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| ✷ Report Code: A04780 | May 2023 | Pages: 350 | ||
| Tables: 186 | Charts: 66 |
| |
The global family/indoor entertainment centers market was valued at $30.9 billion in 2022, and is projected to reach $88.7 billion by 2032, growing at a CAGR of 11.5% from 2023 to 2032.
The outbreak of COVID-19 had a negative impact on the growth of family/indoor entertainment centers market. This is attributed to large scale lockdown by majority of the governments across the globe to prevent the spread of COVID-19. Moreover, this industry has been largely affected due to the outbreak of the COVID-19 pandemic, leading to economic instability.
A family indoor entertainment center, or FEC, is a type of indoor venue that provides a range of activities and attractions for families and individuals of all ages. These centers typically offer a variety of activities such as arcade games, mini-golf, laser tag, trampoline parks, bowling, and virtual reality experiences. FECs are designed to provide safe and fun environments for families to spend time together and create lasting memories. FECs often incorporate a range of interactive and immersive experiences, using technology such as augmented and virtual reality to create engaging and exciting experiences. Many FECs offer food and beverage options, from snack stands to full-service restaurants and bars, providing a complete entertainment experience. Furthermore, FECs cater to a wide range of ages and interests, making them a popular destination for families, birthday parties, corporate events, and social outings. They provide an opportunity for families to spend quality time together while engaging in activities that are both fun and challenging. Moreover, the FEC industry is constantly evolving, with new attractions and experiences being developed to keep up with changing consumer preferences. FECs often incorporate new technologies and interactive experiences to stay ahead of the curve and provide a unique and exciting experience for visitors. Thus, family indoor entertainment centers provide a safe and enjoyable way for families to spend time together while engaging in a range of fun activities. With their variety of attractions, food & beverage offerings, and focus on immersive experiences, FECs are a popular destination for families and individuals looking for fun and engaging indoor entertainment.
One of the major drivers of the family indoor entertainment center market is the favorable youth demographics. The younger generation tends to prioritize experiences over material possessions, which has led to surge in demand for indoor entertainment centers that offer a range of fun and engaging activities. This trend is expected to continue as younger generations grow up and continue to seek out new and exciting entertainment options. Furthermore, increase in number of malls and continuous launch of new FECs supporting family activities, F&B integration, and participatory play are the major driving factors for the market. However, surge in ticket prices is a major hampering factor for the market. As FECs continue to invest in new technologies and attractions, the cost of visiting these centers has increased. This could lead to a decrease in demand, particularly for families with limited budgets. In addition, rise in popularity of home and mobile gaming is a major restraining factor for the market. On the contrary, the surge in investments in new games and attractions is one of the opportunities for the family indoor entertainment center market. FECs that invest in new and exciting attractions are likely to attract more visitors and retain existing customers. This investment could help FECs differentiate themselves from competitors and provide a unique and memorable experience for visitors, thus providing major lucrative opportunities for the market in the upcoming years.
The report focuses on growth prospects, restraints, and trends of the family/indoor entertainment centers market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the family/indoor entertainment centers market.
The family/indoor entertainment centers market is segmented into Facility Size, Revenue Source, Activity Area, Type and Visitor Demographics.
Segment review
The family/indoor entertainment centers market is segmented based on activity area, facility size, revenue source, type, visitor demographics, and region. In terms of activity area, the market is classified into arcade studios, AR & VR gaming zones, physical play activities, skill/competition games, and others. Depending on facility size, it is divided into up to 5,000 sq. ft., 5,001 to 10,000 sq. ft., 10,001 to 20,000 sq. ft., 20,001 to 40,000 sq. ft., 1 to 10 acres, 11 to 30 acres, and over 30 acres. Depending on revenue source, it is classified into entry fees & ticket sales, food & beverages, merchandising, advertisement, and others. On the basis of type, the market is categorized into children’s entertainment centers (CECs), children’s edutainment centers (CEDCs), adult entertainment centres (AECs), and location-based VR entertainment centers (LBECs). In terms of visitor demographics, the market is categorized into families with children (0-9), families with children (9-12), teenagers (12-18), young adults (18-24), and adults (ages 24+). Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
In terms of visitor demographic, teenagers (12-18) segment holds the largest family/indoor entertainment centers market share, owing to variety of game offerings provided by numerous family entertainment centers (FECs). However, families with children (9-12) segment is expected to grow at the highest rate during the forecast period, as the families with children of age between 9 and 12 years are more focused on shaping their children’s future through numerous activities, whether it is fun or education.
Region-wise, the family/indoor entertainment centers market size was dominated by North America in 2022 and is expected to retain its position during the forecast period due to the presence of a large number of players and surge in popularity of adventurous games and sports. However, Asia-Pacific is expected to witness significant growth during the forecast period owing to rise in number of malls in countries such as India, China, and other developing countries.
The report focuses on growth prospects, restraints, and trends of the family/indoor entertainment centers market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the family/indoor entertainment centers market.
