Global Arcade Games Machine Market Overview
As per MRFR analysis, the Arcade Games Machine Market Size was estimated at 11.84 (USD Billion) in 2022.
The Arcade Games Machine Market Industry is expected to grow from 12.45 (USD Billion) in 2023 to 19.5 (USD Billion) by 2032. The Arcade Games Machine Market CAGR (growth rate) is expected to be around 5.11% during the forecast period (2024 - 2032).
Key Arcade Games Machine Market Trends Highlighted
The world’s arcade game machine market is making a comeback through technological progress and the growing popularity of retro gaming. The availability of top-rated arcade machines in regular arcades, as well as home entertainment centers, has been instrumental in the sector’s growth. Furthermore, immersive virtual reality (VR) and augmented reality (AR) are increasingly being incorporated into games, thereby attracting new players.
Among key factors that drive arcades’ sales are nostalgia for classic arcade games, expansion of the entertainment industry and utilization of advanced technologies. Opportunities to be tapped or exploited entail coming up with innovative game ideas, capitalizing on emerging technologies and moving into untapped regional markets. Recent developments indicate a shift towards skill-based games, incorporation of social media functionalities and rising demand for interactive and engrossing gameplay experiences. Understanding these main trends and adapting to the changing market environment will enable companies to succeed in the Arcade Games Machine Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Arcade Games Machine Market Drivers
Rising Popularity of Virtual and Augmented Reality (VR/AR) Technology
The growing prevalence of virtual reality and augmented reality technology is transforming the gaming industry as we know it. By offering players an immersive gaming experience, VR/AR headsets effectively allow gamers to put themselves in the worlds they are playing in. As the extraordinarily innovative technology takes off and becomes even more prevalent, it is anticipated that the Arcade Games Machine Market will grow significantly. Amusement parks, entertainment centers, and other leisure establishments are quickly utilizing VR/AR technology in order to attract more customers by offering them an unprecedented gaming experience that is sure to thrill.
Growing Demand for Location-Based Entertainment (LBE)
The growing demand for location-based entertainment (LBE) is another key driver of the Arcade Games Machine Market. LBE venues, such as amusement parks, family entertainment centers, and arcades, provide a social and interactive gaming experience that cannot be replicated at home. These venues offer a wide range of arcade games, from classic titles to the latest cutting-edge technology. The increasing popularity of LBE is driven by the desire for social interaction, immersive gaming experiences, and the convenience of having entertainment options close to home.
Technological Advancements and Innovation
The arcade games machine market is constantly evolving, thanks to rapid technological advancements and innovation. Game developers are pushing the boundaries of gaming technology, introducing new gameplay mechanics, stunning graphics, and enhanced hardware. The use of motion sensors, haptic feedback, and other advanced technologies is creating more immersive and realistic gaming experiences. These advancements not only enhance the gameplay but also attract new players to the arcade gaming scene.The Arcade Games Machine Market Industry is expected to witness continuous innovation and the adoption of cutting-edge technologies in the coming years.
Arcade Games Machine Market Segment Insights
Arcade Games Machine Market Machine Type Insights
The Machine Type of the Arcade Games Machine Market includes Video games, Pinball Machines, Skill Crane Machines and Redemption Games. The market revenue dominated by video games is 75% of the total in 2023. This section comprises various game categories such as action, adventure, racing, fighting and sports. The demand for modern graphics, engaging storylines and multiplayer features has driven consumer attraction to video games. On the other hand, pinball machines occupy a niche segment that caters to collectors and enthusiasts. Classic pinball machines with physical flippers and scoreboards bring back old memories, making it an exceptional gaming experience. However, digital pinball machines come with touchscreens and virtual flippers, which are gaining popularity due to their accessibility as well as space-saving characteristics. They are a combination of skill and luck. Skill Crane Machines players use a claw to retrieve prizes from inside glass cabinets, thereby testing their coordination skills.
