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The arcade gaming market size is estimated to grow at a CAGR of 1.99% between 2022 and 2027. The market size is forecast to increase by USD 1,984.1 million.
Our report offers in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by End-user (gaming hubs, semi-commercial, and residential), Type (video games, simulation games, and mechanical games), and Geography (APAC, North America, Europe, South America, and Middle East and Africa) and geography APAC, North America, Europe, South America, and Middle East and Africa. Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, vendor analysis, and COVID-19 impact data. The report also includes a thorough analysis of historical market data from 2017 to 2022.
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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 arcade gaming 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.
The high maintenance costs of gaming machines are a key challenge hindering the arcade gaming 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 global arcade gaming 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.
Arcade Gaming Market
By End-User
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The gaming hubs segment was valued at USD 15,061.09 million in 2017 and continued to grow by 2021. Vendors in the global arcade gaming 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.
Arcade Gaming Market
By APAC
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APAC, particularly the Far East and Japan, leads the arcade gaming 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 arcade gaming market is projected to grow substantially.
In 2020, the COVID-19 pandemic significantly impacted APAC countries like India, China, Japan, and Australia, prompting government-imposed lockdowns. This adversely affected the arcade gaming market, particularly in segments like gaming hubs and semi-commercial locations. To counteract this, vendors promoted online sales with discounts on popular arcade gaming products. The gaming industry capitalized on increased home isolation, offering incentives and discounts to attract more customers. Vaccination drives in the second half of 2020 led to a decline in COVID-19 cases, resulting in the lifting of lockdowns and the resumption of operations in gaming hubs. These factors are anticipated to boost the demand for arcade games in the region, driving market growth in the forecast period.
The market research report includes the adoption lifecycle of the market, 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 growth strategies.
The arcade gaming market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Arcade Gaming 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 1,984.1 million |
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 analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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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