The report analyzes the profiles of key players operating in the family/indoor entertainment centers market such as CEC Entertainment Concepts, LP., Cinergy Entertainment Group, Landmark Leisure LLC (Fun City), Funriders, KidZania, Dave and Buster’s, Inc., Lucky Strike Entertainment, Scene75 Entertainment Centers, Smaaash, and Timezone Global. These players have adopted various strategies to increase their market penetration and strengthen their position in the family/indoor entertainment centers market.
Market Landscape and Trends
The family indoor entertainment centre (FEC) market is a rapidly growing industry that provides a variety of indoor activities for families and individuals of all ages. These centers typically offer a range of activities such as arcade games, mini-golf, laser tag, trampoline parks, bowling, and virtual reality experiences. In recent years, the FEC industry has seen a significant increase in demand due to the growing popularity of indoor activities and the need for family-friendly entertainment options. This growth has been driven by the increase in disposable income and changing consumer preferences, which prioritize experiences over material possessions. The FEC market has also evolved to cater to changing consumer preferences. Many FECs are now incorporating new technologies and interactive experiences such as augmented reality and virtual reality. This trend is expected to continue as consumers seek more immersive and engaging experiences. Furthermore, many FECs now offer full-service restaurants and bars, allowing families to enjoy a meal or snack while participating in activities. This has become a significant revenue driver for FECs. Moreover, the COVID-19 pandemic has had a significant impact on the FEC industry. Many FECs were forced to close temporarily, leading to a decrease in revenue. However, as restrictions have eased, FECs have seen a surge in demand as families seek safe and enjoyable indoor activities.
Top Impacting factors
Favorable youth demographics
Family entertainment centers (FECs) major targeted clients are children aged 8 to 14 years and their parents. The existence of a large young population under the age of 14 in many Asian nations fuels the market growth. Further, as per capita disposable income rises in many emerging nations, parents' spending on their children continues to climb, which is predicted to fuel the expansion of the family/indoor entertainment centers market. In addition, youth is the major customer for indoor entertainment centers, as it makes up to 26% of the global population and often spend time with family and friends at their locality. Furthermore, as younger generations, such as millennials and Gen Z, become a larger part of the population, they are more likely to prioritize experiences over material possessions. This trend is driving demand for entertainment venues, including indoor entertainment centers. Therefore, the demand for family/indoor entertainment centers market size grows in countries with rich youth population.
Increase in number of malls
Expansion of the market is being fueled by increase in the number of malls in developing economies, since FECs are conveniently positioned in malls where customers visit frequently. As the world's largest malls are largely in Asia-Pacific, and the area accounts for approximately 80% of retail space under construction globally, mall development in the region is intensive and well-known. Furthermore, the concept of putting huge FECs in malls has increased in recent years which in turn is driving the market growth. As a result, numerous new malls have been built globally with significant space dedicated to FECs. They significantly boost a mall's appeal, enhance consumer retention, and boost income for other tenants. For instance, according to the ANAROCK research, approximately 4.5 Mn sq. ft. of new supply of FECs was planned for 2021. This new supply is expected to spread across tier I and tier II cities of India, with tier I cities accounting for around 90% of the space. Approximately 85% of the upcoming malls are likely to be added in tier I cities, and 15% in tier II & tier III cities. Thus, the increase in number of malls is fueling the growth of family/indoor entertainment centers industry.
Growing demand for unique experiences
Consumers are increasingly seeking unique and memorable experiences, and indoor entertainment centers provide a wide range of activities and attractions that can cater to this demand. In addition, as disposable income continues to rise in many countries, more families are able to spend money on entertainment activities, including visiting indoor entertainment centers. Further, the integration of technology, such as virtual reality and augmented reality, into indoor entertainment centers is attracting more customers and providing new and exciting experiences. Furthermore, with busy schedules and limited leisure time, many people are seeking out convenient and accessible entertainment options that can be enjoyed with family and friends. Indoor entertainment centers can provide a one-stop-shop for a variety of activities, making them an attractive option for busy consumers. Thus, the growing demand for unique experiences is boosting the family/indoor entertainment centers market growth market.
Key benefits for stakeholders
Family/Indoor Entertainment Centers Market Report Highlights
| Aspects | Details |
|---|---|
| Market Size By 2032 | USD 88.7 billion |
| Growth Rate | CAGR of 11.5% |
| Forecast period | 2022 - 2032 |
| Report Pages | 350 |
| By Activity Area |
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| By Facility Size |
|
| By Visitor Demographics |
|
| By Revenue Source |
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| By Type |
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| By Region |
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| Key Market Players | Dave and Buster’s, Inc., SMAAASH Entertainment Pvt. Ltd., Landmark Leisure LLC, Funriders, Cinergy Entertainment Group, Lucky Strike Entertainment, CEC Entertainment Concepts, LP., Scene75 Entertainment Centers, Timezone Global, KidZania |
Analyst Review
The family indoor entertainment center market has undergone significant changes in recent years, with several key trends emerging. One major trend is the increase in focus on providing unique and immersive experiences. Indoor entertainment centers have incorporated more interactive and high-tech attractions, such as virtual reality experiences, augmented reality games, and immersive escape rooms, to create an engaging and memorable experience for customers. Furthermore, there is a growth in emphasis on health and wellness. Many indoor entertainment centers have introduced fitness-oriented attractions, such as trampolines, climbing walls, and obstacle courses, to cater to health-conscious customers. In addition, facilities are increasingly offering healthier food options and incorporating sustainability initiatives to promote a healthier lifestyle and reduce their environmental impact.
