The U.S. exhibitions industry remains the strongest in the world but there are signs that the digital revolution and changing business models are starting to take their toll on trade shows, according to a new white paper by the events and technology consultancy AMR International.

AMR noted there were roughly 8,000 shows in the U.S. in 2017, valued at approximately $13.7 billion. Those events are also expected to continue to grow over the next two years, driven by both the "face-to-face element of events and the ‘touch and feel' experience" they enable.

That said, cracks are emerging in the trade show model, according to AMR. The paper's authors noted the recent collapse of the bicycle industry show Interbike in the U.S. and technology trade show CeBit in Germany. Business to retail events "have been particularly challenged, due to the digital revolution in their addressed markets," the authors wrote.

Attendees are demanding more return for the amount of time they spend at shows, which likely accounts for an approximately 3% drop in attendee numbers across the sector, according to AMR. Exhibitors also have more choices and now expect shows to deliver more return on investment. The authors noted that the nation's largest events are shrinking in terms of square footage set aside for exhibit space, although they added that the overall number of exhibitors has been growing, likely driven by a growing number of niche events.

"The consequence is that organizers are finding it increasingly challenging to support sustainable performance, the authors said. "This is true whether they are looking for returns for shareholders, or funds to support activities on behalf of members."

AMR pitches its proposed "Exhibitions 2.0" model as one solution for the troubles facing events organizers. A big focus is on using technology, with the firm specifically pointing to The Toy Association and the Association of Equipment Manufacturers as groups that have set up online business-to-business marketplaces to complement their events. http://bit.ly/2SFnU53