Bangladesh Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 32.33 Billion |
| Market Size (2029) | USD 44.13 Billion |
| CAGR (2024 - 2029) | 6.42 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Bangladesh Construction Market Analysis
The Bangladesh Construction Market size is estimated at USD 32.33 billion in 2024, and is expected to reach USD 44.13 billion by 2029, growing at a CAGR of 6.42% during the forecast period (2024-2029).
Infrastructure development (both large-scale and small-scale) and urbanization are the main drivers of the construction sector, which accounts for nearly 8% of GDP growth and 4% of GDP growth, respectively. This growth in demand for raw materials increases the demand for steel and cement products.
Infrastructure construction is projected to be in good shape over the next 5 years as the government aims to increase investment in transportation infrastructure through PPPs to boost the country’s economy. To meet the growing electricity demand, the country will invest in power infrastructure to support forecast-period generation in the power and utility sectors. The country’s electricity demand is estimated to be 40 GW by 2030, and the government plans to invest USD 70 billion in this sector by 2035.
In addition, Bangladesh is set to inaugurate three infrastructure projects in September to be funded by India. The projects are a 660 MW super thermal power plant, a 2nd unit of Rampal Power Plant in southwest Bangladesh, as well as two railway lines, the 65 km Khulna - Mongla Port railway link and the 65 km Akhaura - Agartala railway link.
Bangladesh Construction Market Trends
Growth in Infrastructure Activities is driving the market
- Bangladesh is witnessing huge growth in the infrastructure sector due to the construction of megaprojects that are spread across the country. For the fiscal year 2022, the Bangladesh government proposed a budget worth BDT 603,681 crore (USD 72.42 billion), and BDT 225,324 crore (USD 26.28 billion) is allocated for the Annual Development Program (ADP).
- The Annual Development Program (ADP) includes the construction of some major projects nationwide, such as the Rooppur Nuclear Power Plant, Matarbari ultra-supercritical coal-fired power plant, Padma Bridge, Hazrat Shahjalal International Airport, etc. The government aims to establish an integrated and undisturbed communication network through these mega infrastructure projects.
- The Padma Bridge is a multi-purpose road and railway bridge over the Padma River in Bangladesh. It is the largest bridge in Bangladesh and the first fixed river crossing for road traffic. It connects Ruhajon, Munshiganj, Shariatpur, and Madaripur and connects the southwestern part of the country with the northern and eastern regions. It was open to the public in June 2022. Bangladesh's first tunnel beneath the Karnaphuli River is still being built. Despite being affected by a labor shortage and a lack of construction materials during the COVID-19 period, 70% of the work was completed.
- Despite being affected by the COVID-19 pandemic, which slowed down the timelines for mega project deliverables and planned infrastructure, Bangladesh's per capita income and GDP are expanding quickly. Those have now been adjusted, and development progress restarted.
Growing Demand in the Real Estate Sector
- Building and selling houses are some of the factors that contribute to the development and modernization of a country's economy. Bangladesh's real estate market is becoming an integral part of the country's economy. It contributes to economic growth as it has a multiplier effect on other economic activities. After the agriculture sector, the real estate sector is one of the main sources of jobs in the economy.
- The Bangladesh Bureau of Statistics (BOS) reported that the real estate sector contributed 7.93 percent of GDP in the fiscal year 2022-23, which is an increase from previous years. The real estate sector is playing a growing role in the economy.
- On the other hand, land on Dhaka’s outskirts is much cheaper than land within the city limits. Land in these areas is also increasing in value at a fast pace. This has led to an increase in interest in buying property in the areas surrounding the city of Dhaka. The real estate market in Bangladesh is expected to retain its current growth trend through 2023.
Bangladesh Construction Industry Overview
The report covers the major players operating in the Bangladesh construction market. The market is fragmented and expected to grow during the forecast period due to continued economic growth, an increase in demand for residential real estate in metropolitan cities, and a few other factors.
