While the drive-in theatres became more popular during the COVID lockdowns, they offered social distancing from inside theatres that were shut out. In the spring of 2020, U.S. drive-ins captured an astonishing 85% of the country’s ticket sales (versus ~3% pre-pandemic). Similar pop-ups and new venues appeared worldwide – from Shanghai’s botanical garden drive-ins to Britain’s stately outdoor screenings – driven by nostalgia and safe outdoor entertainment. But as normal cinemas reopened and streaming boomed, questions arose: was this surge a temporary trend, or do drive-ins have lasting business viability?
Pandemic Revival and Its Aftermath
When lockdowns hit, entrepreneurs and existing owners rushed to reopen or repurpose parking lots and parks as open-air cinemas. Classic films and new releases drew families and couples alike (India’s revived drive-ins, for example, often screen Bollywood hits and rom-coms for date nights).
Owners report that drive-ins became destinations – couples would decorate cars for proposals or anniversaries, and even corporations rented them for events. In the US, once-rich drive-in traditions were given new life: operators played reissued blockbusters (e.g., Jaws, Toy Story) and themed nights, and drive-ins briefly accounted for the lion’s share of domestic cinema revenue.
However, the post-lockdown picture is more mixed. Many pandemic-era drive-ins were “pop-up” ventures that closed once restrictions eased. In the US, the number of active drive-ins fell from 318 in 2021 to about 283 in 2024 (versus 305 in 2019). Some shuttered permanently, while others were taken over by new owners attracted by modest profits. Industry insiders note that run-of-the-mill drive-ins never made much profit – tickets are cheap, and operators rely on selling snacks and drinks. One owner bluntly warned that without concession sales, “we would go out of business”. In other words, margins are slim, and the business is often a “labour of love”, as the US Drive-In Theatre Owners Association president put it.
Still, the post-pandemic era hasn’t been entirely a collapse. Several analyses show drive-ins settling into a sustainable niche. Operators report steady (if smaller) audiences for summer seasons, and a few new permanent sites have been announced (for example, Australia’s Dendy Powerhouse opened a high-end outdoor cinema in Brisbane in 2024). The experience retains unique appeal: parents can talk and use phones without disturbing others, and kids can ask questions aloud – comforts not allowed in darkened halls. Even as some Americans drifted away, many proprietors note that customers keep coming back for the ambience and novelty. In one analysis, young and middle-aged people are increasingly drawn to drive-in events for the social and nostalgic vibe.
Market Outlook: Modest Growth Worldwide
Industry forecasts suggest the drive-in cinema market will grow, albeit from a niche base. A recent global report estimates the market at roughly USD 5–5.5 billion in 2024, expanding to about USD 9–10 billion by 2034 (implying ~5–7% annual growth). Growth is uneven by region. North America remains the largest market (over 40% share in 2023), thanks to America’s deep drive-in culture. Europe and Latin America combined accounted for nearly USD 1.8 billion in revenues in 2024, driven by warm-weather countries (Brazil, Mexico) and revival projects (Germany, the UK, and France). The Asia-Pacific region shows the fastest growth: analysts project an ~8.2% CAGR there through 2033. Countries like China, India, Australia and Japan are experimenting with mobile or pop-up drive-ins, and chains (such as Event Cinemas) are adding outdoor offerings.
Market research highlights a few key drivers: rising leisure spending, craving for unique experiences, and digital innovations (better projection and ticketing apps) all fuel interest. A more limited growth capacity can be ascribed to inherent limiting factors: high start-up costs (giant screen, FM transmitter, digital projector ~US$70K), seasonality, and at-home competition. Drive-in revenue took only a 5% share increase in 2023 in the U.S. — somewhat of a recovery but not yet mainstream. Overall, the experts see drive-ins merely as a small but growing segment of the cinema market rather than a blockbuster trend.
Why Consumers Keep Coming
The enduring appeal of drive-ins lies in the experience. They blend nostalgia with modern convenience. Patrons enjoy the privacy of their own cars (so you can snack, chat or even rest without shushing others) and often sweeten the outing with extra activities. Many drive-ins now host food trucks, themed events or festivals on site. In Australia, seasonal drive-ins coexist with film festivals in parks; the new Brisbane outdoor cinema pitches itself as an “elevated” destination, complete with plush seating and gourmet snacks. In Europe, historic landmarks have become backdrops for pop-up drive-ins, offering classics and cult films that city cinemas don’t play. In India, multiplex chains even converted mall parking into movie venues, citing date-night and family demand.
Importantly, drive-ins tap a social trend. After years of isolation, audiences craved communal outings. Organisers in the UK noted that “there’s going to be a surge in popularity” for these events and called drive-ins “the perfect socially distanced event” to rebuild confidence. Young people, many unfamiliar with the format, have embraced the retro fun – one report found Gen Z and millennials enjoying drive-ins for outdoor concerts and interactive experiences. Indeed, as one study observed, drive-ins offer “a unique cinematic experience that combines nostalgia with modern conveniences”. By programming varied content and creating a party-like atmosphere, drive-in operators keep attracting repeat visits.
Business Viability: Challenges and Opportunities
For investors and entrepreneurs, drive-ins are a mixed bag. On the plus side, they can operate with lower staffing and real estate costs than multiplexes (no huge lobbies or multiple indoor screens). Revenue per patron can be bolstered by high-margin concessions and on-site events. Market analysts note drive-ins have “diverse revenue streams”, from food-and-beverage sales to partnerships with car clubs, making them adaptable. In practice, many successful drive-ins add non-film events: the Queensland cinema even hosts live music and trivia nights.
But the barriers are real. A quality drive-in needs big equipment: high-brightness projectors, giant screens and radio transmitters cost tens of thousands. Seasonal markets lose revenue outside summer, and one bad weather season can wipe out profits. Real estate is a hurdle, too – Melbourne’s historic Lunar Drive-In closed in 2023, not for lack of customers (it drew ~400,000 annually) but because escalating land taxes made the large site untenable. Analysts stress that without concession sales, most drive-ins cannot survive, so operators must continually innovate (for example, by upgrading to digital LED “jumbotrons” or adding premium experiences).
Globally, some governments and investors are taking notice: the Asia-Pacific growth report cites “strategic partnerships with local governments” to open new sites. In North America, small theatre chains (Regal, AMC) and even technology firms have floated drive-in projects, sensing a retro revival. Industry forecasts – projecting market value doubling over the decade – suggest enough momentum for cautious investment. Yet experts caution that drive-ins will likely remain boutique segments: they offer differentiation and branding value (an outdoor event under the stars) but not mass-market scale. Their survival depends on creativity in programming and community engagement, rather than on blockbuster box-office runs.
Conclusion
Drive-in cinemas have proven more than a pandemic novelty. While far fewer in number than in their 1950s heyday, they have carved out a sustainable role as experiential venues. Around the world – from reopened classics in the American Midwest to sleek new screens in China’s parks – drive-ins combine safety and spectacle in a way indoor theatres cannot. Industry data paints a cautiously optimistic picture: moderate growth, especially in rural/suburban areas and holiday destinations. At the same time, high setup costs and variable patronage mean that many drive-ins will operate as “passion projects” rather than cash cows. Overall, analysts believe the drive-in’s renaissance is sticking around in a niche form, buoyed by consumer appetite for outdoor events and cultural nostalgia.