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The slot machine market size is projected to reach a value of USD 8.50 billion in 2027 with a CAGR of 12.3% between 2022 and 2027
|Market Size (2017) Historic Year
|USD 3.99 billion
|Market Size (2027) - Forecasted Year
|USD 8.50 billion
|Historic Opportunity (2017-2021)
|USD 0.36 billion
|Forecasted Opportunity (2023-2027)
|USD 9.77 billion
|Market Opportunity Transformation Growth
|Market Opportunity Capitalization
|USD 10.12 billion
Our report offers in-depth analysis of market drivers, trends, opportunities, and challenges, with segmentation by Application (casino and others), Product (digital and mechanical), and Geography (Europe, North America, APAC, 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 growing vendor involvement in the market is notably driving the market growth. The market's vendors are taking advantage of the numerous opportunities presented by the increase in casinos by offering products and solutions to facilitate casino gambling. Market players are putting more and more emphasis on launching new products to diversify their product offerings. For instance, in January 2020, Scientific Games launched the Ultra Hot Mega Link slot game.
Launching new products aids slot machine vendors in boosting sales, which aids in growing their market share. By releasing new slot machine variants with enhanced features, the market's vendors hope to draw in more customers. Vendors are also spending more money on R&D in order to offer customers products that are cutting edge, of the highest quality, and satisfy their changing needs. Thus, the introduction of new models helps increase sales, which will positively influence the growth of the global market during the forecast period.
The use of bitcoins in gambling is an emerging trend in the market. A decentralized, digital currency known as bitcoin is used for online transactions. High levels of anonymity are offered, and central banks are not in charge of overseeing it. Users who use bitcoins for gambling are not required to provide any personal information. Compared to traditional currencies, bitcoins have a number of benefits, including international payments, simple deposits and withdrawals, reduced fraud risk, quick payments, and no transaction fees. Some of the casinos supporting bitcoin transactions are Golden Gate and D Las Vegas in Las Vegas, the US. These casinos accept digital currency and convert bitcoins into dollars immediately. The patrons are then provided with coins or tokens to be used in slot machines.
As gambling is becoming more and more popular, it is likely that the trend of using bitcoins for gambling will grow during the forecast period. Furthermore, customers and vendors will be encouraged to use bitcoins for gambling games, like slot machines owing to the high monetary fluctuations and taxes on the gambling industry. Hence, these factors will drive market growth during the forecast period.
The rising number of fraud cases is a major challenge impeding the market growth during the forecast period. Illegal activities pose a serious threat to the entire gaming and gambling industry because they could drain sizable amounts of bets from the regulated gambling sector. Slot machine tampering is very common among casino owners. To remove all betting options other than the maximum and minimum bet amounts, casino owners also modify IGT Blue Chip gaming machines.
Additionally, instances of gray machines, or unregulated slot machines, have been documented. Gas stations, veterans' homes, union halls, and fraternal lodges all have these machines installed. Due to their exclusion from the gambling industry, these machines are not subject to any gambling taxes or fees. Hence, the gambling industry's ability to generate revenue is threatened by the presence of gray machines. Government revenue will be also reduced if people choose to use the machines rather than play the lottery or visit a casino. Therefore, such factors are expected to negatively affect the expansion of the global market during the forecast period.
The market share growth by the casino segment will be significant during the forecast period. The casino sector is where slot machines are used the most frequently. Since slot machines are the most popular casino game, market analysts anticipate significant market growth during the forecast period.
Slot Machine Market
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The casino segment was valued at USD 3,604.44 million in 2017 and continued to grow until 2021. The expansion of casinos as entertainment venues and the casino industry in regions like North America, Europe, and APAC are factors driving the demand for slot machines. Furthermore, the release of cutting-edge slot machines with features like virtual reality, touchscreens, and mobile connectivity is also contributing to the market's growth. By utilizing these technologies, players' gaming experiences are being enhanced, which is also increasing the number of visitors to casinos. Additionally, it is expected that the legalization of online casinos in several countries and the rising popularity of online gambling will increase demand for slot machines in the casino industry. Hence, these factors are expected to augment the demand for slot machines from the casino application segment and hence, will drive the growth of the market in focus during the forecast period.
Europe is estimated to contribute 35% 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.
Slot Machine Market
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European nations like the UK, Germany, Italy, Spain, Sweden, Poland, the Netherlands, Morocco, and Ireland are primarily responsible for the market's expansion. The shifting regulatory environment in European nations is primarily responsible for driving the slot machine market. To loosen gambling laws, European governments have created a number of rules and regulations. For example, the European Union (EU) lays out regulations that its member states must follow to ensure that gambling is carried out fairly and openly and that customers are protected from fraud and exploitation. The introduction of new gambling services, such as slot machines, in Europe, is another factor in the rising demand for gambling. A number of market players are introducing new services and growing their brands in nations like Portugal, the UK, Sweden, Germany, and Spain. Therefore, owing to such factors the regional market is expected to grow during 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 slot machine 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.
Slot Machine Market Scope
|2018 - 2022
Growth momentum & CAGR
Accelerate at a CAGR of 12.3%
Market growth 2023-2027
USD 9.77 billion
YoY growth 2022-2023(%)
Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution
Europe at 35%
US, China, UK, Italy, and France
|Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled
AMATIC Industries GmbH, APOLLO SOFT s.r.o., Aries Technology LLC, Aristocrat Leisure Ltd., Aruze Gaming America Inc., Eclipse Gaming Systems, Everi Holdings Inc., Incredible Technologies Inc., Inspired Entertainment Inc., Interblock dd, International Game Technology plc, JPM Interactive Ltd., Konami Group Corp., NOVOMATIC AG, PlayAGS Inc., Recreativos Franco SAU, Scientific Games LLC, Universal Entertainment Corp., Accel Entertainment Inc., and APEX pro gaming s.r.o
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
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