Over the past 10 years, construction using timber has undergone a technological breakthrough, moving on from traditional private houses to high-rise buildings and industrial facilities. The industry is currently in what is known as the timber renaissance, in which sustainability merges with high-tech industrialisation.
The situation and trends worldwide
Mass timber technologies dominate worldwide. The main driving force is the use of CLT (Cross Laminated Timber) and glued laminated timber – Glulam – which makes it possible to construct buildings as tall as 25 storeys. Naturally, meeting climate targets is especially important nowadays, and timber construction contributes to this a great deal. Timber is used as a “carbon bank” (sequestering carbon). Replacing concrete and steel with timber substantially reduces the emissions of the construction process. The shift to modular construction and industrial off-site manufacturing shortens construction time by as much as 30%, for example. The global mass timber construction market is forecast to reach 7.2 billion USD by 2033, growing by approximately 15.8% a year.
The place of the Nordic and Baltic countries
Northern Europe has become a global centre of expertise and manufacturing. The Nordic countries are the leaders, since Finland and Sweden set the standards – Finland, for example, plans to use timber in 45% of public building construction by 2025. There have been serious achievements in the Baltics, as manufacturing capacity has grown rapidly. Estonia is the largest exporter of timber houses in Europe. The Baltic states are turning their labour shortage into an advantage by investing in automated factories. A synergy has developed in exports in this field. Latvia and Estonia work closely with the Scandinavian markets, supplying high-quality timber structures for major projects in Sweden and Norway.
Estonia is currently Europe's largest exporter of timber houses, and its dominance compared with Latvia is no accident, but the result of a deliberate strategy. While Latvia holds a creditable 3rd place in the world for timber house exports per capita, Estonia has managed to build a considerably more efficient ecosystem. What are the main reasons for Estonia's advantage?
First, the Estonians have a strong and unified industry cluster. The Estonian Woodhouse Association (Estonian Woodhouse Association) operates as a single force uniting manufacturers, researchers and educational institutions. This allows them to break into international markets together. Estonian companies do not compete with one another, but take part in large international tenders jointly. Estonia has unified standardisation, which plays a very significant role in driving the industry's growth. Estonian manufacturers obtained all the necessary European certificates several years ago – Germany's RAL, for instance – which opened the door for the Estonians to the most demanding markets.
State support, underpinned by the building of Estonia's image, was decisive for the industry's development in Estonia. The Estonian state defined timber construction long ago as a priority export sector that showcases Estonia's capability and efficiency internationally. It should be stressed that state agencies actively promote Estonia as a “timber house superpower”. It helps a great deal that Estonia's advanced IT sector is also integrated into woodworking – from forest management through to fully automated production lines.
The Estonians focus on high added value. Our northern neighbours have moved more quickly from exporting simple sawn timber to supplying finished engineered solutions. Estonian companies such as Timbeco and Harmet do not concentrate solely on manufacturing, but offer the full cycle – from design through to erecting the houses on the client's site. Estonia has also been building multi-storey timber structures for Scandinavia for more than a decade, accumulating enormous engineering experience in the process.
Estonian success is helped along by historical ties with the Nordic countries. Estonia has had far closer and earlier cooperation with Finnish and Swedish investors and clients than Latvia has. That helped it adopt Nordic quality standards and production ethics earlier.
Latvia is currently trying to “catch up with” its neighbours by introducing green procurement and amending building regulations, which will finally make it possible to develop the domestic market and grow engineering expertise here at home.
Latvia's opportunities and challenges
We can do it if we want to! Latvia already ranks 8th in the world by the export value of prefabricated timber buildings and an outstanding 3rd in the world per capita. Latvians have excellent manufacturing potential. Latvia is home to strong CLT and glulam manufacturers, such as CLT Profi in Jelgava, which are able to create high value-added products.
The long-awaited legislative changes have finally taken place in Latvia. The amendments adopted in Latvia at the end of 2025 allow timber buildings to be built taller and larger – up to 28 metres – which will open the way for multi-storey timber offices and housing in the domestic Latvian market too. At present, Latvia's main markets are Sweden, at 37% of exports, Germany and the Netherlands. Demand for factory-built frame houses and renovation modules is growing substantially.
