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    Arcade Games Machine Market

    ID: MRFR/ICT/22945-HCR
    100 Pages
    Ankit Gupta
    October 2025

    Arcade Games Machine Market Research Report By Machine Type (Video Games, Pinball Machines, Skill Crane Machines, Redemption Games), By Gaming Experience (Single-Player, Multiplayer, Virtual Reality, Augmented Reality), By Target Audience (Children, Teenagers, Adults, Families), By Power Source (Electric, Battery, Hybrid), By Control Mechanism (Joystick, Buttons, Trackball, Motion Controls) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Arcade Games Machine Market Summary

    The Global Arcade Games Machine Market is projected to grow from 13.75 USD Billion in 2024 to 23.79 USD Billion by 2035.

    Key Market Trends & Highlights

    Arcade Games Machine Key Trends and Highlights

    • The market is expected to witness a compound annual growth rate (CAGR) of 5.11 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 23.8 USD Billion, indicating robust growth potential.
    • in 2024, the market is valued at 13.75 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of interactive gaming technology due to increasing consumer demand for immersive experiences is a major market driver.

    Market Size & Forecast

    2024 Market Size 13.75 (USD Billion)
    2035 Market Size 23.79 (USD Billion)
    CAGR (2025-2035) 5.11%

    Major Players

    Bandai Namco Holdings Inc., Sega Corporation, WMS Gaming, Nintendo, AtGames, Taito, Konami, Bay Tek Games, Lucky Draw Amusement, Phoenix Amusement, Raw Thrills, Capcom, Betson, ICE

    Arcade Games Machine Market Trends

    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, Market Research Future Database and Analyst Review

    The Global Arcade Games Machine Market appears to be experiencing a resurgence, driven by a renewed interest in retro gaming and the integration of advanced technology, which suggests a promising future for both manufacturers and consumers alike.

    U.S. Department of Commerce

    Arcade Games Machine Market Drivers

    Diverse Revenue Streams

    The Global Arcade Games Machine Market Industry benefits from diverse revenue streams, which include not only game play but also merchandise sales, food and beverage offerings, and event hosting. This multifaceted approach allows arcade operators to maximize profitability and attract a wider audience. For instance, many establishments now offer themed nights and tournaments, which can significantly boost foot traffic and revenue. The ability to generate income from various sources positions the industry favorably for sustained growth, as it adapts to changing consumer preferences and spending habits.

    Technological Advancements

    Technological advancements play a pivotal role in shaping the Global Arcade Games Machine Market Industry. Innovations such as augmented reality and virtual reality are being integrated into arcade games, enhancing user experience and engagement. These technologies not only attract a younger demographic but also encourage repeat visits to gaming venues. The introduction of advanced gaming features, such as skill-based games and interactive displays, has the potential to increase revenue streams for operators. As the market evolves, these advancements are likely to contribute to the projected growth, with an expected market value of 23.8 USD Billion by 2035.

    Expansion of Entertainment Venues

    The expansion of entertainment venues significantly influences the Global Arcade Games Machine Market Industry. As new entertainment complexes, family entertainment centers, and amusement parks emerge globally, the demand for arcade games is likely to increase. These venues often incorporate arcade games as a key attraction, appealing to families and groups seeking recreational activities. The growth of such venues aligns with the projected compound annual growth rate of 5.11% from 2025 to 2035, suggesting a sustained interest in arcade gaming as a form of entertainment.

    Rising Popularity of Arcade Gaming

    The Global Arcade Games Machine Market Industry experiences a notable surge in popularity, driven by the resurgence of retro gaming and the appeal of social gaming experiences. As more individuals seek entertainment options that foster social interaction, arcade games have become a preferred choice in various venues, including entertainment centers and bars. This trend is reflected in the projected market value of 13.8 USD Billion in 2024, indicating a robust demand for arcade machines. The increasing number of gaming tournaments and events further fuels this growth, as they attract diverse audiences and encourage participation in arcade gaming.

