15th October 2025
A new report on Market Opportunities for Timber in Construction in Ireland highlights a growing sector with opportunities to deliver on both Ireland’s housing and climate targets.
The Minister for Enterprise, Tourism and Employment, Peter Burke, and Minister of State for the Department of Agriculture, Food and the Marine, Michael Healy-Rae, today published a new report which demonstrates the ability of timber to offer a sustainable and scalable solution to Ireland’s construction and infrastructure delivery challenges.
The launch coincides with the 'Build with Wood: From Policy to Practice' conference, which is hosted by Coillte and supported by the Department of Agriculture, Food and the Marine, taking place today. This event is focussed on increasing the use of timber in construction to support climate and decarbonisation targets while increasing the supply of new homes.
Minister Burke welcomed the report commissioned by DETE and said that:
“The timber construction market is well established, and some areas, such as timber frame manufacturing, are flourishing in Ireland. However, there are significant opportunities to unlock increases in timber adoption in our construction sector, and especially for Irish-grown timber. This report identifies areas for innovation and opportunities for new products such as Engineered Wood Products and Mass Engineered Timber. By continuing the positive collaboration between government, state agencies and industry, I believe we can grow this sector and contribute to providing a solution to both our housing and climate objectives.”
Minister Healy-Rae also said that:
“This report marks a pivotal step in unlocking the full economic and environmental potential of Ireland’s forestry and manufacturing industries. Undertaken through the Timber in Construction Steering Group, the report provides valuable insights on the potential for significant growth in our strong timber sector. There are real opportunities to increase the use of Irish timber in our Irish homes, and to add value to our natural grown resource through the use of wood in new products and innovative buildings. I welcome the fact that the sector actively engaged and contributed to the findings of this report. By identifying new market opportunities, we are building on Ireland’s strong legacy of sustainable forest management and world-class expertise, creating pathways for innovation, rural development, and a resilient economy.”
The report describes Ireland’s strong domestic timber product manufacturing base, with timber frame housing systems commonly used across the construction sector. The report finds that there is significant potential for growth through the wider adoption of timber products within the construction sector, in particular through the use of engineered wood products and mass engineered timber. Ireland's forests are producing significant amount of timber for construction, due to our favourable climate and fertile soils.
The modelling presented suggests that timber used in construction in 2025 represent almost 670,000 cubic metres of products, valued at approximately €180 million. Under a scenario with accelerated timber adoption, policy changes and increased construction activity, this could increase to 1.85 million cubic metres and represent substantial avoided carbon from traditional construction materials.
The report’s findings have informed the development of the recommendations of the Timber in Construction Steering Group– Final Report which is currently being finalised.
Notes to editor
This research was undertaken by Arup on behalf of DETE and DAFM, as part of the work of the Thematic Group 1: Market Opportunity, a sub-group of the DAFM led Timber in Construction Steering Group. Enterprise Ireland chaired the working group, focussed on describing the baseline of timber use in Irish construction and modelling future opportunities across a range of scenarios.
This report involved data collection, extensive surveying, and interviews across stakeholders in the timber in construction value chain, to establish the baseline of timber use in construction in Ireland, and to underpin the report’s modelling and its recommendations.
- The report estimated that the baseline for the timber construction market in 2025 is almost 670,000 cubic metres valued at approximately €180 million. Under a business-as-usual scenario this is expected to increase to over 1 million cubic metres or almost €320 million by 2030. However, under an alternative scenario, with accelerated timber adoption, policy changes and increased construction activity this could increase to 1.85 million cubic metres.
- The report found that Ireland's use of wood in construction is low compared to other European countries, but there is strong market interest in timber's potential, especially in offsite, modular, and MMC applications.
- The report provides market insights such as stakeholders expressing a strong interest in the potential of timber, particularly in residential construction and in Mass Engineered Timber (MET) products like Cross Laminated Timber (CLT) and glued laminated timber (Glulam).The report recommends supporting the establishment of a national timber knowledge, development and innovation (KDI) facility as identified by the Enterprise Ireland Timber Sector Leadership Group, and facilitating both public and private sector participation.
The report can be accessed on the Department of Enterprise, Tourism and Employment's website and also on the Timber in Construction Steering Group webpage: Timber in Construction Steering Group
ENDS
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