The Global MICE Industry Anticipated to Generate a Revenue of $1,619.3 Billion, Growing at a CAGR of 5.9% from 2021 to 2028Download Sample Reports Overview
The global MICE industry is estimated to be valued at $1,619.3 billion by 2028, surging from $1,007.2 billion in 2020 at a noteworthy CAGR of 5.9%.
Impact Analysis of COVID-19 on the MICE Industry
The global market for MICE industry is estimated to experience a negative impact amid the COVID-19 pandemic. The growth rate is declining due to travel restrictions, ban on social gatherings, and meetings. Due to unprecedented lockdown many corporates have shifted to the work from home model that has led to a decline in face-to-face meetings, events, conferences, seminars, exhibitions, and others. In addition, travel restrictions have led to cancellations or postponements of various events. For instance, as stated on April 1, 2020 in the Inside Asian Gaming, a popular magazine, more than 50% of the Macau’s 2020 MICE events were badly hit by the pandemic. More than 1,500 exhibitions and events were planned in Macau in 2020 out of which more than 50% events were impacted due to the coronavirus pandemic. Many large-scale MICE events including Macao International Environment Co-operation Forum & Exhibition was cancelled due to the COVID-19 outbreak. Similarly, G2E Asia event was postponed to later dates. All these factors have negatively impacted the MICE industry market growth during the pandemic.
Various initiatives, technological advancements such as conducting virtual events by MICE industry players are supporting the companies amidst the pandemic. For instance, Singapore Tourism Board has laid down safe management measures for MICE events. As per these rules, the MICE events should not have more than 100 participants at a time, the MICE industry must implement Pre-Event Testing (PET) for all participants, the participants should maintain a distance of atleast 1 metre and not more than 2 participants should sit in a group, and there should be no unmasking during the event except during eating or drinking. In addition, to reduce the risk of COVID-19, it was decided that lunch will not be allowed during half-day events and for full day events the lunch hour should be maximum 1 hour and tea breaks are not allowed for both half-day and full-day events. All such initiatives are estimated to create lucrative investment opportunities during the forecast period.
Global MICE Industry Analysis
The changing lifestyle habits, growth in corporate culture, ease of accessibility to transport facilities, and technological advancements is estimated to drive the growth of MICE industry during the forecast period. For instance, rapid infrastructure developments and hospitality industry offering exemplary service is estimated to drive the market growth. In addition, expansion of airline facilities and visa-on-arrival are driving the market growth. The ease of access to hotel facilities and transport via online booking and easy checkout coupled with continuous development in tourism sector is anticipated to drive the industry growth. The rapid increase in small and mid-size enterprise (SME) that play a crucial role in the economic development of country is estimated to drive the MICE industry growth. For instance, such SMEs include the business travelers that constantly travel to attend various meetings, conferences, exhibitions, and other events to seek business opportunity and to enhance their company presence. All these aspects are predicted to create a positive impact on the MICE industry growth during the forecast period.
The major growth restraints in the event industry include high operational cost that involves the cost of food & catering, booking luxurious hotels, conference halls, and travelling expenditure such as booking of travel tickets. In addition, the MICE industry also includes the cost of convention facilities, tourism, retail, shopping, and others which is estimated to hamper the market growth during the forecast period.
The technological advancements in MICE industry along with partnerships and acquisitions among top companies are estimated to generate huge opportunities in the market during the forecast period. For instance, the biometric analysis of larger audiences that facilitate easy check-ins and check-outs, use of translation and audio applications that facilitates simultaneous translations, audio meetings and broadcast sessions are estimated to generate growth opportunities. Furthermore, the use of virtual reality platforms that take you to the virtual world of meeting and engages the audience in visual environment is estimated to drive industry demand. In addition, the MICE industry players are focusing on offering flexible prices and flexible cancellation policies. All these factors are estimated to generate excellent growth opportunities during the forecast period.
Global MICE Industry, Segmentation
The global MICE industry is segmented based on type and region.
The type segment is further classified into meetings, incentives, conventions, and exhibitions. Among these, the meetings sub-segment is anticipated to have a dominant market share and surpass $979.6 billion by 2028, with an increase from $623.3 billion in 2020. Meetings bring people together to share ideas and discuss and solve problems. The corporate meetings include training, product demonstration, seminars, product launch events, and others that educate the users with various products, improves employee engagement, enhances communication, helps you to gain inspiration, discover new opportunities, grow connections, and others. All these factors are estimated to drive the growth of meetings sub-segment during the analysis timeframe.
The MICE industry for the Asia-Pacific region is projected to witness rapid growth. This region generated a revenue of $295.1 billion in 2020 and is further projected to reach up to $501.3 billion by 2028. Asia-Pacific is one of the fastest developing regions due to rapid globalization, infrastructure development, and development of hospitality industry. The low cost of hotels, ease of accessibility to the transport facility, ever-improving infrastructure, and rapid technological advancements are estimated to drive the MICE industry market growth. For instance, Singapore is one of the popular destinations for MICE events as it is the home to major financial hubs, world’s leading companies, and financial entities. In addition, Bangkok, Thailand is one of the popular destinations for conducting various events that offers visa-on-arrival fee for 21 nationalities, expansion of airlines, excellent infrastructure, high quality venues, and various factors. These factors are estimated to boost the for Asia-Pacific MICE industry during the upcoming years.
Key Players in the Global MICE Industry
Some of the leading global MICE industry players are
- ACCESS Destination Services
- ATPI Ltd.
- BCD Group
- BI Worldwide
- Carlson Wagonlit Travel
- Conference Care Ltd.
- Creative Group, Inc.
- CSI DMC
- IBTM Events
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 MICE Industry
- Bargaining Power of Suppliers: The companies operating in this market are focusing on providing excellent infrastructure, facilities to the guest, and incorporating technological advancements to support the market growth which gives less bargaining power to the suppliers.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: The buyers in the MICE industry have high bargaining power as it depends on the buyer which location, they want to select for conducting meetings, seminars, conferences, and other events. Also, the developing countries offer price flexibility to attract more customers.
Hence, the bargaining power of buyers is high.
- 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 pandemic due to travel restrictions, and social distancing norms that increases the threat from substitution.
Therefore, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The ventures operating in the global MICE 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.