traditional building materials.Data from the Ministry of the Environment indicates that the use of wood in construction has increased by approximately 10% year-on-year, reinforcing the trend towards engineered wood use. The Japan Engineered Wood Market Industry stands to benefit significantly as construction projects increasingly prioritize sustainability, aligning with nationwide policies and public sentiment.
Technological innovations in engineered wood production are enhancing product quality and performance, further driving market growth. The development of cross-laminated timber (CLT) and glulam (glued laminated timber) allows for greater structural applications and versatility. Japanese universities and institutions are heavily involved in Research and Development (R&D) efforts, leading to superior engineered wood products that meet stringent building codes.Reports from academic journals highlight a 15% increase in the adoption rate of CLT in Japanese construction projects since 2018, driven by its strength and sustainability credentials. This growth echoes the positive trajectory of the Japan Engineered Wood Market Industry as technology enhances the appeal of engineered wood products.
Japan's urban areas continue to expand, necessitating the construction of more housing units and commercial buildings. According to the Japan Ministry of Land, Infrastructure, Transport, and Tourism, urbanization rates have reached over 91% in metropolitan regions, leading to an annual increase in housing demand. This surge in construction offers substantial opportunities for the Japan Engineered Wood Market Industry as builders seek efficient, cost-effective, and sustainable materials.The trend indicates that engineered wood, being lightweight and easy to work with, is an attractive choice for urban developers. With the ongoing demand, the contribution of engineered wood to residential and commercial projects is expected to rise steadily.
The Japan Engineered Wood Market showcases a diverse range of product types, each contributing significantly to the overall growth and functionality of the industry. Plywood stands out as a versatile option favored in construction and furniture manufacturing, offering durability and aesthetic appeal. Laminated veneer lumber (LVL) is increasingly utilized for its strength and ability to withstand heavy loads, making it ideal for beams and headers in large structures. Glulam, known for its structural capabilities, allows for the creation of large-span roofs and supports, which is particularly important in Japan's seismic-prone construction environment, promoting safety and resilience.I-beams are essential in modern building design, enabling larger openings without the need for multiple supports, thereby optimizing space and enhancing architectural creativity. Finally, cross-laminated timber (CLT) has garnered attention for its eco-friendly characteristics and quick assembly, catering to the growing demand for sustainable building materials. The unique advantages of each of these product types highlight their relevance in addressing Japan's evolving construction needs, particularly in urban development and disaster-resilient designs.As such, the Japan Engineered Wood Market is poised for growth, driven by an increasing preference for engineered wood solutions that combine performance, sustainability, and design innovation. The various product types within this market not only fulfill essential structural roles but also echo the trends toward green building practices and resource-efficient construction technologies. With ongoing advancements in production methods and material properties, these engineered wood products are set to play a vital role in shaping the future of Japan's construction landscape.
The Application segment of the Japan Engineered Wood Market is pivotal in shaping the industry's future, catering primarily to both residential and non-residential sectors. The residential segment is characterized by an increasing preference for sustainable building materials, driven in part by government initiatives promoting eco-friendly construction. This trend aligns with Japan's commitment to carbon neutrality, making engineered wood an attractive alternative due to its renewable nature and lower carbon footprint compared to conventional materials.On the other hand, the non-residential segment, comprising commercial and industrial applications, continues to witness significant growth due to Japan's expanding urban infrastructure and the demand for efficient building solutions. The flexibility of engineered wood products makes them ideal for a variety of construction applications, ranging from office buildings to educational institutions. Moreover, innovative designs and technologies are supporting enhanced performance metrics, thus boosting the adoption rate across both segments. As these trends evolve, the majority of market activity is likely to focus on meeting the growing demand for high-quality, durable, engineered wood products that align with modern architectural practices in Japan.