In Latvia's situation, it is necessary to reduce public prejudice about the fire safety of timber and to continue work on adapting regulations to modern technologies. The new amendments to Latvia's building regulations, most of which came into force on 1 January 2026, substantially change the rules of the game in timber construction, putting the possibilities of timber structures on a par with other materials.
The main changes and their impact on design
What has changed? First, the removal of the height barrier. Previously, load-bearing timber structures were mainly permitted up to 18 metres, or buildings of roughly 6 storeys. The new rules provide that timber may also be used in buildings of the higher fire resistance classes (U1 and U2), provided that appropriate fire safety systems are in place.
Functionality will be broadened. Timber structures are now permitted in large industrial and public buildings, such as warehouses, shopping centres or schools, where the use of timber was previously heavily restricted.
The new building regulations bring a change in fire safety solutions. To guarantee safety in high-rise buildings, designers must provide for active protection systems, such as automatic sprinkler systems and improved smoke extraction technologies. The amendments to LBN 201-15 set out the requirements for precisely this kind of hybrid or all-timber solution.
Since green procurement is envisaged, from 2026 onwards, when new buildings are constructed with state or municipal funds, priority will have to be given to environmentally friendly materials with a low CO₂ footprint, which directly encourages the choice of timber in public projects.
As has become popular here of late, a target has also been set for reducing bureaucracy. Alongside the height changes, approval for small timber structures (up to 25 m²) has been made easier, allowing them to be sited in towns and in the countryside without unnecessary paperwork, provided they are not in areas of cultural and historical value.
What does this mean in practice?
Architects and developers now have the legal basis to design timber office buildings or blocks of flats that go beyond the previous “six-storey ceiling”. This allows Latvian manufacturers to finally realise their potential in the domestic market as well, rather than merely exporting high-rise panels to Scandinavia.
The 10 finest examples of timber construction in the world:
1. Ascent (Milwaukee, USA): Currently the world's tallest hybrid mass timber building (86.6 metres), it has 25 storeys, the upper 19 of which are entirely of timber.
2. Mjøstårnet (Brumunddal, Norway): An 85.4-metre-tall skyscraper that long held the record. Only timber was used in its structure and façade, making it a symbol of sustainable construction.
3. HoHo Wien (Vienna, Austria): An 84-metre-tall, 24-storey building, 75% of whose structure is timber. It combines offices, a hotel and flats.
4. Sara Kulturhus (Skellefteå, Sweden): One of the world's tallest buildings constructed entirely of timber (CLT) at 72.8 m, serving as a cultural centre and hotel. The project was designed so that its life cycle would be carbon negative.
5. The Horyu-ji temple (Nara, Japan): The world's oldest surviving timber structure, built more than 1,300 years ago. It is inscribed on the UNESCO World Heritage List.
6. Limberlost Place (Toronto, Canada): A 10-storey mass timber building recognised as one of the best projects in the world in 2025. It is a net zero emissions building that uses lake water for cooling.
7. Metropol Parasol (Seville, Spain): One of the largest and most impressive timber structures in the world (known as Las Setas), it serves as a sunshade over the city square and as a tourist attraction.
8. Knarvik community church (Norway): A gem of contemporary timber architecture with sharp, sculptural forms, built from locally sourced pine.
9. Brock Commons Tallwood House (Vancouver, Canada): An 18-storey student residence that became one of the first significant examples of the use of mass timber in high-rise buildings.
10. Kizhi (Russia): A unique 18th-century architectural monument – a church built without nails, using only timber joints.
Highly ambitious projects include Rocket&Tigerli in Switzerland, planned to reach 100 m, and C6 in Australia, which could become the new record holders in the coming years.
It should be noted that modern multi-storey timber buildings will soon be rising in Latvia too, as proof of the ability of Latvian designers, manufacturers and builders to take their place in the space and time of modern timber construction.