ORIENTED STRAND BOARD (OSB) MARKET | SIZE, SHARE, GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 – 2028)

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Market Overview

The Oriented Strand Board (OSB) industry size is estimated at more than 31.2 million cubic meters by 2020 and is expected to grow at a rate of more than 4% over the forecast timeframe (2021-2026).

The COVID-19 virus impacted the market in 2020. Because of the potential for a pandemic, the construction projects were suspended in the lockdown imposed by the government, which led to a drop in the use of OSBs that are oriented (OSB). However, the construction associated with the healthcare industry has significantly increased because of the pandemic situation. When you consider the post-COVID scenario, the construction industry, in general, is expanding at a rapid rate and, consequently increases demand in the OSB market over the next years.

  • In the short term, the desirable characteristics of OSB and the rising popularity of OSB as a replacement for plywood are expected to fuel the development of the market that is being researched.
  • On the other hand, emissions in the form of volatile organic compounds (VOCs) like formaldehyde could limit the development of the market being studied.
  • Construction was the most dominant segment of the market, with a market share that was more than 40%. And it is anticipated to expand by the fastest rate over the forecast period due to the growing applications, including floors and roofs walls, floors, etc.
  • The growing use of OSB in structural insulated panels is expected to provide a chance in the future.
  • North America dominated the market worldwide and had the highest consumption coming of that region, the United States.

Scope of the Report

OSB (Oriented Strand Board) (OSB) OSB is a durable and stiff structural wood-based panel product that features the same cross-oriented pattern as plywood. OSB is distinguished by its strand components that vary in size and proportions. The OSB (OSB) market has been divided by grade, application to the end-user, and geographic location. The market is divided by grade into OSB/1, OSB/2, OSB/3 OSB/3, and OSB/4. Based on the end-user, The market is classified into construction, furniture, and packaging. The report also focuses on the sizes and projections for OSB (oriented strand board) (OSB) market across 15 nations in important regions. Each segment’s forecasts and market sizing are based on analyzing the volume (meter cube)

Key Market Trends

Incredibly high demand in the Construction Segment

  • The wood-based panel is essential to the construction industry. It offers excellent structural durability for floors and roofs and beams, walls, staircases, doors, and more. When using the OSB panel, the panels create the strongest and more stable panel than other materials employed in similar construction projects. The material is free of knots and rings and knots, making it more homogeneous. The structure of OSB gives OSB a lot of strength, making it able to be utilized in various uses, including load-bearing.
  • The construction and building industry is currently booming in a variety of emerging economies in the Asia-Pacific and the South American regions, which is expected to fuel the usage of OSB, which will reduce the risk of infrastructure failures.
  • OSB is an economical alternative for building homes. According to the National Association of Certified Home Inspectors (NACHI), OSB is priced at USD 700 lower than the cost of plywood in a standard 2400 square foot house.
  • Tiles, plywood, and wooden board are more costly than OSB in the case of flooring. OSB flooring is more appropriate than hardwood floors since they provide an appealing and natural interior design. Additionally, the price of flooring the entire space with hardwood flooring is fairly high.
  • It is estimated that the Chinese building industry is valued at around USD 1,097 billion in 2019, and it grew at a rate of 14.5 percent compared to the prior year. This will, in turn, boost the market for the oriented strand board (OSB) industry.
  • In 2019, the value of construction projects put into place was approximately $1365 billion across the United States. Next-generation Nycha Permanent Affordable Commitment Together (PACT) locations are located in Manhattan (USD 7,500,000,000), Vallco Town center in Sacramento, California (USD 3,500 million), as well as The 78 in Chicago, Illinois (USD 6,500 million), are just a few of the most significant residential construction projects across the US.
  • In the end, the expanding construction industry is expected to propel the OSB market over the forecast time.

The United States to Dominate the Global Market

  • With spending of around USD, 1.4 trillion in the United States is one of the biggest construction markets in the world. Construction in the housing and commercial markets was a bit stronger across the majority of the United States.
  • While the construction of apartments was elevated in the past, the overall expenditure isn’t rising as rapidly. Single-family home construction has slowed because of higher mortgage rates.
  • In 2019 the total value of all new residential construction that took to the country was approximately USD 5 billion. On the other hand, commercial building was hot across a range of sectors, including warehouses, hotels, and data centers.
  • OSB sector within North America (especially the United States) accounts for more than 50% of OSB consumption. Based on the Engineered Wood Association (APA), New home construction is the most important end-user for OSB. Therefore OSB demands from the construction and furniture sector may be affected by the factors mentioned above.
  • These factors have been increasing the demand for the OSB market across the nation.

Competitive Landscape

The OSB or oriented Strand Board (OSB) market is very consolidated, and the five top players making up the majority of the world market. The major players in the market are West Fraser, Louisiana-Pacific Corporation, Kronoplus Limited, Georgia-Pacific, and Weyerhaeuser Company, among others.

Major Players

  1. West Fraser
  2. Louisiana-Pacific Corporation
  3. Kronoplus Limited
  4. Georgia-Pacific
  5. Weyerhaeuser Company

Recent Developments

  • On February 20, 2021, West Fraser announced the acquisition of all outstanding and issued ordinary shares issued and outstanding by Norbord. This resulted in the expansion of the product offerings of the company.
  • In the month of March 2020, Huber Engineered Woods LLC announced that it was buying properties from Extreme Green Building Products LLC located within Charlotte in North Carolina, which may aid in further enhancing its business operations and expanding the range of products it offers.

 

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