Bangladesh emerging as a consumer electronics manufacturing hub

Bangladesh emerging as a consumer electronics manufacturing hub

Bangladesh is emerging as a manufacturing hub for consumer electronics, driven by its affordable wage structure and expertise in IT and light engineering, as per Singer Bangladesh.

Locally manufactured and assembled televisions now hold a 90% market share, a significant change from just over a decade ago when Bangladesh was fully dependent on imports. Government initiatives promoting domestic manufacturing such as reduced import duties since the fiscal year 2010-11, have fueled this growth, fostering local value addition and lowering import reliance. Rising per capita and disposable income, alongside demand in rural markets from high remittance earnings, are boosting consumer electronics sales. 

Key trends shaping Bangladesh’s consumption story, signalling long-term demand include — a large population pool, rising per capita and disposable income, demographic advantages, low product penetration, replacement demand and urbanisation. Countrywide Electricity coverage has reached 99%, including those in rural areas, which is likely to result in high demand for consumer durables from semi-urban and rural areas. 

Walton, the largest domestic home appliance maker, reported about 70-75% market share for locally produced ACs and over 80% share for refrigerators. Despite some setbacks due to the pandemic and geopolitical tensions, home appliance sales in Bangladesh reached $2.4 billion in 2021, with an average annual growth rate of 14% over the past decade. Walton projects local consumer electronics sales to reach $5.17 billion by 2025, and the sales of home appliances to reach $10 billion by 2030.

Source: The Daily Star

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