Arts, Entertainment, & Recreation

Performance Highlights

The industry has experienced significant volatility due to the COVID-19 pandemic, which caused widespread event cancellations and temporary closures of nonessential businesses. Despite these challenges, the sector is expected to rebound strongly as the pandemic's impact wanes and consumer confidence and disposable income increase.

Geographic Distribution

The highest concentration of establishments is in the West, particularly California, due to its large population and numerous attractions. Other regions with significant concentrations include the Southeast (led by Florida) and the Mid-Atlantic (led by New York).

Industry Outlook

Revenue is expected to grow at a CAGR of 2.2% from 2024 to 2029, reaching $440.3 billion. The sector will benefit from increased disposable income, higher domestic and international travel rates, and pent-up consumer demand for leisure activities.

Competitive Forces

The industry is characterized by low concentration and high competition. Barriers to entry vary by subsegment, with some industries requiring significant capital investment and others having lower start-up costs. Price competition is intense, and businesses must differentiate themselves to attract customers.

Major Companies

Notable players include Live Nation Entertainment, Inc. (4.3% market share), New York State Lottery (2.5% market share), Walt Disney Co (1.7% market share), Smithsonian Institution, and Fitness International LLC. These companies have varying degrees of market share and profit margins, with the New York State Lottery having a notably high profit margin.

Revenue

$395.2 billion

Employees

4 million

Businesses

2 million

Wages

$124.5 billion

Economic and External Factors

The sector includes a wide range of subsegments, each with varying levels of regulation and government assistance. Key drivers of demand include per capita disposable income, the number of adults aged 20 to 64, and both domestic and inbound tourism.