ARCADES: New report projects $20bn market worth
A new report from Technavio forecasts a global arcade market worth $20bn by 2021.
The report provides an analysis of the most important trends expected to impact the market outlook from 2017-2021.
It says the global arcade gaming market is expected to grow at a steady pace during the forecast period owing to the changes in the market characterised by technology and changing consumption patterns of gamers. .
The top three emerging trends driving the market according to the report are 360-degree camera being accepted as next-generation technology; Increased penetration of VR headsets and “Arcade gaming becoming tourist attraction”.
“Advances in VR technologies have led to the introduction of VR 360-degree videos. VR is fast being considered as a mainstream gaming platform in the entertainment sphere, which is making its way to various digital arenas. As of 2016, the concept of VR with gaming simulators grew rapidly, and is one of the leading technological transformation in the gaming world,” said Ujjwal Doshi, lead analyst at Technavio.
“The gaming market is among the fastest-growing markets in terms of incorporating advanced technologies. One such trend in the gaming market is the increased adoption of VR headsets. VR provides a simulated environment through VR software and hardware. Thus, providing the closest real-life experience compared with other devices. VR uses synchronized sight and sound with data suites as the VR headsets are sensor-enabled. This has increased the number of gamers who prefer VR over traditional gaming devices,” added Ujjwal.
The increasing disposable income and enhanced compatibility with devices have made owning a VR headset more affordable for consumers. The majority of revenue in the VR segment will be generated through hardware sales, live viewing formats, and spectator content, says the report.
Despite the common perception that arcade gaming is slowly dying in North America and Europe, the market still has a prominent presence in APAC. The innovation in arcade gaming is rapid owing to which the market is expected to attract an increasing number of tourists during the forecast period. The adoption of motion sensor gaming, such as flight simulation and physical motion simulation, has led to arcade gaming becoming a tourist attraction.
In last 10 years, over 95 per cent of the arcade gaming revenue was generated from local audience, and by 2020, the revenue share is expected to decline to less than 90 per cent. Considering these games can provide the closest real-life experience, arcade games will gradually become an attraction for tourists.