Virtual Event Market to grow by USD 1,066 billion by 2032

Introduction

The global virtual event market is forecasted to grow significantly, with a projected worth of USD 1,066 billion by 2032, representing a remarkable compound annual growth rate (CAGR) of 18.8% .

Virtual events are online gatherings that simulate the experience of in-person conferences, trade shows, and meetings. The virtual event market refers to the industry involved in organizing and providing technology solutions for these digital gatherings. Analysts have a positive viewpoint on the virtual event market, highlighting several driving factors and opportunities.

One of the key driving factors is the increasing need for remote collaboration and networking due to factors like globalization, travel restrictions, and the growing popularity of remote work. Virtual events offer the convenience of attending from anywhere, eliminating the need for travel-related expenses and logistical challenges.

Facts and Virtual Event Statistics

• The virtual event market is forecasted to grow significantly, with a projected worth of USD 1,066 billion by 2032, representing a remarkable compound annual growth rate (CAGR) of 18.8%.
• 41% of event planners anticipate that virtual and hybrid events will form the core of their event programs in 2023, signifying a pivotal shift towards digital engagement as a fundamental aspect of their planning processes.
• ~63% of event planners believe in the essential role of virtual events within their overarching strategic framework, highlighting a strong conviction in the enduring relevance of these events.
• ~67% of marketers are poised to boost their investments in virtual events in 2023, reflecting their confidence in the value and potential returns that such events can deliver.
• 59% of event organizers aim to provide options for both in-person and virtual participation in 2023, emphasizing an increasing focus on accessibility and inclusiveness in event attendance.
• ~74% of those who have attended virtual events express a likelihood to participate in future virtual events, indicating a positive reception and satisfaction among attendees.
• ~52% of event organizers intend to offer hybrid events in 2023, marking an increase from ~35% in 2022. This substantial growth signals a shift in the event landscape towards more versatile and integrated event formats.
• ~59% of event professionals foresee hybrid events surpassing in-person events in prevalence in 2023, illustrating a strategic pivot towards event formats that meld the advantages of physical and digital interaction.
• 67% of event marketers recognize the cost-effectiveness of virtual events compared to their in-person counterparts, underscoring the financial and logistical benefits of virtual event platforms.
• ~61% of event professionals affirm the critical role of virtual events in their long-term strategic vision, reinforcing the notion that digital engagement channels are paramount to the future dynamics of the event industry.
• Augmented Reality and Virtual Reality Market size is expected to be worth around USD 106.2 Billion by 2033, from USD 34.8 Billion in 2023, growing at a CAGR of 11.8% .
• Immersive-reality Technologies market size is poised to cross USD 90.8 Billion in 2023 and is likely to attain a valuation of USD 780.4 Billion by 2033, with a CAGR of 24%.
• Augmented Reality Market is anticipated to be USD 591.7 billion by 2033. It is estimated to record a steady CAGR of 39.5% in the Forecast period 2024 to 2033. It is likely to total USD 29.6 billion in 2024.
• External virtual events are poised to dominate the market, driven by increased adoption for trade shows, product launches, and customer conferences.
• Communication services hold the largest market share, facilitating real-time interactions and collaborations. Sales and marketing segments are expected to witness substantial growth, fueled by aggressive promotional activities.
• Enterprises lead the market, leveraging virtual platforms for advertising, customer engagement, and internal communications. Educational institutions are also embracing virtual events for academic purposes, driving further market growth.
• North America: Leads the global market, attributed to advanced network infrastructure and early adoption of technology. The region’s rapid uptake of digital simulation platforms, particularly in healthcare, drives market expansion.
• Asia Pacific: Expected to exhibit the fastest growth rate, fueled by increasing adoption of new technologies and high-speed networks. Countries like China, Japan, and India are key contributors to market growth.
• Zoom and Microsoft are prominent players in the virtual event market, capturing a significant market share. Companies are increasingly investing in AI-based solutions and strategic partnerships to enhance virtual event experiences.

