Arcade Gaming Market to Grow by USD 2 Billion from 2025-2029, Rising Physical Activities to Boost Growth, Report with Market Evolution Powered by AI - Technavio

NEW YORK, Feb. 10, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global arcade gaming market size is estimated to grow by USD 2 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 1.9% 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., Bowlero Corp., 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., and Vesaro Ltd..

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              Arcade Gaming Market Scope



     Report Coverage                       
     Details



     Base year                                                                                                                                                             2024



     Historic period                       
     2019 - 2023



     Forecast period                       
     2025-2029


      Growth momentum & CAGR                                                                                                                        Accelerate at a CAGR of 1.9%


      Market growth 2025-2029               
     USD 1999.9 million



     Market structure                      
     Fragmented


      YoY growth 2022-2023 (%)                                                                                                                                              1.9


      Regional analysis                     
     APAC, North America, Europe, Middle East and Africa, and South America


      Performing market
       contribution                                                                                                                                                  APAC at 51%



     Key countries                         
     China, US, Japan, Germany, India, Canada, UK, France, Saudi Arabia, and Brazil


      Key companies profiled                  Bandai Namco Holdings Inc., Bay Tek Entertainment Inc., Bowlero Corp., 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., and Vesaro Ltd.

Market Driver

Arcade gaming is experiencing a resurgence in public spaces such as malls and restaurants. Amusement arcades are once again becoming popular destinations for consumers, offering a mix of arcade games, simulation games, mechanical games, and electrical display games. The genres include racing, shooting, sports, action, and more. This trend is driven by the desire for physical activity and potential health benefits. The online gambling sector, including remote betting on football wagers and horse racing, is also impacting the market. However, arcade gaming remains distinct from gambling, focusing on entertainment and lifestyle change. Carnival games, merchandiser games, pinball machines, slot machines, and coin machine games continue to be staples. Gaming hubs are expanding, using advanced machines and technology, and offering levels and scoring features to enhance the consumer experience. Toys, amusement parks, anime, and lifestyle are also influencing the market. The affordability and accessibility of arcade gaming, combined with the popularity of virtual reality and online streaming, are driving growth. Consumers are drawn to the technology, competitions, and e-sports, as well as the social aspect of gaming parlors. The future of arcade gaming is bright, with continued innovation and expansion in the residential and commercial sectors.

Virtual Reality (VR) technology is gaining popularity in the gaming industry, particularly in the entertainment sector. VR solutions aim to create a realistic virtual environment, immersing users into a virtual world. In recent years, VR-based arcade games have emerged as a new trend. Vertigo, a leading provider of VR games and location-based entertainment (LBE), is expanding its portfolio in this area. This strategic alliance will result in an increase in the number of VR arcade games. The recent Amusement Expo International (AEI) convention in Las Vegas showcased the latest VR technology in arcades and other LBE games.

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Market Challenges

    --  Arcade gaming market encompasses various genres of games including
        video, simulation, mechanical, and electrical display in public spaces
        like malls, restaurants, and amusement arcades. Challenges include
        adapting to changing consumer preferences and lifestyle, integrating
        technology like virtual reality and online streaming, and competing with
        residential and commercial gaming hubs. Public places, such as game
        parlors and amusement parks, offer physical activity and health
        benefits, contrasting the online gambling sector with remote betting on
        football wagers, horse racing, and other games. The market includes
        various types of machines like pinball, slot, and coin machines, as well
        as carnival and merchandiser games. Consumer demand for affordability
        and popularity of genres like racing, shooting, sports, and action drive
        market growth. Levels and scoring features keep consumers engaged, while
        machines' technology advances. Toys, anime, and lifestyle trends also
        influence the market. With increasing internet penetration, online
        competitions and e-sports are emerging trends.
    --  The arcade gaming market faces a substantial challenge due to the high
        cost of arcade gaming machines. These machines, featuring specialized
        hardware and engaging interfaces, necessitate considerable investment
        from operators and developers. The expense of creating, acquiring, and
        maintaining these machines influences market dynamics, including pricing
        strategies and consumer accessibility. For example, advanced arcade
        gaming machines, such as those incorporating virtual and augmented
        reality technologies, entail substantial research and development costs.
        This is illustrated by the creation of VR-integrated arcade gaming
        systems like The Void, which provides players with and interactive
        experiences at various physical locations.

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Segment Overview

This arcade gaming market report extensively covers market segmentation by

    --  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
    --  Power
        --  Electric
        --  Battery
        --  Hybrid
    --  Control Mechanism
        --  Joystick
        --  Buttons
        --  Trackball
        --  Motion Controls

1.1 Gaming hubs- The arcade gaming market's largest segment in 2024 and throughout the forecast period is gaming hubs. These establishments use expensive arcade gaming machines, making them the only viable option for consumers to experience such gaming. The market's maturity notwithstanding, advanced technologies like gaming simulators are still expanding, attracting businesses due to their value proposition. Vendors provide simulation-based games to gaming hubs, primarily appealing to teenagers and Millennials. For instance, CXC Simulations offers Motion Pro II, a racing simulator, to centers specializing in racing arcade games. Such innovations are expected to boost the demand for arcade gaming in hubs, fueling the growth of the global arcade gaming market's gaming hub segment.

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Research Analysis

Arcade gaming refers to the use of coin-operated or free-play electronic games found in public spaces such as malls, restaurants, and amusement arcades. These games, which include video games, simulation games, mechanical games, and electromechanical games, offer a wide range of genres like racing, shooting, sports, action, and more. Arcade games are often found in commercial areas and gaming hubs, providing consumers and competitive experience. Electrical display games, with their bright lights and attention-grabbing graphics, are a staple in these environments. Popular genres like racing, shooting, and sports offer various levels and scoring features to keep players engaged. Mechanical games, such as slot machines and coin machine games, also have a strong presence in arcades. Public places like game parlors provide an ideal setting for arcade gaming, offering a social atmosphere where people can gather, compete, and have fun. Arcade gaming continues to be a popular form of entertainment, appealing to both residential and commercial consumers alike.

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 more. These games can be found in mechanical and electrical display formats, with popular genres like racing, shooting, and sports drawing large crowds. Arcade gaming is not just limited to commercial spaces, as residential gaming hubs have also emerged as a trend. Physical activity in arcade gaming offers health benefits, making it an attractive lifestyle choice for consumers. The online gambling sector, including remote betting on football wagers, horse betting, and other games, has also found a home in arcade gaming. The rise of technology and virtual reality has further boosted the popularity of arcade gaming, with online streaming and competitions in e-sports becoming increasingly common. Affordability and accessibility are key factors driving the popularity of arcade gaming. Consumers can enjoy a wide range of games, from classic coin machine games to modern simulation and action titles. Arcade gaming also offers a social experience, with consumers often gathering in groups to play and compete. Amusement parks and anime culture have also contributed to the popularity of arcade gaming, with merchandiser games, pinball machines, and slot machines being popular attractions. The technology behind arcade machines continues to evolve, with new levels and scoring features adding to the excitement. Overall, arcade gaming offers a unique blend of entertainment, physical activity, and social interaction, making it a popular choice for consumers across various demographics and lifestyles.

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
    --  Power
        --  Electric
        --  Battery
        --  Hybrid
    --  Control Mechanism
        --  Joystick
        --  Buttons
        --  Trackball
        --  Motion Controls

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

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