Wood Processing Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Operating Principal (Mechanical, Electrical), By Product Type (Thickness planer, grinding machines, Chain/chisel mortise, Routers, Wood lathes), By End Use (Residential, Commercial, Industrial, Infrastructure), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 140.93 Billion
CAGR (2026-2031)	4.98%
Fastest Growing Segment	Industrial
Largest Market	Europe
Market Size (2031)	USD 188.64 Billion

Market Overview

The Global Wood Processing Equipment Market will grow from USD 140.93 Billion in 2025 to USD 188.64 Billion by 2031 at a 4.98% CAGR. Wood processing equipment comprises machinery designed to convert raw timber into finished goods, including saws, planers, and milling tools utilized in construction and furniture manufacturing. The primary driver supporting market growth is the escalating global demand for residential infrastructure, specifically the rise of prefabricated wooden housing which necessitates high-precision components. Additionally, the expansion of the furniture sector, fueled by rapid urbanization and increasing disposable incomes, provides a strong foundation for sustained equipment procurement.

Conversely, a significant challenge is the substantial capital investment required for modern machinery, which limits adoption during periods of economic instability. This financial sensitivity is evident in key industrial hubs where output can fluctuate based on investment climates. According to ACIMALL, in 2025, the production value of Italian woodworking machinery totaled 2.42 billion euros for the 2024 fiscal year, representing an 8.7 percent decline from the previous period. Such contractions demonstrate how broader economic conditions can restrict capital expenditure budgets, potentially impeding the overall expansion of the market.

Key Market Drivers

The surge in residential renovation and home improvement activities, alongside the broader expansion of the global construction sector, serves as a primary catalyst for the wood processing equipment market. As urbanization accelerates and housing stocks age, there is a sustained requirement for machinery capable of producing high-quality flooring, cabinetry, and structural components with improved efficiency. This demand is particularly acute in mature economies where retrofitting existing structures is prioritized over new builds, necessitating advanced sawing and planing solutions. According to the U.S. Census Bureau, November 2025, in the 'Monthly Construction Spending, August 2025' report, residential construction spending reached a seasonally adjusted annual rate of 914.8 billion dollars, highlighting the substantial capital volume flowing into this sector which directly supports the procurement of industrial processing machinery.

Simultaneously, the widespread adoption of automation and Industry 4.0 technologies is reshaping manufacturing workflows, compelling companies to invest in integrated systems to mitigate labor shortages and enhance precision. Manufacturers are increasingly pivoting toward digitally connected Computer Numerical Control (CNC) centers and robotic handling systems to maintain competitiveness and reduce material waste. This technological shift is reflected in the financial resilience of major industry players despite market headwinds; according to SCM Group, May 2025, in the 'SCM Group reaches €900 million turnover amid new board leadership changes' press release, the company achieved revenues of 900 million euros for the 2024 fiscal year, driven by investments in high-productivity technological solutions. However, the market remains sensitive to cyclical downturns. According to VDMA, in 2025, German manufacturers of woodworking machines and tools recorded a 15 percent decline in production volumes for the 2024 period, illustrating the complex balance between technological necessity and economic caution.

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Key Market Challenges

The substantial capital investment required for modern woodworking machinery acts as a significant barrier to market expansion, particularly during periods of economic volatility. Advanced equipment represents a major fixed cost that demands high financial liquidity. When global economic conditions become unpredictable, manufacturers often freeze capital expenditure budgets to preserve cash flow, leading to the immediate postponement or cancellation of new machinery orders. This financial hesitation directly hampers market growth as it prevents smaller enterprises from upgrading their technology and causes larger corporations to delay capacity expansions, resulting in a stagnated sales cycle across the industry.

The impact of this investment sensitivity is quantifiable in major manufacturing regions that drive the global sector. According to the VDMA Woodworking Machinery Association, in 2024, the production value of the German woodworking machinery industry was anticipated to decline by 15 percent due to reluctant investment behavior from customers. This contraction highlights how broader economic uncertainty forces potential buyers to retract purchasing decisions, effectively stalling the revenue momentum and technological adoption rate of the global wood processing equipment market.

Key Market Trends

The rise in specialized machinery for Cross-Laminated Timber (CLT) processing is transforming the market as manufacturers pivot to support mass timber construction. Unlike standard furniture production lines, these integrated systems are specifically engineered to handle heavy structural components and execute complex joinery, necessitating robust milling and pressing capabilities. This industrial reorientation toward structural timber technologies is evident in the resilience of specific equipment segments despite broader manufacturing slowdowns. According to Homag Group, March 2025, in the 'HOMAG Group achieves strong results despite market uncertainty' press release, the company recorded an order intake of 1,357 million euros for the 2024 fiscal year, explicitly noting that their timber construction project business performed well and offset reduced demand from the furniture sector.