This brand of vending machine is common in fun fairs, shopping malls or family recreation establishments. Such are the vast number of redemption games that can grant gamers tickets or tokens over time. These might be based on skills like shooting hoops, throwing darts or shooting at targets in fairground style. Hence, they present leisure activities where people win goodies, thereby appealing to families and regular players alike. The Arcade Games Machine Market is set to record considerable growth in the future years, attributed to technological advancements, rising disposable incomes coupled with the increasing popularity of classic games, among others.
Major market trends include the adoption of virtual reality (VR) & augmented reality (AR) in arcade gaming; merging mobile gaming platforms into arcades; escalating e-sports competition levels internationally having notable sponsors from major corporations globally including Coca-Cola Co., PepsiCo Inc., Anheuser-Busch InBev NV/SA., Red Bull GmbH., Nestle SA., Nissan Motor Corporation Ltd., etc.; integrating cryptocurrency systems into coin-operated amusements; selling VR headsets or glasses along with AR/VR games; and providing visitors with officially licensed merchandise.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Arcade Games Machine Market Gaming Experience Insights
The Arcade Games Machine Market is segmented by Gaming Experience into Single-Player, Multiplayer, Virtual Reality, and Augmented Reality. The Single-Player segment held the largest market share in 2023, accounting for over 50% of the Arcade Games Machine Market revenue. The Multiplayer segment is expected to grow at the highest CAGR during the forecast period, driven by the increasing popularity of online gaming and the rise of esports. The Virtual Reality and Augmented Reality segments are expected to witness significant growth in the coming years as these technologies continue to evolve and become more affordable.Key insights for each segment: Single-Player: Single-player games are popular among casual gamers who prefer to play alone or at their own pace. These games often feature immersive storylines and challenging gameplay. Multiplayer: Multiplayer games allow players to compete or cooperate with each other online or in local multiplayer modes. These games are popular among competitive gamers and social gamers alike. Virtual Reality: Virtual reality games offer a truly immersive gaming experience, allowing players to feel like they are actually inside the game world.These games are still relatively new, but they are expected to grow rapidly in the coming years. Augmented Reality: Augmented reality games overlay digital information onto the real world, creating a unique and interactive gaming experience. These games are also still relatively new, but they have the potential to become very popular in the future.
Arcade Games Machine Market Target Audience Insights
The target audience for the Arcade Games Machine Market is segmented into various groups based on age and demographics. Children are a key target audience for arcade games, as they are often drawn to the bright colors, interactive gameplay, and social aspects of these machines. Teenagers are also a significant target audience, as they seek entertainment and socialization opportunities outside of the home. Adults are another important target audience, as they may enjoy arcade games for nostalgia or as a way to relieve stress. Families are also a key target audience, as arcade games can provide a fun and interactive activity for all ages.The Arcade Games Machine Market is expected to grow significantly in the coming years, driven by the increasing popularity of arcade games and the growing number of entertainment venues.
Arcade Games Machine Market Power Source Insights
The Arcade Games Machine Market is segmented by Power Source into Electric, Battery, and Hybrid. Electric arcade games machines are the most popular type, accounting for over 60% of the market revenue in 2023. They are preferred by arcade operators due to their low operating costs and high reliability. Battery-powered arcade games machines are also gaining popularity, as they offer the convenience of portability. Hybrid arcade games machines, which combine both electric and battery power, are also available in the market. The market for arcade games machines is expected to grow at a CAGR of 5.11% from 2023 to 2032, reaching a valuation of USD 19.5 billion by 2032.The growth of the market is attributed to the increasing popularity of arcade games, the rising number of entertainment centers, and the technological advancements in the gaming industry.
Arcade Games Machine Market Control Mechanism Insights
The control mechanism segment is a crucial aspect of the Arcade Games Machine Market, influencing the gaming experience and contributing significantly to market revenue. Joysticks hold a dominant position in this segment, accounting for a substantial share of the overall market. Their precision and responsiveness make them ideal for fast-paced arcade games, offering players an immersive and engaging experience. Buttons, another popular control mechanism, provide tactile feedback and simplicity, appealing to a wide range of players. Trackballs, known for their smooth and accurate movements, are often used in games requiring pinpoint control, such as pinball or maze navigation.Motion controls, a relatively newer technology, offer a unique and interactive way to play games, allowing players to control on-screen actions with physical movements. This segment is expected to grow significantly in the coming years, driven by advancements in motion capture technology and the increasing popularity of immersive gaming experiences.
Arcade Games Machine Market Regional Insights
Regionally, the market is segmented into North America, Europe, APAC, South America, and MEA. Among these, North America holds the largest market share, followed by Europe. APAC is anticipated to showcase the highest growth rate during the forecast period due to the increasing popularity of arcade games in the region. South America and MEA also present promising opportunities for growth, driven by the rising demand for entertainment and leisure activities.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Arcade Games Machine Market Key Players And Competitive Insights
Major players in the Arcade Games Machine Market industry are constantly innovating and developing new products to meet the changing demands of consumers. Leading Arcade Games Machine Market players are focusing on developing advanced technologies such as virtual reality (VR) and augmented reality (AR) to enhance the gaming experience. These technologies provide immersive and interactive experiences, attracting a wider range of players. The Arcade Games Machine Market development is also driven by the growing popularity of e-sports and competitive gaming, which has led to an increase in demand for high-quality arcade games. The competitive landscape is expected to remain fragmented, with numerous small and medium-sized players operating in regional markets. However, leading players continue to expand their global presence through strategic partnerships, acquisitions, and new product launches.Bandai Namco Holdings Inc. is a leading company in the Arcade Games Machine Market industry. The company has a strong presence in Japan and other Asian markets, and it operates a wide range of arcade game centers. Bandai Namco is known for its popular arcade game franchises such as Pac-Man, Tekken, and Gundam. The company is also actively involved in the development of new technologies, such as VR and AR, to enhance the gaming experience. Bandai Namco is expected to continue to be a major player in the Arcade Games Machine Market in the coming years.Sega Corporation is a competitor company in the Arcade Games Machine Market. The company is headquartered in Japan and has a global presence in over 50 countries. Sega is known for its popular arcade game franchises such as Sonic the Hedgehog, Virtua Fighter, and Crazy Taxi. The company is also a major player in the pachinko and slot machine industry. Sega is expected to continue to be a strong competitor in the Arcade Games Machine Market, particularly in the Asian market.
Key Companies in the Arcade Games Machine Market Include
- WMS Gaming
- Nintendo
- AtGames
- Taito
- Konami
- Bay Tek Games
- Lucky Draw Amusement
- Phoenix Amusement
- Sega
- BANDAI NAMCO
- Sammy
- Raw Thrills
- Capcom
- Betson
- ICE
Arcade Games Machine Market Industry Developments
The Arcade Games Machine Market is expected to grow from USD 12.45 billion in 2023 to USD 19.5 billion by 2032, at a CAGR of 5.11% from 2024 to 2032. The growth of the market is attributed to rising disposable income, increasing popularity of arcade games as a form of entertainment, and technological advancements in arcade games.Some recent news developments and current affairs in the global arcade games market include: Rising popularity of retro arcade games: There is a growing trend of retro arcade games making a comeback, with many new games being released that are inspired by classic arcade games from the 1980s and 1990s. Virtual reality (VR) and augmented reality (AR) in arcade games: VR and AR are increasingly being used in arcade games to create more immersive and interactive experiences. Location-based entertainment (LBE) venues: LBE venues are becoming increasingly popular, and many of these venues feature arcade games as a major attraction. Growth of e-sports: E-sports is a rapidly growing industry, and arcade games are often used as a platform for e-sports competitions.
