Oriented Strand Board Market

Oriented Strand Board Market Outlook (2023-2033)

The globally oriented strand board market experienced a year-on-year (YoY) growth rate of 4.1% in 2022 to reach US$ 21.2 billion by 2022.

OSB is a type of engineered wood which is being manufactured in various grades in order for bearing the different load capacities and for different applications. It is also much helpful in improving resistance to the effects of moisture.

Report Attributes	Details
Estimated Market value (2023E)	US$ 22.1 Billion
Forecasted Market Value (2033F)	US$ 34.7 Billion
Global Market Growth Rate (2023-2033)	CAGR 4.6%
North America Market Share (2023)	~29.4%
North America Growth Rate (2023-2033)	4.5% CAGR
US Growth Rate (2023-2033)	4.6% CAGR
Market Share of Top 5 Companies	~22.1%
Key Companies Profiled	Koch Industries Kronospan Ltd. Wayerhaeuser Co. Swiss Krono Group West Fraser Georgia-Pacific Wood Products LLC Greenman Panels LLP Vanachai Group PCL Huber Engineered Woods LLC Norbord Inc.

Consumption Analysis of Oriented Strand Board Market (2018-2022) Vs. Forecast Outlook (2023-2033)

Based on current research and analysis by Fact.MR - market research and competitive intelligence provider, the market for oriented strand board grew with a CAGR of around 3.2% during the last five years

The covid-19 pandemic has resulted in overall stopping the construction and packaging activities across the world. However, markets are growing even faster after opening up from covid-19 pandemic and are expected to gain growth momentum very rapidly. Being made by mixing wood with adhesives, oriented strand board creates a strong panel board that is resistant to distorting, deflection, and also delamination. OSBs are also used as alternatives to concrete building materials and steel. The technology used in the making of OSBs makes them lighter in weight and also reduces the cost of manufacturing.

• Short Term (2023 to 2026): Rising demand for OSBs as an alternative to plywood will be the key to driving demand in short term.
• Medium Term (2025-2028): Growing demand from the construction industry especially from green buildings will drive the market for OSBs in the medium term.
• Long Term (2029-2033): Rising living standards and concern about using products that are eco-friendly and not harming nature/environment will drive the market in long term.

Because of this, the demand for oriented strand board which finds their usage across various end-use applications is poised to create an absolute dollar opportunity of US$ 12.6 billion by 2033.

According to the above image, illustrates the analysis of the overall market share of the oriented strand board market based on region and application. Under the application segment, construction dominates with a 52.5% market share in 2023.

“Rising demand for eco-friendly and sustainable products”

OSB panels are exempt from formaldehyde regulations, and their demand as a green building material is anticipated to drive the market's growth. Future OSB demand is driven by a rise in demand for eco-friendly goods, particularly in developed nations such as the US, Canada, and Europe.

For instance, the US green building council ensures that new constructions use eco-friendly and green products in construction activities through their program known as “LEED (Leadership in Energy and Environmental Design).”

“Soaring Demand from Construction Industry”

The construction industry relies heavily on wood-based panels because they give roofs and staircases, floors, beams, walls, doors, and other structures high structural durability.

Compared to other products used in similar types of construction projects, OSB panels offer a stronger and stiffer panel. The material is more uniform because rings and knots have been removed.

The OSB is designed to have stiffness and strength identical to plywood. Oriented strand boards are a less expensive option for building homes. According to the estimates of the National Association of Certified Home Inspectors (NACHI), for a typical 2,400-square-foot home the OSB is 700 USD less expensive than plywood.

The demand for wood panels for furniture and interior decoration applications is surging as a result of increased construction infrastructure development.

OSB has expanded its position in unexplored markets such as structural insulated panels, wood I-joist products, materials handling, do-it-yourself interior projects, and a few industrial applications (trailer liners and furniture), due to its enhanced performance and properties.

Attributed to the aforementioned factors, especially, escalating oriented strand board demand, the market is projected to grow 1.6x by the end of 2033, growing at a CAGR of 4.6% from 2023 to 2033.