Simultaneously, the market is witnessing a decisive shift toward energy-efficient and eco-friendly equipment designs aimed at reducing the carbon footprint of wood processing operations. Manufacturers are prioritizing machinery that minimizes power consumption and optimizes raw material utilization to meet stringent environmental regulations and lower operational costs. This transition has become a core competitive differentiator as equipment buyers actively seek technologies that offer sustainable lifecycle performance. This trajectory is substantiated by major industry players; according to Andritz, March 2025, in the 'ANDRITZ reports satisfactory results for 2024' press release, the company highlighted that while capital expenditure in standard sectors declined, the order intake for its green products and service solutions continued to grow, validating the strategic focus on sustainability.

Segmental Insights

The Industrial segment is projected to emerge as the fastest-growing category within the Global Wood Processing Equipment Market. This expansion is primarily driven by the escalating demand for automated manufacturing solutions in sawmills and furniture production facilities. Manufacturers are increasingly integrating computer numerical control systems to enhance precision and operational efficiency while mitigating labor shortages. Furthermore, rising construction activities globally necessitate high-volume wood processing, reinforcing the reliance on heavy-duty industrial machinery. This shift toward mechanization ensures consistent output quality, positioning the industrial sector as a pivotal driver of market development.

Regional Insights

Europe holds the leading position in the global wood processing equipment market, driven by a strong forestry infrastructure and the high integration of automation in manufacturing facilities. This dominance is supported by the rising demand for prefabricated wooden structures and sustainable building materials across the region. Additionally, strict adherence to frameworks established by the European Union regarding environmental sustainability enforces the adoption of efficient and compliant machinery. Consequently, the presence of major equipment manufacturers in countries such as Germany and Italy ensures continuous technology upgrades, cementing Europe’s status as the principal market for wood processing solutions.

Recent Developments

• In September 2024, Dieffenbacher GmbH Maschinen- und Anlagenbau commissioned two new OSB manufacturing plants in China for the Dekek Group, demonstrating significant progress in the region. The first facility, located in Yulin within the Guangxi province, successfully produced its first board early in the month, marking the start of commercial operations. This project involved the installation of advanced forming and press technologies designed to ensure high-capacity output and superior panel quality. The successful delivery of these projects highlighted the company's ability to execute large-scale wood-based panel production lines to meet the growing market demand for construction materials in Asia.
• In April 2024, the Homag Group completed the acquisition of the remaining 20 percent of shares in System TM, a Danish specialist in solid wood processing systems, making it a wholly-owned subsidiary. The German machinery manufacturer had previously secured a majority stake in the company in 2020. This consolidation was a strategic step to reinforce the group's capabilities in the timber construction sector, which serves as a significant growth area alongside its furniture production business. The full integration allowed for more intensive collaboration in developing comprehensive system solutions for solid wood optimization and handling.
• In March 2024, the Weinig Group introduced several innovative technologies for solid wood processing at the Holz-Handwerk trade fair in Nuremberg. A key highlight of the exhibition was the premiere of the EuroStacker, a semi-automatic stacking solution developed to reduce the physical workload on operators while improving packaging efficiency. The manufacturer also launched the OptiCut C 50+ cross-cut saw, which featured an optimized design and a standardized working height to facilitate ergonomic operation. These product launches underscored the company's focus on automation and resource efficiency to address current challenges such as the shortage of skilled labor in the timber industry.
• In January 2024, Biesse S.p.A. finalized the acquisition of GMM Finance S.r.l., the holding company for the GMM Group, to strengthen its position in the materials processing industry. This strategic transaction included the integration of GMM S.p.A., Bavelloni S.p.A., and Techni Waterjet Ltd., along with their international subsidiaries. By incorporating these entities, the company aimed to expand its portfolio beyond wood processing into the stone, glass, and specialized materials sectors. The move was part of a broader external growth strategy designed to enhance the manufacturer's technological capabilities and global market reach through the consolidation of complementary engineering expertise.

Key Market Players

• Biesse Group
• HOLYTEK INDUSTRIAL CORP.
• SCM Group
• Dürr Group
• Gongyou Group Co., Ltd.
• IMA Schelling Group GmbH
• Michael Weinig AG
• CKM
• Cantek America Inc.
• KTCC WOODWORKING MACHINERY

By Product Type	By End Use	By Region
Thickness planer grinding machines Chain/chisel mortise Routers Wood lathes	Residential Commercial Industrial Infrastructure	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Wood Processing Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Wood Processing Equipment Market, By Product Type:

• Thickness planer
• grinding machines
• Chain/chisel mortise
• Routers
• Wood lathes

• Wood Processing Equipment Market, By End Use:

• Residential
• Commercial
• Industrial
• Infrastructure

• Wood Processing Equipment Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE