FOR decades, Bangladesh’s economic success has rested on one central pillar: low-cost textile and garment manufacturing. This model delivered employment, export growth and global integration. But it is now approaching its structural limits. Rising competition, pressure on wages, compliance costs and slowing value addition are exposing the fragility of an industry still dependent on volume rather than innovation. If Bangladesh is serious about sustaining industrial growth in the coming decades, it must move decisively beyond traditional manufacturing. Smart textiles offer one such pathway.
Smart textiles represent a fundamental shift from conventional fabric production to technology-enabled, high-value manufacturing. These textiles integrate sensors, conductive fibres and embedded electronics, allowing fabrics to monitor, respond to, or adapt to environmental conditions and user needs. Globally, smart textiles are being used in healthcare monitoring, occupational safety, sports and fitness, defence, fashion and industrial applications. The question is no longer whether smart textiles matter, but whether Bangladesh can position itself within this rapidly evolving value chain.
Smart textiles are commonly categorised into passive and active systems. Passive smart textiles respond to external stimuli such as temperature or moisture, while active smart textiles incorporate embedded systems capable of sensing, processing data and responding in real time. Health-monitoring garments, wearable fitness devices and protective clothing fall within this category. Their development requires close collaboration between materials science, electronics, data processing and design — disciplines that have traditionally operated in silos within Bangladesh’s industrial ecosystem.
Globally, the smart textile market is expanding faster than conventional textile segments, driven by demand for wearable technologies, advances in flexible electronics and growing investment in Internet of Things applications. For a major apparel exporter such as Bangladesh, participation in this market is not merely an opportunity for diversification; it is a strategic necessity. Countries that remain locked into low-margin manufacturing risk losing competitiveness as automation, nearshoring and technological upgrading reshape global supply chains.
Bangladesh does not start from zero. The country has built a vast manufacturing infrastructure, a skilled production workforce and deep integration into global apparel supply networks. Core competencies in weaving, knitting, dyeing and finishing can form the industrial base for smart textile production. What is missing is not capacity, but integration — the ability to combine textile expertise with electronics, software and advanced materials engineering.
Demography also offers an advantage. Bangladesh’s young workforce presents an opportunity to transition from labour-intensive production to knowledge-intensive manufacturing. With targeted investments in technical education and vocational training, workers can move into higher-value roles in product development, quality assurance, system integration and design. Such a shift would not only improve productivity but also enhance job quality and wage outcomes across the sector.
The economic case for smart textiles is compelling. Products with embedded functionality command significantly higher prices, increasing export earnings without proportional increases in volume. Entry into niche segments such as medical wearables, safety equipment and performance apparel would reduce overreliance on basic garment exports. At the same time, smart textiles stimulate innovation ecosystems by encouraging collaboration between industry, universities and research institutions. This knowledge spillover effect is precisely what Bangladesh’s industrial policy has long struggled to achieve.
Employment patterns would also evolve. While smart textiles may not replicate the sheer scale of traditional garment employment, they generate demand for engineers, technicians, designers and entrepreneurs. This transition is essential if Bangladesh is to avoid the middle-income trap and create sustainable, high-quality employment for its growing educated population. Moreover, smart textile applications can meet domestic needs by improving healthcare monitoring, workplace safety and environmental sensing, particularly in resource-constrained settings.
Yet the barriers are substantial. Smart textile production requires precise engineering, embedded electronics and advanced materials management — capabilities that remain underdeveloped in Bangladesh’s current industrial landscape. Equipment for integrating sensors, conductive yarns and flexible circuits is limited and skilled professionals in electronics, data analytics and systems integration are scarce. Without deliberate intervention, these gaps will persist.
Research and development remains a critical weakness. Innovation in smart textiles depends on sustained research and development investment, access to testing and prototyping facilities and strong industry–academia collaboration. While Bangladesh has expanded higher education, targeted investment in advanced textile and wearable technologies remains inadequate. High upfront costs further discourage private investment, as firms face significant risks without clear incentives or shared infrastructure.
Regulatory and standards frameworks also require urgent attention. Smart textiles used in healthcare, safety, or data-driven applications must comply with strict international standards on performance, safety and data protection. Bangladesh’s regulatory institutions must be strengthened to support certification, testing and compliance if local products are to gain acceptance in global markets.
Unlocking the potential of smart textiles therefore requires coordinated policy action. Smart textiles should be explicitly integrated into national industrial and innovation strategies, supported by fiscal incentives, research grants and dedicated technology parks. Education and training systems must adopt interdisciplinary curricula combining textiles, electronics, wearable systems and digital design. Public–private partnerships can play a central role in aligning skills development with industry needs.
Establishing specialised research and development and innovation hubs would lower entry barriers by providing shared facilities for prototyping, testing and certification. Collaboration with international research institutions can accelerate technology transfer and reduce learning costs. Finally, aligning national standards with global benchmarks will enhance credibility and export readiness.
Bangladesh stands at a crossroads. Its industrial base, workforce and global linkages provide a solid foundation, but inertia carries real risks. Without a deliberate move toward value-added manufacturing, the country may find its flagship industry trapped in diminishing returns. Smart textiles are not a silver bullet, but they represent a realistic and strategic step toward innovation-led industrialisation. The decision is not whether Bangladesh can afford to pursue smart textiles, but whether it can afford not to.
Dr Nasim Ahmed is an associate professor of public policy at the Bangladesh Institute of Governance and Management.