Moreover, the COVID-19 pandemic has accelerated the adoption of digital technology in the indoor entertainment center market. Many businesses have implemented online booking systems, contactless payments, and virtual queuing to enhance the customer experience while adhering to social distancing measures. The pandemic has spurred innovation in hygiene and sanitation, with indoor entertainment centers adopting advanced cleaning technologies, such as UV sterilization and electrostatic spraying.
Furthermore, the demand for experiential retail has led to a surge in trend of indoor entertainment centers partnering with retailers and brands to create unique shopping experiences. By combining entertainment and retail, businesses are able to attract a wider range of customers and provide a more engaging and dynamic shopping environment. Therefore, the family indoor entertainment center market has evolved rapidly, and businesses that embrace these trends and adapt to changing customer preferences are likely to thrive in the coming years.
Furthermore, market players have adopted various strategies for enhancing their services in the market and improved customer satisfaction. For instance, Cinergy Entertainment Group expanded its presence in the market through new location openings. In April 2021, the company announced the opening of its eighth location in the U.S., in Amarillo, Texas. The new location features several attractions, including a ropes course, laser tag, and a virtual reality gaming area. Furthermore, KidZania has been expanding its global footprint through partnerships and franchise agreements. In February 2021, the company announced partnership with Grupo Sambil, a shopping mall developer in Venezuela, to open a new location in Caracas. In addition, the company has signed agreements to open new locations in countries such as Japan, Thailand, and Saudi Arabia. Moreover, Dave and Buster's, Inc. has focused on digital initiatives to enhance the customer experience. In March 2021, the company launched a new mobile app that allows customers to view menus, place orders, and pay for their meals and games from their smartphones. The app also offers rewards and promotions to incentivize repeat business. Thus, these major market players in the family indoor entertainment center market have implemented various strategies to adapt to the changing market conditions and attract customers. These strategies range from digital initiatives to global expansion and innovative attraction offerings.
Moreover, some of the key players profiled in the report include CEC Entertainment Concepts, LP., Cinergy Entertainment Group, Landmark Leisure LLC (Fun City), Funriders, KidZania, Dave and Buster’s, Inc., Lucky Strike Entertainment, Scene75 Entertainment Centers, Smaaash, and Timezone Global. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
The popularity of family/indoor entertainment centers is expected to increase primarily due to growth in number of malls in various cities of North America and the Asia-Pacific region. Consumers visit these malls on weekends, usually for shopping and spending time at restaurants. The presence of entertainment centers at these malls allows customers to spend quality time with their family & friends, while playing games and other indoor sports. This makes entertainment centers a favorite hangout place for families with a combination of eating, shopping, and play area. FEC’s are attracting families in large numbers, which is expected to positively impact revenue growth of the market.
The global family/indoor entertainment centers market is highly fragmented due to presence of several international as well as regional vendors. There is intense competition among family/indoor entertainment centers in terms of pricing, value-added benefits, and service portfolio. The focus of the players to offer diversified gaming and entertainment options is expected to further intensify the level of competition among the players in the family/indoor entertainment centers industry. Some of the major key players profiled in the report include Dave & Buster’s, CEC Entertainment, Inc., Cinergy Entertainment, KidZania, Scene 75 Entertainment Centers, The Walt Disney Company, Lucky Strike Entertainment, FunCity, Smaaash Entertainment Pvt. Ltd., and LEGOLAND Discovery Center. These players have adopted various strategies to enhance their offerings and increase their market penetration.
Furthermore, there is an increase in the investment in this market owing to presence of major brands and independent operators. For instance, Village Roadshow, which is an Australian mass media and entertainment company has publicly stated that it is developing “Village Cubes”, which are indoor location-based entertainment concepts of between $15 and $30 million, ranging in size from 2,500 to 20,000 square meters. Also, Turner’s Cartoon Network and its associated brands have embarked on a location-based entertainment strategy, with FEC concepts integrating F&B, participatory play, entertainment, and merchandising in between 3,000 and 5,000 square meters of space.
A. The family/indoor entertainment centers market is estimated to grow at a CAGR of 11.5% from 2023 to 2032.
A. The family/indoor entertainment centers market is projected to reach $88.70 billion by 2032.
A. Favorable youth demographics, increase in number of malls and growing demand for unique experiences majorly contribute toward the growth of the market.
A. The key players profiled in the report include family/indoor entertainment centers market analysis includes top companies operating in the market such as CEC Entertainment Concepts, LP., Cinergy Entertainment Group, Landmark Leisure LLC (Fun City), Funriders, KidZania, Dave and Buster’s, Inc., Lucky Strike Entertainment, Scene75 Entertainment Centers, Smaaash, and Timezone Global.
A. The key growth strategies of family/indoor entertainment centers players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
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