Bicycles to circuit boards: Bangladesh's electrical exports spark new manufacturing era
Industry insiders say the electrical segment now spans products ranging from refrigerators, televisions and air conditioners to electric cables, transformers, circuit breakers, batteries and thermal printers.
Highlights:
- Engineering exports cross $598m in July–May FY2025–26, up over 20%
- Electrical and electronic equipment lead with $189.29m
- Sector moves beyond bicycles and metal goods into higher-value products
- Segment spans appliances, cables, transformers, circuit breakers, batteries and thermal printers
- Annual engineering exports yet to cross $1 billion
Electrical products have emerged as the driving force behind Bangladesh's engineering exports, signaling a gradual shift towards higher-value manufacturing as the sector expands beyond traditional products such as bicycles and metal goods.
According to the latest Export Promotion Bureau (EPB) data, engineering products earned $598.12 million during the July-May period of FY2025-26, posting 20.05% year-on-year growth. Despite the strong performance, however, the sector accounted for only about 1.37% of Bangladesh's total exports of $43.8 billion during the period.
Electrical and electronic equipment led the sector with export earnings of $189.29 million, up 22.23% from a year earlier. Bicycle exports rose 28.3% to $138.75 million while copper and copper-based products earned $60.69 million and iron and steel exports reached $56.32 million. Machinery and engineering equipment exports stood at $42.11 million, although shipments declined 8.86% year-on-year.
The sector's transformation is evident when compared with a decade ago. Engineering exports earned about $447 million in FY2014-15, when bicycles dominated the export basket and electrical products generated around $90 million. By FY2025-26, electrical and electronic goods had become the sector's largest export category, reflecting a shift towards more value-added manufacturing.
The shift is also reflected in the nature of products reaching overseas markets. Beyond home appliances and electrical equipment, Bangladeshi manufacturers are increasingly moving into higher-value electronics. In September 2025, Walton Hi-Tech Industries exported locally manufactured printed circuit boards (PCBs) and printed circuit board assemblies (PCBAs) to US-based SafePro Technologies for use in gunshot-detection and emergency security systems – a milestone that underscored the growing sophistication of Bangladesh's electronics manufacturing capabilities.
Industry insiders say the electrical segment now spans products ranging from refrigerators, televisions and air conditioners to electric cables, transformers, circuit breakers, batteries and thermal printers.
"The main reasons behind the increase in exports are the expansion of local manufacturing capacity, the production of international-standard products and continued policy support from the government," said Md Ismail Hossain, chairman of the Bangladesh Electrical Merchandise Manufacturers Association.
According to the organisation, electrical and electronics products carrying the "Made in Bangladesh" label are now exported to more than 60 countries across Europe, Asia, Africa and North America. Key destinations include Germany, Denmark, Poland, Romania, Ireland, Croatia, the United States, Turkey, India, Sri Lanka, Iraq and the United Arab Emirates.
Ismail said Walton Hi-Tech Industries remains the largest contributor to export earnings in the electrical and electronics segment, while companies such as Energypac Engineering, Rahimafrooz and several export-oriented manufacturers operating in export processing zones are also expanding their presence in overseas markets.
The sector is also witnessing the rise of niche exporters. One such company is THT-Space Electrical Company Ltd., which exports thermal printers to international markets.
"The electrical and electronics market is no longer what it used to be," said Shi Feng, managing director of the company. "Around the world, every serious manufacturer is moving towards smarter, AI-enabled products. If Bangladesh does not move in step, it will fall behind in both industry and employment."
Walton is pursuing a similar strategy, saying Touhidur Rahman Rad, chief business officer of Walton Computer Products, noting that the company's in-house Printed Circuit Board (PCB) and Printed Circuit Board Assembly (PCBA) manufacturing capabilities are laying the groundwork for expansion into smart, Internet of Things (IoT) and AI-enabled products. PCB is an empty board with copper wiring paths (traces) and pads but no active components while PCBA is the finished product. It happens after components are attached via Surface Mount Technology (SMT) or Through-Hole Technology, turning it into a working device.
"By mastering PCB and PCBA production, we can integrate advanced chipsets and edge-computing capabilities into our products," he said, adding that the technology would help the company move beyond conventional electronics assembly into higher-value manufacturing.
Despite the sector's progress, manufacturers continue to face structural challenges. A substantial share of raw materials and components used in engineering and electrical goods – including steel sheets, copper, semiconductors, printed circuit boards and integrated circuits – still needs to be imported.
According to the Bangladesh Electrical Merchandise Manufacturers Association, local value addition ranges between 30% and 70% depending on the product category. Walton said its own value addition currently stands at around 40-45%, supported by local PCB manufacturing, research and development activities, and investments in precision manufacturing facilities. However, semiconductors and other critical electronic components continue to be sourced from abroad, highlighting the sector's dependence on imported inputs.
Manufacturers also cite high import costs, energy shortages, certification requirements, logistics bottlenecks and shortages of skilled technical workers as major obstacles to further expansion. Industry leaders say stronger backward-linkage industries, internationally recognised testing facilities and policy support comparable to that enjoyed by the garment sector would help improve competitiveness and accelerate export growth.
Compared with regional competitors, Bangladesh's engineering sector remains at an early stage of development. India's engineering exports exceed $100 billion annually, supported by a large manufacturing base and Production Linked Incentive schemes, while Vietnam exports an estimated $130 billion to $160 billion worth of electronics each year through deep integration into global supply chains and foreign investment.
In contrast, Bangladesh's engineering exports remain below $1 billion and are driven largely by domestic manufacturers, with lower value addition and limited backward-linkage industries. Still, industry stakeholders view the rapid growth of electrical and electronic products and the emergence of local PCB manufacturing as signs of gradual industrial upgrading.
While engineering exports remain modest compared with Bangladesh's apparel sector, the sector's recent performance points to a broadening manufacturing base and a growing ability to compete in higher-value industrial and technology products.
