Between digitalization and human interaction: The global trade fair industry in the tension between regional perspectives

Does psychology beat algorithms? Digital disillusionment? Numbers prove why the B2B world is returning to “analog truth”.

In an era where algorithms solve complex queries in milliseconds, video conferencing connects the globe, and marketing budgets increasingly flow into digital channels, a seemingly paradoxical phenomenon is taking place: the global economy is making a powerful comeback to trade fair halls. Contrary to all predictions that foretold the demise of physical events, companies worldwide are once again investing over 40 percent of their marketing budgets in the analog world. But is this mere nostalgia or a cold, hard economic necessity?

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• This article was written in response to a topic suggested by Dominik Heigemeir (FESTO) on LinkedIn, where he poses the ever-interesting question: Do we still need trade fairs today?

Analysis of global markets reveals that the motivations are as diverse as the cultures themselves. While US CEOs now calculate trade fair attendance as a hard-nosed ROI tool with a return of 5:1, Europe – and Germany in particular as the undisputed global market leader – finds itself caught between centuries-old trading traditions and modern efficiency pressures. At the same time, a new form of competition is emerging in Asia with the "speed of China," redefining not only exhibition space but also technological integration.

Yet, above all regional differences looms a shared insight that no artificial intelligence can simulate: trust is analog. The latest neurophysiological findings and hard sales figures prove that the "human touch" in B2B business is not a soft factor, but the hardest currency in competition. The following deep dive illuminates the fascinating dynamics between Frankfurt, Las Vegas, and Shanghai and explains why a physical handshake will be more valuable than a thousand clicks in 2025.

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North America: The pragmatic comeback of physical presence

The United States has undergone a remarkable shift in its attitude toward trade shows over the past two years. After the pandemic forced a comprehensive digitization of business communications, there is now a clear renewed focus on the value of physical interactions. The American trade show market reached a volume of $15.78 billion in 2024, surpassing the revenues of the pre-crisis year of 2019 for the first time. Market analysts forecast further growth to over $17.3 billion by 2028, representing an average annual growth rate of 2.77 percent.

These figures, however, only tell part of the story. The North American perspective on trade shows is deeply influenced by pragmatic considerations. American companies view trade show participation through the lens of rigorous return-on-investment calculations. One key insight has emerged: 81 percent of trade show attendees in the US have purchasing authority. This means that more than four out of five people who visit a trade show booth actually have the power to make purchasing decisions without having to consult multiple levels of management. At a time when accessing executives via digital channels has become increasingly difficult and expensive, trade shows offer direct and efficient access to decision-makers.

The American business world has also recognized that trade fair visitors exhibit a significantly higher willingness to buy than contacts gained through other channels. Studies show that trade fair visitors are 72 percent more likely to make a purchase from an exhibitor they have met personally at a trade fair compared to a competitor they have never met. This statistic alone justifies the considerable investments in trade fair participation for many American marketing managers.

Another aspect that is central to the North American perception concerns the quality of the leads generated. While digital marketing channels often generate a large number of contacts, these differ fundamentally in quality. The average cost per lead at trade shows ranges from $811 to $881, which initially seems high. However, compared to the cost of personal office visits at $250 per lead, trade shows are 38 percent more cost-effective. Even more importantly, 67 percent of trade show attendees represent new prospects and potential customers for exhibiting companies. These contacts are already qualified, as they are actively seeking solutions and are willing to invest time and resources in attending the trade show.

American business culture places great emphasis on measurable results. One study found that 14 percent of Fortune 500 companies achieve a 5:1 return on investment from trade show participation. This means that for every dollar invested, five dollars in revenue are generated. These figures have led to a boom in the trade show industry in North America, despite the general trend toward digitalization. Private equity investors have recognized the industry's appeal. The trade show industry is characterized by predictable cash flows and a stable business model, making it particularly attractive to financial investors.

An interesting phenomenon is emerging in the allocation of trade show budgets. While digital marketing channels were once considered the future, physical events are now experiencing a renaissance. During the pandemic, companies realized that purely digital formats cannot replace certain aspects of business development. A survey of CEOs revealed that experts believe their revenue generation capacity could increase by 36 percent if all key meetings were held in person. This is based on the assumption that one face-to-face meeting has the same effect as three virtual meetings. This finding has far-reaching consequences for the budget allocation of American companies.

Despite growing competition from Asia, the United States remains the most important target market for international trade fair organizers. The sheer size of the American market, combined with the purchasing power of American companies, makes the USA a key market for global trade fair providers. The American perspective is strongly influenced by a competitive mindset. Trade fairs are viewed as strategic tools for gaining market share, showcasing innovations, and monitoring the competition. This instrumental view differs significantly from the European tradition, which also sees trade fairs as venues for industry networking and knowledge exchange.

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Europe: Tradition meets economic pragmatism

The European trade fair landscape presents itself as the world's largest and most established ecosystem in the industry. In 2024, Europe attracted approximately 102 million trade fair visitors, thus consolidating its position as the global number one, ahead of North America with 89 million and Asia-Pacific with 84 million visitors. However, these figures reflect only a fraction of the deeper significance that trade fairs hold in European business culture.

The European perspective on trade fairs has historical roots. For centuries, trade fairs were central marketplaces where merchants from all parts of Europe and the world came together. This tradition continues to this day. In Europe, trade fairs are not only understood as marketing tools, but as an integral part of the economic infrastructure. They serve as barometers of economic developments, as hubs of innovation, and as platforms for building long-term business relationships.

The European trade fair market is estimated to reach approximately $10 billion in 2027, up from $8.7 billion in 2022. The trade fair industry contributes roughly €39.5 billion annually to the European gross domestic product. This economic significance is increasingly recognized by policymakers. In many European countries, the trade fair industry enjoys political support, as it is seen as a catalyst for economic growth and employment.

However, the European perspective is not uniform. Significant regional differences exist within Europe. Germany occupies a special position in this regard. With approximately one-third of all international trade fairs worldwide, Germany is the undisputed global leader in the trade fair business. In 2024, 2.46 million international visitors attended the 176 national and international trade fairs held in Germany. The proportion of international visitors was 34 percent, a figure unmatched worldwide. No other trade fair host country attracts a comparatively large number of international guests.

The German trade fair industry is characterized by several distinctive features. German trade fair companies are often municipal enterprises or institutions with public participation. This leads to a long-term strategic focus that is less driven by short-term profit expectations. The trade fair infrastructure in Germany is exceptional. Four of the world's eight largest exhibition centers are located in Germany. The total exhibition space of German exhibition venues amounts to 2.8 million square meters. This infrastructure is the result of decades of investment and strategic planning.

From a German perspective, trade fairs are the second most important marketing channel for companies, right after their own website. This is reflected in budget allocation: On average, German companies invest approximately 42.2 percent of their total marketing budget in trade fairs. For smaller companies, this figure is even higher, exceeding 50 percent. This high concentration on trade fairs is not observed in other countries and reflects the central importance that trade fairs hold in German business culture.

However, the German trade fair industry is also undergoing a transformation. For the first time in five years, the marketing budgets of German industrial companies declined by an average of 3.1 percent in 2025. At the same time, the costs for external services rose by approximately 17 percent. This is leading to increased pressure to demonstrate the efficiency of trade fair participation. German companies are increasingly demanding reliable key performance indicators and measurable successes from their trade fair participation.

The overall economic importance of the German trade fair industry is considerable. Trade fairs secure an average of approximately 231,000 jobs per year in Germany. The economic production effects induced by trade fairs amount to around €28 billion in a typical trade fair year. Tax revenues for all levels of government are approximately €4.5 billion annually. These figures illustrate that trade fairs have an impact far beyond their direct economic activity.

However, the European trade fair landscape also faces challenges. Economic uncertainty, geopolitical tensions, and rising costs are putting the industry under pressure. In countries like Great Britain, France, and Italy, the trade fair landscape is more strongly influenced by commercial interests, leading to more intense competition. International trade fair groups such as Reed Exhibitions and Informa are increasingly dominating the European market and bringing with them a more Anglo-Saxon business philosophy.

A key aspect of the European perspective is the increasing importance of sustainability. European trade fair organizers and exhibitors are placing growing emphasis on ecological considerations. Reducing CO2 emissions, using sustainable materials in exhibition stand construction, and promoting environmentally friendly mobility are becoming important differentiators. This development reflects the broader societal discussion on climate protection in Europe and is increasingly influencing the design and perception of trade fairs.

Business-to-business (B2B) trading platforms have become a critical part of global trade dynamics and thus a driving force for exports and global economic development. These platforms offer significant benefits to companies of all sizes, particularly SMEs – small and medium-sized businesses – which are often considered the backbone of the German economy. In a world where digital technologies are becoming increasingly prominent, the ability to adapt and integrate is crucial to success in global competition.

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Germany: World market leader between tradition and transformation

Germany occupies a truly exceptional position in the global trade fair industry. This position is based on a unique combination of historical, economic, and infrastructural factors. The German perspective on trade fairs is deeply rooted in the post-war economic order, when trade fairs played a central role in the reconstruction of German industry.

In 2024, a total of 322 trade fairs took place in Germany, including 176 international and national events and 138 regional events. Germany hosts approximately two-thirds of all international trade fairs worldwide. This dominance is remarkable and unparalleled in any other industry in terms of concentration in a single country. The international reach of German trade fairs is reflected in the exhibitor figures: 107,370 foreign companies presented their products and services at German trade fairs in 2024. China led the list with 20,630 companies, followed by Italy with 10,690, the Netherlands with approximately 5,020, Turkey with 4,920, and France with 4,820 exhibitors.

Germany's central location in Europe plays a crucial role. The European single market, with its approximately 500 million consumers and an economic output of around €11.5 trillion, is easily accessible from Germany. The excellent transport infrastructure, with its dense motorway and rail networks as well as first-class airports near all major trade fair venues, makes Germany the ideal location for international companies to hold exhibitions.

The German trade fair landscape is characterized by remarkable diversity. There are 25 exhibition centers of international or national importance. Major exhibition centers such as Frankfurt, Cologne, Düsseldorf, Munich, Hanover, and Berlin compete with one another, leading to continuous improvements in infrastructure and services. This federal structure distinguishes Germany from countries with a single dominant exhibition center and creates a decentralized network of competence and expertise.

From the perspective of German companies, trade fairs fulfill multiple functions. For 86 percent of German exhibitors, maintaining contact with existing customers is the most important goal of participating in a trade fair. This reflects the German business philosophy, which values ​​long-term customer relationships more highly than short-term transactions. Acquiring new customers follows in second place with 84 percent, and presenting new products in third place with 82 percent. This prioritization differs from the more sales-oriented American perspective.

The economic significance of trade fairs is studied particularly intensively in Germany. The ifo Institute has calculated that the overall economic production effects of trade fairs amount to approximately €28 billion in a typical year. This figure takes into account not only the direct expenditures of trade fair organizers but also the indirect and induced effects. Every euro invested in organizing a trade fair triggers further economic activity through supply chain effects and employee consumption. The multiplier effect is estimated at approximately 2.27, meaning that every euro spent directly generates an additional €1.27 in economic activity.

The trade fair industry secures approximately 231,000 jobs in Germany. These jobs are distributed across various sectors: trade fair organizers, stand builders, logistics companies, hotels, restaurants, transport providers, and many other industries benefit directly or indirectly from trade fairs. Tax revenues from trade fairs amount to approximately €4.5 billion annually and are distributed to the federal, state, and local governments.

However, the German perspective on trade fairs is not without its critical voices. Germany's economic situation has deteriorated in recent years. With projected growth of only 0.2 percent for 2025 and structural challenges in key industries, marketing budgets are under pressure. Companies are scrutinizing their trade fair participation more critically and increasingly demanding proof of return on investment. The AUMA study "Exhibitor Outlook 2025/2026" shows that 57 percent of companies intend to maintain their trade fair participation at a constant level, while 21 percent plan to increase it and approximately 18 percent plan to reduce it.

Another aspect of the German perspective concerns digitalization. During the pandemic, numerous digital and hybrid trade fair formats were tested. However, the response was mixed. Purely virtual trade fairs failed to gain traction. After 50 virtual events in 2020 and 66 in 2021, only one trade fair took place entirely digitally in 2022, and none at all in 2023. This demonstrates that personal contact, the tactile experience of products, and spontaneous networking at a trade fair cannot be adequately replaced by digital formats. Hybrid formats, which combine physical and digital elements, are increasingly seen as a valuable addition, not a replacement.

The German trade fair industry is undergoing a phase of strategic realignment. Artificial intelligence is being used increasingly, for example in matchmaking systems that bring exhibitors and visitors together in a targeted manner, or for analyzing visitor flows and interests. 72 percent of German trade fair organizers see AI as an opportunity, and 70 percent are already using the technology. This openness to innovation, combined with an emphasis on personal contact, characterizes the German perspective.

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Asia: Dynamic growth and strategic ambitions

The Asian perspective on trade fairs is characterized by rapid growth, strategic investments, and an ambition to fundamentally transform the global trade fair landscape. With 84 million visitors in 2024, Asia-Pacific is already the world's third-largest trade fair market, and growth rates indicate that this region will challenge Europe and North America in the near future.

The rented exhibition space in Asia is expected to increase by 34 percent by 2030 compared to 2019. By comparison, growth of only two percent is expected in Europe over the same period. These figures illustrate the tectonic shift taking place in the global trade fair industry. Asia is not only expanding but is also developing its own trade fair formats and standards, which are gaining increasing international influence.

Asia's economic dynamism forms the backdrop for this development. According to forecasts by the International Monetary Fund, economic growth in Asia will be ten percentage points above the global average between 2024 and 2030. While the global economy is expected to grow by approximately 39 percent, Asia is projected to expand by 49 percent. This growth is primarily fueled by intra-Asian trade. According to UNCTAD data, 58.5 percent of Asian trade takes place within the continent. This economic integration creates an enormous demand for trade fair platforms to facilitate exchange between Asian companies.

Asian imports are expected to increase by 27 percent between 2023 and 2030, while exports are projected to rise by 34 percent. These figures illustrate that Asia is gaining importance not only as a production location but also increasingly as a consumer market and innovation hub. Trade fairs play a crucial role in this context, serving as platforms for accessing new markets, transferring technologies, and forging strategic partnerships.

However, the Asian trade fair landscape is by no means homogeneous. Significant differences exist between individual countries and regions. China, Japan, South Korea, India, and the ASEAN states pursue different strategies and have each developed their own strengths.

China: From imitator to innovator

Over the past two decades, China has become the dominant force in the Asian trade fair industry. In 2023, China was the leading exhibiting nation at trade fairs in Germany, with over 20,630 companies. This demonstrates not only the export orientation of Chinese companies but also their growing confidence in international markets. At the same time, China has invested heavily in its own trade fair infrastructure.

The Chinese perspective on trade fairs is heavily influenced by state control. Trade fairs are seen as strategic instruments for promoting specific industries and positioning China within global value chains. The concept of New Quality Productive Forces, identified in 2024 as a key driver for the development of the Chinese trade fair industry, illustrates this approach. Trade fairs are intended to foster innovation, showcase new technologies, and position China as a leading economic power.

The speed at which the Chinese trade fair landscape is developing is remarkable. The term "China speed" describes the rapid implementation of projects. Exhibition stands are sometimes erected overnight, and new trade fair formats are conceived and implemented within a very short time. This agility differs fundamentally from the established processes in Europe or North America and gives China a competitive advantage in exploring new topics and markets.

However, challenges are also emerging. The rented exhibition space in China in 2024 was still eight percent below the 2019 level. This indicates structural adjustment processes. The Chinese economy is undergoing a transformation from an export-driven to a more domestically oriented growth model. This has implications for the nature and focus of trade fairs. While export-oriented industrial trade fairs dominated in the past, consumer goods fairs and events for the domestic market are now gaining in importance.

The Chinese perspective on trade fairs is increasingly influenced by geopolitical considerations. In a time of growing tensions between China and Western countries, trade fairs also serve as platforms for economic diplomacy. They are intended to attract international partners, demonstrate China's openness, and simultaneously showcase the technological capabilities of Chinese companies. The China International Import Expo in Shanghai is an example of this strategic use of trade fairs as instruments of economic policy.

Digitalization plays a central role in the Chinese trade fair landscape. Chinese trade fair organizers and exhibitors are integrating digital technologies faster and more comprehensively than their Western counterparts. Live streaming of exhibition stands, virtual showrooms, AI-powered visitor guidance, and integrated e-commerce functions are already widespread in China. This enthusiasm for technological innovation is fundamentally changing the trade fair experience and setting new standards for the global industry.

For international companies, China is becoming an increasingly important trade fair market. Despite the complexity of the Chinese market and cultural differences, participation in Chinese trade fairs has become indispensable for many industries. As part of its 2026 foreign trade fair program, Germany is supporting a total of 27 joint stands in China, the second highest number after the USA. This underscores the strategic importance attributed to the Chinese market.

The Chinese trade fair industry exemplifies the shift in economic power centers from West to East. While Western trade fair companies are active in China and contribute their expertise, China is increasingly developing its own trade fair formats and standards. These could become models for other Asian countries in the medium term and have a lasting impact on the global trade fair landscape.

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The fundamental question: Why even bother with measuring anymore?

Given the increasing digitalization, powerful configurators that can calculate complex systems in seconds, and artificial intelligence that answers questions in a matter of seconds, the continued existence of trade fairs seems questionable at first glance. Indeed, a trade fair is in many ways the exact opposite of what digitalization promises: it is slow, analog, and profoundly human.

Nevertheless, despite shrinking marketing budgets, companies worldwide continue to invest over 40 percent of their resources in this form of personal interaction. This seemingly paradoxical situation can only be understood by analyzing the underlying mechanisms of successful business relationships. Studies show that genuine conversations still clarify issues that no algorithm can grasp. The complexity of human communication, the nuances of trust, and the intricacies of relationship building cannot be fully digitized.

Trust is the key to understanding the trade fair phenomenon. Research in the field of economic psychology shows that people trust those they have met in person significantly more than virtual contacts. The handshake, direct eye contact, body language – all these elements of communication contribute to building trust and cannot be replicated in virtual formats. One study found that 87 percent of CEOs are firmly convinced that technology will never replace the value of strategically important personal meetings.

Complex solutions, such as those common in the B2B sector, are often only truly understood when you can see them, touch them, and discuss them directly. A technical manual or a video demonstration may be informative, but the tactile experience, the opportunity to ask questions and receive immediate answers, and the chance to experiment with different configurations in real time create an understanding that is difficult to achieve digitally.

Neurophysiology supports these observations. People remember information better when it is received in a personal context. Activating multiple sensory channels simultaneously—sight, hearing, touch, and sometimes smell and taste—leads to deeper neural connections and thus to better memory. A visit to a trade fair creates experiences that are memorable and include an emotional component that mere factual information cannot provide.

Trade fairs today function as a deliberately chosen counterpoint to the digital customer journey. In a world where the vast majority of business communication takes place digitally, trade fairs offer a space where it is decided whether interest will actually translate into collaboration. They are the moment of truth, where potential partners meet in person and determine if there is a good fit. This human element remains the decisive factor for long-term business relationships, despite all technological advances.

The future of the trade fair industry will not lie in the displacement of digital channels, but in their intelligent integration. Hybrid formats, which combine physical and virtual elements, are gaining in importance. They extend the reach of trade fairs beyond those physically present and create new opportunities for interaction. At the same time, personal contact remains at its core. Digitalization will not replace trade fairs, but rather complement and enrich them.

The global perspective reveals that, despite all regional differences, there is a universal need for personal interaction. Whether in the pragmatically oriented USA, in tradition-steeped Europe, in dynamic Asia, or in emerging China – companies everywhere invest considerable resources in trade fair participation. This is not out of nostalgia or habit, but from the rationally grounded conviction that trade fairs create a unique added value that cannot be replaced by other channels.

The trade fair industry faces challenges. Rising costs, economic uncertainty, sustainability demands, and the pressure to demonstrate measurable success are putting the sector under strain. Nevertheless, the figures show remarkable resilience. Global revenues are growing, new exhibition centers are emerging in Asia and the Middle East, and established markets in Europe and North America are stabilizing at a high level. This suggests that trade fairs have a future because they fulfill a fundamental need: the need for genuine human connection in an increasingly digital world.

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