Construction Material


Bangladesh has experienced rapid urban development for decades and the capital city Dhaka has emerged as one of the world’s fastest growing mega-cities. Large scale infrastructure development and urbanization has driven growth & demand for construction material such as steel and cement products.


Bangladesh has experienced rapid urban development for decades. The capital city Dhaka has emerged as one of the fastest growing mega-cities and needs to accommodate almost 600,000 people annually which is equivalent to 120,000 household units every year. At the same time a number of mega-infrastructure projects are being implemented continually and Bangladesh is expected to spend about 8-10 billion a year to bring its power grids, roads and water supplies to serve its growing population. Infrastructure development (including large-scale megaprojects) and urbanization has driven growth of both construction and real estate sectors in Bangladesh, which has been maintaining high and steady annual growth rate (8% and 4% respectively) of sectoral GDP during the last five years generating a huge volume of demand for construction materials such as steel and cement products.

Steel Industry

Bangladesh is one of Asia’s emerging steel markets and holds a growing demand for quality materials and steel-fabrication technologies. The current annual consumption of steel is estimated to be around 4 million tons which is 5 times of 2008 levels. The industry consists of a number of steel re-rolling mills fabricating “long products” and limited types of “flat products” using imported hot rolled coils. The steel industry has been in a structural shift where large scale re-rollers are integrating the process of electric arc furnace owing to import tariff cut on scraps metals. The industry still needs to import hot-coils (semi-finished product) for fabricating flat products, since the process of hot-rolling is not established in Bangladesh. Further, particular long-products such as large shape, sheet pile for construction largely rely on import.

Cement Industry

The demand for cement has grown at 12% per annum over the last five years and the sector's market size has reached 34.12 million tons in 2019. This growth is forecasted to persist with increased urbanization and progress of megaprojects; the overall public infrastructure projects account for 35% of the country’s total cement consumption, while the remaining is consumed by the private sector. Among the existing 100 cement factories, 35 are in operation today out of which the top 10 companies currently holds 80% market share due to consolidation over the years. The cement industry is heavily dependent on import of its main material, “clinker”, on which the government maintains low import duty to decrease import of cement product. In Bangladesh, Portland composite cement, requiring less clinker compared to Ordinary Portland cement, is dominant, whereas cements characterized by water-tightness and long-term strength are yet to penetrate the market

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Dhaka needs to accommodate 600,000 people annually, equivalent to 120,000 household units annually

Mega infrastructure projects being implemented continually in response to robust economic growth.

Both markets of steel and cement products are unmet by local production.

Public sector consumes 45% of the total cement production.

USD 10 billion
dollar annual investment required for infrastructure and transport sector development
growth rate in the construction industry and 4% growth rate in Real estate sector
tons in annual steel consumption
annual growth in demand for cement products

Key Players