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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 Infographic
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Arcade Games Machine Market Summary

As per MRFR analysis, the Arcade Games Machine Market Size was estimated at 13.75 USD Billion in 2024. The Arcade Games Machine industry is projected to grow from 14.45 USD Billion in 2025 to 23.79 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.11 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Arcade Games Machine Market is experiencing a dynamic evolution driven by technological advancements and nostalgic appeal.

  • Technological integration is reshaping the arcade experience, enhancing gameplay and user engagement.
  • Nostalgia for classic games continues to attract a diverse audience, particularly in North America.
  • Social gaming experiences are gaining traction, with multiplayer formats becoming increasingly popular in the Asia-Pacific region.
  • Technological advancements and the rise of esports are key drivers propelling growth in the video games segment.

Market Size & Forecast

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

Major Players

Namco (JP), Sega (JP), Konami (JP), Raw Thrills (US), Bandai Namco Amusements (JP), Intercard (US), LAI Games (AU), Adrenaline Amusements (US), Incredible Technologies (US)

Arcade Games Machine Market Trends

The Arcade Games Machine Market is currently experiencing a dynamic evolution, driven by technological advancements and shifting consumer preferences. The integration of innovative features such as augmented reality and interactive gameplay is reshaping the landscape, attracting a diverse audience. This transformation is not merely a trend but appears to be a fundamental shift in how players engage with arcade games. Furthermore, the rise of social gaming experiences is fostering community engagement, as players seek shared experiences in entertainment venues. As a result, operators are increasingly investing in modernized machines that enhance user interaction and satisfaction. In addition to technological enhancements, the Arcade Games Machine Market is witnessing a resurgence in popularity, particularly among younger demographics. This resurgence seems to be fueled by nostalgia, as older generations introduce classic games to new players. Moreover, the expansion of arcade venues, including family entertainment centers and gaming lounges, indicates a growing demand for immersive gaming experiences. The market appears poised for continued growth, with operators adapting to evolving consumer expectations and preferences, ensuring that the arcade experience remains relevant and appealing in the contemporary entertainment landscape.

Technological Integration

The incorporation of advanced technologies, such as virtual reality and interactive displays, is transforming the Arcade Games Machine Market. These innovations enhance user engagement and create immersive experiences that attract a broader audience.

Nostalgia and Classic Games

A notable trend is the revival of classic arcade games, which appeals to both older players and younger generations. This nostalgia-driven interest is prompting operators to include retro machines alongside modern offerings.

Social Gaming Experiences

The demand for social interaction in gaming is rising, leading to the development of multiplayer arcade machines. These machines encourage collaboration and competition, fostering a sense of community among players.

Arcade Games Machine Market Drivers

Rise of Esports

The Arcade Games Machine Market is witnessing a surge in interest due to the rise of esports. Competitive gaming has gained immense popularity, leading to an increase in demand for arcade machines that can host esports tournaments. This trend is particularly evident in urban areas, where gaming centers are increasingly incorporating arcade machines designed for competitive play. The potential for high engagement and community building around esports events is likely to drive foot traffic to these venues, thereby boosting sales of arcade machines. Market analysts suggest that the esports segment could contribute significantly to the overall growth of the arcade games market, with projections indicating a potential increase in revenue by 15% in the coming years.

Nostalgia Factor

The Arcade Games Machine Market is significantly influenced by the nostalgia factor associated with classic arcade games. Many consumers, particularly those from older generations, are drawn to the familiar experiences of their youth, prompting a resurgence in the popularity of retro arcade machines. This trend is not merely a fleeting phase; it appears to be a sustained interest that encourages manufacturers to produce replicas of classic games. The market for retro arcade machines is estimated to account for a substantial portion of overall sales, with projections indicating that nostalgia-driven products could represent up to 30% of the market share in the next few years. This enduring appeal of classic games is likely to continue shaping the arcade landscape.

Social Interaction

The Arcade Games Machine Market thrives on the social interaction that arcade gaming fosters. Unlike solitary gaming experiences, arcade machines often encourage group play, making them popular in social settings such as bars, entertainment centers, and family venues. This aspect of gaming is particularly appealing to millennials and Generation Z, who value experiences that promote social engagement. As a result, venues that incorporate arcade machines are likely to see increased patronage, which in turn drives demand for new and innovative machines. Market trends suggest that establishments focusing on social gaming experiences could see a revenue increase of up to 20% as they cater to the growing desire for communal entertainment.

