Bangladesh Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028
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Bangladesh Defense Market Report Overview
The Bangladesh defense budget is worth $4.1 billion. The country’s defense budget is set to see high levels of growth, registering a CAGR of more than 5% between 2024 and 2028. The increase in Bangladesh defense expenditure is attributed to the government’s strategic military modernization plan, ‘Forces Goal 2030,’ that is aimed at enhancing the armed forces’ capabilities. The country’s needs to upgrade its existing arsenal of armed forces, participate in peacekeeping missions, and combat its territorial disputes with neighboring regions are also factors for increasing the defense budget.
Bangladesh Defense Market Outlook, 2023-2028 ($ Billion)
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The Bangladesh defense market research report provides the market size forecast and the projected growth rate for the next five years. Furthermore, our analysts have carried out a comprehensive industry analysis to determine key market drivers, emerging technology trends, key sectors, and major challenges faced by market participants, in this report. The Bangladesh defense market study has also assessed key factors and government programs that are expected to influence the demand for military platforms over the forecast period.
Market Size (2023) | $4.1 Billion |
CAGR (2024-2028) | >5% |
Forecast Period | 2024-2028 |
Historical Period | 2019-2023 |
Key Drivers | · Military Modernization
· Peacekeeping Missions |
Key Sectors | · Naval Vessels and Surface Combatants
· Tactical Communication Systems · Military Land Vehicles · Electronic Warfare Systems · Military Rotorcraft |
Leading Companies | · Bangladesh Machine Tools Factory Ltd
· Chittagong Dry Dock Ltd · Ministry of Defence (Bangladesh) · Boeing · Irkut Corp |
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Bangladesh Defense Market Drivers
The key factors driving the Bangladesh defense market growth are military modernization and peacekeeping missions.
Military Modernization: The increasing instability in neighbouring countries, coupled with the country’s ongoing disputes with Myanmar and India, has compelled the Bangladeshi government to focus on a defense modernization program. In 2009, ‘Forces Goal 2030’, introduced by the Bangladeshi government, involved the massive modernization and expansion of the Bangladeshi Army, Air Force, and Navy. Under this plan, the Bangladeshi government has procured several military helicopters, frigates, and armored protection vehicles, among other equipment. The Bangladeshi government is continuously investing in its defense sector. A major procurement deal involving SU-30SME and Mig-35 multirole combat aircraft from Russia is a significant step toward the achievement of the ‘Forces 2030’ program’s objectives, which will bolster the country’s air capabilities.
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Bangladesh Military Doctrines and Defense Strategies
The Armed Forces Division (AFD) is the principal administrative organization formulating and executing military policies in Bangladesh. The primary mission of the regular armed forces is to defend the nation’s territorial integrity against external attack. During a period of war, the armed forces are accountable for mobilizing the nation’s resources by assuming direct control over police forces, paramilitary, and defense industries.
The Directorate General of Defense Procurement (DGDP) manages procurements for the Ministry of Defense. Bangladesh’s defense procurement policy is a comprehensive multi-stage process designed to acquire equipment and technology for its armed forces. The initial stage involves a thorough Needs Assessment conducted by the various branches of the Armed Forces, considering strategic priorities, current equipment capabilities, and budgetary constraints. Following this assessment, technical specifications are formulated to define the desired equipment’s type, functionalities, performance standards, and compatibility with existing systems. In the past few years, Bangladesh has signed numerous defense procurement agreements with European countries such as Italy, Turkey, and the UK. The country’s defense ties with the US and Russia have also strengthened over the past decade.
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Bangladesh Defense Market Segmentation by Sectors
The key sectors in the Bangladesh defense market are naval vessels and surface combatants, tactical communication systems, military land vehicles, electronic warfare systems, and military rotorcraft among others. In 2023, the most attractive sector in Bangladesh’s defense market was the naval vessels and surface combatants.
