Bangladesh's Rise as a Consumer Electronics Manufacturing Hub

Bangladesh is swiftly transforming into a key player in the consumer electronics manufacturing landscape, propelled by a blend of cost-effective labor, an expanding IT skill base, and a thriving light engineering industry. Increasing household incomes and remittances have boosted purchasing power, particularly in rural areas, driving demand for electronic goods. With near-universal electrification—reaching 99% of the population, including remote regions—access to electricity is fueling the appetite for consumer durables, especially in semi-urban and rural markets.

In the past, Bangladesh relied heavily on imported appliances like refrigerators, with annual sales hovering between 700,000 and 800,000 units before 2010. Since the 2010–11 fiscal year, government initiatives have shifted the focus to local production through policies such as reduced tariffs and taxes on raw materials and components. These efforts have spurred industrial development and drawn both domestic and international investors to the sector. Local manufacturing, led by companies like Walton, has significantly expanded, with refrigerator sales reaching a high of 4 million units in 2019.

The consumer electronics industry employs around one million workers across approximately 3,000 enterprises, making it a cornerstone of Bangladesh’s economy. Products manufactured locally include smartphones, refrigerators, air conditioners, televisions, fans, microwave ovens, blenders, and audio-visual equipment.

As of 2024, domestically produced televisions command a 90% market share, while locally made air conditioners and refrigerators account for 70–75% and 80% of their respective markets. The sector, valued at USD 2.4 billion in 2020, is projected to reach USD 10 billion by 2030.

Homegrown brands such as Walton, Singer Bangladesh, and Jamuna Electronics are market leaders, holding their own against global competitors like Samsung, LG, and Xiaomi. Walton stands out for its competitive pricing and reliable after-sales support, securing a strong foothold in the refrigerator and television markets. To capitalize on Bangladesh’s low labor costs and tax benefits, international companies have established local production facilities—Xiaomi set up a plant in Gazipur in 2021, and Transsion opened a factory in Narayanganj in 2023.

Key Milestones in Modern Manufacturing (2010s–Present)

• 2017: Walton launched Bangladesh’s first compressor manufacturing facility.

• 2017–2018: Samsung and LG partnered with local firms to establish plants for home appliances and TVs.

• 2017: Walton Digi-Tech Industries opened the nation’s first smartphone and tablet production plant.

• 2018–2021: Global brands, including Oppo, Vivo, Realme, Nokia, and Xiaomi, began smartphone production through local partnerships.

• 2023: Transsion Holdings invested $22 million in a new manufacturing facility in Narayanganj.

** Data has been collected from industry reports, news articles, and market analyses available on the web, including data from Statista, The Daily Star, and Wikipedia, among others.