Events Industry Anticipated to Generate a Revenue of $1,457.2 Million, Growing at a CAGR of 23.1% from 2021 to 2028Download Sample Reports Overview
The global events industry is estimated to be valued at $1,457.2 million by 2028, surging from $1,134.5 million in 2020 at a noteworthy CAGR of 23.1%
Impact Analysis of COVID-19 on the Events Industry
The global market for events industry is estimated to experience a negative impact amid the COVID-19 pandemic. The growth is declining amidst the pandemic times due to travel restrictions, unprecedented lockdowns, restrictions on large gatherings and social meetings, and others. In addition, work from home situations have led to a decline in corporate meetings, seminars, product exhibitions, and others. In addition, travel restrictions and social distancing measures led to huge revenue losses and postponements or cancellations of events. For instance, men’s T20 World Cup which was scheduled to be held in Australia in October 2020 was cancelled. Also, Tokyo 2020 Olympics was cancelled and postponed by Japan’s Prime Minister Shinzo Abe and the International Olympic Committee, and it is scheduled to take place this year from July 23 to August 8, 2021. In addition, the 2020 Wimbledon tennis championships was cancelled for the first time due to pandemic which was scheduled to be held in between June 28 and July 11,2020. In addition, other sport events such as basketball, weightlifting, Paralympics were cancelled during the pandemic. All these factors have negatively affected the events industry growth.
Various initiatives and technological advancements are considered to support the event industry manufacturers amidst the pandemic. The rapid digitization and adoption of online platforms such as Zoom and Slack Channels have facilitated various events such as music concerts, corporate events, seminars, exhibitions, online product demos, and others. Due to ban on large social gatherings, various event planning companies have moved towards virtual events. For instance, Hopin, the event & technology startup established in June 2019, presents virtual events that offers users with excellent features such as virtual rooms, in which attendees can move in and out of the room. The company creates a feel of traditional live expo or conference. In addition, the social media platforms such as Facebook, Instagram were widely used to conduct live concerts, music concerts, social meetings, and others. Corporate events and seminars were conducted on Zoom, Slack, Google Meet, Microsoft Team, and other online meeting platforms. Such technological advancements are estimated to create lucrative investment opportunities during the forecast period.
Global Events Industry Analysis
The enormous growth of the global events industry is mainly attributed to increase in sponsorships for events, rise in interest among youth for business seminars, exhibitions, corporate events & conferences. The sponsorship in events by government and private companies in increasing rapidly as sponsorships provide high Return on Investment (ROI), facilitates lead generation, increases social media or website traffic, helps in brand building, provides an opportunity to interact with the customers, builds the brand credibility, and various others. For instance, the top soft-drink brand, Coca-Cola has a history of sponsoring various grand events including television shows such as American Idol, sports events such as the Olympics, and technological events such as Apple iTunes. In addition, Huawei, the China-based technology company has sponsored various sport events including La Liga, Club América, and others. All these aspects are predicted to create a positive impact on the events industry growth during the forecast period.
The major growth restraints in the event industry include overspending or not having enough money to sponsor the event. Organizing an event is costly as it involves the cost of venue, food & catering cost, projectors, entertainment cost, and others. These factors are estimated to hamper the market growth during the analysis timeframe.
The technological advancements in events industryalong with partnerships and acquisitions among top companies are estimated to generate huge opportunities in the global events industry in the upcoming years. The technological advancements that facilitate online booking, video conferences, smartphone apps, and others are estimated to drive the market growth. During the pandemic, the virtual events have gained huge popularity due to lockdown restrictions, ban on travel and social gatherings, as well as closure of music halls, exhibition centers, and others. However, the business sponsoring virtual events such as PACE Digital, South Africa-based digital development & marketing company have successfully provided virtual event services to their clients. In addition, Zoom, the video communications platform has gained huge popularity during pandemic and many corporate events, meetings, social gatherings, festivals are being hosted on this platform. Such innovative techniques are estimated to drive huge growth opportunities in the global events industry during the forecast period.
Global Events Industry, Segmentation
The global events industry is segmented based on type, revenue source, organizer, age group, and region.
