Understanding the Surge in Demand for Event Management in India

India is recognized for its cultural diversity and celebrations, be it professional or personal. Festivals and events play an important role in people's lives in India; there is often some special occasion to celebrate, which presents a great opportunity for event management industry in the country. Event management is the process of planning, organising and executing events on behalf of clients in a focused and efficient manner. It involves several tasks that range from logistics to finance, while ensuring a seamless experience for clients and their guests. This industry is diverse and can be classified in multiple subgroups, such as Meetings, Incentives, Conferences and Exhibitions (MICE), as well as educational, corporate, music and entertainment, political, and social events. This industry significantly contributes towards employment as it hires over 10 million people directly and 50 million indirectly.

The growth of event management industry

The event management industry’s popularity in the country is growing in recent years, driven by the increasing demand for well-organised events. The rising popularity suggest that people are willing to shift from traditional ways of managing events by themselves to invest in hiring event managers. The event management industry in India is attracting foreign investment as the number of international events held in the country, such as, conferences, exhibitions and live music events, increased. The industry also receives support from the Government of India’s initiatives such as hosting meeting and events during the G20 presidency as well as from ministry of tourism initiatives in promoting MICE.

Source: Mordor Intelligence

As per Mordor Intelligence India Event and Exhibition, market size is estimated to reach US$ 5.23 billion in 2024 and is expected to expand at a CAGR of 8.31% during 2024-29 to reach US$ 7.80 billion.

Growth drivers of event management industry

• Large-scale commercial events
  The event management industry in India rapidly expanded, driven by the growing demand for well-organised events ranging from annual trade fairs to state-hosted festive carnivals, reality shows, beauty pageants, educational events and other events. The desire for media exposure and a seamless experience is a major factor in the growing demand for professional event management companies. These organisations provide end-to-end services, from conceptualisation to execution, ensuring the success of a wide range of events across the country.
• Modern business strategies
  In the modern era, promotion is essential for the survival and success of any service, product, brand or celebration. The outward display of events has become a pivotal tool in establishing a renowned brand identity. While public events were limited to the entertainment industry earlier, the rise of social media platforms encouraged organisations across sectors to use events to publicise their products and services. From corporate business events and product launches to exhibitions, trade fairs and media promotions, these occasions are strategically designed to captivate the public's attention through entertainment and hospitality.
• Growing affluence
  The modern lifestyle, busy corporate jobs and disturbed work-life balance is driving demand for professional event management services. People are capable of spending on event management services due to rise in financial capabilities, driven by the growth in disposable incomes. This has fuelled the demand for event management services in India. As per an article in the Economics Times, per capita disposable income is projected to grow 8.0% yoy and reach Rs 2.14 lakh (US$ 2,558.97) by 2023-24. With growth of disposal income individuals are willing to invest in well-organised celebrations to create memorable experiences for their loved ones. Additionally, the trend of growing number of nuclear families led to a decreased ability to manage private affairs and social gatherings within the family. This prompted individuals to seek the assistance of event management companies to plan and execute these events, ensuring a high-quality experience.
• Technology innovation in the industry
  The event management industry evolved towards a hybrid model, blending the benefits of virtual and on-ground experiences. This shift was driven by the pandemic, with technology enabling accessible and affordable solutions for the masses.
  AI plays a crucial role in event conceptualisation, feedback collection and decision-making. Crowdsourcing has become the norm, and creativity, innovation and upskilling are key to the industry's future. Venues have expanded beyond physical spaces, with virtual platforms offering a range of features for efficient and convenient event experiences. Real-time data analysis informs event planning, and event security remains a top priority for organisers. This hybrid approach transformed the event management landscape, catering to the evolving needs of organisers and attendees.

Upcoming trends in event industry

• Increased focus on weddings
  The Indian wedding industry in one of the largest in the world, driven by factors such as urbanisation, rising income, the rise of wed tech and social media influence. As per Business standard article in 2023, the industry recorded a remarkable Rs 4.74 trillion (US$ 57.38 billion) in earnings, marking a 26.4% increase compared to the previous year. As per a report by WedMeGood, the industry is expected to reach US$ 75 billion in the 2023-24 wedding season, marking a significant recovery from pandemic.
• Increasing fan following of sports events
  The rise of league-based sporting events considerably boosted the popularity and recognition of various sports in India. Cricket, hockey, kabaddi, tennis, badminton and wrestling gained greater fame and attention through these organised league formats. The introduction of events like the Indian Super League, Pro Kabaddi League, Indian Premier League has been instrumental in driving increased viewership, attracting more sportspeople, broadcasters and sponsors to these sports.
• Popularity of live concerts and music events
  India’s music industry is undergoing a significant change in the post-pandemic era. Music fans are excitedly attending concerts by renowned national and international artists, with events like Ed Sheeran's performance in Mumbai drawing large crowds of 50,000 people in March 2024. The live music segment has become BookMyShow's fastest-growing category, accounting for 25% of its revenue since 2022, indicating a thriving and vibrant industry.

Challenges

The event management industry in India faces unique set of challenges that also present significant opportunities for growth. The absence of a government policy and framework, as well as the absence of a structured setup, have created an environment that needs innovative solutions as this market is growing. Additionally, the industries require trained and skilled professionals highlight the potential for talent development and capacity building. However, the industry's robust market networks with the tourism and hospitality sectors also suggest that the industry is poised to benefit from growth in areas such as family functions, cultural events, festivals, exhibitions, and conferences. By focusing on these challenges, the event management industry can achieve success and contribute to the overall economic and social welfare of country.

Conclusion

The event management industry in India is rapidly growing and presenting a rewarding opportunity for young talent in the industry, driven by the growing demand for well-planned and executed events. The event management industry is also undergoing technological development after the pandemic, which also boosted the market of hybrid methods of event management. Additionally, the popularity of sports events and live concerts are growing in the country which is indicating a change in people's preferences in entertainment industry, and growing demand for such events in the future. To cope up with the trends, industry is evolving to meet the changing needs of clients, promising a bright future for event management companies in India.