The Japan Engineered Wood Market is characterized by an increasing demand for sustainable and innovative building materials, driven largely by a growing focus on environmental consciousness and the need for advanced construction solutions. As the construction industry in Japan continues to evolve, engineered wood products have gained prominence due to their exceptional strength, versatility, and ecological benefits. Competitive insights within this sector reveal that various factors, such as technological advancements, product innovation, and strategic partnerships, play a crucial role in shaping the market landscape. This competitive environment necessitates that companies continuously adapt and improve their offerings to maintain a robust market presence and address the unique needs of consumers and businesses alike.Sojitz Corporation holds a notable position in the Japan Engineered Wood Market, leveraging its extensive supply chain and broad network of partnerships to enhance its market presence. The company's strengths lie in its ability to source high-quality timber and engineered wood products from both domestic and international suppliers, ensuring a diverse product range that caters to various construction needs. With a strong emphasis on sustainability, Sojitz Corporation integrates eco-friendly practices throughout its operations, which not only meets regulatory requirements but also appeals to the environmentally-conscious consumer. This strategic focus on sustainability, combined with ongoing investments in building strong relationships with clients and developers, has positioned Sojitz Corporation as a key player in the competitive landscape of engineered wood products in Japan.Mitsui Home has established itself as a significant participant in the Japan Engineered Wood Market, specializing in delivering high-quality construction materials that meet stringent design and performance standards. The company is known for its innovative approach to engineered wood solutions, offering products such as laminated timber, prefabricated structures, and advanced wood composites that support efficient construction processes. Mitsui Home’s strengths include its commitment to research and development, which allows the company to stay ahead of market trends and customer preferences. Additionally, its strategic mergers and acquisitions have bolstered its market presence, enabling the expansion of its product portfolio and geographical reach within Japan. By focusing on sustainable building practices and maintaining a robust supply chain, Mitsui Home continues to solidify its standing in the competitive engineered wood sector, catering to the evolving needs of the Japanese construction industry.
Recent developments in the Japan Engineered Wood Market have highlighted significant growth and rising interest in sustainable building materials. As of October 2023, companies like Sojitz Corporation and Sumitomo Forestry are actively expanding their product lines to meet the increasing demand for eco-friendly solutions. In September 2023, Sekisui House announced a new partnership aimed at bolstering its production capabilities in engineered wood, aligning with the government's initiatives to promote sustainable forestry and construction practices. Notably, in July 2023, a merger agreement between Mitsui Home and Takamatsu Construction Group was made public, signaling a strategic effort to enhance market competitiveness and innovate in engineered wood products. Over the past two to three years, the market has witnessed growing investments from firms such as Asahi Kasei and Mitsubishi Materials, focusing on Research and Development of advanced engineered wood technologies. Furthermore, the Japanese government's push for carbon neutrality by 2050 has led to increased adoption of sustainable materials, driving growth and innovation across the sector. The market is set to benefit from these trends, influenced by both domestic demand and global sustainability goals.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 18.97(USD Billion) |
| MARKET SIZE 2024 | 20.34(USD Billion) |
| MARKET SIZE 2035 | 43.01(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 7.045% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Sojitz Corporation, Mitsui Home, Asahi Kasei, Sumitomo Forestry, Takamatsu Construction Group, Mitsubishi Materials, Kuwata Corporation, Toyo Engineering Corporation, Morishita Jute Manufacturing, Daiken Corporation, Sekisui House, Shinhan Building, Kengo Kuma and Associates, Yamato Holdings, Nippon Steel |
| SEGMENTS COVERED | Product Type, Application |
| KEY MARKET OPPORTUNITIES | Sustainable building material demand, Government support for green construction, Urbanization increasing wood usage, Innovative wood product developments, Growth in prefabricated construction trends |
| KEY MARKET DYNAMICS | Sustainable construction practices, Increasing demand for prefabricated buildings, Government regulations promoting timber use, Technological advancements in wood processing, Growing awareness of eco-friendly materials |
| COUNTRIES COVERED | Japan |
Frequently Asked Questions (FAQ) :
The Japan Engineered Wood Market is expected to be valued at 20.34 USD Billion in 2024.
By 2035, the Japan Engineered Wood Market is projected to reach a valuation of 43.01 USD Billion.
The expected CAGR for the Japan Engineered Wood Market from 2025 to 2035 is 7.045%.
Plywood is the largest segment in the Japan Engineered Wood Market, valued at 6.5 USD Billion in 2024.
The market size for laminated veneer lumber (LVL) is expected to be 8.44 USD Billion by 2035.
Major players include Sojitz Corporation, Mitsui Home, Asahi Kasei, and Sumitomo Forestry among others.
The market value for glulam in 2024 is estimated to be 3.0 USD Billion.
I-beams and cross laminated timber (CLT) are projected to reach a market size of 8.08 USD Billion by 2035.
The growth is driven by increasing demand for sustainable building materials and construction activities.
Challenges include competition from traditional wood products and fluctuations in raw material availability.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