The type segment is further classified into music concert, festivals, sports, exhibitions & conferences, corporate events & seminars, and others. Among these, corporate events & seminar sub-type is anticipated to have a dominant market share and surpass $413.7 million by 2028, with an increase from $307.0 million in 2020. Corporate events & seminars are used to provide information to specific audience, educate attendees, and provide opportunity for collaboration and to engage the audience. In addition, the corporate events and seminars offer an opportunity to widen the contact network and meet customers, clients, and other professionals. Also, corporate events & seminar conducts recognition, appreciation and celebration of success of the corporate employees. All these factors are predicted to create positive impact on the corporate events & seminar sub-segment of the events industry throughout the forecast period.
The revenue source segment is further divided into ticket sale, sponsorship, and others. The sponsorship sub-segment is anticipated to have a dominating market share globally and is estimated to register a revenue of $710.7 million during the analysis timeframe. Various companies and government actively sponsor various events including sports, music, exhibitions, and others. Sponsorship increases the company’s presence and brand visibility thereby attracting the potential customers. By sponsoring any event the company can learn about their customers, promote their products, build a mailing list, as well as helps in generating 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 sponsorship sub-segment of the global events industry.
The organizer segment is further classified into corporate, sports, education, entertainment, and others. Among these, the entertainment sub-segment is anticipated to have the dominant market share and surpass $453.3 million by 2028, with an increase from $324.1 million in 2020. The entertainment events such as corporate events or music concerts, helps to reduce the stress level at the workplace. In addition, the corporate entertainment events create buzz regarding company’s product & service and leaves a positive impression on the audience. Along with offline events, the online events such as live streaming on Instagram, Facebook, Netflix, and others have gained huge popularity as music halls, theaters, hotels, are closed due to pandemic. These factors are anticipated to create positive impact on the entertainment sub-segment of the events industry during the forecast period.
The age group is further classified into below 20 years, 21-40 years, and above 40 years. Among these, the 21-40 years sub-segment is anticipated to have the dominant market share and surpass $679.0 million by 2028, with an increase from $486.3 million in 2020. This growth is majorly attributed to the popularity of various events such as exhibitions, seminars, music concerts, corporate events, conferences, sports, and others. The 21-40 years age group comprises of individuals from corporate sectors that are actively involved in corporate events, exhibitions, seminars as it involves discussions with the industry experts that help individuals in gaining knowledge which is estimated to create a positive impact on the 21-40 years sub-segment of the events industry during the forecast period.
The events industry for the Asia-Pacific region is projected to witness rapid growth. This region generated a revenue of $318.5 million in 2020 and is further projected to reach up to $475.0 million by 2028. This region is anticipated to grow rapidly owing to the presence of developing economies, increase in government sponsorships towards sports, music, seminars, and other events. In addition, popular brands such as Bisleri, Coca Cola, CEAT, Ford, Club Mahindra, and others are actively supporting and sponsoring various events in India. For instance, CEAT, the Indian tyre-manufacturer, has sponsored the IPL (Indian Premier League) cricket event. In addition, Nokia, the telecommunications company, considers partnership as important part of its business strategy. Also, Nokia is the lead sponsor for Kolkata Knight Riders team of IPL. In addition, the company is the global sponsor for the HundrED project, that inspires innovations in education to provide children with quality education. These factors are estimated to boost the for Asia-Pacific events industry during the upcoming years.
Key Players in the Global Events Industry
Some of the leading global 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
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Events Industry
- Bargaining Power of Suppliers: The suppliers in events industry are large in number and they use their negotiating power to reduce the cost of raw materials. In addition, the product differentiation is moderate and switching cost of the product is low.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: Buyers have low bargaining power, as the buyers are high in number and companies are using strategies such as product innovations and technological advancements to reduce the bargaining power of buyers.
Hence, the bargaining power of buyers is low.
- Threat of New Entrants: Startups entering this market are using various techniques such as adoption of new technologies, product innovations, low pricing strategy and others. Also, the existing players are focusing on research & development activities and use of innovative technologies.
As a result, the threat of the new entrants is moderate.
- Threat of Substitutes: The availability of substitute platforms such as Zoom, Google Meet, and others that has gained huge popularity during the COVID-19 pandemic due to social distancing norms, increase the threat from substitution.
Therefore, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The ventures operating in the global events industry are focusing on strategies such as partnership, acquisition, and adoption of new technologies to stay ahead in the competition.
Therefore, competitive rivalry in the market is moderate.