GLOBAL MICE: OPPORTUNITIES AND FORECASTS
The MICE industry size was valued at $805 billion in 2017 and is expected to grow at a CAGR of 7.6% to reach $1,439.3 billion by 2025. MICE industry offers tourism services in which organizers and suppliers that manage and deliver meetings, conferences, exhibitions, and other related events held to achieve a range of professional, business, cultural, or academic objectives. MICE industry growth shall have a positive impact in the growth of businesses, cities, destinations, and other covered spectrum.
There has been a surge in presence of corporate industries all around the globe. This has increased the frequency of business activities such as client meetings, brand promotions, and employee training activities and has supplemented the growth of global MICE industry. Moreover, rise in government initiatives to promote SMEs and liberalization of market entry to increase FDIs has boosted the growth of this market even further. Other significant factors that promote the growth of the market are change in lifestyle of business travellers to seek leisure trips, rapid urbanization, and industrial growth. Furthermore, infrastructural development and continuous technological advancements in emerging nations has fueled the MICE Industry market growth. However, high cost associated with MICE events and uncertain global geopolitical conditions hamper growth of the market. Factors such as investments in infrastructural development and technological advancements are expected to provide avenues for growth in the coming future.
MICE industry has been segmented based on event type, and region. Based on event type, the market is segmented into meetings, incentives, conventions, and exhibitions. By region, the market has been studied across four regions namely, North America, Europe, Asia-Pacific, and LAMEA.
In 2017-2018, the meeting segment accounted for the highest share in the MICE industry. This is attributed to the increase in the globalization of businesses and rise in the number of (SME) Small and Medium-Sized Enterprise all over the world and specially in the emerging economies. Moreover, surge in the growth of travel and tourism as well as hospitality sector has further added to the growth of this segment. Recent trends of organizing hybrid meetings, use of social media and meeting apps is expected to boost market growth in the near future.
The incentive segment is estimated to be the fastest growing segment in the event type segment during the forecast period. Incentive travel is a management tool for rewarding and motivating sales representatives, dealers, distributors, production workers, support staff, and in some cases, customers. The company rewards sales representatives who reach sales targets by sending them on trips. Usually, the incentive trip comes with hotel stays, tour packages, and planned activities such as dinners, parties, and games. The market for incentive segment is driven by the rapid growth in the travel and tourism industry coupled with infrastructural developments and increase in the globalization of businesses.
In 2017, Europe dominated the MICE industry and is expected to continue this trend throughout the forecast period. Asia-Pacific along with Europe contributed more than 50% in the global MICE industry share. The Europe market for MICE industry is primarily driven by the rising demand for meetings and a surge in adoption of smart devices and rise in internet penetration. Asia-Pacific is the fastest growing market and is expected to grow at the highest CAGR throughout the forecast period. Rapid growth in the business travel sector in recent decades have positioned Asia-Pacific as the fastest growing market in the world. The Asia- market for MICE industry is driven by high penetration of internet & technology and by strongly influenced government policies of China, which are focused on regulating a moderate growth of the economy. Moreover, most of the countries in this region are emerging nations and these economies offers lucrative business opportunities for investors.
The key players in the MICE industry focused on acquisition and expansion as the prominent strategy to overcome competition and to maintain as well as improve their market share in the global MICE industry.