Insight
Is the events industry ( really ) consolidating ?
Dr Baris Onay reviews a key session on industry consolidation from UFI ’ s recent European Conference
had the pleasure of
I moderating the closing session of the 2024 UFI European Conference in Zurich in June . With the help of expert speakers Christina Kehl , Julia Borispolets , and Phil Stone , we explored the topic of ‘ Industry Consolidation and New Players ’.
When I asked for a show of hands amongst the audience , there was a strong sense that our industry was beginning to consolidate much faster than before . A statistic Phil Stone , partner at Plural Strategy ,
Figure 1 : The Merger Endgames S Curve
shared brought this to life : “ In 2012 , the top 10 organisers represented around about 15-16 % of the industry , and by the time you get to post-Covid 10-11 years later , that had moved up to 29 %, so compared to other industries like grocery and the number of supermarkets , that ' s still not very much . It ' s still very fragmented , but that ' s an incredible pace of change over ten years .”
According to Harvard Business Review , that puts our industry firmly at the beginning of the ‘ Scale ’ stage of the consolidation curve . ( I ’ ve
Above : Dr Baris Onay
calculated an adjusted 14 % for the top three as per the study )
Industries in this phase focus on achieving scalability . Dominant players start to pull away from the peloton , acquiring competitors and establishing vast empires .
In our industry , this is clearly illustrated by the Stax Top 20 list , which showcases two standout leaders and a third position that remains uncertain for the time being . If HBR is correct , we should see the top two starting to pull away faster and a third joining them while the rest begin to stagnate or even get acquired at some point .
Another thing to notice from studying the Top 20 retrospectively is that , curiously , not too many organisers have disappeared from the Top 20 in the past ten years . UBM , Tarsus , and , lately , Ascential have all been consolidated into the biggest player , Informa . Most of the action has been outside the top 20 for now . But that doesn ’ t mean it ’ ll be confined there .
While the scene might yet be set for further consolidation , Julia Borispolets , corporate development director at RX Global , gave us some food for thought on future structural challenges . The biggest business events market in the World , the USA , is dominated by many association events , making it harder for professional organisers to scoop up market share quickly . Although there were significant acquisitions and partnerships with associations in the past , those tend to take considerable time . Similarly , with the venue organisers , especially in Germany , a path to quick consolidation seems highly unlikely .
Consolidators This then begs the question : If the Messes are not potential targets , and the American market is structurally challenged , what businesses of scale are left out there that might move the needle for these big consolidators ?
48 Issue 5 2024 www . exhibitionworld . co . uk