PUBLISHER: The Business Research Company | PRODUCT CODE: 1674298
PUBLISHER: The Business Research Company | PRODUCT CODE: 1674298
Arcade gaming encompasses coin-operated game machines commonly found in public spaces such as malls, restaurants, and amusement arcades. These games emphasize skill-based challenges and are often played on arcade video machines that process player inputs and display outputs on an electrical display.
Arcade gaming encompasses various types, including video games, simulation games, and mechanical games. Video games involve manipulating moving images on a screen using controls such as handles or buttons, fostering engagement and learning in diverse social environments. These games process player inputs through computer components and showcase outputs on electrical displays. They span genres such as racing, shooting, sports, and action, available both online and offline for residential, commercial, and gaming hub use.
The arcade gaming market research report is one of a series of new reports from The Business Research Company that provides arcade gaming market statistics, including arcade gaming industry global market size, regional shares, competitors with an arcade gaming market share, detailed arcade gaming market segments, market trends and opportunities, and any further data you may need to thrive in the arcade gaming industry. This arcade gaming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The arcade gaming market size has grown marginally in recent years. It will grow from $13.61 billion in 2024 to $13.73 billion in 2025 at a compound annual growth rate (CAGR) of 0.9%. The growth in the historic period can be attributed to location-based trends, cultural influences, competitive landscape, social trends, market saturation.
The arcade gaming market size is expected to see steady growth in the next few years. It will grow to $16.36 billion in 2029 at a compound annual growth rate (CAGR) of 4.5%. The growth in the forecast period can be attributed to globalization and market reach, mobile gaming impact, market expansion strategies, gaming experience enhancement. Major trends in the forecast period include mobile integration, immersive technologies, social gaming, adaptation to home gaming, gamification of experiences, redefined arcade spaces.
The rising levels of physical activity are anticipated to drive growth in the arcade gaming market. Physical activity refers to any movement of the body driven by skeletal muscles that requires energy expenditure. The increase in physical activity is largely attributed to its health benefits. As physical activity rises, there is a demand for new approaches, and arcade gaming serves as a platform with innovative health tools, engaging players through interventions that incorporate consistent exercise, a balanced diet, and healthy sleep practices. For example, in December 2023, the Australian Bureau of Statistics (ABS), a national statistical agency in Australia, reported that nearly one in four individuals aged 15 and older (23.9%) met the physical activity guidelines in 2022. The data indicated that almost half (48.5%) walked for exercise, while just under half (47.4%) walked for transportation. Additionally, one in three individuals (32.8%) participated in moderate exercise, and three in ten (30.5%) engaged in strength or toning exercises. Furthermore, nearly one in five individuals (18.6%) took part in vigorous exercise. Thus, the increasing physical activity is expected to propel the growth of the arcade gaming market in the future.
High engagement in arcade gaming is anticipated to be a significant driver for the arcade gaming market's growth. This heightened involvement denotes substantial and immersive participation in arcade-style video games, often marked by prolonged and enjoyable gameplay sessions. The industry benefits from this increased involvement, stemming from shifts in consumer lifestyles, the rise in commercial gaming facilities, and increased disposable income. For instance, the UK gambling industry reported a notable 10.9% increase in total gross gambling yield (GGY) to £14.1 billion from April 2021 to March 2022, as per the gambling commission. Online casino games, particularly slots, contributed significantly with a GGY of £3.9 billion. Offline gambling, influenced by changes in lockdown conditions, surged by an impressive 105.6%, reaching £2.1 billion GGY. This surge reflects the high interest and engagement in arcade gaming, indicating a positive trajectory for the market's growth ahead.
The launch of new and technologically advanced products is a significant trend gaining traction in the arcade gaming market. Key players in the industry are introducing innovative arcade games to maintain their market positions. For example, in July 2024, Coleco, a US-based toy manufacturer, unveiled the ColecoVision Full-Size Stand-Up Arcade Unit. This arcade cabinet uniquely features 40 classic ColecoVision games and offers the flexibility to add ROMs from various classic and contemporary gaming systems due to its open-source design. It is equipped with an easy setup, high-quality joysticks, a trackball, arcade buttons, and an original-style ColecoVision gamepad, all displayed on a 32-inch high-definition screen. Moreover, it acts as a community hub, enabling retro gaming enthusiasts to connect with each other.
Major companies in the arcade gaming market are also developing advanced solutions, such as augmented reality (AR) technologies, to enhance customer experiences with innovative features. Augmented reality (AR) solutions are digital technologies that overlay computer-generated images, sounds, or other sensory enhancements onto the real world, enriching users' perception and interaction with their environment. For instance, in December 2022, Immersal Oy, a Finland-based software company, launched an augmented reality (AR) game arcade solution. This solution presents a unique opportunity for the retail and tourism sectors, among others, to gamify customer experiences while providing monetization and learning opportunities. It facilitates the creation of AR arcade games like Pinball, Air Hockey, multiplayer Pong, Pacman, Tetris, Space Invaders, Donkey Kong, and multiplayer Snakes and Ladders, transforming entire neighborhoods into interactive gaming environments. For example, Tetris could be projected onto the side of a high-rise building, or shopping malls could feature branded games incorporating a retailer's logo or products, thereby modernizing the shopping experience, enhancing brand engagement, and adding a fun element.
In October 2023, Microsoft, a leading US technology corporation, completed the acquisition of Activision Blizzard for a total sum of $68.7 billion. This strategic move is poised to significantly enhance Microsoft's position within the gaming sector and the burgeoning metaverse landscape. Furthermore, it solidifies Microsoft's dominance in the realm of cloud gaming services while granting the company access to a formidable array of highly lucrative intellectual properties, including iconic franchises such as Call of Duty, World of Warcraft, and Diablo, alongside the inclusion of esteemed studios such as Treyarch and Infinity Ward within its portfolio.
Major companies operating in the arcade gaming market include Bandai Namco Entertainment, Sega Amusements, Raw Thrills Inc., Taito Corporation, Konami Digital Entertainment, Capcom Co. Ltd., LAI Games, Adrenaline Amusements, Andamiro Co. Ltd., ICE (Innovative Concepts in Entertainment), Bay Tek Entertainment, UNIS Technology Ltd., Wahlap Technology, BANDAI NAMCO Amusement America, Benchmark Games, Play Mechanix, Game Play Network Inc., Global VR, Golden Tee Golf (Incredible Technologies), Hanco Technologies, Stern Pinball Inc., Pac-Man Entertainment, Barron Games International, Sega Corporation, Funovation, CXC Simulations, Smart Industries, Team Play Inc., Valley-Dynamo
North America was the largest region in the arcade gaming market share in 2024. The regions covered in the arcade gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the arcade gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The arcade gaming market consists of sales of carnival games, merchandiser games, pinball machines, and slot machines. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Arcade Gaming Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on arcade gaming market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for arcade gaming ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The arcade gaming market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.