Family Indoor Entertainment Market Size, Share & Trends Analysis Report By Visitor (Families with Children (0-8), Families with Children (9-12), Teenagers (13-19), Young adults (20-25), Adults (Ages 25+)), By Revenue Source (Entry Fees and Ticket Sales, Food & Beverages, Merchandising, Advertisement, Others), By Applications (Arcade Studios, AR and VR Gaming Zones, Physical Play Activities , Skill/Competition Games, Others), By Type (Children’s Entertainment Centers (CECs), Children’s Edutainment Centers (CEDCs), Adult Entertainment Centers (AECs), Location-based VR Entertainment Centers (LBECs)) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global family indoor entertainment market size was valued at USD 25.13 billion in 2022. It is projected to reach USD 58.30 billion by 2031, growing at a CAGR of 9.80% during the forecast period (2023–2031).

The global family indoor entertainment centers provide holistic entertainment to all the members of the family. Additionally, its applications such as skill and competitive games, AR and VR games, and physical play games enable the development of social skills. It also helps to keep the children healthy, encourage creativity, and strengthens the family bond. Further, its growing popularity among teenagers and young adults has led the key players to enhance and modify the centers to a greater extent.

Market Dynamics

Innovative Game Offering Using Latest Technology

In light of the advent of new technologies such as Augmented Reality (AR), Virtual reality (VR), 3D, and 4D technologies, higher adoption has been observed in the entertainment and gaming industry. The indoor gaming stations extensively use these technologies to provide innovative and unique games to the customers. As per the report named IT Industry Outlook 2020, published by CompTIA Properties, LLC, virtual reality and augmented reality are among the top 20 emerging technologies with VR at the number 11 and AR at number 15. Further the as per ‘An Ericsson ConsumerLab insight report,’ published by Telefonaktiebolaget LM Ericsson, most of the surveyed gamers anticipate a growth in the gaming industry mainly due to the utilization of AR. The report also states rise of 67% of the AR technology in the next five years. Besides, as per our paid sources, the virtual reality market is expected to rise by USD 9.8 in the period 2019–2022. The market is anticipated to be valued at USD 16 billion in 2022. Thus increased advancements in the latest technology used in the entertainment and gaming industry are expected to bolster the growth of the Family Indoor Entertainment Market.

Transition Towards Modern Modes of Entertainment

A rising transition from traditional modes of entertainment towards modern modes of entertainment has proved to be beneficial for the family indoor entertainment market. The transition has been occurring due to the multiple benefits it offers to individuals of all age groups. For small children, it helps in increasing the body and mind coordination; in older kids, the edutainment games aids in sharpening their memory and skills. Further, with the rising technological advancements and the fast-moving world, these modern means of entertainment aim to provide a holistic approach toward the development of the children. Additionally, the inclination of adults towards modern indoor entertainment modes is mainly due to the increasing amount of health issues caused due to stress. As stated by The Mental Health Foundation, more than 74% of the stressed people are unable to cope up in daily activities. Further, the increase in the disposable income of the people living in developed and emerging countries has led to the transition, thus bolstering the growth of the family indoor entertainment market.

High-Cost of Establishment

The family indoor entertainment centers mandate substantial capital expenditure on assets such as gaming types of machinery, other gaming items, land, and others. The company has to invest a lot to make it more attractive to gain more customers. However, the high cost of initial investment has restricted many new companies to invest in these entertainment centers. Further, the companies find it extremely difficult to keep up with the constantly changing demand of the customers due to the difficulty in providing new and updated entertainment options, thereby losing out on customers. Further, the high cost of establishment and the inability to provide new and enhanced games and sources of entertainment to the audience has restricted the growth of the market.

Regional Analysis

North America: Home to Prominent Market Players 

The North America region is expected to dominate the family indoors entertainment market due to the presence of numerous players such as Dave & Buster’s, CEC Entertainment, Inc., Cinergy Entertainment, KidZania, Scene 75 Entertainment Centers, the Walt Disney Company, and Lucky Strike Entertainment among others. Additionally, the higher adoption of emerging technologies and the presence of favorable infrastructure have fostered the growth of the market. As per the report named Ease of Doing Business published by the World Bank, the U.S. stands in the second position that has a favorable regulatory environment for doing business. Further, the widespread presence of the entertainment centers across the region has led to a higher utilization by people of all ages. For instance, Lucky Strike Entertainment has 18 centers that are located across the U.S. and have made it accessible for the customers further.

Ease of Doing Business in Asia-Pacific

Asia-Pacific is anticipated to be the fastest-growing region due to the ease of setting up a business in the region as it comprises many developing nations such as China, India, Singapore, and Malaysia, among others. Additionally, the region is home to the top two countries with the highest population. China and India together comprise approximately 36% of the total population, thereby increasing the number of anticipated customers. The countries also provide cost-effective labor and machines and equipment at an economical rate. Further, as stated by the World Economic Forum, by the end of 2020, the total GDP of Asia is likely to take over the rest of the world. It also states that countries such as Indonesia, the Philippines, and Malaysia have been taking effective measures to grow their labor forces, further leading to a rise in per-capita disposable income. Additionally, the growing adoption of emerging technologies such as AR/ VR, 3D and 4D technologies, and Artificial Intelligence, among others, have bolstered the growth of the market.

Segmental Analysis

Attractive Entry Fees’ Package Deals

The entry fees and ticket sales segment accounts for the maximum share, owing to the only access to the entertainment center. Most of the entry fees usually comprise of package deals that include the rate of the rides, food and beverages. These centers also offer exclusive package deals for families, a large group, students discount, and others. For instance, Disneyland by The Walt Disney Company provides one day or two day passes along with a park hopper option available. Further, it also provides discounts through the local Costco, Von's or Ralph's store and to the Southern California University students. Further, the other segments also cater to moderate share as they are perceived as the secondary source of revenue for the entertainment centers.

Rising Popularity of Video Games Drives Arcade Segment Growth

The arcade segment holds the maximum share due to the surge in the video game market. As per The Sky is Rising Report 2019, published by the Copia Institute, the global video game market was valued at approximately USD 140 billion. Additionally, there is greater utilization of arcade games, mostly in western countries. It is a very common source of entertainment for children and adults. Further, the other segments cater to a moderate share, owing to the emergence of AR and VR technology in the gaming zones, increase in edutainment games, and others.

Impact of covid-19

The family indoor entertainment center has been experiencing a downfall due to the restrictions imposed, such as quarantine, and work from home by the governments of all the countries. The prolonged lockdown has led to a complete shutdown of the entertainment centers. However, to keep the economy going on, governments have started opening many public places. But with the fear of the novel coronavirus, people have refrained from visiting the public places. Thus the repercussions of COVID-19 are likely to hit the business and restrain it.

Recent Developments

• In February 2020, the Scene 75 Entertainment Centers expanded its geographical presence with its latest expansion. The company opened up a new entertainment facility at the Mall at Tuttle Crossing in Columbus, Ohio
• In March 2018, the Scene 75 Entertainment Centers opened up a new center in Pittsburgh thereby increasing their geographical presence