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What key factors are powering the surge in the arcade gaming market right now?

In the last few years, the market size of arcade gaming has witnessed a slight increase. It is expected to expand from $13.61 billion in 2024 to $13.73 billion in 2025, with a compound annual growth rate (CAGR) of 0.9%. Aspects such as location-centric tendencies, cultural impact, the competitive scenario, societal trends, and market saturation contributed to the growth seen in the historic period.

How fast Is the arcade gaming market expected to grow, and what’s its future value?

Rapid expansion is anticipated in the satellite internet market size in the coming years, anticipated to reach $11.35 billion in 2029, demonstrating a compound annual growth rate (CAGR) of 14.9%. The growth over this forecast period can be ascribed to an escalated demand for broadband services, the burgeoning expansion of low earth orbit (LEO) satellite constellations, the proliferation of connected vehicles and Internet of Things (IoT), commercial and residential broadband resolutions, alongside government initiatives and subsidies. The period is also likely to see major trends including the integration with 5G networks, the arrival of cost-effective consumer terminals, an emphasis on rural connectivity solutions, government-led initiatives for space-based connectivity and the evolution of advanced satellite technologies.

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What are the leading drivers of growth in the arcade gaming market?

The growth of the arcade gaming market is anticipated to be fuelled by the rise in physical activity. Referring to any movement of the body that requires energy expenditure through the use of skeletal muscles, physical activity is seeing growth mostly due to its health advantages. The increase in physical activity prompts the exploration of new means, and arcade gaming offers a medium, equipped with groundbreaking health tools, that captivates players and engages them with interventions incorporating regular exercise, well-balanced nutrition, and suitable sleep habits. For example, in December 2023, the Australian Bureau of Statistics (ABS), a national statistics agency based in Australia, reported that nearly one in four persons aged 15 and above (23.9%) achieved the physical activity standards in 2022. The data on adult physical activity revealed that close to half (48.5%) engaged in walking as exercise, while just below half (47.4%) walked as a means of transportation. In addition, one in three people (32.8%) involved themselves in moderate exercise, and three of every ten people (30.5%) performed strength or toning exercises. Roughly one in five people (18.6%) partook in high-intensity workouts. Consequently, the rise in physical activity is set to boost the arcade gaming market’s growth in the future.

What are the key segments defining the arcade gaming market?

The arcade gaming market covered in this report is segmented –

1) By Type: Video Games, Simulation Games, Mechanical Games

2) By Genre: Racing, Shooting, Sports, Action

3) By Distribution Channel: Online, Offline

4) By Application: Residential, Commercial, Gaming Hubs

Subsegments:

1) By Video Games: Action Games, Adventure Games, Fighting Games, Sports Games, Puzzle Games, Rhythm Games

2) By Simulation Games: Racing Simulators, Flight Simulators, Sports Simulators, Virtual Reality (VR) Simulators, Business and Management Simulators

3) By Mechanical Games: Pinball Machines, Coin-Operated Mechanical Games, Redemption Games, Ticket Redemption Games

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Who are the key players steering the development of the arcade gaming market?

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

What emerging trends are influencing the growth of the arcade gaming market?

The advent of new and technically sophisticated products has emerged as a key trend that is gaining traction in the arcade gaming market. In order to maintain their market dominance, premier players in the industry are launching high-tech arcade games. For instance, Coleco, a toy company based in the US, launched the ColecoVision Full-Size Stand-Up Arcade Unit in July 2024. This arcade cabinet uniquely fuses 40 classic ColecoVision games with the adaptability to incorporate ROMs from a range of vintage and modern gaming platforms, courtesy of its open-source design. It offers user-friendly setup with top-quality joysticks, a trackball, arcade buttons, and a classic-style ColecoVision gamepad, all showcased on a 32-inch high-definition screen. Additionally, it functions as a social platform, facilitating interaction among retro gaming aficionados.

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Which regions are most influential in expanding the arcade gaming market?

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.

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