Research
GIPR points to growth , but trajectory uneven
jwc consultancy ’ s senior consultant Sebastian Witt gives an exclusive preview of the new industry report , Global Industry Performance Review , and says the global exhibition market can surpass 2019 revenues in 2024
n this year ’ s Global
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Industry Performance Review ( GIPR 2023 ), jwc ’ s latest extensive industry report , the Cologne-based consultancy addresses a multitude of topics of key relevance for the exhibition industry ’ s future development . Starting with the macroeconomic context , the global outlook appears to be moderately positive .
As of 2024 , a recovery has unfolded , underpinned by high GDP growth rates in many regions . It is now expected that growth rates will gradually stabilise , converging to slightly lower pre-crisis levels , but the trajectory remains uneven across regions . Emerging markets continue to be significant growth drivers , however , after surpassing the US in total output ( adjusted for purchasing power ), China ’ s pace is cooling down .
While the projections for the global economy are positive , several risks lie ahead : rising protectionism and geopolitical tensions , which may hinder global trade ; increasing socio-economic inequality , which could fuel political polarisation ; geopolitical conflicts that may disrupt supply chains and effect international relations ; and finally the escalating urgency of addressing climate change , to mitigate its direct impacts and preventing natural disasters . When looking at the global exhibition market , the GIPR 2023 indicates a positive outlook , with the global market well on its path to full recovery . This resurgence is propelled by underlying strong fundamentals and the emergence of developing markets .
The recovery across different regions has been uneven , with Asia notably lagging , primarily due to China ’ s extended lockdown in 2022 . Established markets like the UK and US experienced a swifter rebound . In Europe , Spain led the recovery thanks to its early reopening , while the largest market , Germany , continued to lag in 2022 and 2023 .
The global exhibition market is to surpass 2019 levels in terms of revenues by 2024 , while it will take another year for net rented space to catch up . Overall , the expansion in revenue is outpacing the growth in net rented space in most countries . This trend is primarily driven by inflation-driven price increases ,
Above : Sebastian Witt
digital and service revenues as well as insurance proceeds .
After two disastrous years , 2022 marked a resurgence for many organisations in the industry . Aggregated revenues of the largest 40 exhibition companies were down merely 14 % compared to 2019 ’ s level , with the majority of firms returning to operational profits after substantial losses in 2020 and 2021 .
On average , the venue owning organisers experienced a more robust recovery thanks to alternative revenue streams , such as serving as vaccination centres or shelters , coupled with their reliance on state subsidies during the pandemic . Pure organisers were still significantly impacted by the limited international activities in key markets such as China . During the pre-Covid decade pure organisers outperformed venue owning entities by both revenue growth rates and EBIT margins .
Notably , in 2022 , seven companies reported revenues from recurring operations that surpassed 2019 figures . The data shows that revenue sources and structures vary significantly between organisations .
An analysis of operational KPIs revealed several key findings . While the workforce of the top-40 companies decreased by almost 15 %
20 Issue 1 2024