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Bangladesh Construction Industry Report 2025: Output Returned to Growth of 2.3% in 2025, Following 3.4% in 2024, Following Elevated Inflation and Subdued Investor Confidence - Forecast to 2029 - ResearchAndMarkets.com

The "Bangladesh Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)" report has been added to ResearchAndMarkets.com's offering.



Growth in the Bangladeshi construction industry was expected to slow from real terms growth of 3.4% in 2024 to 2.3% growth in 2025, following elevated inflation and subdued investor confidence amid political uncertainty.

The industry has also been crucially impacted by the cancellation of major projects, for example, in September 2025, the Bangladesh Power Development Board (BPDB) cancelled 5.68GW of planned solar capacity across 34 projects. This came following a failure to secure implementation, power purchase or land lease agreements even after letters of intent (LoIs) were issued under the Special Provisions Act.

Furthermore, in early October 2025, the Asian Development Bank (ADB) reported that it would cancel or redirect around BDT50.9 billion ($408 million) from projects in Bangladesh in FY2025-26, due to prolonged implementation delays as Bangladesh struggles with weak public investment spending.



Over the forecast period, the Bangladeshi construction industry is expected to register an annual average growth rate of 6.3% from 2026 to 2029, supported by investment in energy, transport, industrial and telecommunication infrastructure projects. A BDT30.1 billion ($241.30 million) financing loan agreement was signed in May 2025, between the Government of Bangladesh (GoB) and the Islamic Development Bank (IsDB) for the construction of five Climate Resilient Bridges in Mymensingh Division, Bangladesh. Growth in the forecast period will also be supported by the government's target to generate 20% of total power from renewable sources by 2030 and 30% by 2040, compared to 5.6% in August 2025.

Report Scope

  • 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

Key Topics Covered:



1 Executive Summary



2 Construction Industry: At-a-Glance



3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile



4 Construction Outlook

4.1 All Construction

  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index

4.2 Commercial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.3 Industrial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.4 Infrastructure Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.5 Energy and Utilities Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.6 Institutional Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.7 Residential Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.8 Contractors

4.9 Consultants



5 Construction Market Data



6 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/1zf8im

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