Some of the major players in the Bangladesh construction market are Western Engineering (Pvt.) Ltd, Mir Akhter Hossain Limited, Mazid Sons Constructions Ltd, etc. However, the market holds opportunities for small and medium players due to increasing government investments.
Bangladesh Construction Market Leaders
Western Engineering (Pvt.) Ltd.
Mir Akhter Hossain Limited
Mazid Sons Constructions Ltd.
Infratech Construction Company Ltd.
Navana Construction Ltd.
*Disclaimer: Major Players sorted in no particular order
Bangladesh Construction Market News
- March 2023: Japan was to provide USD 1.27 billion to Bangladesh for 3 infrastructure projects, including the building of Matarbari commercial port in Southeast, according to Bangladesh's Finance Ministry.
- October 2022: Construction of Dhaka's 31.24 km MRT Line 1, Bangladesh's first metro, was due to start in December 2022. A contract for project construction monitoring services was signed by the Dhaka Mass Rapid Transit Business (DMTCL), the metro project's executing agency, and a Japanese joint venture company led by Nippon Koei. The consortium also includes Oriental Consultants Global, Systra, Delhi Metro Rail, Nippon Koei India, Katahira and Engineers International, Development Design Consultants, and Nippon Koei Bangladesh.
Bangladesh Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Rapid Urbanization is driving the market
4.2.1.2 Government Initiatives Actively promoting the Construction Activities
4.2.2 Restraints
4.2.2.1 Limited Infrastructure
4.2.2.2 Shortage of Skilled Labours
4.2.3 Opportunities
4.2.3.1 Foreign Direct Investments In Industries
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Technological Innovations in the Construction Sector
4.6 Impact of Government Regulations and Initiatives on the Industry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector
5.1.1 Residential
5.1.2 Commercial
5.1.3 Industrial
5.1.4 Infrastruture (Transportation)
5.1.5 Energy and Utilities
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Mir Akhter Hossain Limited
6.2.2 Mazid Sons Constructions Ltd
6.2.3 Western Engineering (Pvt.) Ltd
6.2.4 Infratech Construction Company Ltd
6.2.5 Concord Engg. & Construction Ltd
6.2.6 KEC International Ltd
6.2.7 Toma Group Ltd
6.2.8 Suvastu Engineering
6.2.9 Pubali Construction
6.2.10 Anan Construction*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
Bangladesh Construction Industry Segmentation
Building construction refers to the process of constructing structures on real property. Most building construction projects involve small renovations, like adding a room to a house or remodeling a bathroom. In most cases, the property owner acts as a contractor, vendor, and designer for the entire project.
The report provides a comprehensive background analysis of the Bangladesh Construction market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. Additionally, the COVID-19 impact has been incorporated and considered during the study.
The Bangladesh construction market report covers the top construction companies and is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utilities).
The report offers market size and forecasts for the market in value (USD) for all the above segments.
| By Sector | |
| Residential | |
| Commercial | |
| Industrial | |
| Infrastruture (Transportation) | |
| Energy and Utilities |
Bangladesh Construction Market Research Faqs
How big is the Bangladesh Construction Market?
The Bangladesh Construction Market size is expected to reach USD 32.33 billion in 2024 and grow at a CAGR of 6.42% to reach USD 44.13 billion by 2029.
What is the current Bangladesh Construction Market size?
In 2024, the Bangladesh Construction Market size is expected to reach USD 32.33 billion.
Who are the key players in Bangladesh Construction Market?
Western Engineering (Pvt.) Ltd., Mir Akhter Hossain Limited, Mazid Sons Constructions Ltd., Infratech Construction Company Ltd. and Navana Construction Ltd. are the major companies operating in the Bangladesh Construction Market.
What years does this Bangladesh Construction Market cover, and what was the market size in 2023?
In 2023, the Bangladesh Construction Market size was estimated at USD 30.38 billion. The report covers the Bangladesh Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Bangladesh Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Bangladesh Construction Industry Report
Statistics for the 2024 Bangladesh Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Bangladesh Construction analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