“Achieving Cost Leadership and Producing High-Quality Products”

The nature of the worldwide market is consolidated, and the leading players are concentrated on offering high-quality products through cost leadership. They mostly compete on the basis of product value and cost. Due to fierce internal competition brought on by the expansion of the construction industry, businesses also place a strong emphasis on creating joint ventures. Additionally, rising product demand is forcing producers to increase their production capacities.

Country-Wise Analysis

What makes the US a Prominent Demand Generator of Oriented Strand Board?

In 2022, the US became the largest regional market. The government is attempting to support the use of green construction materials which will have a favorable effect on industry expansion.

High production levels because of the large amount of forested land in Central and South America, are anticipated to aid in regional growth. Government initiatives to attain strong economic growth will encourage an increase in residential and commercial construction, which will accelerate growth even more.

New home construction, accounts for more than 50% of OSB consumption in North America (especially the United States), according to the Engineered Wood Association (APA).

The US-oriented strand board market is anticipated to grow at a CAGR of 4.6%, and its valuation to become 1.6x its current valuation by 2033.

What Makes China a Prominent Market for Driving the Consumption of Oriented Strand Boards?

Due to its tremendous potential for infrastructure development, the Chinese markets are predicted to experience the fastest growth over the forecast period. High-end panel boards are needed in industrial applications where the demand is high as alternatives to plywood and blockboard.

China dominated the market in the Asia Pacific region in 2022 and is estimated to continue to be the fastest-growing over the projection period. The Chinese furniture market is one of the largest in the world. Also, the rising income levels are leading to rising levels of per capita expenditure on furniture products which in turn is creating demand for OSBs.

China’s oriented strand board market is anticipated to grow at a CAGR of 5.2%, and its valuation to become 1.7x its current valuation by 2033.

Category-Wise Analysis

Which Application of Oriented Strand Board is Poised to Remain Most Attractive in the Market?

Construction was the largest application segment. Rising product usage in applications including the wall, subflooring, single-layer flooring, ceiling, & panel sheathing is going to drive the demand for OSBs.

More than 60% of the new construction is expected to be green buildings in developed countries like the US. Canada and the European region also. Advantages like minimum carbon emission are making it preferred to other alternatives by builders and architects.

Pertaining to all the above factors, the demand from the construction segment for oriented strand boards is poised to grow at a CAGR of 4.9% during the forecasted period of 2023-2033.

Which Grade of Oriented Strand Board is Demanded Highly with the Rising Market Share?

OSB/3 is highly demanded compared to other grades. It is a mixture of strands that includes 50% coniferous species like pine and larch, 25% hardwood species, and 25% softwood species like willow and alder.

It is a type of board that is used majorly in humid conditions. It is manufactured by using the latest technologies and machinery. It is majorly used for load-bearing applications where OSB/2 and OSB/1 cannot be used.

Out of the various grades considered in the scope of the study, demand for OSB/3 is anticipated to grow at a higher CAGR of 4.8% during the forecast period of 2023-2033.

Competition Landscape

Koch Industries, Kronospan Ltd., Wayerhaeuser Co., Swiss Krono Group, West Fraser, Georgia-Pacific Wood Products LLC, Greenman Panels LLP, Vanachai Group PCL, Huber Engineered Woods LLC, Norbord Inc. are the major leading manufacturers in oriented strand board market.

The world’s leading manufacturers of oriented strand boards are using various innovative ways to reach directly to their user industries. large scale players are focusing to tap the emerging markets of developing economies which presents a lot of opportunities to raise the financial growth rate.

Fact.MR has given in-depth information about the various strategies used by the players in the oriented strand board market along with their detailed overviews of sales analysis of oriented strand board, and top oriented strand board manufacturers, including SWOT analysis and sales generated from target-oriented strand board products of top oriented strand board manufacturers positioned across geographies.

Segmentation of Oriented Strand Board

• By Grade :

  • OSB/1
  • OSB/2
  • OSB/3
  • OSB/4

• By Thickness :

  • 6-20 mm
  • 20-40 mm

• By Application :

  • Construction
    • Floor & Roof
    • Wall Panels & Doors
    • Beam / Columns
    • Others
  • Furniture
    • Beds
    • Almirahs
    • Tables
    • Others
  • Packaging
    • Food & Beverage
    • Industrial
    • Cosmetics
    • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South-East Asia & Oceania
  • Middle East & Africa