    Increased Investment in Arcade Gaming

    Increased investment in the Global Arcade Games Machine Market Industry is evident as stakeholders recognize the potential for profitability in this sector. Investors are drawn to the arcade gaming market due to its ability to generate consistent revenue through both traditional and modern gaming experiences. This influx of capital supports the development of innovative games and the refurbishment of existing machines, enhancing the overall gaming experience. As the market continues to evolve, this investment trend is likely to contribute to its growth trajectory, ensuring that arcade gaming remains a vibrant part of the entertainment landscape.

    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.

    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

    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.

    Get more detailed insights about 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.

    Arcade Games Machine Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    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 market include

    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.

    Future Outlook

    Arcade Games Machine Market Future Outlook

    The Arcade Games Machine Market is projected to grow at a 5.11% CAGR from 2025 to 2035, driven by technological advancements, increased consumer engagement, and the resurgence of arcade venues.

    New opportunities lie in:

    • Develop immersive VR arcade experiences to attract tech-savvy consumers. Expand into emerging markets with tailored gaming solutions for local preferences. Leverage data analytics to enhance user engagement and optimize game offerings.

    By 2035, the Arcade Games Machine Market is expected to achieve robust growth, reflecting evolving consumer preferences and technological innovations.

    Market Segmentation

    Arcade Games Machine Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Arcade Games Machine Market Machine Type Outlook

    • {""=>["Single-Player"
    • "Multiplayer"
    • "Virtual Reality"
    • "Augmented Reality"]}

    Arcade Games Machine Market Power Source Outlook

    • {""=>["Joystick"
    • "Buttons"
    • "Trackball"
    • "Motion Controls"]}

    Arcade Games Machine Market Target Audience Outlook

    • {""=>["Electric"
    • "Battery"
    • "Hybrid"]}

    Arcade Games Machine Market Control Mechanism Outlook

    • {""=>["North America"
    • "Europe"
    • "South America"
    • "Asia Pacific"
    • "Middle East and Africa"]}

    Arcade Games Machine Market Gaming Experience Outlook

    • {""=>["Children"
    • "Teenagers"
    • "Adults"
    • "Families"]}

    Report Scope

    Report Attribute/MetricDetails
    Market Size 202413.75 (USD Billion)
    Market Size 202514.45 (USD Billion)
    Market Size 203523.79 (USD Billion)
    Compound Annual Growth Rate (CAGR)5.11% (2025 - 2035)
    Report CoverageRevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2023
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledWMS Gaming, Nintendo, AtGames, Taito, Konami, Bay Tek Games, Lucky Draw Amusement, Phoenix Amusement, Sega, BANDAI NAMCO, Sammy, Raw Thrills, Capcom, Betson, ICE
    Segments CoveredMachine Type, Gaming Experience, Target Audience, Power Source, Control Mechanism, Regional
    Key Market Opportunities1 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 DynamicsTechnological advancements The increasing popularity of retro gaming Growth in the entertainment industry Rise of esports Expanding consumer base
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    FAQs

    What is the current market size of the Arcade Games Machine Market?

    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 22.63 billion by 2032.

    Which region is expected to hold the largest market share in the Arcade Games Machine Market?

    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.

    What are the key factors driving the growth of the Arcade Games Machine Market?

    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.

    Who are the key competitors in the Arcade Games Machine 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.

    What are the major applications of Arcade Games Machine?

    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.

    What are the challenges faced by the Arcade Games Machine Market?

    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.

    What are the emerging trends in the Arcade Games Machine Market?

    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.

    What is the forecast for the Arcade Games Machine Market?

    The Arcade Games Machine Market is expected to grow at a CAGR of 5.11% from 2025 to 2034. 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.

    What are the key factors to consider when investing in the Arcade Games Machine 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.

    What are the opportunities for growth in the Arcade Games Machine 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.

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