Amusement Parks And Arcades Market Characteristics
The amusement parks and arcades market consists of sales of amusement parks and arcades entertainments and related goods by entities (organizations, sole traders and partnerships) that operate amusement parks and arcades.
The amusement parks and arcades market also includes sales of amusement arcades such as family fun centres, pinball arcades and amusement device parlors.
This market includes sales of entry fees and ticket sales for rides, games, food and beverages, merchandise goods, and hotels and resorts. However, this market excludes sales of exclusive restaurants such as fast food chains operating within the amusement parks. Amusement and theme park companies operate mechanical rides, water rides, water games (includes both spectator sports and crowd engagement games), events, games, shows, themed exhibits, refreshment stands and other visitor attractions for entertainment.
Amusement Parks And Arcades Market Size
The global amusement parks and arcades market reached a value of nearly $62.0 billion in 2018, having grown at a compound annual growth rate (CAGR) of 8.3% since 2014 and is expected to grow at a CAGR of 8.8% to nearly $87.2 billion by 2022.
Growth in the historic period resulted from a rise in disposable incomes, companies focusing on reinvesting, increase d travel and tourism, and economic growth. Factors that negatively affected growth in the historic period were harsh weather conditions and rising costs.
Going forward, economic growth in developed nations and increasing use of social media will drive the growth. Factors that could hinder the growth of this market in future include unfavorable demographic changes, a threat from home entertainment and experience fatigue.
Amusement Parks And Arcades Market Drivers
The Key drivers of the amusement parks and arcades market include:
Growth Of The Experience Economy – With increasing disposable incomes, people are looking for unique experiences with personalization to spend their leisure time, driving the experience economy. The experience economy is an economy based on consumers investing in experiences rather than in owning goods or consuming services. Social media has helped the consumers to accelerate the demand for such experiences as the consumers communicate with the world through this platform.
Amusement Parks And Arcades Market Restraints
The key restraints on the amusement parks and arcades market include:
Increased Costs and Decline In Margins – For a labor-intensive industry such as the recreation industry, economic growth in developed and developing economies led to wage increases as well as lack of availability of skilled labor. These increased input costs put pressure on companies including amusement parks that are looking to protect margins while maintaining the quality of their services. These factors had a negative impact on the growth of the market in the historic period.
Amusement Parks And Arcades Market Trends
Major trends influencing the amusement parks and arcades market include:
Use Of IoT Technology Improves Efficiency And Guest Experience – 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 the areas of improvement and send real-time information, tips and promotions to the guests based on their locations. For example, Disneyworld has successfully implemented IoT wristband concept at its amusement park located in Orlando, Florida. This wristband serves as digital entrance ticket for the guests and facilitates transactions.
Rising Investments In Overhauling Of Old Coasters – Amusement parks are increasingly investing in overhauling of old roller coasters. Amusement parks are modifying their roller coasters and are changing outdated wooden rail tracks to steel tracks. This gives the operators flexibility to make rides faster, steeper and have more twists to improve the experiences for the riders. Six Flags theme park has rehabbed its classic wooden coasters by adding steel tracks in its amusement parks located in New England and Southern California. Also, Cedar Point amusement parks has switched to floorless style train and changed old coaster to steel coaster.
Opportunities And Recommendations In The Amusement Parks And Arcades Market
Opportunities – The top opportunities in the amusement parks and arcades market will arise in the theme parks segment which will gain $21.1 billion of global annual sales by 2022. The amusement parks and arcades market size will gain the most in the USA at $9.92 billion. Market-trend-based strategies for the amusement parks and arcades market include using IoT technology that improves efficiency and guest experience, introducing cost effective retractable roofs for water parks, and offering platforms to patrons for booking rides or tickets with the help of mobile technologies. Player-adopted strategies in the amusement parks and arcades industry include launching new attractions and entertainments, investing in opening new theme parks, and acquisitions.
Recommendations – To take advantage of these opportunities, The Business Research Company recommends the amusement parks and arcades companies to using digital technologies to enhance the user experience, focus on reinvesting, contribute towards sustainability, leverage technology to maximize reach and increase focus on commercialized nostalgia, among other strategies.
Amusement Parks And Arcades Market Segmentation
The Amusement Parks And Arcades market is segmented by type, by revenue source and by geography.
By Type -
The amusement parks and arcades market can be segmented by type into
Theme parks was the largest segment of the amusement parks and arcades market in 2018 at 81.5%. The theme parks market is also expected to be the fastest-growing segment going forward at a CAGR of 9.1%.
The theme parks, water parks and amusement parks market are further segmented by type into
- a) Theme parks
- b) Water parks
- c) Amusement arcades
By Revenue Source -
The amusement parks and arcades market is segmented by revenue source into
- a) By Age Group Of Visitors
- b) By Visitors’ Gender
By Geography -
The amusement parks and arcades market is segmented into
- a) Tickets
- b) Food & Beverages
- c) Hotels & Resorts
- d) Merchandise And Others
North America was the largest market for amusement parks and arcades, accounting for 40.1% of the global market in 2018. It was followed by Asia-Pacific, Western Europe, and then the other regions. Going forward, North America and Asia-Pacific will be the fastest growing regions in the amusement parks and arcades market; growth will be at a CAGR of 9.3% in both these regions. These will be followed by the Middle East and Western Europe, where the markets are expected to grow at CAGRs of 8.6% and 8.4% respectively.
- o North America
- o Western Europe
- o Asia Pacific
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Amusement Parks And Arcades Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • The Walt Disney Company
- • Universal Parks And Resorts
- • Merlin Entertainment Group
- • Oriental Land Company Ltd
- • Six Flags Entertainment Corporation
- • Six Flags Entertainment Corporation
- • SeaWorld Entertainment Inc. and Cedar Fair LP
- • Merlin Entertainments
- • Freizeit- und Familienpark Mack KG
- • Euro Disney S.C.A.
- • Efteling Nature Park Foundation
- • Tivoli A/S
- • Shanghai Shendi Group
- • The Walt Disney Company
- • Chimelong Group
- • The Oriental Land Company
- • USJ Co.
- • Ramoji Group
- • Wonderla Holidays Limited
- • NBC Universal Media LLC
- • Corparques
- • Jose Luiz Abdalla S/A
- • Jumeirah
- • Farah Experiences LLC
- • Tsogo Sun
- • U Shaka Marine World