Transparent Wood Market Overview
The Transparent Wood Market size is forecast to reach US$1.5 billion by 2027 after growing at a CAGR of 10.2% during 2022-2027. Transparent Wood is a different type of wood that offers numerous benefits over alternatives such as glass. The fabrication of transparent wood (TPW) has created interest in the recent past, owing to its favorable physical, mechanical and thermal resistance properties. The transparent wood fabrication process includes the removal of a brown-colored chemical called lignin. Later, the wood is kept in a vacuum and then smothered with clear epoxy resins such as a synthetic polymer called polyvinyl alcohol (PVA), creating a virtually transparent product. As a result, transparent wood is ideal for several applications like roofing, panels, facade and solar cells widely used in various end-use industries, such as buildings construction and furniture to solar panels and electronics. These factors are expected to boost the growth of the Transparent Wood Market size over the projected timeframe. For instance, according to Statistics Canada, the total number of permits for residential and non-residential for January 2022 was 7,817,471; 10,314,435 for February 2022 and 12,475,549 for March 2022. Therefore, the growing construction activity would eventually drive the Transparent Wood Market size during the forecast period. However, the global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for building construction, furniture and others, all across the world, which had a significant impact on the growth of the Transparent Wood Market.
Transparent Wood Market Report Coverage
The report: “Transparent Wood Market Report – Forecast (2022 - 2027)” by Industry ARC,
covers an in-depth analysis of the following segments in the Transparent Wood industry.
Key Takeaways
- The North American region dominates the
Transparent
Wood Market and is expected to register a CAGR of 8.5% during the forecast period (2022-2027). The
increasing demand for transparent wood in construction materials among North
American countries such as the U.S, Canada and Mexico is driving the Transparent Wood Market share.
- The rapid increase in the development of high-rise structures can raise the demand for Transparent Wood, owing to its thermal resistance properties and benefits. These factors would drive the demand for the Transparent Wood Market during the forecast period.
- Rising investments and inclining growth of solar energy will boost demand for solar cells and panels and eventually raise demand for the Transparent Wood Market during the forecast period
Figure: North America Transparent Wood Market Revenue, 2021-2027 (US$ Million)
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Transparent Wood Market Segment Analysis – By Type
The hardwood segment held a significant share in the Transparent Wood Market share
in 2021 and is expected to grow at a CAGR of 10.8% during 2022-2027. Hardwood is extensively used in roofing, panels,
facade and many more, owing to its high thermal and optical resistance properties.
The thermal resistance of hard transparent wood is due to
the alignment of its cellulose fibers, which
were retained after removing lignin and adding
epoxy resins. Hard transparent wood is widely
used in construction materials because of its strong energy efficiency and
operational savings potential. For instance, in February 2022, TH
Group commenced the development of the Thai Binh food processing factory in the
northern province of Thai Binh's Quynh Phu district in Vietnam. The overall
cost of the project reached up to VND 620 billion (approx. US$27 million).
Thus, the rise in commercial construction activity would eventually drive the
hardwood segment of the Transparent Wood Market during the forecast period.
Transparent Wood Market Segment Analysis – By End-use Industry
The building construction industry held a significant share in the Transparent Wood Market share in 2021 and is estimated to grow at a CAGR of 8.9% during the forecast period 2022-2027. Transparent wood is one of the most innovative construction materials that hold the potential to lift the construction sector to a whole new level as it is not only environmentally friendly but also a great alternative to plastic & glass. Lignin is replaced with synthetic polymers to make the wood transparent. The growing consumption of transparent wood with an increase in construction activity will flourish the market. For instance, various construction projects are underway globally. Some of them are Al Maktoum International Airport (Dubai), Jubail II (Saudi Arabia), Dubailand (Dubai), Beijing Airport (China), Samsung Chip Factory (Austin, Texas) and Amazon HQ2 (Arlington/Crystal City, Virginia). With the increasing construction activities, it is estimated that the requirement for transparent wood in the building construction industry would rise in the upcoming years. This would boost the growth of the Transparent Wood Market.
Transparent Wood Market Segment Analysis – By Geography
The North American region dominated the Transparent Wood Market share in the year 2021 and is expected to grow at a significant CAGR of 8.5% during the forecast period. Rising construction activities, abundant wood supply, the artistic appearance of wood and its environmentally sound qualities drive the wood demand in the U.S., Mexico and Canada. Renovation and modernization, especially in the residential & commercial segments, are bound to make transparent wood a popular choice. Also, owing to the climate condition of the region, transparent wood helps in giving five times more thermal resistance than glass, cutting energy costs substantially. According to the U.S., Associated of General Contractors, construction is a major contributor to the U.S. economy and creates nearly US$1.4 trillion worth of structures each year. The construction sector is one of the largest customers for manufacturing, mining and a variety of services. With the rise in the construction activity in the region, the demand for Transparent Wood would increase eventually in the region during the forecast period.
Transparent Wood Market Drivers
The Increase in Commercial Places with the Rise in Construction is Boosting the Demand for Furniture:
Transparent Wood is used in making a wide range of wooden furniture such as
chairs, table tops, interior& exterior decor and
many more, such as a rod or round bar, mullion and so on. Owing to the flexibility of transparent wood, it helps
in creating new design possibilities in interior design. The rise in
construction of commercial places like airports, hotels, malls, institutions and
others would drive the Transparent Wood Market. For instance, China is the
world’s largest construction market and is forecast to grow at an annual
average rate of 8.6% between 2022 and 2030, according to Fitch Solutions
Infrastructure Report. Moreover, China’s 14th Five-year plan includes greenfield
construction, relocation, renovation and expansion of 140 airport projects. Thus, the rise
in the growth of commercial construction would drive the demand for the Transparent Wood Market during the forecast period.
The Growing Emergence of Solar Energy Globally:
In the solar industry, Transparent Wood is utilized for making solar
cells, especially for large surfaces. The rise in the investment in the
production of solar energy would eventually boost the demand for the Transparent Wood Market. For instance, in July 2022, Apollo and Summit Ridge Energy, LLC
announced that Apollo Funds affiliates have agreed to make a US$175
million strategic investment in Summit Ridge, a leading owner-operator of
community solar assets to expand the solar footprints globally. Moreover, National
Mining Development Corporation is looking to set up solar power plants in the
southern state of Telangana (India). With the massive investment in solar energy,
the demand for solar cells would increase and eventually drive the Transparent Wood Market during the forecast period.
Transparent Wood Market Challenge:
The Fabrication of Transparent Wood for the Elimination
of Lignin Must be Taken into Consideration
Lignin is a
component that appears in the woody tissues of plants and has a very important
function. The function of lignin in wood is to hold the cellulose fiber together and
perform essential functions for their life. The fabrication of transparent wood
involves various processes which include removing brown a colored chemical
called lignin. Later, the wood is
kept in a vacuum and then smothered with clear epoxy resin. The removal of
lignin is crucial as it can affect the transparency of wood. Therefore, the
fabrication of the transparent wood must be done with efficiency to obtain Transparent Wood.
Global Transparent Wood Industry Outlook
Technology launches,
acquisitions and R&D
activities are key strategies players adopt in the Transparent Wood Market. The top 5
companies in the Transparent Wood Market include:
- Cellutech AB
- Nomaco Inc
- InventWood
- Woodoo
- Forest Products Laboratory (FPL)