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The global oriented strand board market size is expected to reach USD 32.89 billion by 2025 expanding at a CAGR of 14.3%, according to a new report by Grand View Research, Inc. Growing product penetration in residential and commercial construction due to superior aesthetics is anticipated to benefit the industry growth. The industry has witnessed extreme fluctuations in supply and demand on account of the cyclic nature of the residential construction. Suppliers in the OSB market heavily influence the product prices as the raw material accounts for a high proportion of the overall manufacturing cost of the oriented strand boards.
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Increasing preference for green building materials in construction industry is expected to have a positive impact on the product demand. Oriented strand board is exempted from formaldehyde regulations, owing to its low emission rate. In addition, less wood wastage in the manufacturing of OSBs is expected to emerge as one of the major factors driving the industry over the forecast period. Fluctuations in raw material prices may restrain the market growth. Notable volatility in the price of the wood on account of weather conditions is expected to hamper the growth. In addition, extensive price volatility of the adhesives and resins used in the product due to fluctuations in crude oil prices is also expected to limit the growth.
Further Key findings from the study suggest:
- Construction applications led the global oriented strand board market in 2017 accounting for 51.73% of total share due to extensive product usage in roofing, floor sheathing, etc.
- North America was the largest regional market and is expected to continue its dominance over the forecast years owing to a rise in residential construction activities
- China is expected to register a CAGR of 25.0% from 2018 to 2025 on account of growing population and manufacturing industry
- The industry is characterized by the presence of major firms with notable market shares, which is making it difficult for emerging companies to enter the market
- Key companies in the industry are focused on organic and inorganic business growth through M&A and capacity expansions to cater to rising demand