Bangladesh Construction Market Size
|Study Period||2019- 2028|
|Base Year For Estimation||2022|
|Market Size (2023)||USD 30.38 Billion|
|Market Size (2028)||USD 41.47 Billion|
|CAGR (2023 - 2028)||6.42 %|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and its growth?
Bangladesh Construction Market Analysis
The Bangladesh Construction Market size is expected to grow from USD 30.38 billion in 2023 to USD 41.47 billion by 2028, at a CAGR of 6.42% during the forecast period (2023-2028).
The COVID-19 pandemic hurt various industries. Public construction was one of the few industries that were maintained to some extent. Although activity will likely continue in the short term, the work is expected to halt soon, given various factors, including supply chain disruption, shortage of subcontractors and materials, and the termination of contracts to control expenses.
- The construction industry is driven by infrastructure developments (which include small-and large-scale projects) and urbanization. Both sectors maintain GDP growth rates of almost 8% and 4%, thereby increasing the demand for raw materials such as steel and cement products.
- For the next five years, the outlook for the infrastructure construction sector remains positive as the government seeks to attract more investment in the country's transportation infrastructure through public-private partnerships to help the economy.
- To meet the country's increasing electricity demand, investment in power infrastructure will support forecast-period output in the energy and utility sector. Electricity demand is expected to reach 40 GW by 2030, prompting the government to seek USD 70 billion in investment in the sector by 2035.
Bangladesh Construction Industry Segmentation
Construction is a general term meaning the art and science of forming objects, systems, or organizations. Construction is an industry that includes the erection, maintenance, and repair of buildings and other immobile structures and the building of roads and service facilities that have become integral parts of structures and are essential to their use.
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 competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study. The Bangladesh construction market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), energy, and utilities). The report offers market size and forecasts for the Bangladesh Construction Market in value (USD billion) for all the above segments.
|Energy and Utilities|
Bangladesh Construction Market Trends
This section covers the major market trends shaping the Bangladesh Construction Market according to our research experts:
Recovery and Growth in Infrastructure Activities
- 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 Annual Development Program (ADP).
- The Annual Development Program (ADP) includes the construction of some major projects nationwide, such as 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 on 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 has been 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.
To understand key trends, Download Sample Report
Growing Demand in the Real Estate Sector
- Significant growth is observed in the real estate and construction sector, which the government also backs by allowing untaxable income to purchase land and apartments. Also, reducing registration fees, land transfer tax, stamp duty, mutation costs, and digitization of land-related paperwork attract buyers to invest in this sector.
- Banks and NBFIs are now offering low-interest home loans. As a result, more people will be interested in buying apartments. This has already resulted in a significant increase in the demand for apartment purchases. A decrease in the registration cost of a property's pricing will encourage people to purchase apartments.
- The real estate sector is now working on 6,000 ongoing projects worth BDK 150,000 crores (USD 17.49 billion) investment. Yearly, 10,000-12,000 flats are delivered to the customers. As many people enter the middle class, demand for affordable housing rises, creating a huge business opportunity for private real estate companies.
- Currently, 68% of Dhaka's residents live in rented housing. Hence, there is a huge potential for real estate companies if the companies can provide apartments at a reasonable price. The current annual rate of urbanization is 5-6%. By the next few years, nearly 40% of the total population will live in urban areas. Only 40% of the population of Dhaka has access to adequate or substandard housing. As a result of the comparative analysis, experts predict that housing demand will continue to rise for a long time.
- Bangladesh's government has undertaken huge road and highway development projects throughout the country.
- Since transportation is crucial to the growth of any place, the government is making slow but steady progress in addressing this requirement. Therefore, real estate companies should concentrate on delivering new developments to Bangladeshi towns.
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
- October 2022: Construction of Dhaka's 31.24 km MRT Line 1, Bangladesh's first metro, is due to start in December 2022. A contract for project construction monitoring services has been 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.
- February 2022: The construction arm of Larsen & Toubro has secured an order from the Bangladesh Hitech Park authority to construct Hi-Tech IT Parks at eight locations (two packages at four locations each) across Bangladesh. This project is being funded by the Indian EXIM Bank and is the first IT & Office Space order that L&T has secured in Bangladesh. The primary scope of work for the project comprises the procurement and construction of seven-storied structural steel buildings at all eight locations with BUA of 1.2 million square feet, including civil, finishes, façade, and electromechanical works with LEED Gold rating. The scope includes heating, ventilation, and air conditioning (HVAC), lift, electrical, fire fighting systems, public health engineering, networking & security systems, building management systems, site development, road, boundary wall, landscaping, arboriculture, etc. The project locations are in the Rangpur, Natore, Jamalpur, Mymensingh, Dhaka, Khulna, Gopalganj, and Barishal districts of Bangladesh. The project is scheduled to be completed within stringent timelines.
Bangladesh Construction Market Report - Table of Contents
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
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
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
5.1.4 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
Bangladesh Construction Market Research FAQs
How big is the Bangladesh Construction Market?
The Bangladesh Construction Market size is expected to reach USD 30.38 billion in 2023 and grow at a CAGR of 6.42% to reach USD 41.47 billion by 2028.
What is the current Bangladesh Construction Market size?
In 2023, the Bangladesh Construction Market size is expected to reach USD 30.38 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.
Construction in Bangladesh Industry Report
Statistics for the 2023 Construction in Bangladesh market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Construction in Bangladesh analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.