Diverse Game Offerings

The Arcade Games Machine Market is benefiting from the diversification of game offerings available in arcade settings. As consumer preferences evolve, there is a growing demand for a variety of gaming experiences, ranging from traditional arcade games to modern interactive experiences. This diversification allows arcade operators to attract a broader audience, including families, casual gamers, and hardcore enthusiasts. The introduction of new game genres, such as rhythm games and skill-based challenges, is likely to enhance the appeal of arcade venues. Market data indicates that establishments offering a diverse range of games could experience a revenue growth of approximately 12% as they cater to the varied interests of their clientele.

Technological Advancements

The Arcade Games Machine Market is experiencing a notable transformation due to rapid technological advancements. Innovations such as augmented reality (AR) and virtual reality (VR) are being integrated into arcade machines, enhancing user engagement and providing immersive experiences. This shift is likely to attract a younger demographic, who are increasingly drawn to interactive and visually stimulating entertainment options. Furthermore, the incorporation of advanced software and hardware is expected to improve the overall gaming experience, making it more appealing to both casual and dedicated gamers. As a result, the market is projected to grow at a compound annual growth rate (CAGR) of approximately 8% over the next five years, indicating a robust demand for technologically advanced arcade machines.

Market Segment Insights

By Machine Type: Video Games (Largest) vs. Pinball Machines (Fastest-Growing)

The Arcade Games Machine Market is primarily driven by the Video Games segment, which holds the largest market share. This segment comprises traditional arcade games as well as modern video game consoles, appealing to a broad audience across different age groups. Meanwhile, Pinball Machines, while smaller in share, are rapidly gaining popularity due to their nostalgic value and resurgence in bars and retro gaming establishments. Their unique gameplay experience is contributing to a steady increase in consumer interest.

Video Games (Dominant) vs. Pinball Machines (Emerging)

Video Games represent the dominant segment within the Arcade Games Machine Market, characterized by a vast array of offerings that range from classic arcade titles to current generation gaming experiences. This segment benefits from innovations and technology enhancements that provide immersive gameplay and multi-player options, attracting diverse demographics. On the other hand, Pinball Machines are emerging with a dedicated niche market that appreciates the tactile interaction and nostalgia they provide. Recent design revivals and integration of modern technology have rejuvenated interest in pinball, positioning it as a unique entertainment option that appeals to both older generations and new players.

By Gaming Experience: Single-Player (Largest) vs. Multiplayer (Fastest-Growing)

In the Arcade Games Machine Market, the gaming experience segment showcases a clear distribution of market share among its key categories: Single-Player, Multiplayer, Virtual Reality, and Augmented Reality. Currently, Single-Player machines dominate the market, catering to individual players and providing immersive gaming experiences. This segment is characterized by a nostalgic appeal, attracting a broad demographic that appreciates traditional arcade gaming. Conversely, Multiplayer machines have begun gaining significant traction, appealing to social gamers who prefer interactive experiences. Their growing popularity is reshaping the competitive landscape of arcade gaming.

Single-Player (Dominant) vs. Multiplayer (Emerging)

The Single-Player segment is a cornerstone of the Arcade Games Machine Market, offering consumers a nostalgic experience with games that engage individual players deeply. Single-Player machines typically emphasize high-score challenges and narrative-driven games, which continue to resonate well with users. On the other hand, the Multiplayer segment is emerging rapidly, transforming the arcade experience into an interactive social event. With advancements in technology, Multiplayer machines offer innovative gameplay that encourages competition among friends and enhances user engagement. The growing trend of competitive arcade gaming indicates a shift in player preferences, positioning Multiplayer as a pivotal area of growth in this market segment.

By Target Audience: Children (Largest) vs. Teenagers (Fastest-Growing)

In the Arcade Games Machine Market, the target audience segment is predominantly composed of children, who account for the largest share. Their preference for engaging and interactive gaming experiences drives their significant presence in the market. This segment is characterized by the popularity of colorful, action-packed games that appeal to young players, often seen in family entertainment centers and gaming arcades.

