Market environment

Raute’s customers are the producers of veneer, plywood and LVL (Laminated Veneer Lumber). Their products are typically used in construction, housing-related consumption, international trade and transportation. 

Global uncertainty reflected in the demand for Raute’s offering

In 2025, Raute’s operating environment remained challenging, characterized by global economic and geopolitical uncertainty affecting customers’ investment decisions. The primary source of uncertainty has been the political actions of the United States, creating overall turbulence and concern regarding
tariffs, especially for companies exporting goods to the country. In Europe, the war in Ukraine, as well as the continued downturn of construction, have affected demand for end products. As a result of these factors, Raute’s customers have canceled or postponed their investment decisions, which was
reflected in the order intake especially during the first half of the year.

Competition among technology providers has also intensified, with operators demonstrating increasingly aggressive pricing. Raute sees its competitive advantage in its global reach and capability to deliver integrated production lines and even mill level projects, while many competitors remain specialized in 
individual process stages and operate more locally. In addition, Raute benefits from the growing role of its Services business, which remained stable during the year. 

While it is still difficult to estimate the timing and extent of the overall market recovery, Raute expects market demand to  improve going into 2026. Despite the uncertainty, some of Raute’s European and North American customers are preparing for the market to become more active and are actively promoting their investment plans for process efficiency and additional capacity. Over the long term, technological advancements and sustainability requirements are creating new opportunities for investments. Raute’s position is strengthened by its broad product portfolio, ability to respond to sustainability demands, and technological leadership in digitalization and data analytics. Further, Raute’s capability to offer a wide range of supplementary services throughout the product life cycle is an enabler for additional business opportunities.

Plywood, LVL and veneer industries

The annual end-user market for plywood and LVL products is around EUR 50 billion* globally. The development of demand for end products will significantly steer the demand for Raute's products and solutions. The size of the  plywood and LVL machine market relevant to Raute's Wood Processing business is approximately EUR 400 million*, while for the Services business, Raute's market potential is several hundred million* euros, depending on the  definition. Regarding the Analyzers business, the market is currently developing at a rapid pace, and the relevant annual market potential for Raute is estimated to be over EUR 60 million*.

In addition to the plywood and LVL technology markets, Raute also has a strategic goal to grow in other engineered wood product areas, which will significantly increase market potential in the coming years. In addition to economic cycles, market demand is affected by customers' long-term planning prospects and requirements related to sustainability and resource efficiency.

* Management estimate