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The arcade gaming market size is forecast to increase by USD 1.98 billion, at a CAGR of 1.99% between 2022 and 2027. The market's trajectory is influenced by several key factors, including the rise in physical activities in arcade gaming, the continual launch of new arcade games, and the emergence of mobile arcade gaming platforms and applications. The increasing engagement in physical arcade activities reflects a growing demand for immersive gaming experiences. Simultaneously, the frequent introduction of new arcade games stimulates consumer interest and drives market expansion. The advent of mobile arcade platforms and applications further diversifies accessibility, appealing to a broader audience beyond traditional arcade settings. These trends collectively shape the landscape of arcade gaming, fostering innovation and competition within the industry. As technological advancements continue to evolve and consumer preferences shift, strategic adaptation and innovation will remain pivotal in sustaining growth and meeting the dynamic demands of the market.
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The market is thriving across various public spaces such as malls, restaurants, and amusement arcades. These venues host a diverse range of coin operated game machine that cater to different genres and primary games of skills. From classic electromechanical games to modern electrical display setups, arcade enthusiasts enjoy the nostalgic appeal and the latest advancements in gaming technology. Popular attractions include slot machines and single-screen game perspectives, each featuring unique scoring features to engage players of all ages. The market continues to expand with the rise of mobile arcade gaming platforms and the continuous launch of new arcade games. This dynamic landscape fosters innovation in gaming parlors and ensures that arcade gaming remains a cornerstone of entertainment in public places worldwide.
The increasing physical activities in arcade gaming is a key factor boosting the market growth. The arcade gaming industry swiftly embraces technological advancements, transitioning from 2D screen gameplay to immersive VR experiences. Innovations like head-mounted displays, motion controllers, and tracking devices have enhanced interaction, yet incorporating gamers' physical movements remains unexplored. Recent developments, such as a VR laser tech arcade game showcased at the AEI convention in March 2022, allow players to stand up and move naturally, elevating the VR experience. Integrating physical actions in arcade gaming can attract players, fostering global market growth in the forecast period.
The rising integration of VR in arcade games is a major trend in the market. VR has rapidly become mainstream in gaming and is expanding into various digital arenas, offering immersive virtual experiences. The gaming industry has seen the rise of VR-based arcade games like VR 360 Dinosaur Attack Car Arcade Game 3D Shooter and Sega's VR Agent. In 2021, Vertigo Games acquired Springboard VR, enhancing its VR game portfolio. The AEI convention in March 2022 focused on VR technology in arcades, discussing strategies for operational success. These trends are expected to boost the adoption of VR-based arcade games, elevating user experiences in the forecast period.
Major Market Challenge
The high maintenance costs of gaming machines are a key challenge hindering market growth. Arcade gaming involves substantial initial investments, akin to any business. However, a major hurdle for arcade gaming vendors is the significant maintenance cost. This challenge is particularly pronounced in the upkeep of gaming simulators, where hardware, from screens to legs, frequently requires repairs due to heightened usage and the prevalence of motion simulation. For effective motion simulation, all four legs of the simulator must work synchronously, translating feedback from haptic sensors into precise, high-magnitude physical motion.
The substantial demand for motion simulation and the rugged utilization of arcade machines, especially in commercial settings, contribute to a shortened machine lifecycle and increased maintenance costs. These factors are anticipated to negatively impact the demand for arcade gaming, thereby hindering the market's growth in the forecast period.
The market share growth by the gaming hubs segment will be significant during the forecast period. Gaming hubs use arcade gaming machines as inventory. The latest technologies, such as gaming simulators, are still in the growth phase. Hence, numerous businesses find value propositions in the product.
Market
By End-User
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The gaming hubs segment was valued at USD 15.06 billion in 2017 and continued to grow by 2021. Vendors in the market offer simulation-based games for gaming hubs. For instance, CXC Simulations offers Motion Pro II, a racing simulator gaming product for arcade gaming. Therefore, the introduction of such products will drive the growth of this segment during the forecast period.
APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Market
By APAC
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APAC, particularly the Far East and Japan, leads the market with innovations from companies like Sony and Nintendo. The growth in developing countries, coupled with the availability of high-graphic games like simulators, is driving the market. Despite being price-sensitive, the rise of smartphones has shifted interest to mobile games. The high costs of imported arcade games, due to customs duties, especially in countries like India, have led to a significant price increase since 2017. However, arcade game events in Southeast Asia, such as Gamestart Asia and Comic Fiesta, are expected to boost awareness and drive adoption. Overall, the APAC market is projected to grow substantially.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
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The market continues to thrive with a diverse array of attractions spanning coin-operated game machines in game parlors and amusement parks. These venues offer a blend of classic pinball machines, carnival games, and merchandiser games, appealing to consumers seeking physical activity and skeletal muscle driven motion experiences. Arcade gaming promotes lifestyle change through its health benefits and fosters a community around competitions and e-sports. The integration of virtual reality and advancements in machine technology enhance gameplay, while online streaming and internet penetration expand accessibility. The market's popularity is bolstered by its affordability and diverse offerings, from football wagers to horse betting in the online gambling sector. As arcade gaming evolves with technological innovations and cultural influences like anime, it continues to captivate audiences worldwide.
In addition, the market remains vibrant with a variety of attractions, including traditional coin-operated game machines found in arcades worldwide. These games offer engaging experiences, often involving skeletal muscle-driven motion to enhance player interaction. The market also reflects modern trends such as e-sports, where competitive gaming reaches new heights with structured levels and intricate scoring features. Advances in machine technology continually improve gameplay, while the integration of single screen game perspectives keeps the experience immersive and focused. Arcade gaming contributes to lifestyle changes by promoting active participation and social interaction, making it more than just entertainment. Additionally, the inclusion of toys and elements like remote betting diversifies the market, catering to a wide range of interests and preferences. As technology evolves, arcade gaming remains a cornerstone of interactive entertainment, blending nostalgia with innovation to captivate players of all ages.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 1.99% |
Market growth 2023-2027 |
USD 1.98 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
1.74 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Genre
8 Market Segmentation by Type
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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