Family/Indoor Entertainment Centers (FEC) Market Insights in Middle East and North Africa - 2027
The MENA family/indoor entertainment centers market size was valued at $618.65 million in 2019, and is projected to reach $1,685.36 million by 2027, growing at a CAGR of 13.3% from 2020 to 2027.
Family/Indoor entertainment centers (FEC) are small amusement parks which is specifically designed to keep the entire family including all age groups engaged at low prices. FEC offer a variety of fun options such as gaming consoles, arcades, video games, indoor playground systems, playground areas, redeemers, skill-oriented machine games, child-driving, and others. These centers also host private events such as corporate events and birthday parties in areas such as malls. The popularity of these centers is growing as it offers different engaging services like food & beverages, edutainment games, AR & VR based games and other entertainment options which are gaining rapid traction in the market. These centers follow different strategies such as gift cards, bonuses, and birthday discounts to attract the customers which is impacting positively on the market growth.
The teenagers (13-19) segment dominated the MENA indoor entertainment centers market share in 2019, and is expected to continue this trend during the forecast period. This is attributed to upsurge in popularity of arcade games and amusement parks among teenagers. Moreover, kids of this age groups are more inclined toward AR & VR gaming zones to witness advanced entertainment experiences. However, the families with children (9-12) segment is expected to witness highest CAGR during the MENA indoor entertainment centers market forecast period, as the families with children of age between 9 and 12 years are more focused on shaping their children’s future through fun, entertainment, and education. Thus, most of the parents prefer fun learning and adventure-focused games, which is the major factor that drives the market growth.
By Revenue Source
Food & Beverages is projected as one of the most lucrative segments.
The 20,001 to 40,000 sq. ft. segment dominated the MENA family/indoor entertainment centers market in 2019, and is expected to continue this trend during the forecast period, owing to large number of attractions and facilities they offer to different age groups. Moreover, increase in demand for adventurous and outdoor games such as paintball, rock/wall climbing, and miniature golf is a major factor fueling the growth of these FECs. However, 10,001 to 20,000 sq. ft. segment is expected to witness highest growth rate in the upcoming years, as number of key players are developing FECs that range between 10,001 sq. ft. and 20,000 sq. ft. to cater to increasing needs of local audience, which drives the growth of the segment. Furthermore, standard indoor centers range from 15,000 to 20,000 square feet in size as compared to outdoor parks that are as large as 16 acres.
By Application
Arcade Studios segment is projected as one of the most significant segments.
Rest of MENA dominated the MENA family/indoor entertainment centers market in 2019, and is projected to remain dominant during the forecast period. Weather condition in these countries is major factor, which helps in the migration of footfalls in the malls. This has increased the popularity of edutainment venues, which conduct summer camps indoors during the summer break, thereby driving the growth of the market. Furthermore, a number of common factors such as rise in disposable income of the population, presence of large consumer base, surge in number of malls, continuous initiatives by government for the development of entertainment centers, and availability of technologically advanced gaming attractions are projected to positively impact the growth of the family entertainment centers market in North Africa.
By Country
Asia-Pacific region is projected as one of the most significant segments.
The report focuses on the growth prospects, restraints, and MENA family entertainment centers market analysis. The study provides Porter’s five forces analysis of the MENA family/indoor entertainment centers industry 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 MENA family entertainment centers market trends.
Segment review
The MENA family/indoor entertainment centers market is segmented into visitor demographics, facility size, revenue source, application, type, and country. In terms of visitor demographics, the market is categorized into families with children aging 0–8 years, families with children aging 9–12 years, teenagers (13–19), young adults (20–25), and adults (aged 25+). On the basis of facility size, it is divided into up to 5,000 sq. ft., 5,001 to 10,000 sq. ft., 10,001–20,000 sq. ft., 20,001–40,000 sq. ft., 1–10 acre, 11–30 acre, and over 30 acre. Depending on revenue source, it is segregated into entry fees & ticket sales, food & beverages, merchandising, advertisement, and others. The applications covered in the study include arcade studios, AR & VR gaming zones, physical play activities, skill/competition games, and others. On the basis of type, the market is differentiated into children’s entertainment centers (CECs), children’s edutainment centers (CEDCs), adult entertainment centers (AECs), and location-based VR entertainment centers (LBECs). Country wise, the market is analyzed across Egypt, Saudi Arabia, United Arab Emirates (UAE), Bahrain, Kuwait, and rest of MENA.
