North America, Europe, Asia Pacific, And Middle East Indoor Entertainment Center Market Outlook
The North America, Europe, Asia Pacific, And Middle East indoor entertainment center market size was estimated at USD 23,820.2 Million in 2021 and is anticipated to reach USD 60,105.7 Million by 2030, expanding at a CAGR of 11.2% during the forecast period 2022-2030.
Indoor entertainment centers are places where families and groups of friends actively spend time while enjoying many attractions. Indoor entertainment centers are miniature indoor amusement parks that provide a wide range of activities for people of all ages. These centers have game zones, adventure rides, restaurants, and movie theaters to offer different types of services to the customers.
Companies in this market are focusing on delivering comprehensive range of services to the customers by designing secured and engaging play zones and thrilling adventure activities for adults. Indoor entertainment facilities are most frequently located in urban regions. These facilities are a popular destination for amusement among consumers.
Entertainment centers offer a controlled atmosphere that is shielded from outside elements, making them a popular option for amusement all year round. Such indoor centers are often known as family entertainment centers. The family fun centers, as arcades and miniature golf facilities, gained popularity in the early 1970's and quickly spread across the various nations.
North America, Europe, Asia Pacific, And Middle East Indoor Entertainment Center Market Macro-economic Factors
Gross Domestic Product (GDP)
In the developing and developed regions, the per capita income of consumers is rising. This increases their ability to spend money on entertainment and other leisure activities significantly. Thus, entertainment centers are in high demand in these regions where the economy is developing constantly.
Additionally, advancement in technology serves as a positive impacting factor, which enhances the entertainment industry’s position in the global economy. According to IDEAS, the global leisure and media industry was worth USD 2.1 trillion at the end of 2018. The active transition towards digitalization is increasing, due to continuous developments across the globe.
For example, in 2020, the distribution of internet traffic was in the ratio of 79% mobile to 25% wired internet. Additionally, the entertainment sector is continuously bringing changes in entertainment types and modes of operations.
Gaming is an important part of the indoor entertainment center. The gaming community is increasingly becoming age diverse, with a rising number of young and old players. Population demographics plays important role in the gaming industry.
Although gaming is still mostly associated with children, the average age of gamers changes all the time. According to gaming demographics for 2022, adults are the largest segment of gamers, with those aged between 18 to 34 account for 36% of the total gamers.
Only 24% of gamers in the US are under the age of 18, and gamers over the age of 65 make up the smallest segment, accounting for 6% of the total gamers. Players have a 36% positive attitude toward brands such as PS 5, which makes them a desirable market for businesses with the correct messaging.
Increasing Preference for Indoor Entertainment Centers
The development of indoor entertainment centers is attributed to an upsurge in customer preference for amusement parks, 4D films, arcade studios, and other forms of entertainment. Increasing urbanization and rising foreign travel have a positive impact on indoor entertainment centers.
Increasing adoption of video games and immersive video content at indoor entertainment centers is favorably influencing the market statistics. Sophisticated Visual Effects (VFX) with sensory stimuli and ancient tactile offered at entertainment centers are expected to have a positive impact on indoor entertainment centers during the forecast period.
Increasing number of consumers prefer indoor entertainment centers, as they do not need to invest in any device or equipment to experience an immersive environment. Furthermore, retail outlets and malls are embracing indoor entertainment centers to provide shoppers with a pleasant experience.
North America, Europe, Asia Pacific, And Middle East Indoor Entertainment Center Market Dynamics
Increasing Disposable Income & Leisure Activities
High disposable income results in changing lifestyles and living standards. Increasing disposable income among consumers, rising inclination towards leisure activities, and availability of a number of leisure activities in one place drive the demand for indoor entertainment centers across the globe.
High demand for adventurous and thrilling games spurs such entertainment centers to develop innovative games that encourage consumers to visit and spend money in these centers. Consumers' spending ability on leisure activities increases with growing disposable income.
Entertainment centers provide a range of recreational activities that are enjoyed by individuals, families, and groups. Thus, the increasing disposable income is expected to drive the demand for entertainment centers during the forecast period.
Increasing Marketing and Promotional Activities
Increasing marketing and promotional activities are driving the demand for indoor entertainment centers across the globe. Digital marketing and promotion are considered as a crucial step for business development. Innovative advertising methods are expected to increase the sales of indoor entertainment gaming tickets in the coming years.
Organizations utilize promotional strategies to promote and sell their products. A company's promotional strategy is determined by elements such as the product, marketing budget, target demographic, and others. It is a vital activity for increasing product recognition that results in high sales. An effective promotional plan generates more income than marketing costs.
Businesses utilize advertisements to bring attention to new products or brands that are expected to benefit current and future customers. Company advertisements such as flyers, direct mailings, billboards, and paid online ads on the correct channels are supposed to be effective in driving the demand for indoor entertainment centers. Companies are using social media to promote or provide discounts, as an incentive for people to visit their entertainment centers.
Capital improvements including the purchase & development of land, labor costs, and planning & construction of new facilities require high costs and a long period of time. Renovation or expansion of existing facilities is considered a capital investment cost as well. These costs are incurred after the research and development phase.
The indoor entertainment centers consist of a variety of equipment, screens, and themes. Indoor entertainment centers require huge land for construction as well. The cost associated with the equipment is relatively high. The equipment used in indoor entertainment centers required regular maintenance, which requires high labor costs and manpower. Such factors are expected to hamper the market growth in the coming years.
