Meetings & Events Market Intelligence

Industry Outlook & Drivers

Global Outlook on Meetings & Events Market

• In 2018, the global MICE market was valued at approx. $860 billion, and it is expected to grow at 7–8 per cent to reach approx. $1245 billion in 2023
• APAC is the leading M&E market, growing at a rate of 10–12 per cent, MEA is growing at an accelerating rate of 5–6 per cent

Global Meetings & Events: Market Maturity

North America and Europe are highly mature markets, contributing to three fourths of M&E revenue. Supplier capabilities to serve complex client requirements in these regions are high. The APAC M&E market has a relatively smaller event industry market size, but is growing at a Compound Annual Growth rate (CAGR) of 8–9percent

Global Meetings & Events: Drivers and Constraints

Event market research indicates that Economic development, government investment and technology are the key drivers of the M&E industry. Regulations and sustainability are the major challenges hampering the industry

• Economy: M&E growth is largely dependent on the economy. Meeting spends are the first to be cut during a downturn
• Government investment: Government initiatives to develop infrastructure and promote new venues for corporate events are providing more choice/attractive prices for M&E organisers
• Competition within the Industry: Emergence of large number of small to mid-size Event Management Companies with superior service capabilities are challenging existing players to be more innovative and productive. Buyers are gaining more power to leverage negotiations
• Impact of digitalisation: The use of technology in every phase of an event production or as a substitute to physical meetings, are gaining importance as it increases efficiency and is cost effective, and also aids in creating an impact with the participants
• Global companies chasing M&A: The need to register growth in a slow growing economy is driving companies to consider M&As, instead of organic growth. The faster results achieved through M&A activity, coupled with the availability of money at low interest rates, are resulting in a rise in M&E activity
• Political instability: Recent major political developments (such as the Brexit vote in the UK, the failed coup in Turkey, and the US presidential elections) has impacted the meetings and events industry. Buyers and suppliers now have to adhere to reformed policies while decision making.
• Regulatory landscape: Industries are highly regulated and scrutinised, like pharmaceutical and financial companies. Meetings are affected by these regulations
• Impact of Immigrant Policies: Due to adversities in immigrant policies, Meetings and Events industry in the US is expected to get affected

Supply Market Outlook: Supply Trends and Insights

The meetings and events industry trends with regards to supply are:

Global/regional supplier

The global suppliers provide a wide array of services, due to their vast resources of employees and contracts made with other companies that aid in organizing meetings, like hotel chains, venue providers and travel agencies. Network: Most of them also operate through partnerships and joint ventures in many countries, where they do not have a direct presence.

Types of Suppliers: 

• End-to-end suppliers: This segment includes end-to-end event management firms, such as Grassroots, MCI, Amex, CWT, BCD

• Standalone suppliers: Standalone Suppliers specialize in providing specific services related to event management, like George P Johnson, PRG, Encore event technologies, PSA

Tier-2/localsupplier

Engagement: Typically, companies engage with a local supplier when the complete event is organized within the country.

Service capabilities: As local suppliers have limited resources, their service capabilities are not as extensive as global players’.

Superior knowledge: They do have superior knowledge about the local culture and suppliers, and they can bring a local flavor to the events and also can get reduced rates through better local relationships

Engagement trends

Most adopted model globally: A fully outsourced model for M&E category management. Most adopted engagement model: 2–3 preferred EMCs in every region.

Why: Engaging with 2–3 preferred suppliers provides better supplier management than multiple suppliers.Pricing strategy: Fixed fee model and cost-plus models are the most frequently used pricing models

Factors Determining the Type of Service Provider

The choice of a service provider depends mainly on the scope and scale of the event being organized and the in-house event management capability of the buyer. Companies with a large number of events in a year and with events across regions will prefer to engage with an EMC with global capabilities. 

There is an upcoming trend of using a specialized/boutique MPA catering to M&E needs of a particular industry. However, the preferred end-to-end supplier list of both the client and the EMC remains a primary factor in selecting an EMC.