The global trade fair industry has fully recovered from the pandemic in most markets. On average, sales in 2023 have reached a comparable level to 2019. This is according to the latest survey by the Global Association of the Exhibition Industry (UFI), which was completed in January.
According to the "Global Exhibition Barometer" study, the outlook for 2024 is very positive: revenue is expected to increase by an average of 15 per cent, meaning that the industry will record its highest revenue ever in 2024. Globally, 52 per cent of companies say they plan to increase their workforce in the next six months and 45 per cent say they will keep their current headcount stable.
The "economic situation in the domestic market" is the biggest challenge (22 per cent), followed by "global economic developments" (17 per cent). Worldwide, there is an overwhelming consensus that artificial intelligence will influence the industry. 91 per cent of companies stated this, compared to 87 per cent in the previous edition.
"Our report shows that the exhibition industry has not only returned to pre-pandemic levels in 2023, but is also planning for growth in 2024 and that many new jobs will be created in the exhibition industry worldwide. This good news goes hand in hand with a shift in business priorities, with economic and environmental considerations representing significant progress," says Kai Hattendorf, Managing Director and CEO of UFI.
Operating business
The scale of operations has increased significantly in the second half of 2023, with a large majority of companies from all regions (77 per cent in the Middle East and Africa to 57 per cent in North America) reporting an increase.
This trend will continue in 2024, with the average percentage of companies reporting increased operations ranging from 66 per cent in North America to 64 per cent in the Middle East and Africa, 55 per cent in Asia/Pacific and 54 per cent in Central and South America and Europe respectively.
Turnover and operating result
The year 2023 was characterised by a full recovery in exhibitions, with revenue reaching a comparable level to 2019 on average. The outlook is very positive, with average revenue growth of 15 per cent expected for 2024.
These general trends vary from country to country: 2023 revenues compared to 2019 vary from 127 per cent in India, 120 per cent in Spain and 110 per cent in Italy to 88 per cent in Colombia and 85 per cent in South Africa or to 82 per cent in Germany and 80 per cent in Thailand.
Sales from 2024 compared to 2019 vary from 154 per cent in India 151 per cent in Greece to 99 per cent in China and 94 per cent in South Africa.
In terms of operating profits compared to 2019, around half of the companies report an increase of more than 10 per cent for 2023 and one in four report a stable profit. Compared to 2022, six out of ten companies report an increase of more than 10 per cent. The UAE, Saudi Arabia, India, Brazil and Mexico have the highest proportion of companies expecting an increase in profits of more than 10 per cent compared to 2019.
Development of the workforce
Globally, 52 per cent of companies say they plan to increase their headcount in the next six months and 45 per cent say they plan to maintain their current headcount.
The highest proportion of companies planning to increase their workforce is in Saudi Arabia (100 per cent), the UAE (82 per cent), India (80 per cent), Greece (73 per cent) and Malaysia (67 per cent).
Most important economic topics
Compared to the last edition of the Barometer, which was published six months ago, there are significant changes in this edition: The most pressing economic issue cited in this edition is the "economic situation in the home market" (22 per cent of responses worldwide - up from 14 per cent six months ago - and the most important issue in all regions and most markets).
"Global economic development" is the second most important topic worldwide (17 per cent of responses, compared to 12 per cent six months ago), followed by "geopolitical challenges" (12 per cent).
"Internal management challenges" (10 percent) and "impact of digitalisation" (6 percent), which were the two most important topics six months ago (with 21 percent and 17 percent of responses respectively), are now surpassed by "competition within the trade fair industry" (11 percent) and "sustainability/climate" (10 percent).
An analysis by industry segment (organisers, venues and service providers) shows no differences in the three most pressing issues for organisers and service providers, which continue to be "economic situation in the domestic market", "global economic developments" and "geopolitical challenges". For event venues, "geopolitical challenges" is ahead of "internal management challenges" and "competition within the trade fair industry".
Applications of artificial intelligence
For the second time, the 32nd Barometer survey asked a specific question on the impact of generative AI on the exhibition industry to shed light on this emerging digital transformation. The survey aimed to evaluate the current use of AI in various business sectors and assess future expectations.
As mentioned above, 91 per cent of respondents believe that AI will impact the industry, up from 87 per cent in the previous edition.
UFI Global Exhibition Barometer survey
The 32nd Global Barometer survey, completed in January 2024, provides insights from 419 companies across 61 countries and regions. It was conducted in collaboration with 31 UFI member associations. It includes forecasts and analyses for 19 focus countries and regions: Argentina, Australia, Brazil, China, Colombia, France, Germany, Greece, India, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Thailand, the United Arab Emirates, the United Kingdom and the United States - as well as for five additional aggregated regional zones.
Download: https://www.ufi.org/wp-content/uploads/2024/02/UFI-Barometer-32nd-1.pdf
