Arcade Gaming Market Report 2026

The arcade gaming market size has grown steadily in recent years. It will grow from $13.69 billion in 2025 to $14.23 billion in 2026 at a compound annual growth rate (CAGR) of 4%. The growth in the historic period can be attributed to popularity of coin-operated gaming, expansion of shopping malls and entertainment hubs, growth of youth-oriented leisure activities, increasing disposable income for entertainment, evolution of arcade gaming formats.

The arcade gaming market size is expected to see steady growth in the next few years. It will grow to $16.87 billion in 2030 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to increasing convergence of arcade and esports gaming, rising investments in immersive gaming technologies, expansion of location-based gaming experiences, growing demand for social and competitive play, increasing adoption of data-driven game personalization. Major trends in the forecast period include growing adoption of vr and simulation arcade games, rising demand for skill-based and competitive gaming, expansion of arcade gaming in malls and entertainment centers, increasing integration of digital payment systems, enhanced focus on interactive player experiences.

High engagement in arcade gaming is expected to boost the growth of the arcade gaming market in the coming years. High engagement in arcade gaming refers to significant, immersive participation in arcade-style video games, often marked by strong enjoyment and extended periods of play. High engagement in arcade gaming benefits the arcade gaming industry because it contributes to overall market expansion. Changes in consumer lifestyles, the increasing number of commercial gaming venues, and rising disposable incomes have all helped drive growth in the arcade gaming market. For example, in November 2025, the Gambling Commission, a U.K.-based government regulatory body, reported that the U.K. gambling industry generated a total gross gambling yield (GGY) of £16.8 ($19.75) billion, representing a 7.3% increase from April 2023 to March 2024. Therefore, high engagement in arcade gaming will support the growth of the arcade gaming market going forward.

Key players in the arcade gaming market are introducing innovative arcade games to maintain their market positions. For example, in July 2024, Coleco, a US-based toy manufacturer, unveiled the ColecoVision Full-Size Stand-Up Arcade Unit. This arcade cabinet uniquely features 40 classic ColecoVision games and offers the flexibility to add ROMs from various classic and contemporary gaming systems due to its open-source design. It is equipped with an easy setup, high-quality joysticks, a trackball, arcade buttons, and an original-style ColecoVision gamepad, all displayed on a 32-inch high-definition screen. Moreover, it acts as a community hub, enabling retro gaming enthusiasts to connect with each other.

In October 2023, Microsoft, a leading US technology corporation, completed the acquisition of Activision Blizzard for a total sum of $68.7 billion. This strategic move is poised to significantly enhance Microsoft's position within the gaming sector and the burgeoning metaverse landscape. Furthermore, it solidifies Microsoft's dominance in the realm of cloud gaming services while granting the company access to a formidable array of highly lucrative intellectual properties, including iconic franchises such as Call of Duty, World of Warcraft, and Diablo, alongside the inclusion of esteemed studios such as Treyarch and Infinity Ward within its portfolio.

Major companies operating in the arcade gaming market are Bandai Namco Entertainment, Sega Amusements, Raw Thrills Inc., Taito Corporation, Konami Digital Entertainment, Capcom Co. Ltd., LAI Games, Adrenaline Amusements, Andamiro Co. Ltd., ICE (Innovative Concepts in Entertainment), Bay Tek Entertainment, UNIS Technology Ltd., Wahlap Technology, BANDAI NAMCO Amusement America, Benchmark Games, Play Mechanix, Game Play Network Inc., Global VR, Golden Tee Golf (Incredible Technologies), Hanco Technologies, Stern Pinball Inc., Pac-Man Entertainment, Barron Games International, Sega Corporation, Funovation, CXC Simulations, Smart Industries, Team Play Inc., Valley-Dynamo.

North America was the largest region in the arcade gaming market share in 2025. The regions covered in the arcade gaming market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the arcade gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The arcade gaming market consists of sales of carnival games, merchandiser games, pinball machines, and slot machines. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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