The growth of this segment is attributed to the surge in investments in frigates and light combat vessels. For instance, Bangladesh is expected to invest $181.6 million in light combat vessels from 2023 to 2028. Furthermore, companies are taking up contracts to construct new naval vessels and surface combatants. For instance, Chittagong Dry Dock Limited (CDDL) has received a contract to build six new offshore patrol vessels (OPVs) for the Bangladeshi Navy.
Bangladesh Defense Market Analysis by Sectors, 2023 (%)
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Bangladesh Defense Market - Competitive Landscape
The leading defense companies operating in Bangladesh are Bangladesh Machine Tools Factory Ltd, Chittagong Dry Dock Ltd, Ministry of Defence (Bangladesh), Boeing, and Irkut Corp among others.
Chittagong Dry Dock Ltd: CDDL is headquartered in Chattogram, Chittagong, Bangladesh. The company is a state-owned shipbuilding company that constructs naval and commercial ships for domestic and international markets. It manufactures and supplies various products including steel bridges, and steel rollers, bleaching vessels, among others. Furthermore, the company’s service offerings include dry docking repairs, installation, surface preparation and painting, replacement, rubber fitting and fixing, and electrical services. CDDL’s projects include the Ashrayan Project, Chittagong Port Authority, Bagerhat RHD, and Sabrang Tourism Park, among others. It provides its products to sugar mills, paper and pulp mills, steel and re-rolling mills, fertilizer, and chemical plants.
Bangladesh Defense Market Analysis by Companies
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Segments Covered in the Report
Bangladesh Defense Market Sectors Outlook (Value, $ Billion, 2019-2028)
- Military Fixed-Wing
- Missile and Missile Defense Systems
- Tactical Communications
- Naval Vessels and Surface Combatants
- Military Simulation & Training
- Electronic Warfare Systems
Scope
The report provides:
- Detailed analysis of the Bangladesh 2023 defense budget broken down into market size and market share. In addition, the report includes an examination of key current and future acquisitions.
- Explanation of the procurement policy and process, along with an analysis of Bangladesh’s military doctrine and strategy to provide a comprehensive overview of Bangladesh’s military regulation.
- Examination of political alliances and perceived security threats to Bangladesh and trends in spending and modernization.
- Analysis of prevalent trends in the country’s imports and exports over the last five years.
- Analysis of the competitive landscape of Bangladesh’s defense industry.
Key Highlights
• The acquisition budget for 2023 is $0.9 billion. It is expected to grow to $1.5 billion in 2028 at a CAGR of 8.7% over 2024–28, primarily due to the modernization of the navy, army, and air force. The Bangladeshi government aims to maintain international and regional security and continue peacekeeping activities.
• The most attractive sectors in Bangladesh’s defense market are naval vessels and surface combatants, tactical communication systems and electronic warfare systems.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of the Bangladesh defense market over the next five years.
- Understand the underlying factors driving demand for different defense and internal security segments in the Bangladesh market and identify the opportunities offered.
- Identify the major threats that are impacting the Bangladesh defense market and assess future opportunities that can be tapped for revenue expansion.
- Channel resources by focusing on the ongoing programs that are being undertaken by the Bangladesh government.
- Make smart business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.
Chittagong Dry Dock Ltd
Khulna Shipyard Ltd
Table of Contents
Frequently asked questions
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What was the Bangladesh defense market size in 2023?
The defense market size in Bangladesh is $4.1 billion in 2023.
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What is the expected Bangladesh defense market growth rate during the forecast period?
The defense market in Bangladesh is expected to achieve a CAGR of more than 5% during 2024-2028.
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Which was the leading sector in the Bangladesh defense market in 2023?
Military fixed-wing aircraft is the leading sector in the Bangladesh defense market in 2023.
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Which are the key companies operating in the Bangladesh defense market?
A few of the leading defense companies operating in Bangladesh are A.P. Mollder – Maersk AS, GN Store Nord AS, Terma AS, Satair AS, and Systematic AS among others.
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