The secondary ticket market is projected to experience a significant growth rate of 20.96% CAGR from 2022 to 2027, resulting in a substantial increase in market size of USD 50.14 billion.
During this forecast period, North America is expected to dominate the global market, accounting for approximately 47% of the total market share.
This can be attributed to the region’s abundance of popular musicians, talent shows, sporting events, and bands, which greatly contribute to the secondary ticket market. In terms of revenue, the United States and Canada play a major role in the regional market, with the United States being the largest market due to its robust media and entertainment industry.
Notably, prominent sporting events like the NBA, MLB, and Super Bowl serve as significant revenue generators, fostering the continuous growth of the global secondary ticket market.
Fragmentation in Secondary Ticketing
In the competitive landscape of the secondary ticket market, vendors are actively vying for a larger market share. As the market continues to grow, the potential for new entrants cannot be ignored.
Established vendors benefit from economies of scale and a strong market presence, often leveraging technological advancements and pricing strategies to maintain their competitive edge.
Platforms like TicketRev have emerged to solve the supply and demand issue.
Drivers of Ticketing and Challenges
The growth of online secondary ticketing platforms is a significant driver of market expansion. These platforms are experiencing a surge in demand due to the convenience they offer in ticket booking.
By utilizing online platforms, the efficiency of secondary ticket allocation can be improved, enabling seamless communication between buyers and sellers and reducing the time and costs associated with acquiring resold tickets.
Moreover, various online platforms offer additional benefits to attract customers, further stimulating market growth. Key vendors in the global online secondary ticket market are actively forming strategic partnerships to ensure fair reselling and purchasing of tickets, preventing unauthorized sites from selling overpriced tickets. These factors are expected to drive the global market’s growth in the forecast period.
However, the market faces challenges from initiatives taken by artists to combat secondary ticket sales. Dishonest practices such as ticket squatting and overpricing are prevalent, negatively impacting the market growth.
To address this issue, many artists have implemented measures like paperless ticket transactions, requiring credit card payments and identification verification at the concert venue. These initiatives protect patrons from extortionate secondary ticketing sites and excessive pricing. Nevertheless, these efforts may hinder market growth and reduce profitability for various secondary ticketing platforms during the forecast period.
Tickets Going Forward
The utilization of web3 technology in ticketing is an emerging trend that is shaping the growth of the secondary ticket market. The event ticketing industry faces various challenges, such as fraud, bots, and touts.
Blockchain has the potential to address these issues effectively. It offers a transparent and efficient solution for secondary ticket vendors, streamlining business operations and enhancing the entire value chain, from the artist or club to the original ticket buyer and the resold ticket buyer.
Some companies in the global market are exploring the use of blockchain’s double-spending prevention functionality to combat the production of counterfeit event tickets. The increasing adoption of blockchain in ticketing is expected to reduce fraudulent activities and drive market growth for secondary tickets worldwide in the forecast period.
