<p>Nowadays, hardwood in Germany is mainly used for heat production despite several available or developed material applications. However, questions arise about how hardwood can be used in the future to best meet its environmental reduction potential, including consequences through replacing non-renewable energy carriers or products.</p><p>A prospective, consequential life cycle assessment was conducted for the additional hardwood harvest in a regional case study in Germany. The study included conventional wood products (such as glued-laminated beams, viscose fibers, and particle boards) and emerging products like lignin-based carbon fibers and phenol, as well as their respective substitutes.</p><p>Results showed that shifting hardwood to material applications reduced environmental impacts when the heat was generated via heat pumps. The production of viscose and carbon fibers can lead to great reductions if the chosen substitutes are effectively replaced. The glulam beam production reduces most environmental impacts to a smaller extent, but depends less on the product replaced. Lignin-based phenol and particle board production lead to few environmental consequences.</p><p>Future hardwood use for material applications can reduce environmental impacts if heat pumps are used for heat generation and the substitution is effective. Some applications may not achieve significant reductions due to quality issues or limited production output. Hardwood might also be required to compensate for the decline in softwood supply, achieving negligible environmental consequences.</p><p>Future research should focus on flexible processing for mixed hardwood species and its effective substitution of non-wood products.</p>