Arcade Games Machine Market Segmentation Insights
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Arcade Games Machine Market Machine Type Outlook
- Video Games
- Pinball Machines
- Skill Crane Machines
- Redemption Games
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Arcade Games Machine Market Gaming Experience Outlook
- Single-Player
- Multiplayer
- Virtual Reality
- Augmented Reality
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Arcade Games Machine Market Target Audience Outlook
- Children
- Teenagers
- Adults
- Families
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Arcade Games Machine Market Power Source Outlook
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Arcade Games Machine Market Control Mechanism Outlook
- Joystick
- Buttons
- Trackball
- Motion Controls
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Arcade Games Machine Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
11.84 (USD Billion) |
| Market Size 2023 |
12.45 (USD Billion) |
| Market Size 2032 |
19.5 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.11% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
WMS Gaming, Nintendo, AtGames, Taito, Konami, Bay Tek Games, Lucky Draw Amusement, Phoenix Amusement, Sega, BANDAI NAMCO, Sammy, Raw Thrills, Capcom, Betson, ICE |
| Segments Covered |
Machine Type, Gaming Experience, Target Audience, Power Source, Control Mechanism, Regional |
| Key Market Opportunities |
1 Retro Gaming Nostalgia2 Advancements in Virtual and Augmented Reality3 Rising Popularity of Amusement Centers4 Government Initiatives for the Entertainment Industry5 Health Benefits and Stress Relief from Physical Activity |
| Key Market Dynamics |
Technological advancements The increasing popularity of retro gaming Growth in the entertainment industry Rise of esports Expanding consumer base |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Arcade Games Machine Market size was valued at USD 12.45 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.11% from 2023 to 2032, reaching a value of USD 19.5 billion by 2032.
North America is expected to hold the largest market share in the Arcade Games Machine Market throughout the forecast period. The region's dominance can be attributed to the presence of a large number of amusement parks and entertainment centers, as well as a strong gaming culture.
The growth of the Arcade Games Machine Market is primarily driven by the increasing popularity of immersive gaming experiences, the rising disposable income of consumers, and the growing number of entertainment centers and amusement parks. Additionally, the technological advancements in arcade games, such as virtual reality (VR) and augmented reality (AR), are also contributing to the growth of the market.
The key competitors in the Arcade Games Machine Market include Bandai Namco, Sega, Raw Thrills, ICE, Adrenaline Amusements, Bay Tek Entertainment, LAI Games, Coastal Amusements, Andamiro, Betson Enterprises, Elaut Group and many more. These companies are investing heavily in research and development to create innovative and engaging arcade games that cater to the evolving preferences of consumers.
Arcade games machines are used in various applications, including amusement parks, entertainment centers, movie theaters, shopping malls, and other public spaces. These machines provide a source of entertainment and recreation for people of all ages.
The Arcade Games Machine Market faces several challenges, including the rising cost of production, the increasing popularity of home video games, and the competition from other forms of entertainment. Additionally, the market is also impacted by economic downturns and fluctuations in consumer spending.
The emerging trends in the Arcade Games Machine Market include the integration of VR and AR technologies, the development of mobile-based arcade games, and the growing popularity of retro arcade games. These trends are expected to shape the future of the market and create new opportunities for growth.
The Arcade Games Machine Market is expected to grow at a CAGR of 5.11% from 2024 to 2032. The market is expected to be driven by the increasing popularity of immersive gaming experiences, the rising disposable income of consumers, and the growing number of entertainment centers and amusement parks. Additionally, the technological advancements in arcade games, such as VR and AR, are also expected to contribute to the growth of the market.
When investing in the Arcade Games Machine Market, it is important to consider factors such as the market size and growth potential, the competitive landscape, the technological advancements, and the regulatory environment. Additionally, investors should also consider the specific target market and the type of arcade games machines that are most likely to be successful in that market.
The Arcade Games Machine Market offers several opportunities for growth, including the development of innovative and engaging arcade games, the expansion into new markets, and the adoption of new technologies. Additionally, the growing popularity of retro arcade games and the increasing demand for immersive gaming experiences also present opportunities for growth in the market.
