The paper shows results of researching the market of glued laminated timber as the most frequent innovative timber product in constructing timber framed residential facilities in Europe and Serbia. The research included the development of production, consumption and trade flows for the most significant countries in the European Union and Serbia. Additionally, the paper gives characteristics of this innovative timber product regarding dimensions, allowed deviations of dimensions defined in adequate European standard, wood species it is made of and fire resistance. The last part of the paper shows results of econometric modeling of the impact of building timber-framed houses on the consumption of glued laminated timber in Austria as one of the countries belonging to the group of the largest consumers of this innovative timber product in Europe. Taking into consideration that the substitution of classic building materials, primarily concrete, steel and aluminum, with glued laminated timber in residential construction contributes to the reduction of carbon-dioxide emission and climate change mitigation, research results of the effects of such substitution are presented in the last chapter in this paper.