Arcade Gaming Market to Grow by USD 2.22 Billion (2024-2028), Driven by Increased Physical Activities, with AI Redefining the Market Landscape – Technavio

NEW YORK, Dec. 2, 2024 /PRNewswire/ — Report with market evolution powered by AI – The global arcade gaming market size is estimated to grow by USD 2.22 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 2.18% during the forecast period. Increasing physical activities in arcade gaming is driving market growth, with a trend towards rising integration of vr in arcade games. However, high cost of arcade gaming machines poses a challenge. Key market players include Bandai Namco Holdings Inc., Bay Tek Entertainment Inc., Capcom Co. Ltd., Chicago Gaming Co., CXC Simulations, D BOX Technologies Inc., Eleetus LLC, Helix Leisure USA Inc., Incredible Technologies Inc., Innovative Concepts in Entertainment Inc., International Games System Co. Ltd., Neofuns Amusement Equipment Co. Ltd., Nintendo Co. Ltd., PrimeTime Amusements, Sega Sammy Holdings Inc., Square Enix Holdings Co. Ltd., UNIS Technology Ltd., Valley Dynamo Inc., Vesaro Ltd., and Bowlero Corp..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Market Driver

Virtual Reality (VR) is gaining popularity as a mainstream gaming platform in the entertainment industry. VR solutions aim to create a realistic virtual environment, immersing users in a lifelike experience. In recent years, VR-based arcade games have emerged, with notable releases such as the VR 360 dinosaur attack car arcade game 3D shooter and Sega’s VR Agent. These innovative games offer unique experiences, combining VR headsets with gun controllers for action-packed gameplay. In 2021, Springboard VR, a leading VR venue management software and content provider, was acquired by Vertigo Games. Vertigo offers a growing portfolio of VR games and location-based entertainment (LBE), including arcade games. This strategic alliance will increase the introduction of VR-based arcade games in the future. The Arcade Expo International (AEI) convention in Las Vegas in March 2022 focused on VR technology in arcades and other LBE games. Discussions covered successful VR arcade chains, operational issues to boost sales and profits, and enhancing user experiences. Such factors will drive the growth of the global arcade gaming market during the forecast period. 

Arcade gaming is experiencing a resurgence in various public spaces, including malls and restaurants. Amusement arcades, filled with arcade games, video games, simulation games, mechanical games, and electrical display machines, are once again becoming popular hangouts. The genres of racing, shooting, sports, action, and even carnival games are attracting a wide range of consumers. This trend is not limited to residential areas; commercial gaming hubs are also seeing in demand. Arcade gaming offers physical activity and potential health benefits, making it an attractive alternative to sedentary online gambling or remote betting on football wagers or horse racing. Meanwhile, the technology behind these machines continues to evolve, with new levels, scoring features, and consumer-friendly designs. Classic games like pinball machines, slot machines, and coin machine games remain popular, while newer genres like Anime and lifestyle games are gaining traction. Arcade gaming provides a unique blend of entertainment, social interaction, and technology that appeals to a diverse audience. Whether you’re looking for a fun day out at an amusement park or a quick break at a game parlor, arcade gaming has something for everyone. 

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

Market Challenges

• The global arcade gaming market faces a significant challenge due to the high cost of arcade gaming machines. These specialized machines, featuring advanced hardware, interfaces, and captivating gameplay experiences, necessitate substantial investment from both operators and developers. The development and purchase of modern arcade gaming machines, including those with cutting-edge technologies like VR and AR, involve considerable research and development (R&D) expenses. Additionally, the demand for machines with high-definition displays, motion-sensing controllers, and sophisticated audio-visual components further increases the cost. Ongoing maintenance expenses, averaging around USD4,500 per year, add to the financial burden for operators. With prices ranging from USD5,000 to USD10,000 and sometimes exceeding USD15,000, the high cost of arcade gaming machines may negatively impact market growth, limiting consumer accessibility and potentially hindering the expansion of the global arcade gaming market.
• The arcade gaming market faces various challenges in both residential and commercial sectors. Residential consumers prefer the convenience of online gaming, while commercial gaming hubs compete with physical activity and health benefits. The online gambling sector, including remote betting on football wagers and horse racing, poses a significant challenge. The lifestyle change towards technology and virtual reality games, along with the popularity of online streaming and e-sports, impacts the market. However, arcade gaming still thrives with carnival games, merchandiser games, pinball machines, slot machines, and coin machine games in public places like game parlors. The technology behind these machines continues to evolve, offering consumers new levels and scoring features. Toys, amusement parks, anime, and lifestyle trends also contribute to the market’s popularity. Despite the competition, affordability remains a significant factor, making arcade gaming an enduring pastime.

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview

This arcade gaming market report extensively covers market segmentation by

1. End-user 

• 1.1 Gaming hubs
• 1.2 Semi-commercial
• 1.3 Residential

• 2.1 Racing
• 2.2 Shooting
• 2.3 Sports
• 2.4 Action

• 3.1 Video games
• 3.2 Simulation games
• 3.3 Mechanical games

• 4.1 APAC
• 4.2 North America
• 4.3 Europe
• 4.4 Middle East and Africa
• 4.5 South America

1.1 Gaming hubs- The arcade gaming market’s largest segment in 2023 and throughout the forecast period is gaming hubs. These establishments use expensive arcade gaming equipment, making them the only accessible option for consumers. Despite the market’s maturity, advanced technologies like gaming simulators are still growing, attracting businesses. Vendors provide simulation-based games, primarily for teenagers and Millennials, such as CXC Simulations’ Motion Pro II racing simulator. These products are targeted at racing arcade centers and clubs, increasing demand and driving growth in the gaming hub segment.

Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics

Research Analysis

Arcade gaming refers to the use of electronic games in public spaces, such as malls, restaurants, and amusement arcades. These venues offer a wide range of arcade games, including video games, simulation games, mechanical games, and electromechanical games. Arcade games come in various genres, including racing, shooting, sports, action, and more. They are often found in commercial areas, such as gaming hubs, game parlors, and malls, and can be played for a fee using coins or tokens. The consumer enjoys the thrill of competing against others or the machine itself, with the added excitement of scoring points and advancing through levels. Electrical displays and mechanical movements add to the experience of arcade gaming. Coin machine games, slot machines, and other gambling games are also popular in arcades.

Market Research Overview

Arcade gaming refers to the use of electronic games in public spaces such as malls, restaurants, and amusement arcades. Arcade games encompass various genres including simulation, racing, shooting, sports, action, and mechanical games. These games are often housed in electrical display cabinets and can be found in both residential and commercial settings. Gaming hubs provide a physical activity outlet with potential health benefits, while also catering to the online gambling sector through remote betting on football wagers, horse racing, and other events. The lifestyle change brought about by arcade gaming extends to carnival games, merchandiser games, and pinball machines, as well as coin machine games and slot machines. With the advancement of machines technology, consumers can now enjoy levels and scoring features in arcade parlors. The popularity of arcade gaming is driven by affordability, accessibility, and the integration of virtual reality and online streaming. Consumer competitions, e-sports, and internet penetration continue to fuel the growth of this dynamic industry.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Gaming Hubs
• Semi-commercial
• Residential
• Genre
• Racing
• Shooting
• Sports
• Action
• Type
• Video Games
• Simulation Games
• Mechanical Games
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/arcade-gaming-market-to-grow-by-usd-2-22-billion-2024-2028-driven-by-increased-physical-activities-with-ai-redefining-the-market-landscape—technavio-302318971.html

SOURCE Technavio