The OSB (oriented strand board) market is expected to grow at a compound annual growth rate (CAGR) of 7.88% between 2025 and 2030.
Oriented Strand Board (OSB) is an engineered wood-based panel consisting of wood strands. This is bonded with a synthetic resin, and the strands are pressed together into layers. It is made from small pieces of wood aligned to run in different directions. The major driving factor for the OSB is the building construction industry. It is widely used for flooring, flat roof decking, and wall sheathing.
Additionally, it is driven by the growing use of OSB in the manufacturing of furniture, which is in demand in the economies of Asia Pacific and Africa. Further, with the growing e-commerce business industry, the need for packaging materials is growing, and they have applications in packaging and crating. Carton boards are often made from oriented strand boards for sustainability and robustness.
The growth in the construction industry is due to the growing urbanization around the world and the growing economic development in different parts of the world. A significant part of the development of construction goes towards building houses, parks, hospitals, hotels, restaurants, schools, etc., for the population. These increased urban population setups needed different varieties of buildings, including major residential buildings. The application of OSB is growing in the industry due to its numerous advantages.
Several residential property sales in England and Wales in 2023 were 978,006, and in 2022 were 771,850. This high number indicates the industry dynamics influencing the market's overall growth. According to the European Panel Federation, 76% of the OSB manufactured is used in construction and residential production. 5% of OSB is used for flooring, and 3% for the manufacturing of types of furniture. The relatively large application of OSB in the construction industry, thus indicates the growth in the construction industry would increase its application.
The diverse advantages of an oriented strand board would lead to the growth in demand for the product. OSB has a high mechanical property, which is suitable for load-bearing applications in construction and is widely used for flooring, roof decking, and wall sheathing. Different grades of the product are available for different levels of loading and different environmental conditions. Large quantities of OSB are also used for sarking and industrial packaging. The application of OSB with precision-engineered quality can have the same applications and loading conditions as plywood, thus making it a better price substitute.
Other applications of OSB include furniture frames, decorative wall paneling, shelving, packaging, crating, pallet manufacture, dry storage pallets, wooden application substitutes, and industrial tabletops.
Oriented strand board has a very low environmental impact compared to plywood. It is manufactured from small-diameter trees, thus having very little negative impact on the environment. These trees are fast-growing and smaller in size, which makes them environmentally friendly. The manufacturing process of OSB makes it stronger and more durable, with fewer soft spots than plywood. The OSB is suitable for hot climates, increasing the structure's energy efficiency.
If a tighter seal is applied during a construction sealing process, it can prevent heat transfer in winter and summer, helping maintain comfort levels year-round. The OSB wrap product offered by Tilson Homes can act as a layer that helps prevent heat transfer and limits airborne noise caused by joint leaks, gaps, or voids.
It is anticipated that the OSB market will progress largely in the Asia Pacific owing to factors such as a rise in urbanization, infrastructure projects, and growing economic activities, particularly in China, India, and most countries within the Southeast Asia region.
OSB is widely used in the region due to its long span, cost efficacy, and capacity to meet stringent environmental requirements. Improvements in manufacturing techniques would also help the OSB applications of the product in the Asia Pacific region.
The Manufacturing Industries' exports of India are likely to cross $1 trillion by 2030, with the help of Gujarat, Maharashtra, Uttar Pradesh, and Tamil Nadu states leading in industrial growth. This leads to government campaigns like Make in India and PLI projects that help grow the industries and enhance the industrialist infrastructure.? According to the Trade Promotion Council of India (TPCI), India was expected to be the world's fifth-largest manufacturer and fourth-largest furniture consumer (2022). The Indian furniture market was valued at US$23.12 billion in 2022, and it is predicted to rise at a CAGR of 10.9% to reach US$32.7 billion by 2026 (according to TPCI). The application of OSB is widely expanding in furniture manufacturing worldwide due to its advantages over other materials and environmental benefits.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 7.88% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Oriented Strand Board Market |
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| Customization Scope | Free report customization with purchase |
The oriented strand board market is segmented and analyzed as follows: