The wood recycling market is projected to grow substantially over the next five years, driven by rising environmental awareness and the demand for sustainable materials. In 2024, the market stood at a notable benchmark, and by 2029, it is forecast to grow by USD 15.82 billion, with a CAGR of 9.1% between 2024 and 2029. This robust growth reflects increasing global emphasis on renewable energy and resource efficiency.
For more details about the industry, get the PDF sample report for free
One of the key forces propelling the wood recycling market forward is the rising use of biomass fuels as an alternative to fossil-based energy sources. Governments and environmental agencies worldwide are tightening regulations on carbon emissions, driving a strategic shift towards renewable sources like biomass, which is often derived from wood and wood-processing waste. Biomass is recognized as a carbon-neutral energy source, aligning with key global environmental frameworks like the Kyoto Protocol and emissions-reduction mandates by bodies such as the EPA and the Intergovernmental Panel on Climate Change. As such, the increasing use of recycled wood for power generation not only supports sustainability goals but also enhances energy efficiency and drives substantial market demand.
An emerging and transformative trend in the wood recycling market is the adoption of the circular economy model. This system promotes the reuse and recycling of materials, reducing the need for virgin resources and lowering environmental impact. The market is being shaped by growing investment in recycling infrastructure and collaboration between governments and private players to facilitate closed-loop systems. Additionally, eco-conscious consumers and stricter environmental regulations—such as LEED and BREEAM certifications—are accelerating this trend. These forces are reshaping the industry landscape by encouraging transparency in sourcing and adoption of sustainable design practices across sectors like construction, furniture, and energy.
The Wood Recycling Market plays a vital role in promoting sustainable resource use and reducing landfill dependency across various industries. Key materials such as recycled timber and wood waste are increasingly being repurposed for alternative applications, particularly in biomass fuel production and the creation of wood chips for energy and material use. Innovations in particle board and MDF production processes have elevated the demand for recycled content like wood mulch and sawdust reuse, allowing manufacturers to reduce reliance on virgin materials. Processes such as pallet recycling and timber recovery are gaining prominence, particularly in construction and logistics sectors. Technologies like wood shredding enable effective size reduction for downstream use in bioenergy wood and the generation of wood fiber, supporting circularity in supply chains. Moreover, the popularity of reclaimed lumber and wood pellets reflects a growing consumer and industrial preference for environmentally conscious materials.
The wood recycling market is segmented by:
Application
Wood panels
Energy generation
Others
Material
Paper and cardboard
Waste wood
Method
Mechanical
Chemical
Thermal
End-use Industry
Residential
Industrial
Commercial
Among applications, the wood panels segment is projected to lead market growth between 2025 and 2029. In 2019, this segment was valued at USD 14.1 billion, and it has experienced steady growth since then, supported by the rising demand for eco-friendly and cost-effective construction materials. These recycled panels, often produced from industrial and demolition waste, are widely adopted across the construction and furniture industries for their sustainability and performance benefits. As one industry analyst observes, recycled wood panels help reduce construction waste and provide a reliable alternative to virgin wood, aligning with sustainability certifications like FSC and PEFC. Additionally, technological innovations in shredding, sorting, and grinding are enhancing the quality and accessibility of recycled panels, further boosting segment growth.
Covered regions:
North America
Europe
APAC
Rest of World (ROW)
The Asia-Pacific (APAC) region is anticipated to contribute 37% of the global market growth between 2025 and 2029, making it the leading regional segment. This growth is fueled by a combination of rising urban development, increasing demand for sustainable construction, and government-backed green initiatives. Countries such as China, India, and Japan are prioritizing waste reduction and resource efficiency through national sustainability programs and policies promoting the reuse of construction materials. According to analysts, APAC’s growth is also supported by strong investments in recycling technologies and expanding infrastructure, enabling more efficient processing of municipal and industrial wood waste into recycled materials and bioenergy products.
See What’s Inside: Access a Free Sample of Our In-Depth Market Research Report.
Despite the sector’s positive outlook, logistical challenges in recycling waste wood present a significant barrier to growth. The process involves complex operations from collection to transportation and processing, often hampered by low profit margins. Transporting used wood—especially from urban collection points to rural processing facilities—adds substantial cost. In countries like the United States and Australia, these transportation expenses form a major portion of overall recycling costs, thereby impacting operational efficiency and profitability. Additionally, the unpredictable availability of recyclable materials can create supply chain disruptions, underscoring the need for enhanced collection networks and localized recycling infrastructure.
Ongoing research in the wood recycling sector reveals a surge in repurposing options such as scrap wood and wood composting, which are key to soil enrichment and organic waste management. The production of engineered wood from recycled inputs like wood pulp is increasingly common, while chipboard manufacturing utilizes residual particles and fibers effectively. A broad range of wood residue from processing facilities is now being transformed into sustainable timber, contributing to greener construction practices. The trend of wood reprocessing continues to rise in both residential and industrial sectors. Landscaping materials like bark mulch are also in high demand. Meanwhile, wood biomass remains a preferred source for renewable heat and energy. Demand for recycled panels and industrial-grade boards is expanding, driven by eco-conscious building regulations. Market players are also investing in wood grinding technologies to meet growing requirements for volume reduction and efficient reuse of materials like timber scrap.
Advanced research highlights the commercial and environmental value of wood byproducts, especially in applications requiring lignocellulosic material for bio-composites and fuel. Processes like wood chipping contribute significantly to the production of eco-friendly wood products and are essential in supply chains supporting wood reuse initiatives. Specialized recycling streams for hardwood recycling and softwood waste allow for material optimization based on species-specific characteristics. Byproducts such as wood ash are now being evaluated for use in soil conditioning and industrial fillers. The creation of biomass briquettes from compressed waste wood is a growing market segment, providing efficient, renewable heating options. Additionally, wood shavings and circular wood models are gaining traction as part of a broader movement toward zero-waste production cycles. The recycling of waste lumber and enhanced wood recovery systems are helping reduce environmental impact, while the market for green wood continues to grow across sustainable building and manufacturing sectors.
Leading companies are adopting innovative strategies to gain a competitive edge in the wood recycling market. Veolia Environnement S.A., for instance, is pioneering the transformation of reclaimed wood into premium products such as flooring, decks, patios, and kitchen cabinets. This approach not only addresses environmental concerns but also opens new revenue streams through sustainable home improvement solutions. Companies are also engaging in strategic alliances, product launches, and regional expansions to scale operations and enhance market presence. The integration of high-efficiency shredding technologies and IoT-enabled systems is improving recycling throughput and product quality, positioning firms to meet the increasing demand for cost-effective and environmentally responsible solutions.
1. Executive Summary
2. Market Landscape
3. Market Sizing
4. Historic Market Size
5. Five Forces Analysis
6. Market Segmentation
6.1 End-user
6.1.1 Hospitals
6.1.2 Diagnostic laboratories
6.1.3 Others
6.2 Type
6.2.1 Imaging devices
6.2.2 Non-imaging devices
6.3 Product Type
6.3.1 M-mode display
6.3.2 B-mode display
6.4 Geography
6.4.1 North America
6.4.2 APAC
6.4.3 Europe
6.4.4 ROW
7. Customer Landscape
8. Geographic Landscape
9. Drivers, Challenges, and Trends
10. Company Landscape
11. Company Analysis
12. Appendix
Safe and Secure SSL Encrypted
One user only.
Quick & easy download option
Unlimited user access (Within your organization).
Complimentary Customization Included
*For Enterprise license, go to checkout page
Get the report (PDF) sent to your email within minutes.
