The Bangladesh construction market size was valued at USD 28.55 Billion in 2022 and is projected to reach USD 49.98 Billion by 2031, expanding at a CAGR of 6.42% during the forecast period, 2023 – 2031. due to increasing urbanization and commercialization in the country. The growth of the market in the country is attributed to the expansion of the construction industry in the recent years.
Bangladesh, being the world’s eight most densely populated country, has developed a well-structured construction market owing to the rise in population and the requirement for residential infrastructure. The government extensively invests in the development of healthcare units, residential sectors, transportation infrastructure, and industries. Governments and private construction businesses build various units and buildings in Bangladesh for serving different purposes, residential and commercial.
The Bangladesh construction market was hampered due to the outbreak of Coronavirus. All infrastructural and construction projects came to a standstill and were hanging in a purgatory due to insufficient funds and social distancing to prevent the spread of the virus. Except for a few government projects, commercial projects were halted. A significant portion of raw materials is imported from other countries, the outbreak paused imports, leaving construction businesses without materials and funding.
Bangladesh Construction Market Trends, Drivers, Restraints, and Opportunities
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Increasing urbanization and population fuel the construction market in Bangladesh.
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Rising spending on engineering and infrastructural projects is expected to drive the market.
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Lack of security for stakeholders in the construction market due to uncertainties, restricts the market.
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Workers who work in this market are vulnerable to falling materials, handling load, or any hazardous substance. Lack of proper safety gear and standards restricts the market.
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Industrialization and the development of technologies for construction equipment are expected to create opportunities in the market in the coming years.
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New models of autonomous and semi-autonomous controlled excavators are being integrated in the construction market for better efficiency, thus creating lucrative opportunities in the market in the country.
Scope of the Bangladesh Construction Market Report
The report on the Bangladesh construction market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Bangladesh Construction Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 & 2021
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Forecast Period
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2023–2031
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Segmentation
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Sectors (Residential, Commercial [Factories, Shops, Business Units, and Offices], Industrial, Transportation, Energy, and Utilities [Healthcare Units, Educational Units, Electricity, Water, and Others]), End-users (Public and Private), Construction Machineries (Earth Moving, Material Handling, and Concrete & Road Construction)
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Country
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Bangladesh
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered in the Report
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Mir Akhter Hossain Limited; Development Design Consultants; Build Trade Engineering Ltd; Mazid Sons Construction Ltd; and Western Engineering Pvt Ltd.
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Bangladesh Construction Market Segment Insights
High demand for residential apartments and buildings drive the market
Based on sectors, the Bangladesh construction market is segmented into residential, commercial, industrial, transportation, energy, and utilities. The commercial sector includes institutions such as factories, shops, business units, and offices. Utilities include healthcare units, educational units, electricity, water, and others. The residential segment holds a dominant share of the market and this trend is expected to continue during the forecast period.
Rising population in Bangladesh and increasing urbanization and development activities are fueling the demand for residential buildings. The commercial and industrial segments are growing rapidly due to the establishment of several manufacturing plants in the country. Cities in Bangladesh are being developed in suburbs and suburban areas, away from urban areas due to congestion and high density of population. Additionally, increase in the income of the middle class population is boosting the demand for residential real estate in the country.
Public segment held substantial market share in 2020
On the basis of end-users, the market is bifurcated into public and private. The public segment is projected to hold a key share of the market owing to high government expenditures on infrastructural projects and construction equipment. The expansion of the construction sector in Bangladesh is a key factor boosting the economy in the country and one of the determinants of the country’s GDP.
The Executive Committee of National Economic Council of Bangladesh approved two mass rapid transit projects that were worth USD 10.8 Bn. The private segment includes autonomous construction businesses owned by stakeholders or a group of businessmen. This segment is rapidly growing in Bangladesh, as private construction firms are undertaking many residential projects to increase their market share.
Material handling segment to grow during the forecast period
In terms of construction machinery, the Bangladesh construction market is segregated into earth moving machinery, material handling machinery, and concrete & road construction machinery. The material handling segment is projected to register the largest share of the market due to large infrastructure and commercial projects that necessitate material handling. Automation of material handling machinery and presence of the wide number of engineering and construction projects fuel the demand for material handling equipment. Additionally, the concrete and road construction equipment is expected to grow, in terms of revenue, due to increased government expenditure on transportation infrastructure.
Segments
By Sectors
- Residential
- Commercial
- Factories
- Shops
- Business Units
- Offices
- Industrial
- Transportation
- Energy
- Utilities
- Healthcare Units
- Educational Units
- Electricity
- Water
- Other Services
By End Users
By Construction Machineries
- Earth Moving Machinery
- Material Handling Machinery
- Concrete & Road Construction Machinery
By Key Players
Competitive Landscape
Key players in the Bangladesh Construction Market include Mir Akhter Hossain Limited; Development Design Consultants; Build Trade Engineering Ltd; Mazid Sons Construction Ltd; and Western Engineering Pvt Ltd. These players are engage in mergers & acquisitions, collaborations, agreements, and partnerships to increase their market share.
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