Market Trends of Bangladesh ICT Industry
This section covers the major market trends shaping the Bangladesh ICT Market according to our research experts:
Growing Demand for Cloud Technology
- ICT market vendors widely adopt cloud computing for application development and testing, resource management, data storage, backup, orchestration services, etc. Cloud computing technology is adopted across various sectors, including IT and telecom, healthcare, BFSI, manufacturing, retail, media, and entertainment.
- The country's BFSI sectors depend on deploying cloud-based services for secured payment gateways. For instance, Meghna Bank in Bangladesh has moved to a new Huawei modular data center in Dhaka.
- Key players in the ICT market upgrade their existing technology with cloud computing solutions primarily drives the market growth. For Instance, Microsoft has opened a Microsoft for Startups Founder Hub in Bangladesh to help Asian start-ups. The new platform offers technical tools and USD 300,000 in investment to assist founders in expanding their businesses. Tools will include secure cloud platforms such as Microsoft Azure, Microsoft 365, GitHub Enterprise, and Visual Studio Enterprise.
- For Instance, BDCCL (Bangladesh Data Center Company Limited), the Bangladesh government-owned data storage and disaster recovery services provider, has chosen Oracle Cloud Infrastructure to provide the Bangladesh government with sovereign-hosted cloud services. Such initiatives, led by the Information and Communication Technology (ICT) Division, aim to expand the use of secure, sovereign-hosted, enterprise-class cloud and digital technologies across all government agencies and ministries.
- Furthermore, the increasing investments by the government in promoting the development of numerous technologies, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the emergence of digital transformation is expected to drive the growth of the ICT market. For instance, On January this year, the Sri Lanka High Commission in Dhaka hosted a virtual meeting with the Information Communication Technology Agency (ICTA) in Sri Lanka and the Bangladesh Association of Software and Information Services (BASIS) to explore the opportunities for enhancing cooperation in the ICT sector and digital economy of both countries.
- Globalization in this region and the growing need for adopting advanced technologies such as the cloud, IoT, and AI are boosting the market's growth. According to the IMF, Bangladesh's GDP will be USD 4,171.06 by 2027. This indicates that the GDP is growing, and the Bangladesh ICT market is also expected to grow over the next five years.
Understand The Key Trends Shaping This Market
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The IT and Telecom Sector is Expected to Drive the Market
- The government is taking initiatives to boost the country's IT and telecom sectors because of the growing demand for digital transformation. For Instance, The Bangladesh government's Posts and Telecommunications Division expanded its initiative on the project of fifth-generation (5G) mobile internet services in collaboration with Teletalk, intending to offer 5G technology-based mobile services to the general public. Such initiatives from the government will bring new growth opportunities for the Bangladesh ICT market.
- The demand for greater agility and flexibility in the IT infrastructure is driving the growth of the ICT market. For Instance, BDCCL (Bangladesh Data Center Company Limited) is a storage company specializing in data storage. It stores data using several forms of virtualized storage, which major organizations generally use. These businesses prioritize providing dependable and quick access. Furthermore, it assists them in meeting the stringent government standards for their safety. To achieve Digital Bangladesh's goal, Bangladesh has constructed the world's seventh-largest tier-IV data center in Kaliakoir, Gazipur. Such infrastructure initiatives will bring new growth opportunities for the Bangladesh ICT market.
- The transition to 3G, 4G, and 5G is still rising in the country due to expanding new networks and increasing demand for high-speed connectivity services. For instance, Huawei and Nokia partnered with Teletalk to deploy the nation's first 5G network in limited areas of Dhaka.
- According to GSMA, smartphone adoption in Bangladesh will grow by 75% (138 Million) by 2025. The increasing population of adults in the country is increasingly using smartphones. Thus, the growing population will increase the demand for ICT products and services.
- The growth in the telecom industry is mainly due to the increasing population with the rising adoption of broadband services in the country. According to the Ookla Speedtest Global Index, Bangladesh ranked 102 with a median fixed broadband download speed of 34.85 Mbps in November last year. Fixed broadband services penetration is growing significantly and thus increasing the demand for the telecom services sector.
