U.S. MEETINGS, INCENTIVES, CONFERENCES AND EXHIBITIONS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

U.S. Meetings, Incentives, Conferences and Exhibitions Market Drivers:

• Rising business travel Expenditure: The global business travel expenditure has been increasing steadily in 2020-2022. This growth is due to positive economic conditions and rising corporate profits. As businesses expand their operations globally, the number of corporate trips and business events also increase. This results in a parallel growth in the meetings, incentives, conferences and exhibitions (MICE) industry. The market is further driven by businesses organizing more training programs, seminars, product launches, and team building activities. According to the U.S. Travel Association, domestic business travel expenditure reached over US$270 Billion in 2021, thus marking an increase of 15% from the 2020.
• Adoption of virtual meeting technologies: Integration of virtual and hybrid meeting technologies is significantly driving the growth of the meetings, incentives, conferences and exhibitions (MICE) market. Platforms like virtual conference solutions, augmented (AR) and virtual reality, (VR) and artificial intelligence (AI) provide enhanced participant experience and audience engagement. These  also allow increased event customization and data insights. Many organizations adopted these technologies during the COVID-19 pandemic, thus leading to their rising popularity. Their ability to expand audience reach at lower costs is attracting more event organizers. According to the data provided by  the U.S. Bureau of Labor Statistics, the number of virtual meetings and webinars hosted in the U.S. increased by over 250% between March 2020 to December 2020.
• Expanding domestic tourism: The expanding domestic tourism industry in the U.S. has led to the mushrooming of hotels, convention centers, and other event venues. This has facilitated the growth of the meetings and events industry. Destinations are upgrading their infrastructure and providing tax incentives to attract more MICE events. The rise of destination marketing organizations has further boosted domestic tourism. According to projections by the United Nations World Tourism Organization, domestic travel is estimated to recover faster than international travel between 2020-2023.
• Increasing demand for hybrid events: Hybrid events are witnessing increasing  demand driven by their ability to engage both virtual and in-person audiences. These allow increased participant access, lead generation, and event monetization. Several platforms have launched hybrid event solutions to capitalize on this demand. The format provides flexibility to connect different audience demographics for enriched participant experience. The International Congress and Convention Association forecasts global hybrid MICE revenues will reach US$2.6 Billion by 2023, up from just US$50 million in 2019.

U.S. Meetings, Incentives, Conferences and Exhibitions Market Opportunities:

• Virtual and hybrid events: Virtual and hybrid events present immense opportunities for market growth. They allow organizers to reach global audiences in an immersive digital environment through virtual conference platforms. Their lower costs and wider reach are attracting event planners. Virtual events also enable generation of data for attendee profiling and targeted advertising. According to data provided by  the U.S. Bureau of Labor Statistics, the use of video conferencing for business meetings and team collaboration increased by over 65% from 2019 to 2021.
• Emerging markets: Developing economies in Asia Pacific, Middle East and Latin America offer lucrative opportunities for market expansion due to rising disposable incomes and infrastructure investments. Countries like China, India, Brazil, U.A.E, Thailand and Singapore are promoting themselves as attractive meetings, incentives, conferences and exhibitions (MICE) destinations with integrated venues, accommodation and transport facilities. Market  players can tap into these high potential markets through partnerships with local players. Several countries provide incentives like subsidies and tax breaks to attract international events. According to the United Nations World Tourism Organization, international tourist arrivals from emerging markets grew from 50 million in 2000 to over 200 million in 2019, with Asia and Latin America leading the growth.
• Data analytics integration: Incorporating data analytics into events provides organizers detailed insights into attendee behavior. This data can be leveraged to profile target audiences, customize event agendas, and improve experiences. Analytics allow measurement of participant engagement levels and marketing Return of Investment (ROI). Platforms like Cvent (a software-as-a-service (SaaS) company that specializes in meetings, events, and hospitality management technology by offering web-based software for in-person, virtual, and hybrid events, including online event registration, venue selection, event marketing and management, virtual and onsite, and attendee engagement) and Bizzabo (a management, marketing and interaction platform for event professionals looking for an all-in-one solution to host their website, event mobile app and live interaction activities.) already offer built-in analytics to demonstrate the value of events. Wider adoption of data intelligence opens opportunities for market players to develop smart event technologies. According to the U.S. Bureau of Economic Analysis, business expenditure on events and travel is projected to increase by 16.3% in 2022 as COVID restrictions ease.
• Industry consolidation: The meetings and events industry is highly fragmented with many small suppliers and third-party planners. Industry consolidation presents opportunities for larger players to increase their market shares through mergers and acquisitions. Technological advancements are also enabling end-to-end platforms to provide integrated solutions. Consolidation helps companies optimize operations and lower costs through economies of scale. According to data provided by  the U.S. Bureau of Economic Analysis, business investment in intellectual property has steadily increased year-over-year since the onset of the pandemic, growing over 13% in 2021 alone.                            

U.S. Meetings, Incentives, Conferences and Exhibitions Market Restraints:

• Budget constraints: A major factor restraining the growth of the U.S. Meetings, Incentives, Conferences and Exhibitions Market are budget constraints faced by corporates and event planners. Virtual and hybrid events requiring significant technology investment may be avoided by small businesses with limited budgets. Rising inflation, recession risks, and geopolitical turmoil also negatively impact corporate budgets for events and business travel. The key market players need to allocate proper budget for the meetings, incentives, conferences and exhibitions (MICE), in order to avoid the budget constraints by the corporates and event planners.
• Geopolitical uncertainty: Geopolitical tensions and economic uncertainty limit participation in global events. Visa and travel restrictions can prevent international attendees while conflicts dampen corporate travel sentiment. Currency fluctuations and inflation in certain countries also restrain growth. Trade wars and protectionist policies adopted by governments worldwide further discourage foreign corporate events participation.
• COVID-19 Implications: While meetings, incentives, conferences and exhibitions (MICE) activities have picked up pace after COVID-19 lockdowns, there are still certain implications that are restraining optimal growth. Continued health risks and future pandemic uncertainty make companies hesitant about large in-person events requiring travel. Smaller regional events are often preferred for limiting risks. Vaccine inequality also prevents seamless global participation. Furthermore, some organizations have permanently transitioned to virtual meetings for saving costs. According to data provided by United Nations World Tourism Organization (UNWTO), international tourist arrivals declined by 74% in 2021 from pre-pandemic levels, thus indicating the sluggish recovery of travel and tourism sector globally.