Bangladesh Construction Market Size (2024 - 2029)

The market size of the construction industry in Bangladesh is anticipated to grow significantly in the coming years, driven by large-scale and small-scale infrastructure development and urbanization, which contribute notably to the country's GDP growth. This growth is expected to increase the demand for raw materials, such as steel and cement. Over the next five years, the government plans to invest heavily in transportation and power infrastructure to stimulate the economy and meet the rising electricity demand, respectively. Furthermore, the inauguration of three major infrastructure projects, including a super thermal power plant and two railway lines, is set to boost the construction market size further.

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Market Size of Bangladesh Construction Industry

Bangladesh Construction Market Summary
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

Bangladesh Construction Market 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 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 Size Summary

The Bangladesh Construction Market is projected to expand significantly in the coming years, primarily driven by infrastructure development and urbanization. The demand for construction is also boosting the need for raw materials such as steel and cement. The government's investment in transportation infrastructure and power infrastructure to meet the growing electricity demand are key factors contributing to the growth of the construction sector. Several infrastructure projects funded by India, including a super thermal power plant and two railway lines, are set to be inaugurated, further bolstering the market. In terms of market trends, growth in infrastructure activities and a rising demand in the real estate sector are driving the Bangladesh Construction Market. The government's allocation for the Annual Development Program (ADP) includes the construction of major projects nationwide. Despite the challenges posed by the COVID-19 pandemic, the country's per capita income and GDP are expanding rapidly, indicating a positive trend for the construction market. The real estate sector, contributing significantly to the GDP, is also witnessing a surge in demand, particularly in the areas surrounding the city of Dhaka. Major players in the market include Western Engineering (Pvt.) Ltd, Mir Akhter Hossain Limited, Mazid Sons Constructions Ltd, among others. The market also presents opportunities for small and medium players due to increasing government investments.

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Bangladesh Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

        1. 1.2.1.1 Rapid Urbanization is driving the market

        2. 1.2.1.2 Government Initiatives Actively promoting the Construction Activities

      2. 1.2.2 Restraints

        1. 1.2.2.1 Limited Infrastructure

        2. 1.2.2.2 Shortage of Skilled Labours

      3. 1.2.3 Opportunities

        1. 1.2.3.1 Foreign Direct Investments In Industries

    3. 1.3 Value Chain / Supply Chain Analysis

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Technological Innovations in the Construction Sector

    6. 1.6 Impact of Government Regulations and Initiatives on the Industry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Industrial

      4. 2.1.4 Infrastruture (Transportation)

      5. 2.1.5 Energy and Utilities

Bangladesh Construction Market Size FAQs

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.

In 2024, the Bangladesh Construction Market size is expected to reach USD 32.33 billion.

Bangladesh Construction Market Report Snapshots

Construction Industry in Bangladesh Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)