Favorable youth demographics and the continuous introduction of new family entertainment centers that enable family activities, Food & Beverage integration, and interactive play are creating lucrative opportunities for the indoor entertainment center market. Additionally, the increase in the number of malls has a beneficial impact on the market growth.
Similarly, an increase in investments in new games and attractions is anticipated to provide lucrative opportunities for market expansion during the forecast period. An increase in the installation of new technologies such as 3D technology and virtual reality games in these centers is also a crucial aspect that is providing numerous growth potentials for indoor entertainment centers.
Furthermore, the availability of many entertainment and gaming options as well as the growing trend toward indoor leisure activities are expected to create lucrative opportunities in the coming years. Governments are granting tax breaks through R&D tax credits to increase the use of augmented reality (AR), and virtual reality (VR) in many businesses. Such favorable government rules enable market players to install AR & VR technology in gaming zones and provide clients with a cinematic experience.
Scope of North America, Europe, Asia Pacific, And Middle East Indoor Entertainment Center Market Report
The report on the indoor entertainment center market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Indoor Entertainment Center Market – North America, Europe, Asia Pacific and Middle East Industry Analysis, Size, Share, Growth, Trends, and Forecast
Type (Arcade Games, AR-VR Games, Indoor Go-Karts, Indoor Adventure Parks, Bowling Alleys, Children's Entertainment & Edutainment Area, Trampoline Parks, Movie Theaters, And Others)
North America, Europe, Asia Pacific and the Middle East
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered
Disney, Merlin Entertainments; TripleFive Group of Companies; Dave & Buster’s, Inc; Bowlero; Timezone Global; Scene75 Entertainment Centers; Lucky Strike Entertainment; Tenpin; SMAAASH; KidZania; and MIRAL.
North America, Europe, Asia Pacific, And Middle East Indoor Entertainment Center Market Segment Insights
Type Segment Analysis
On the basis of type, North America, Europe, Asia Pacific, and Middle East indoor entertainment center market is segmented into arcade games, AR-VR games, indoor go-karts, indoor adventure parks, bowling alleys, children's entertainment & edutainment area, trampoline parks, movie theaters, and others.
The AR-VR games segment held a market share of 9.0% in 2021 and is expected to expand at a CAGR of 12.7% during the forecast period. AR-VR gaming is the term used to describe a new generation of computer games with virtual reality (VR) technology that gives players an immersive, first-person perspective of game action. Indoor adventure park is expected to hold a market share of 10.8% in 2030.
Adventures fun games & activities as well as heated pools & water rides are also offered in adventure parks. This is boosting the popularity of indoor entertainment centers. The movie theater segment is expected to hold a market share of 26.0% in 2030 and the others segment is expected to hold a market share of 2.4% in 2030.
Other types of indoor entertainment centers include sports arcades, basketball hoops, poker tables, billiards, and skee-ball & alley rollers. These games allow people to play the games in any weather conditions.
Based on region, the market is separated into four regions, namely, North America, Europe, Asia Pacific, and the Middle East. Asia Pacific is projected to hold a significant share of the market during the forecast period.
Asia Pacific accounted for 28.0% of the market share in 2021. The market in Asia Pacific is expected to develop at a fast rate during the forecast period, due to the rising population and changing lifestyle of consumers. Southeast Asia is considered as an ideal location for developing cutting-edge entertainment trends and ideas, owing to its population, demography, and distinctive geography.
The market in Europe is anticipated to exhibit stable growth, due to the increased investments in the virtual reality sphere in the region. Rapid development and penetration of various VR/AR tools in numerous fields are revolutionizing the consumer experience and generating circumstances for the introduction of game mechanics in the region.
North America held 38.6% of the market share in 2021, due to the changing lifestyle among consumers. Increasing preference towards bowling among consumers boosts the market in the region. Bowling is considered as a prominent sport in the US. Many centers attempt to increase their revenue from food sales by expanding their menu offerings and enhancing their food quality, in addition to bowling facilities.
An improved restaurant operation is increasingly viewed as crucial in attracting and maintaining consumers. Enhanced food displays attract consumers to such bowling establishments.
The market in the Middle East is expected to expand at an 11.7% CAGR during the forecast period. The Gulf Cooperation Council (GCC) is planning to invest increasingly in local entertainment facilities. Urban parks, family-friendly entertainment venues, movie theaters, and a full calendar of festivals and events are among the key ones.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the North America, Europe, Asia Pacific and Middle East Indoor Entertainment Center Market
- Historical, Current, and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on North America, Europe, Asia Pacific and Middle East Indoor Entertainment Center Market Performance
- Arcade Games
- AR-VR Games
- Indoor go-karts
- Indoor Adventure Parks
- Bowling Alleys
- Children's Entertainment & Edutainment Area
- Trampoline Parks
- Movie Theaters
- North America
- Asia Pacific
- Middle East
- Dave & Buster’s, Inc
- TripleFive Group of Companies
- Merlin Entertainments
- Timezone Global
- Scene75 Entertainment Centers
- Lucky Strike Entertainment
Manufacturers operating in the indoor entertainment center market Disney; Merlin Entertainments; TripleFive Group of Companies; Dave & Buster’s, Inc; Bowlero; Timezone Global; Scene75 Entertainment Centers; Lucky Strike Entertainment; Tenpin; SMAAASH; KidZania; and MIRAL. Market players are pursuing key strategies such as acquisitions, collaborations, and geographic expansion.