For investors eyeing opportunities in the entertainment market, a keen market sense is essential. Take Fiona, the marketing manager at YUTO, for example, who astutely identified the vast potential within the Middle East’s entertainment industry. Leveraging her extensive experience in the entertainment market, YUTO, a Chinese manufacturer specializing in a wide range of entertainment facilities including gaming equipment, home entertainment, and amusement facilities, strategically targeted the Middle East market from the outset.

In May 2024, under Fiona’s leadership, the YUTO sales team actively participated in the Sea Expo, showcasing a deep understanding of the local entertainment landscape. This collaboration with Sea Expo, combined with the YUTO team’s insightful grasp of the regional entertainment market, underscores their precise evaluation of the boundless opportunities present in the Middle East’s entertainment sector.

This article provides valuable insights into the estimated valuation of the home indoor entertainment market and the prevailing trends shaping the landscape of entertainment arcade products.

Market Situation of Family Entertainment Center

The expansion of shopping mall infrastructure in several cities across the Middle East is poised to drive a notable increase in the popularity of family/indoor entertainment centers (FECs) in the region. The market value of FECs in the Middle East is on a consistent upward trajectory, with cutting-edge immersive gaming equipment adding significant value to FEC offerings. FECs are dedicated to fostering social skills in adolescents and young adults through a diverse array of arcade products, encompassing skill-based and competitive gaming, AR and VR experiences, and physical game development. Furthermore, FECs play a pivotal role in promoting overall well-being, sparking creativity, and reinforcing familial relationships.

Entertainment Market Growth Value Forecast of FECs  in Middle East and South Africa

According to IFC data provided by Allied Market Research, the Middle East and North Africa home/indoor entertainment center market was valued at US618.65 million in 2019, exhibiting a compound annual growth rate of 13.3% from 2020 to 2027. (Pic 1. Data about the entertainment market)

The growth of this market data can be attributed to three primary factors. Firstly, local governments in the region are actively implementing measures to enhance the development of entertainment centers. Secondly, the rise in disposable income among the population is contributing to increased spending on leisure activities. Lastly, there is a growing affinity among individuals of various age groups for arcade studios offering immersive gaming experiences with VR and AR devices, as well as a burgeoning demand for thrilling activities like rock climbing and outdoor games. This expansion underscores the promising outlook for entertainment enterprises that cater to the diverse needs of individuals across all age brackets.

VR Brings More Opportunities to the Entertainment Industry

Furthermore, the evolution of Virtual Reality (VR) technology is set to revolutionize the entertainment industry, particularly within arcade centers. Projections indicate a substantial expansion in the VR market, with a projected compound annual growth rate of 26%, leading to a valuation of US$233.79 billion by 2033. This growth is fueled by advancements in VR games and equipment, promising more realistic and immersive experiences for consumers. Additionally, insights from market research reveal that the integration of Augmented Reality (AR) technology is expected to be a key driver in the gaming industry’s expansion, with a projected 67% growth in AR technology over the next five years. These trends highlight the increasing importance of immersive technologies in shaping the future of entertainment experiences.

(Pic 1. Data about entertainment market)

YUTO’s strategic decision to partake in the Sea Expo, a prominent exhibition uniting professionals across various entertainment sectors, coupled with the introduction of two cutting-edge VR products sourced from China, serves as a testament to the precision and insightfulness of YUTO’s market projections within the entertainment realm.

SEA Expo: Exploring the Unlimited Potential of Entertainment Market

The main purpose of SEA Expo is to provide a global platform for  entertainment manufacturers (games & devices, family entertainment and amusement facilities, etc) worldwide and local suppliers to showcase the latest and greatest innovations in the flourishing entertainment industry, taking advantage of the truly global nature of the SEA Expo held in the central hub of Riyadh, Saudi Arabia.

Choose VR Arcade Machine as Display Machines at Sea Expo

At this Sea Expo, Fiona, YUTO’s marketing manager, chose the company’s two star VR products without hesitation.

VR 720°Rotation Chair

This product is a VR flight simulator game machine, which is very suitable for users who want to experience the thrill of flying or play exciting games. If you choose the flying scene, you will experience the adrenaline rush of taking off and be attracted by the real and gorgeous scenery inside. From the simulation of airplanes at high altitude to the presentation of pictures, all the details and accuracy make you unforgettable after experiencing it.

Operation Firestorm

This new coin-operated VR shooting game machine integrates realistic battles to completely immerse you in the virtual shooting game. This machine can deepen your gaming experience from the turntable and plot to the hand-held prop gun. The VR prop gun aiming controller is combined with VR glasses equipment. This innovation allows you to experience a realistic war atmosphere full of bullets in the game.

Are VR Arcades profitable for FEC or Arcade Game Room?

The equipment may be expensive, but the profit margin it can bring to your FEC and Arcade Game Room arcade machines cannot be underestimated. Judging from video game market data, the annual revenue of the most successful VR arcades exceeds US$1 million. This is why we recommend that you must choose VR arcades equipment when setting up an FEC or Arcade Game Room.

Conclusion

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