Current Market Size of Meetings and Events Market estimated at $840 billion, says Beroe Inc
Source: PR Newswire
RALEIGH, North Carolina, March 14, 2019 - The global market size for meetings and events (M&E) is currently growing at 6 - 7 percent annually, according to Beroe Inc, a procurement intelligence firm. The global economic growth is the key driver for the meetings and events market, and the high demand for meeting spaces is driving the prices of meeting venues and hotels.
North America is the leading M&E market growing at a rate of 4 - 5 percent, and the Asia Pacific region has a relatively smaller market share growing at a high rate of 8 - 9 percent. North America and Europe are highly mature markets holding nearly three-fourths of M&E revenue.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The moderate economic 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 along with the availability of money at a low-interest rate, are resulting in a surge in the M&E market. However, 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.
The operational costs account for nearly 50 percent of the total cost for a meeting, which comprises the largest share of all the components. It varies depending on the scale of the event. Capital costs comprise of furniture, fixtures, and equipment, which vary from 35 percent to 40 percent depending on the maturity of the supplier.
- The bargaining power of suppliers is moderate as differentiation in services is less, whereas that of buyers is high, as supplier switching cost is low.
- The global suppliers provide a wide array of services as they have vast support of employees and contracts made with other big companies. Such resources aid in organizing meetings for hotel chains, venue providers, and travel agencies.
- 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.
- The global players such as Amex and BCD, are looking to provide customized services to their clients and improve their geographic presence by acquiring and merging with a local or regional player where they are not directly present.
- Companies contribute to only 10 - 25 percent of the M&E cost as the management fee. With the increase in the use of technology in meetings, the production costs along with agency fees are the biggest cost component in an event.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
The M&E market is highly fragmented with plenty of downstream suppliers. Each sub-category has many suppliers and local players, and the top 10 - 12 companies are about the same size. Due to the presence of so many suppliers, the M&E industry is highly competitive, which enables low switching costs to the supplier.
The report also includes:
- Global M&E Market Maturity
- Global M&E Industry Trends
- Global M&E Drivers and Constraints
- Regional Market Outlook
- Industry Outlook - M&E Affecting Factors
- Porter’s Five Forces Analysis
- SWOT Analysis
- Supply Market Outlook -Supply Trends and Insights
- Recent M&As
- Key Global M&E Suppliers
- Key Regional Suppliers: Service Portfolio
- Supplier SWOT Analysis
- Global Pharmaceuticals M&E Suppliers
- Global Pharmaceutical Supplier Profile
Cost & Pricing Analysis:
- Cost Structure Analysis
- Cost Analysis and Expected Savings
- Cost Breakup
- Pricing Analysis - Price Forecast
Procurement Best Practices:
- Sourcing Models - Comparative Analysis
- Sourcing Models - Pros and Cons
- Pricing Models - Comparative Analysis
- Regional Pricing Best Practices
- Cost-saving Opportunities
- Key Services-based KPI
- Demand Management
- Global Meeting Policy
- Mitigating Policy Non-compliance
- Pharmaceutical M&E Sourcing Strategy
- Case Studies
End-User Industry Update:
- Evolution of technologies in Virtual meetings
- Market Overview
- Technology & Emerging Trends in Virtual Meeting
- Types of Meetings that can be Transitioned
- Pros and Cons of using Virtual Meetings
- Technologies and Savings
- Supplier Landscape
- Overview: AV Production in Events
- Key Trends
- Global Supplier Identification
About Beroe Inc.:
Beroe is the world’s leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com