Arcade Gaming Market to Grow by USD 1.99 Billion from 2025-2029, Rising Physical Activity in Arcade Gaming Boosts Market, Report with Market Evolution Powered by AI - Technavio

NEW YORK, Feb. 4, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The globalarcade gaming marketsize is estimated to grow by USD 1.99 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 gamingis driving market growth,with a trend towardsrising 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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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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MarketChallenges

• 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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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

1.1Gaming 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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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.

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.

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

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SOURCE Technavio