Bangladesh Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

Growth in the Bangladeshi construction industry is expected to slow from 3.4% in real terms in 2024 to 1.1% in 2025, owing to a slowdown in construction activities following continued political instability in the country, coupled with downward revision in the Annual Development Program (ADP) and cancellation of several projects initiated by the earlier government. In March 2025, the National Executive Committee (NEC) revised down the allocation under the ADP for FY2024-25 (July 2024-June 2025) to BDT2.2 trillion ($17.6 billion). Indeed, this is 18.5% lower than the original ADP budget and 11.8% lower than the revised ADP budget of FY2023-24. Under the revised ADP, the allocation for the transport and communication sector and the power sector declined by 31.7% and 21.7%, respectively, from the original ADP. This is attributed to the current political instability and rising costs that caused delays in the tendering processes and cessation of multiple construction projects. In December 2024, the interim government cancelled 67 projects undertaken by the Awami League Party. Additionally, the interim government has cancelled ten development projects worth BDT50.8 billion ($407.4 million), citing redundancy and politically driven initiation. Furthermore, in January 2025, the government-formed task force reported that total construction works of eight mega infrastructure projects are facing delays in progress due to high construction costs, surging the combined valuation of the projects from BDT1.4 billion ($11.2 billion) to approximately BDT2.3 trillion ($18.6 billion) since the launch of the projects under the Awami League government. Moreover, the US President Trump’s suspension of foreign funding from the United States Agency for International Development (USAID) in January 2025 has sparked uncertainty within Bangladesh, resulting in the immediate suspension of over 100 projects valued at BDT68.6 billion ($550 million) in total. This combined with the reciprocal tasks announced by the US government in April 2025, which is currently under pause for 91 days, is likely to pose further downside risks to Bangladesh’s construction industry.

Over the forecast period, however, the Bangladeshi construction industry is expected to recover and register an annual average growth rate of 6.3% from 2026 to 2029. This will be supported primarily by investments in energy, transport, industrial and telecommunication infrastructure projects. In December 2024, the country received BDT149.6 trillion ($1.2 billion) in financing to the aid the development of the clean energy, healthcare, and water infrastructure sectors. Growth in the forecast period will also be supported by the government's plan to increase power generation capacity from 25,826MW in 2023 to 60,000MW by 2041. Furthermore, the government is also aiming to add 3,600MW of renewable energy capacity by 2030. In line with this objective, the Bangladesh Power Development Board (BPDB) has issued a tender in late-March 2025 for 14 solar power projects, which have a combined capacity of 2.7GW. Growth in the rail infrastructure will also be supported by the construction of 798.1km of new railway lines, 897km of dual gauge railway lines, and nine new railway bridges by 2045 as part of Bangladesh’s Railway Master Plan (2016-45).

The Construction in Bangladesh - Key Trends and Opportunities to 2029 (H1 2025) report provides detailed market analysis, information and insights into the Bangladeshi construction industry, including:

• The Bangladeshi construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Bangladeshi construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Bangladesh. It provides:

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Bangladesh, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors