Arcade Game Market Research Report Information By Component (Video Games, Pinball Games, Redemption Games, Skill Games, Electro-Mechanical Games, Interactive Games, Sports Games, Simulation Games, Merchandiser Games, Others), By Revenue Model (Pay-to-Play, Subscription-Based, In-App Purchases, Advertising), Component (Gaming Machine, Gaming Software, Accessories & Peripherals, Maintenance & Support Service), Genre (Action, Adventure, Fighting, Racing, Sports, Strategy, Simulation), Target User Age Group, (Children (under 12), Teenagers (13-

Global Arcade Game Market Overview

Arcade Game Market Size was valued at USD 50,698.0 million in 2023. The Arcade Game market industry is projected to grow from USD 52,566.8 million in 2024 to USD 71,236.6 million by 2032, exhibiting a compound annual growth rate (CAGR) of 3.9% during the forecast period (2023 - 2032). The rising consumer spending on entertainment and leisure activities, growing demand for interactive & immersive entertainment experiences, and expanding number of commercial gaming facilities are driving the growth of the market.

As per Analyst at MRFR, “Since gaming is gradually transforming from a unique pastime activity to a worldwide trend, the number of commercial spaces suited for various demographics is constantly increasing, and the focus is made on the creation of an environment where the user is fully immersed in the game process”.

 FIGURE 1: ARCADE GAME MARKET VALUE (2019-2032) USD Million

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Arcade Game Market Opportunity

Integration of Emerging Technologies

The rising integration of AR and 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. VR has revolutionized arcade gaming by providing highly immersive experiences. Players can now enter virtual worlds and interact with their surroundings in ways that were previously impossible. 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. 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.

Moreover, the integration of augmented reality (AR), virtual reality (VR), and gesture recognition technologies elevates arcade gaming to new levels of immersion and interactivity. As gaming hardware becomes more sophisticated, arcade operators can offer cutting-edge experiences that captivate a diverse audience and keep them engaged. AR overlays digital elements onto the real world, enhancing the gaming experience. This technology allows players to see virtual objects or characters superimposed onto their physical environment, creating a blend of real and virtual worlds.  Also, modern arcade games often incorporate motion sensing and gesture recognition, allowing players to interact with the game through physical movements. These advancements are making arcade games more engaging and accessible, providing players with new and exciting ways to enjoy their favourite games.

Arcade Game Market Segment Insights:

Arcade Game Type Insights

On the basis of Type, the Arcade Game market has been divided into Video Games, Pinball Games, Redemption Games, Skill Games, Electro-Mechanical Games, Interactive Games, Sports Games, Simulation Games, Merchandiser Games, and Others. The Video Games segment accounted for the largest market share in 2023 and is projected to remain the same during the projected time period. Video games in arcades are electronic games that feed on player input through controls such as joysticks, buttons, or touch screens to display output on a screen. Examples include simple arcade classics like Pac-Man and Space Invaders and super-complex graphically advanced games like Street Fighter and Dance Revolution. Usually, video games are found in an arcade cabinet and need coin input to activate them. It can further come under fighting, shooting, racing, and puzzle games. The principal attraction may be the graphical and audial appeal for such arcade video games, the competitive nature in high-scoring, and the entertainment to attain such significant scores. Technology advancement has given way to more complex and interactive experiences for years, making video games a fixture in arcades games across the globe. Best known Arcade Video Games, consisting of driving and fighting games. Played solely for entertainment purposes, competition, and high scores. No tickets or cash prizes. Always coin-operated, but many recently switched over to card readers as technology advances.

FIGURE 2: ARCADE GAME MARKET SHARE BY TYPE 2023 and 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Arcade Game Revenue Model Insights

Based on Revenue Model the Arcade Game market, has been bifurcated into Pay-to-Play, Subscription-Based, In-App Purchases, and Advertising. The Pay-to-Play has largest market share. Pay to play is one of the oldest business models of the games industry. The player is provided with cheap or free access to the game, but to actually play it he must pay a small amount. Arcade games, interactive TV games, gambling and lotteries all use some form of pay to play. Pay-to-play (P2P) games are video games that require the player to buy an online service membership along with a gaming console, PC, game discs, or other hardware. P2Ps appeal more to players who prefer playing high-quality games because they usually offer better visuals and audio than free-to-play games. Also, the user might be motivated to purchase extras like virtual products and in-game money. Pay-to-play games require players to pay upfront to access the game. Play-to-earn games are usually free-to-play and allow users to earn rewards or cryptocurrency through gameplay. In P2P games, players are motivated to progress through the game and complete its objectives, often buying extra help on the go. P2E games stimulate gamers to acquire various assets that can be converted to real-world value. Pay-to-play games typically generate income through the sale of in-game items or DLC, while play-to-earn games can monetize through transaction fees on trades or by selling the game’s cryptocurrency.

P2P games attract players willing to pay for a premium gaming experience. Meanwhile, P2E games appeal to the ones who are interested in earning rewards with real-world value. Play-to-earn games often have unique gameplay mechanics designed to support the earning and trading of prizes. In contrast, pay-to-play games may focus more on traditional game mechanics such as combat, puzzle-solving, or exploration. Play-to-earn games often foster a strong community among players, who may share strategies for earning rewards or trade cryptocurrency with each other. Pay-to-play games also have communities but are less focused on the game’s monetization model.

Arcade Game Component Insights

On the basis of Component, the Arcade Game market has been segmented into Upright Arcade Cabinets, Gaming Software, Accessories and Peripherals, and Maintenance and Support Services. Gaming Software has largest market share. This segment refers to the actual games or software that runs on the arcade machines. With innovations in game design, including the integration of online multiplayer modes and interactive features, this segment continues to see strong growth. The rise of e-sports and demand for exclusive arcade game titles also contribute to its expansion.

Arcade Game Game Genre Insights

On the basis of Game Genre, the Arcade Game market has been bifurcated into Action, Adventure, Fighting, Racing, Sports, Strategy, and Simulation. Action has the largest market share. Action game is a genre of video games with a primary focus on physical challenge above all else, and is usually characterized by fast-paced, intense gameplay that demands speed, mental dexterity and hand-eye coordination in lieu of exploration or puzzle-solving. Combat and/or obstacle crossing are heavily featured, if not the point of the game. Many genres, including platformers, Action-Adventure games, first-person shooters, beat'em ups, and hack and slash games can be considered subsets of the action genre, although they are generally seen as distinct from straight-up action games.

Arcade Game Target User Age Group Insights

The Arcade Game Market, on the basis of Target User Age Group, has been divided into Children (under 12), Teenagers (13-19), Adults (20-35), Middle-Aged Adults (36-50), and Seniors (above 50). Adults (20-35) has the largest market share. Adults are increasingly interested in arcade games, seeking nostalgia and a break from their daily routines. They may be drawn to classic arcade games or newer titles that offer a unique experience. Older adults may prefer puzzle and strategy games that provide mental stimulation, as well as casual games that can be played in short sessions. Women represent a significant portion of the gaming and are often targeted with casual, puzzle, and simulation games, though they enjoy a wide range of genres. Traditionally targeted with action, sports, and strategy games, male gamers also have diverse interests across the entire spectrum of gaming

Arcade Game Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Throughout the forecast period, the Asia-Pacific Arcade Game market is expected to be dominant. Asia has long been a desirable market for the gaming industry, owing to its relative ease of entrance compared to other regions. Furthermore, a growing number of spectators, sponsors, and businesses from western countries are investing in this region's sector. Arcade game makers have a huge opportunity due to introduction of new and technologically superior items. Because of the internet broadcast of these games, many people have turned to gaming as a career. Due to the rise in online contests and e-sports, consumers want to buy freshly developed and improved products for competitions. Manufacturers are working to improve the product in order to make it more advanced, realistic, and user-friendly. Manufacturers may now list and sell their items online because to the widespread use of the internet around the world.

The growth of the arcade games market has been influenced by changes in consumer lifestyles.

In North America, the arcade game market is being driven by a resurgence in experiential entertainment. Arcades are leveraging immersive technologies, social gaming experiences, and themed attractions to attract a diverse audience. This trend reflects a desire for interactive, communal entertainment, contributing to the growth of the arcade game market in the region. The rise in the people of the region's affordability and the strong economic backbone coupled with the latest technologies drive the market's growth. Moreover, free-to-play and mobile games are boosting the market growth in the region. The gaming market in North America saw unprecedented growth in recent years due to increased mobile penetration and the availability of new consoles in the North American market. The United States is one of the largest gaming industry markets and has the most extensive library of games available to its citizens.

Europe is expected to show major growth in future owing to the rise in use of smartphones & monetization. Despite the fact that the arcade gaming market is being hampered by the increasing use of smartphones and tablets for gaming, an arcade machine still has a target audience whose gaming spending has only grown in the region. Arcade gaming has few replacements in the market because of the better gameplay experience. Over 80% of the overall income comes from players who have already played the game. As the popularity of new era arcade machines grows, they will become more widely available. As a result, more players will become addicted to the game, resulting in more revenue in the European market. Another significant segment within the Europe Arcade Gaming Market is the competitive gaming and esports sector.

South America region have a significant growth due to different arcade games featuring redemption options for prizes or tickets broaden the arcade's appeal, drawing in families and casual visitors. This enhances the gaming experience, fostering excitement while offering tangible rewards. Such diverse games boost engagement, encouraging repeat visits and cultivating customer loyalty, ultimately creating opportunity and revenue growth within the arcade gaming market. Integrate social gaming elements such as leaderboards, multiplayer competitions, and collaborative experiences to foster community among gamers in Middle East Africa region intended to drive the market. Encouraging group visits and friendly competition turns arcades into hubs for social interaction, enriching the gaming experience and drawing a diverse audience of enthusiasts.

FIGURE 3: ARCADE GAME MARKET VALUE BY REGION 2023 and 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Arcade Game market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.

Arcade Game Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Arcade Game market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Arcade Game industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Capcom Co., Ltd. is a global leader in the development, publishing, and distribution of interactive digital entertainment content. Capcom Co., Ltd. operates across the following segments: Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses. The Digital Contents segment focuses on developing and selling video games for consoles, PCs, and mobile platforms. Arcade Operations include the management of Plaza Capcom arcades across Japan, primarily in large commercial complexes. Capcom's strategy emphasizes leveraging its strong IP portfolio through a "Single Content Multiple Usage" approach to enhance profitability and market presence. This involves extending popular game content across various platforms and media, including digital games, movies, merchandise, and esports, to maximize revenue and brand recognition. The company explores new revenue streams by venturing into related areas such as character merchandising, esports, and events. Capcom has enhanced localization efforts to cater to regional markets and promoted online tournaments and esports to boost fan engagement.

Key Companies in the Arcade Game market include

• ICE Games


• Capcom Co., Ltd.


• Sega Sammy Holdings Inc.


• Raw Thrills


• Bandai Namco Holdings


• Andamiro Co. Ltd.,


• Arcade1Up


• D-BOX Technologies


• Bay Tek Entertainment


• Dream Arcades., among others

Arcade Game Industry Developments

August 2024: Capcom has confirmed that the Marvel vs. Capcom Fighting Collection: The Arcade Classics will launch digitally on PS4, Nintendo Switch, and PC (Steam) in September.

May 2024: Raw Thrills and Play Mechanix have announced NBA Superstars, a new arcade basketball game featuring 120 NBA players. This game allows players to choose their favorite teams and superstars for dynamic three-on-three matches. The cabinet includes a 75” display with LED scoreboard and RGB lighting for an immersive experience.

Intended Audience

• Technology Investors


• Regulatory Industries


• Government Bodies


• Research/Consultancy firms


• Technology Solution Providers


• Arcade Game Administrators


• Arcade Game providers


• Software integrators


• IT enterprises


• Software Solution Providers