Children (Dominant) vs. Teenagers (Emerging)

The Children segment stands out as the dominant force in the arcade games market, thanks to a blend of captivating graphics, simple gameplay, and nostalgic themes that attract both young gamers and their families. Arcade experiences tailored for children often encompass arcade classics as well as modern games that enhance cognitive skills and promote socialization. On the other hand, the Teenagers segment is emerging rapidly, driven by trends in social gaming and competitive play. This group seeks more immersive and challenging games that foster a sense of achievement, leading to a growing demand for unique and innovative arcade experiences.

By Power Source: Electric (Largest) vs. Battery (Fastest-Growing)

The power source segment in the arcade games machine market is witnessing a diversified distribution among electric, battery, and hybrid sources. Electric power continues to hold the largest market share due to its reliability and performance capabilities, making it the preferred choice for arcade operators. Battery-powered machines are gaining traction, driven by the demand for portable gaming experiences, though they currently represent a smaller portion of the market compared to electric machines.

Electric (Dominant) vs. Battery (Emerging)

Electric power sources dominate the arcade games machine market due to their efficiency and ability to provide uninterrupted gameplay. They are widely used in arcades because of their capability for high performance and low operational costs. On the other hand, battery-powered arcade games are emerging as a popular alternative, particularly for gaming on-the-go and in settings where electricity may not be readily available. These machines offer flexibility and convenience, appealing to a younger, active demographic looking to enjoy arcade games in outdoor or mobile environments. As battery technology improves, this segment is poised for rapid growth, potentially challenging the dominance of electric machines.

By Control Mechanism: Joystick (Largest) vs. Buttons (Fastest-Growing)

In the Arcade Games Machine Market, the control mechanism segment is primarily dominated by joysticks, which have established themselves as the largest share contributor due to their longstanding popularity in classic arcade games. Buttons also represent a significant portion of the market, particularly in driving user interaction and enhancing gameplay experiences. Trackballs and motion controls, while integral to specific game types, have a relatively smaller presence in comparison, reflecting their niche appeal within the overall market landscape.

Joystick (Dominant) vs. Motion Controls (Emerging)

The joystick is the dominant control mechanism in the Arcade Games Machine Market, renowned for its intuitive design and adaptability across diverse gaming genres. It fosters precision and control, making it the preferred choice for traditional and competitive gamers alike. On the other hand, motion controls have emerged as a novel and innovative alternative, appealing to a new generation of players looking for immersive and interactive gameplay experiences. While still gaining traction, motion controls leverage advancements in technology to enhance player engagement, indicating a positive growth trajectory for this segment. As gaming evolves, the interplay between established favorites like joysticks and emerging technologies like motion controls will shape the future of arcade gaming.

Get more detailed insights about Arcade Games Machine Market

Regional Insights

North America : Entertainment Capital of the World

North America is the largest market for arcade game machines, holding approximately 45% of the global market share. The growth is driven by increasing consumer spending on entertainment and the resurgence of arcade venues. Regulatory support for gaming establishments and the integration of advanced technology in machines are also key factors fueling demand. The region's strong infrastructure and high disposable income further enhance market potential. The United States leads the market, followed by Canada, with a competitive landscape featuring major players like Raw Thrills and Incredible Technologies. The presence of established brands and innovative offerings keeps the market dynamic. Additionally, the rise of eSports and gaming tournaments has revitalized interest in arcade gaming, attracting a younger demographic and boosting sales.

Europe : Diverse and Evolving Market

Europe is the second-largest market for arcade game machines, accounting for around 30% of the global market share. The region's growth is propelled by a blend of cultural diversity and increasing investments in entertainment sectors. Regulatory frameworks across various countries are becoming more favorable, encouraging the establishment of new gaming venues and events. This regulatory support is crucial for market expansion and innovation in gaming technologies. Leading countries include the UK, Germany, and France, where a mix of traditional and modern arcade experiences thrive. Key players like Sega and Konami are actively involved in the market, offering a range of products that cater to diverse consumer preferences. The competitive landscape is characterized by both established brands and emerging companies, fostering innovation and variety in arcade offerings.