Emerging Trends

Emerging trends in the virtual event sector reflect the industry’s evolution and response to changing demands and technological advancements. These trends are shaping the way organizations plan, execute, and experience virtual events. Here are some key points highlighting these trends:

• Hybrid Events: Combining in-person and virtual experiences, hybrid events offer flexibility and wider reach. This approach enables participation from a global audience while maintaining the intimacy and engagement of physical attendance.
• Enhanced Interactivity: Technologies like live polling, Q&A sessions, and virtual breakout rooms are becoming more sophisticated, facilitating greater interaction among participants. This trend is driven by the need to mimic the engagement levels of physical events.
• Virtual Reality (VR) and Augmented Reality (AR): The use of VR and AR is on the rise, offering immersive experiences that can transport virtual attendees to simulated environments. These technologies are being leveraged to create more engaging and memorable events.
• AI-powered Networking: Artificial intelligence is being used to enhance networking opportunities at virtual events. AI algorithms can match attendees with similar interests, facilitating meaningful connections and conversations.
• Sustainability Focus: Virtual events are inherently more sustainable than physical ones, with a lower carbon footprint. The emphasis on sustainability is becoming a key selling point, appealing to environmentally conscious participants and organizations.
• On-demand Content: The availability of event content on-demand is increasing, allowing participants to access sessions and materials at their convenience. This flexibility caters to the diverse schedules and time zones of a global audience.

Major Challenges

In the virtual event market, there are several major challenges that organizations and event organizers face. These challenges, described in a human-friendly manner, include:

• Technology and Infrastructure: One of the primary challenges in the virtual event market is ensuring reliable technology and infrastructure. Hosting a successful virtual event requires robust internet connectivity, stable platforms, and scalable solutions that can handle a large number of attendees. Technical issues, such as connectivity problems, audio/video glitches, and platform outages, can negatively impact the attendee experience and overall event success.
• Engagement and Interactivity: Creating engaging and interactive experiences in a virtual environment can be challenging. Unlike in-person events, virtual events lack the physical presence and face-to-face interactions that foster networking, collaboration, and engagement. Event organizers need to employ innovative strategies and technologies to keep attendees actively involved, such as live polls, Q&A sessions, virtual networking lounges, and gamification elements.
• Attendee Fatigue and Attention Span: Virtual event fatigue has become a prevalent challenge as attendees may experience screen fatigue and limited attention spans. Sustaining attendee interest and preventing distractions in a digital setting require careful planning, compelling content, and effective session formats. Event organizers must strive to deliver concise and captivating sessions while providing opportunities for breaks and networking to maintain attendee engagement.
• Monetization and Revenue Generation: Monetizing virtual events can be challenging compared to traditional in-person events. Finding the right pricing models, sponsorship opportunities, and value propositions that attract both attendees and sponsors is crucial. Event organizers need to explore innovative revenue streams, such as premium content access, virtual exhibition booths, and targeted advertising, to generate revenue in the virtual event market.
• Data Privacy and Security: The virtual event market involves the collection and handling of personal data from attendees, which raises concerns about data privacy and security. Event organizers need to ensure compliance with data protection regulations, implement secure platforms, and establish transparent data policies to protect attendee information and maintain trust.

Broader Benefits

The broader benefits of virtual events extend beyond immediate cost savings and convenience, encompassing significant impacts on accessibility, sustainability, and innovation. These benefits are transforming industries, enhancing learning opportunities, and fostering a more inclusive global community. Here are some key points highlighting these advantages:

• Global Reach and Inclusivity: Virtual events eliminate geographical barriers, allowing people from around the world to participate regardless of their location. This global reach fosters inclusivity, enabling a diverse range of voices and perspectives to be heard.
• Reduced Environmental Impact: Without the need for physical venues, travel, and accommodation, virtual events significantly lower the carbon footprint associated with hosting and attending events. This contributes to sustainability efforts and aligns with the growing demand for environmentally responsible practices.
• Cost-Effectiveness: Organizing and attending virtual events is generally less expensive than their in-person counterparts. Reduced costs can make events more accessible to startups, non-profits, and individuals with limited budgets, democratizing access to information and networking opportunities.
• Flexibility and Convenience: Participants can join virtual events from the comfort of their homes or offices, saving time and resources. This flexibility also accommodates different time zones and schedules, enhancing participation rates.
• Enhanced Data Collection and Analytics: Virtual platforms offer advanced tools for tracking engagement, participation, and attendee behavior. This data is invaluable for organizers to improve future events, tailor content, and demonstrate ROI to sponsors.
• Innovative Content Delivery: Virtual events encourage the use of cutting-edge technologies and creative presentation formats. This innovation enhances the attendee experience, making learning and engagement more dynamic and memorable.

Conclusion

In conclusion, the virtual event market has experienced significant growth and transformation, driven by factors such as globalization, remote work trends, and the impact of the COVID-19 pandemic. While the market presents numerous opportunities for organizations and event organizers, it also comes with its fair share of challenges. These challenges include ensuring reliable technology and infrastructure, creating engaging and interactive experiences, combating attendee fatigue, monetizing virtual events effectively, addressing data privacy and security concerns, and navigating the learning curve associated with virtual event platforms. However, with the right strategies, innovation, and adaptability, these challenges can be overcome.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF