A new report from the market research firm Research and Markets estimates the global market for business travel will reach US$928.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.3% over the analysis period 2022 to 2030.
Its new publication, Business Travel – Global Strategic Business Report, says that food and lodging, a segment analysed in the report, is projected to record 5% CAGR and $509.8 billion by the end of the analysis period. Alongside this, recreation is estimated at 3.8% CAGR for the next eight-year period.
China is forecast to grow at 6.2% CAGR
The business travel market in the US was estimated at $238.4 billion in the year 2022. According to Research and Markets, China, the world’s second largest economy, is forecast to reach a projected market size of $59.2 billion by the year 2030, trailing a CAGR of 6.2% over the period 2022 to 2030.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.2% and 4.3% respectively over the period. Within Europe, Germany is forecast to grow at approximately 3.7% CAGR.
Global GDP projections
Despite witnessing slowing gross domestic product (GDP) growth in response to strained monetary and financial conditions, the US is reported to have overcome the threat of recession. China is expected to see strong increases in GDP in the coming year as the pandemic threat recedes and the government sheds its zero-Covid-19 policy.
The broader economic picture, however, remains fragile and several interlocking challenges continue to run in parallel, according to the report:
- Uncertainty around the war in Ukraine
- Slower than expected decline in global headline inflation
- Continuation of food and fuel inflation as a persistent economic problem for most developing countries
- High retail inflation and its impact on consumer confidence and spending.
Although corporate investments can likely be held back by inflation worries and weaker demand, the rise of new technologies including generative AI, applied AI and industrialising machine learning would in part reverse this prevailing investment sentiment, said Research and Markets. The report points to the potential for new technologies to drive sizeable incremental growth and value to global GDP in the coming years.
The short term is expected to hold a mix of challenges and opportunities for both consumers and investors. As governments continue to combat inflation, reducing it to more economically conformable levels by raising interest rates, new job creation will slow down and impact economic activity, the researchers said. According to the report, stricter regulatory environment, and pressure to mainstream climate change into economic decisions will compound the complexity of challenges faced.