Asia-Pacific : Emerging Powerhouse in Gaming

Asia-Pacific is an emerging powerhouse in the arcade game machine market, holding approximately 20% of the global market share. The region's growth is driven by increasing urbanization, rising disposable incomes, and a growing youth population that favors entertainment options. Countries like China and Japan are at the forefront, with a strong cultural affinity for gaming and entertainment, further supported by favorable government policies promoting leisure activities. China is the largest market in the region, followed by Japan and South Korea. The competitive landscape is vibrant, with key players like Namco and Bandai Namco Amusements leading the charge. The presence of innovative gaming technologies and a focus on immersive experiences are key factors that enhance market dynamics. The region is also witnessing a rise in arcade gaming tournaments, attracting both local and international participants.

Middle East and Africa : Untapped Potential in Gaming

The Middle East and Africa represent an untapped potential in the arcade game machine market, holding about 5% of the global market share. The growth is driven by increasing investments in entertainment and leisure sectors, alongside a burgeoning youth demographic eager for new experiences. Regulatory frameworks are gradually evolving to support gaming establishments, which is crucial for market development in this region. Leading countries include the UAE and South Africa, where arcade gaming is gaining traction. The competitive landscape is still developing, with local and international players exploring opportunities. Companies are beginning to recognize the potential of this market, leading to increased product offerings and innovative gaming experiences. The region's unique cultural landscape also presents opportunities for tailored arcade experiences that resonate with local consumers.

Arcade Games Machine Market Regional Image

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 2024 to 2035, driven by technological advancements, increasing consumer engagement, and the resurgence of arcade venues.

New opportunities lie in:

  • Integration of virtual reality experiences in arcade machines.
  • Development of subscription-based gaming models for consistent revenue.
  • Expansion into emerging markets with localized game offerings.

By 2035, the market is expected to solidify its position as a dynamic and evolving sector.

Market Segmentation

Arcade Games Machine Market Machine Type Outlook

  • Video Games
  • Pinball Machines
  • Skill Crane Machines
  • Redemption Games

Arcade Games Machine Market Power Source Outlook

  • Electric
  • Battery
  • Hybrid

Arcade Games Machine Market Target Audience Outlook

  • Children
  • Teenagers
  • Adults
  • Families

Arcade Games Machine Market Control Mechanism Outlook

  • Joystick
  • Buttons
  • Trackball
  • Motion Controls

Arcade Games Machine Market Gaming Experience Outlook

  • Single-Player
  • Multiplayer
  • Virtual Reality
  • Augmented Reality

Report Scope

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% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of virtual reality technology enhances user engagement in the Arcade Games Machine Market.
Key Market DynamicsTechnological advancements and evolving consumer preferences drive innovation and competition in the arcade games machine market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the current valuation of the Arcade Games Machine Market?

The Arcade Games Machine Market was valued at 13.75 USD Billion in 2024.

What is the projected market valuation for the Arcade Games Machine Market in 2035?

The market is projected to reach 23.79 USD Billion by 2035.

What is the expected CAGR for the Arcade Games Machine Market from 2025 to 2035?

The expected CAGR during the forecast period 2025 - 2035 is 5.11%.

Which companies are considered key players in the Arcade Games Machine Market?

Key players include Namco, Sega, Konami, Raw Thrills, and Bandai Namco Amusements.

What are the main segments of the Arcade Games Machine Market?

The main segments include Machine Type, Gaming Experience, Target Audience, Power Source, and Control Mechanism.

How much is the Video Games segment expected to grow by 2035?

The Video Games segment is projected to grow from 6.5 USD Billion to 11.5 USD Billion by 2035.

What is the projected growth for the Pinball Machines segment by 2035?

The Pinball Machines segment is expected to increase from 2.0 USD Billion to 3.5 USD Billion by 2035.

What is the anticipated growth for the Multiplayer gaming experience segment?

The Multiplayer segment is likely to grow from 4.0 USD Billion to 6.5 USD Billion by 2035.

What is the expected market size for the Adult target audience segment by 2035?

The Adult target audience segment is projected to expand from 4.0 USD Billion to 6.75 USD Billion by 2035.

How is the Control Mechanism segment expected to perform by 2035?

The Control Mechanism segment is anticipated to grow from 4.25 USD Billion to 7.0 USD Billion by 2035.

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