The smartphone market expanded 83 percent year-on-year in the last quarter of 2014, propelled by low-cost handsets and the enhanced 3G network coverage.
More than a million units of smartphones were shipped into Bangladesh between October and December, according to Counterpoint Technology Market Research based in India.
The rise in shipment signals that vendors have ample opportunity to target first-time smartphone users in the country, said the research firm.
Local Symphony leads the market by a distance, owing to its strong distribution channels, aggressive pricing strategy and customised offerings for local needs, it said.
Launched in 2008, Symphony started selling smartphones in 2012 and in three years' time, has managed a market share of 40 percent.
Brands like Walton and Samsung are looking to target the growing smartphone segment by aligning their mobile handset portfolio entirely towards smartphones.
In the feature phone market, Symphony, Walton and Maximus -- all local vendors -- are in strong positions, while Microsoft (formerly Nokia) and Samsung are the top international brands. Last quarter, the feature phone market grew by only 2 percent year-on-year.
Bangladesh is one of the fastest growing mobile markets in the world. Mobile phone subscription reached around 120.35 million at the end of December, according to Bangladesh Telecommunication Regulatory Commission.