Event management companies have been growing at a rapid pace ever since they first came into being. To back that up, a market research report by Technavio predicts that event management as a service market will observe a CAGR of about 11% by 2022.
Today, the events industry has gone through a transformation with event management companies expanding their roles to offering a plethora of services. These include event planning, scheduling, budgeting, getting required permits, selection of venue, arranging transportation, arranging sound systems or entertainers, taking care of the security, decor, catering, etc. With the advent of globalization, there has been a surge in the demand of event management companies that offer a multitude of services. Let us get some insight into reasons for this tremendous growth as a service market:
1. The Demand for Multiple Services from one Company
Event planning industry has now taken up niche specialties like offering concierge services.
The event marketing services today take care of the clients’ needs, ranging from doing mundane tasks to handling special requests. They have added services like assisting a client with their errands such as picking up mail, getting dry cleaning, sorting bills, delivering flowers or cakes, etc. They further earn word-of-mouth referrals through these services which help them grow even more.
Handling all arrangements smoothly without getting the client involved personally has further contributed to the event management industry’s growth. As a result, event management services ranging from housewarming parties, reception party, exhibition, and marriages have seen a sharp rise. The idea of a single event planning company giving complete customer satisfaction has thus, added on to its conversion into a service market.
2. Working in Tandem With Different Industries
The current nature of the event industry is such that it works in association with an array of industries like hospitality, entertainment, food, beverage, etc. This means that the services that fall under the scope of these industries also find a way to event planning. This means the addition of more roles in the event planning industries. Therefore, this has widened the scope of growth further. The growth of each of these industries will have a direct and proportional impact on the event industry.
3. International Demand for Boosting Tourism
With increasing popularity of international events across the world like Tomorrowland, Film Festival and Ultra Music Festival, the market of event management services is evolving massively in different regions such as America, Europe, APAC and the Middle East. Every year thousands of tourists travel across the globe for attending various kinds of events. In short, the economic growth of these regions is directly linked to the success of the event. The traction generated by such global events motivates the event industries to step up their game and become a service platform to make handsome profits.
4. The Urgency of Events in the Corporate Market
Another reason that has contributed to the development of the event market as a service market is the rise of corporate events. Whether it’s an in-house celebration of your team’s achievements, board meeting, a seminar or conference, a grand product launch, or an office incentive trip overseas, the event planning industry is now entrusted with organizing these corporate events.
There has been an increasing demand for professional event marketing company that can handle all the challenges that are faced in corporate events. This includes having a tight budget, the issue of low attendance and the need to represent the company’s mission appropriately.
The fast-paced development in the corporate outlook of organizations in the ASEAN regions, particularly India and China, has opened up an ocean of opportunities for the event management services.
5. Digitization and Event management Softwares (EMS)
According to reports by Statista, in 2018, the global EMS market is said to be worth USD 7.24 billion.
The ability of event management companies to utilize the software solutions for speeding up the processes has also contributed to redefining it as a service market. EMS takes care of functionalities like registration management, sourcing and procurement, billing, booking, venue management, content management, and on-site operations. Organizers and planners all over the world are improving the quality and efficiency of the time-intensive tasks.
The global digitization has also accelerated the growth of the event market into a service market. Social media is currently dominating the market, fuelling events planning to expand its reach even more. Platforms like Twitter and Facebook help event management professionals stay up-to-date on the latest trends, advancing technologies and best practices of the event management industry. In fact, the virality of an event on social media further adds to the success of the event.
The market of Event management services is highly segmented by different regions and is facing strong competition within the market. There are no evident event management services key players as of now other than YG entertainment, Skylight group, ALDA Events, and Live Nation Entertainment. The large vendors, as well as the core event management-as-a-service providers, have started looking at mergers & acquisition strategies to stretch their market presence and expand their global reach.