Music & Games

Arcade gaming market projected to grow, driven by physical activity, VR integration

Photo: Technavio

February 4, 2025

The global arcade gaming market is forecast to expand by nearly $2 billion between 2025 and 2029, according to a report from Technavio. The market is expected to grow at a CAGR of 1.9%. A resurgence in popularity of physical activity-based arcade games, along with increasing integration of virtual reality technology, are key drivers of this growth.

Despite the positive outlook, the high cost of arcade gaming machines presents a challenge. The market remains fragmented, with key players including Bandai Namco, Bay Tek Entertainment, Bowlero Corp., Capcom and Sega Sammy.

This projected growth is attributed to the desire for physical activity and social interaction. The report differentiates arcade gaming from online gambling, emphasizing its focus on entertainment. The increasing presence of VR technology in arcades, demonstrated by companies like Vertigo, is also identified as a significant trend. While APAC currently leads the market with a 51% share, growth is expected across all regions.