Events Industry Share Projected to Generate a Revenue of $2,972.4 Billion by 2031Download Sample Reports Overview
The Global Events Industry Size is predicted to be valued at $2,972.4 billion by 2031, surging from $863.2 billion in 2021, at a noteworthy CAGR of 13.7%.
Impact Analysis of COVID-19 on the Events Industry
The events industry experienced a negative impact amid the COVID-19 outbreak owing to travel bans, strict lockdowns, limitations on large gatherings, and social meetings. Many organizations instructed its employees to begin working from home, which led to a decline in corporate meetings, seminars, product exhibitions, and others. On another note, travel constraints and social distancing measures have further led to huge revenue losses and postponements or cancellations of events due to which many companies were forced to lay off some of its employees. For instance, The International Olympic Committee postponed the Olympic Games, which had been scheduled to begin in Tokyo in July 2020.
Various initiatives and technological advancements helped the event industry amidst the unprecedented pandemic. The adoption of online video conferencing platforms like Microsoft Teams, Zoom, and Skype have encouraged organizations to come up with various virtual events including music concerts, corporate events, seminars, exhibitions, online product demos, and others, thereby ensuring that such activities aren’t hampered.
Global Events Industry Analysis
The significant growth of the events industry is majorly attributed to an increase in sponsorships for events along with a growing number of business seminars, exhibitions, corporate events & conferences. Sponsorships in events by well-known brands increase rapidly as they are believed to give high return on investment (ROI), boost lead generation, increase website traffic, help in brand building, provide an opportunity to interact with the customers, build brand credibility, etc. For example, Coca-Cola, one of the leading soft drink brands, has a record of sponsoring numerous events including television shows such as American Idol, sports events such as the Olympics, and technological events such as Apple iTunes.
Shortage of budgets to organize events is the major growth restraint in the event industry. Overspending and not having a sponsor also hampers the events. Arranging an event is an expensive task, as it consists of various costs such as the cost of venue, food & catering cost, projectors, entertainment cost, and others. These factors are projected to impede the events industry growth during the forecast period.
Growing adoption of cutting-edge technologies such as virtual reality (VR) and augmented reality (AR) in the events industry, coupled with increasing acquisitions and collaboration among leading companies are foreseen to offer ample opportunities in the global events industry. The technological advancements that facilitate online booking, video conferences, smartphone apps, that gained popularity during the pandemic are further estimated to offer excellent opportunities.
Global Events industry, Segmentation
The global events industry is segmented based on type, revenue source, organizer, age group, and region.
The type of segment is further classified into music concerts, festivals, sports, exhibitions & conferences, corporate events & seminar, and others. The corporate events & seminar sub-segment accounted for dominant market size in 2021 and is anticipated to grow at a highest CAGR during the analysis timeframe. Corporate events & seminar provide the opportunities for event management companies to collaborate and engage with the audience. Corporate events such as parties, annual functions inculcates the feeling of cohesiveness among the people. Also, corporate events & seminars involve recognition, appreciation, and celebration of the success of the employees.
The revenue source segment is further classified into ticket sale, sponsorship, and others. The sponsorship sub-segment is anticipated to have the fastest growth during the forecast period. Many well-known brands and governments actively sponsor various events including sports, music, and exhibitions. Sponsorship increases the company’s presence and brand visibility thereby attracting potential customers. By sponsoring any event the company can learn about its customers, promote products, build a mailing list, as well as help in generating a host of compatible customers. Hence, sponsorship helps in strengthening the business image and allows you to rack up sales. All these advantages are anticipated to generate lucrative revenue for the sponsorship sub-segment of the global events industry.
The organizer segment is further classified into corporate, sports, education, entertainment, and others. The entertainment sub-segment is anticipated to have the fastest growth rate during the forecast period. Entertainment events such as corporate events or music concerts aid in reducing the stress level at the workplace. In addition to this, corporate entertainment events help in the branding of the company’s products & services and leave a positive impression on the audience. Along with offline events, online events such as live streaming on Instagram, Facebook, and others have gained huge popularity in music halls, theaters, and hotels.
The group segment is classified into below 20 years, 21-40 years, and above 40 years. The 21-40 years sub-segment is anticipated to have the fastest growth during the forecast period. The 21-40 years age group includes people from corporate sectors that are increasingly involved in exhibitions, corporate events, and seminars as it concerns discussions with industry experts that aid individuals in gaining knowledge which is expected to create a positive impact on the 21-40 years sub-segment of the events industry during the forecast period.
The global events industry in Asia-Pacific is projected to be the fastest growing during the forecast period and is expected to expand significantly due to the presence of developing economies, increased per capita disposable income, and the surge in government sponsorships towards sports, music, seminars, and other events. Popular brands such as Bisleri, Coca-Cola, CEAT, Ford, Club Mahindra, and others are actively supporting and sponsoring various events in India. For example, CEAT, the Indian tire manufacturer, has sponsored the Indian Premier League (IPL) cricket event in May 2022.
The growth of events industry in Japan is attributed to increase in number of foreigners and success of major international events such as Rugby World Cup, Tokyo 2020 Olympics, G20 Summit in Osaka, Paralympics, and various others. In addition, in response to the COVID-19 pandemic event venues has increased the safety measures. For instance, PACIFICO Yokohama has opened a new venue called PACIFICO Yokohama North in 2020, having 6300 sq m hall in which the seating arrangements follow the social distancing norms, provision for disinfection of high traffic areas, strict precautions related to food & beverages, thermal imaging cameras, and more. Hence, the popularity of events industry in Japan is driven by top-tier infrastructure facilities and cities that are capable of delivering special activities, and venues.
Furthermore, China is one of the largest meeting destinations that conducts various local & international events, trade fairs, exhibitions, and others. It is the popular destination for events such as World Expo, Olympic Games, Asian Games, and various others. The popular trade shows in the country are Shanghai Import and Export Commodity Fair, the Bauma Fair, Beijing Auto Show, Canton Fair, and various fairs. The unique landscape, topography, and continuous infrastructure development are estimated to drive the growth of events industry in China. Various events taking place in China are Automechanika Shanghai, China Import Export Fair, East China Fair, RemaxWorld Summit & Expo, International Health, Wellness and Fitness Expo, and various others.
Key Players in the Global Events industry
Some of the leading Events industry players are
- ACCESS Destination Services LLC
- Anschutz Entertainment Group
- The ATPI Group
- BCD Meeting & Events
- CL Events
- Clarion Events Ltd
- Cvent Inc.
- DRPG Group
- Entertaining Asia
Business expansion, partnerships, and technological advancements are some of the leading strategies adopted by the companies operating in the event industry. For instance, in January 2020, ACCESS Destination Services, leading event management company has expanded its operations across Washington, DC, U.S., which is one the largest meeting & events destination.