The Financial Health of the Music Festival Support Services Sector in 2025.

The global music festival sector supports a large industry of companies and people dedicated to providing services to ensure that events operate as intended. Without these support services music festivals could not take place, however, there are financial and other challenges for these supply companies to consider in 2025.

It has been widely reported in the media that the global music festival sector has been experiencing significant growth since the pandemic receded. This has had a positive impact on the support service sector but there remain challenges with many regions still experiencing event cancellations often not reflected in the overall sector revenue growth statistics. 

Industry Overview. 
The global music festival market is expected to grow from $2.57 billion in 2024 to $3.04 billion in 2025, representing a compound annual growth rate (CAGR) of 18.1%. (source: The Business Research Company). Long-term forecasts suggest the market could reach approximately $24.46 billion by 2033, with a CAGR of 23.17% from 2025 to 2033. (source: Business Research Insights). These numbers mostly reflect revenue from ticket sales but also account for revenues earned by the numerous support services suppliers. The support sector can include vendors, consultants, equipment suppliers, technology suppliers, security personnel and transportation for example. It is likely that all suppliers have been experiencing both operational challenges along with rising costs in recent times. 

Technology Drivers. 
The ever-changing advances in technology are impacting on all suppliers because they are being forced to invest more to keep up. Whilst technology can improve efficiency and enhance the overall festival-goer experience the up-front costs for suppliers can be crippling. It can take years to see a return on that investment and costs are often passed on to festival organising entities. Ticketing and entrance gate processes are moving towards RFID and biometrics plus on-site payments moving towards cashless payments. The software systems and hardware required for this may require costly investment. Waste management suppliers are constantly looking at technology that can improve on site waste processes referred to as smart waste systems. Equipment suppliers are using high tech materials for temporary structures, and this requires investments in research and new manufacturing processes. Electronic backline suppliers utilise new technology to constantly improve performance and efficiency. 

Sustainability Drivers. 
Every music festival entity now produces sustainability objectives which they measure every year to produce their overall sustainability credentials. These objectives can form a critical part of contracts awarded to suppliers who must comply with numerous initiatives. Power generation is currently a focus for many organisers who are moving to solar or wind turbine alternatives however these solutions have a long way to go to generate the power needed by most festivals and hydrogen is a serious future solution to replace traditional diesel generators. Equipment and temporary structure suppliers are expected to prioritise use of materials that have been recycled or are from sustainable sources to reduce overall waste. Most organisers are encouraging festival-goers to switch to greener modes of transport and use of electrified buses and coaches are sometimes a requirement for transport contractors. Vendor selection by organisers is becoming more stringent with applications from those using locally sourced organic ingredients with minimal packaging being favoured. 

Challenges Remain. 
The key developments of advances in technology combined with strict sustainability credentials is challenging for suppliers who must increase investments to meet the needs of organisers. Profit margins are being squeezed as organisers try to drive down prices combined with supplier’s rising operational costs like electricity, rents, rates and staff for example. Many western countries are still experiencing high inflation, and this has a knock-on effect on staff costs where skilled workers now demand ever higher salaries to meet their own rising costs. Western governments continue to increase the number of rules and regulations required by festival organisers and suppliers which in turn increase the operating costs for all involved. 

For festival organisers planning their next events using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, site planning, cashless payments and contactless ordering.

Image by stokpic via Pixabay

<< Back to articles