Electronics & Equipment Industry
One of the fastest-growing industries with great future prospects.
The huge domestic market with rising income along with favourable tax incentives provides tremendous opportunity to local manufacturers to provide electronics products at affordable prices and expand the market at a faster pace. Additionally, the growth in digital economy is driving the growth of electronics and IoT market even further. Overall electronics and electrical equipment market are expected to surpass USD 12 billion by 2025 with consumer electronics market expected to cross USD 10 billion by 2030.
The electronic and electrical equipment industry consists of a wide range of consumer and industrial electronic products. There are around 3,000 organizations involved in the sector employing around 1 million people. The electronics industry in Bangladesh mostly produces consumer items such as mobile phones, home appliances like refrigerators, air conditioners, televisions, electronic fans, radios, DVDs and CD players, ovens, blenders etc. Electrical equipment such as accumulators, transformers, diodes are also manufactured and exported.
The market size of the electronics industry which includes both industrial and consumer electronics was estimated to be around USD 5.29 billion at the end of 2019. The industry is expected to grow at a rate of 15% per annum and reach around USD 12 billion by 2025. The size of the consumer electronics market was estimated to be around USD 2.4billion in 2020 and it is expected to reach USD 10 billion by 2030. The most popular consumer electronics product is mobile phone followed by refrigerator, television and air conditioner. The market for accumulator and batteries are also growing rapidly.
Bangladesh Electronics & equipment industry- With government encouraging Made in Bangladesh products, invest in Bangladesh to leverage the opportunities present in the huge and growing market.
Large domestic market of 169 million with increasing middle-class population
With USD 130 Billion + consumer spending growing at a CAGR of 6 percent, the market for electronics products is expected to grow rapidly. Around 30 to 40 million people are forecasted to graduate from poverty to the entry-level of the middle-income class by 2025, and another 30 million would move up the income ladder and reach the higher standard of living.
Favorable incentives for made in Bangladesh products
The government is continuously providing fiscal and non-fiscal incentives in the form of corporate tax incentives, reduced import duties for raw materials to encourage local manufacturing Rising urbanization, increasing electrification in rural areas, easy access to credit, growing women participation in the workforce, increasing globalization with growing internet usage and smartphone penetration is expected to drive the demand for electronic appliances and electrical equipment.
With urban population increasing at rate of over 3% since 2010, the urban population is expected to propel the growth of electronic products further
With the electrification rate is expected to rapidly leading to increased consumers of consumer appliance
Growing internet usage combined with rollout of 5G networks and IoT
With 125 million internet users with beginning of 5G rollout
Source: Bangladesh Investment Development Authority (BIDA)