A new report compiled by Future Market Insights (FMI) forecasts revenue from the FEC market to increase from US$ 17bn in 2017 to US$ 61bn by 2027 end. This increasing revenue growth is due to the continuous launch of FECS, and the diversified gaming and entertainment options available in North American entertainment centres.
Constant innovations in technological amusements mean FECs can offer a wider variety of gaming options for their customers. Virtual Reality and 3D technology are trending, and consumers are increasingly preferring modern amusements over traditional options. These changes are expected to drive growth over the forecast period – especially in North America.
The report also revealed that families in North America are more regularly choosing indoor entertainment centres over outdoor centres. This increase in popularity is due to companies now offering food and other services under one roof, and an indoor centre ensures that adverse weather or environmental effects do not cut leisure time short.
Some issues hampering revenue growth were also raised – such as price increases on FEC tickets. These increases, owing to various economic and/or geographic factors, are expected to affect consumer spending on family entertainment centres, as the North American middle-class population are currently facing income stagnation.
FECs are also facing problems attracting visitors on a repeating basis, as centres cannot make enough varied offerings constantly and immediately. Significant investment is required to change the offerings, and land and cost restraints may also play a part. This issue is expected to significantly limit revenue growth in the long run.
FMI’s report suggests that the arcade studios segment will be the most attractive segment in the global FEC market during the assessment period, with VR gaming zones expected to register moderate y-o-y growth.
Malls are being built in more and more cities in North America, and consumers often visit these malls on weekends for shopping, food and drink, and for a place to spend time with friends and family. So, entertainment centres are becoming hotspot hangouts for families, where they can also play games and other indoor sports. This increase in family and group visits is expected to positively impact the revenue growth of the market.
The full report is available on the Future Market Insights website for a fee.
[IMAGE: Miami Beach, Florida USA-November 13, 2015: Lincoln Road Mall Movie Theater]