Key Trends in the Amusement Parks and Arcades Industry

amusement park and arcades marketThe global amusement parks and arcades market will grow at a growth rate of around 9% to nearly $87.2 billion by 2022, according to a recent report by The Business Research Company.

Amusement parks are deploying innovative applications of the Internet of Things (IoT) technology to improve operational efficiencies and enhance customer experiences. IoT is the network of physical devices, vehicles and other items embedded with electronics, software, sensors, actuators and connectivity which enables these things to connect, collect and exchange data. Amusement parks are using beacon-enabled wristbands to get real-time customer data which helps parents (guests) to locate their children.

Such bands also help managers to identify areas of improvement and send real-time information, tips and promotions to guests based on their locations. For example, Disney World has successfully implemented the IoT wristband concept at its amusement park located in Orlando, Florida. This wristband serves as a digital entrance ticket for the guests and facilitates transactions.

Further driving the amusement parks and arcades market is increasing disposable incomes. People are looking for unique experiences with personalization to spend their leisure time, which is driving the experience economy — a trend where consumers invest in experiences rather than in owning goods. Social media has helped consumers to accelerate the demand for such experiences.

A major restraint on the amusement parks and arcades market in the forecast period will be the lack of availability of skilled labor. For a labor-intensive industry such as the recreation industry, economic growth in developed and developing economies will lead to wage increases as well as lack of availability of skilled labor. These increased input costs will put pressure on companies in the amusement parks market, who are looking to protect margins while maintaining the quality of their services.

Regional Variations in the Amusement Parks and Arcades Industry

North America was the largest market for amusement parks and arcades, accounting for around 40% of the global market in 2018. It was followed by Asia-Pacific, Western Europe and other regions. Going forward, North America and Asia-Pacific will be the fastest growing regions in the amusement parks and arcades market to 2022.

The size of the amusement parks and arcade market in North America can be attributed to the presence of major theme-based parks in the region along with the high disposable income of American and Canadian citizens. The high number of domestic and international tourists also supports the market size. Walt Disney World in Florida, the most visited theme park in the world, largely contributes to the market size of amusement parks and arcades in the region.

Key Market Segments and Major Players

The amusement parks and arcade market is segmented by type into theme parks, water parks and amusement arcades. Theme parks was the largest segment of the amusement parks and arcades market in 2018 at around 82% market share. The theme parks market is also expected to be the fastest-growing segment going forward at a growth rate of around 9%.

The amusement parks and arcades market is segmented by revenue source into tickets, food & beverages, hotels & resorts, and merchandise and others. Tickets were the largest segment of the amusement parks and arcades market by revenue source in 2018, at around 62% market share.

The amusement parks and arcade market is relatively concentrated, with the top two players accounting for nearly one-third of the whole, while the top ten competitors made up around 45% of the total market in 2018. The remaining part of the market is fragmented with a large number of small players. Major players in the market include Walt Disney Parks and Resorts, Universal Parks and Resorts, Merlin Entertainment plc, Oriental Land Company Ltd, and Six Flags Entertainment Corporation.

For more information about the amusement parks and arcade industry, see the report Amusements Global Market Opportunities and Strategies to 2022 from the Business Research Company. It provides arcades and amusement parks industry analysis, market overview, forecasts of market size, market trends, market drivers, market restraints, market revenues, market shares, and company profiles of the leading competitors.

About the Business Research Company

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Topics: Travel & Leisure Industry Insights