The key players operating in the MENA family/indoor entertainment centers industry include Dave & Buster’s, CEC Entertainment, Inc., Kidzania, Funcity, SMAAASH Entertainment Pvt. Ltd., Legoland, CAVU Designwerks Inc., a Majid Al Futtaim Company (Magic Planet), Landmark Group, and Adventureland.
Top impacting factors
The growth of the family entertainment centers market in Middle East is impacted by a number of factors such as continuous launch of new FECs supporting family activities and integration food & beverages and games such as participatory play, increase in number of malls, presence of large consumer base, and rise in use of various promotional strategies & offers such as loyalty programs. In addition, incorporation of new and technologically advanced gaming areas within FECs along with increase in preference of customers to celebrate occasions in FECs is expected to positively impact the growth of the market. However, increase in ticket prices and rise in popularity of home & mobile gaming are expected to hinder the MENA family entertainment centers market growth during the forecast period. However, each factor is anticipated to have its definite impact on the market.
Increase in number of malls
Upsurge in number of malls in MENA region is driving the growth of the market, as FECs are attractively located in malls where customers visit frequently. Mall development in the region is intense and world-renowned, as the largest malls in the world are mostly in the Middle East region. For Instance, Dubai has around 65 malls in a city of just over 3 million people with 10 malls under construction, which also include Dubai Square, a megamall set to be biggest in the world. Moreover, the idea of adding major FECs in malls has been gaining rapid popularity over the last few years. This has led to construction of several new malls with substantial square footage allocated to FECs. They substantially lengthen shopper stay, and increase revenue for other tenants.
Presence of large target population
The primary target customers of FECs are kids aged between 8 and 14 years and their parents. Thus, the presence of huge youth population under 14 years of age in MENA drives the growth of the market. Furthermore, owing to rise in per capita disposable income of individuals in developing countries, the spending on children’s by their parents is continuously increasing, which is expected to drive the growth of the family/indoor entertainment centers market. For instance, children and young individuals aged between 0 and 24 years in MENA region currently account for approximately half of the region’s population.
Key Benefits For Stakeholders
This study includes the MENA family/indoor entertainment centers market analysis, trends, and future estimations to determine the imminent investment pockets.
The report presents information related to key drivers, restraints, and MENA indoor entertainment centers market opportunity.
The MENA family/indoor entertainment centers market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
Porter’s five forces analysis illustrates the potency of buyers & suppliers in the MENA family/indoor entertainment centers market.
MENA Family/Indoor Entertainment Centers Market Report Highlights
| Aspects | Details |
 By Visitor Demographics |
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| By Facility Size |
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 By Revenue Source |
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 By Application |
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 By Type |
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 By Country |
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 Key Market Players | FUN CITY (LANDMARK LEISURE LLC), SMAAASH, LEGOLAND, .CEC ENTERTAINMENT, INC., MAJID AL FUTTAIM, DAVE & BUSTER’S ENTERTAINMENT, INC., LANDMARK GROUP, CAVU DESIGNWERKS, KIDZANIA, ADVENTURELAND |
Analyst Review
The popularity of family/indoor entertainment centers (FECs) is expected to increase considerably, due to increase in number of malls in various cities of MENA region. Consumers visit these malls majorly on weekends for shopping and spending leisure 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. Thus, rise in number of families visiting FECS is expected to positively impact the revenue growth of the market. The MENA family/indoor entertainment centers market is highly fragmented, due to the presence of several international as well as regional vendors. Intense competition has been witnessed among family/indoor entertainment centers in terms of pricing, value-added benefits, and service portfolio. Thus, increase in focus of the players to offer diversified gaming and entertainment options is expected to further intensify the level of competition among in the industry.
The vendors of the industry are coming up with innovative concepts such as technologically advanced games, integration of new FEC equipment, and different loyalty offers for the customers for family entertainment centers in the Gulf Cooperation Council (GCC). Furthermore, they are analyzing top-tier mall operators as well as property developers; play requirements; strategies to develop playgrounds, parks, and upgrade public realm spaces; regulations & standards which govern the development of play facilities; and the direct & indirect benefits of play on children. In addition, increase in investment in FEC market owing to the presence of major brands and independent operators has significantly contribute toward the market growth. For instance, Abu Dhabi invested almost $35 million in developing parks and playgrounds alone in 2017. In addition to this, major malls in the GCC have started construction of FECs in 2017, which include Mall of Oman, Ishbiliyah City Centre in Saudi Arabia, Phoenix Mall in UAE, and Ibn Battuta Mall Expansion.
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