Amusement Parks market size is set to grow at a CAGR of 6.2% during 2020-2025, projected to reach $72.44 billion by 2025. Amusement parks play a vital role in the global entertainment and leisure industry. These recreational facilities offer a wide variety of entertainment options and act as a one-stop-shop leisure and entertainment solution which flourishes as a key tourist attraction source for revenue generation. Therefore, it is majorly driven by the rising headcount of retired baby boomers, who are devoted to recreation and leisure spending. Additionally, the growing international tourism has been representing a lucrative consumer cluster for theme parks and marine parks.
• North America dominates the global amusement parks market
share owing to increasing demand from all age groups especially for family-friendly fairground rides and high-adrenaline coasters.
• The rise in the disposable income coupled with government support in promoting tourism and entertainment is likely to aid in the market growth of regional parks.
• Increasing adoption of technology advancements in hydraulics, pneumatics, and animatronics, to provide Hitech-thrills via entertainment rides such as frisbee rides and motion simulator rides set to drive the growth of the theme parks industry, thereby increasing the market demand for amusement parks in the near future.
• Increasing demand for amusement parks has been replicating in the form of new park establishment in European countries will boost the Europe amusement parks market.
Rides- Segment Analysis
The mechanical rides segment held the largest share in the amusement parks market size as of 2018. It is due to the rise in the number of visitors and rides enthusiasts for 4D rides, giant rides and challenging roller coasters. Growing middle-class population and their household spending on outdoor activities coupled with the launch of new theme parks by international players is enlarging the scope of mechanical rides in the amusement parks market.
36-50 age group- Segment Analysis
36-50 age group accounts for the primary market for amusement parks for many years. This is because, they carry their children along with them to get entertain. Thus, the Theme park operator is focusing on higher quality balanced family entertainment along with aggressive rides for young riders. In addition to this, they are also concentrating on wristbands in order to grab the attention of people. Apart from these, the organization of entertainment shows, ferry rides, and vintage theme-based activities along with excellent hospitality is attracting more 36-50 age group visitors to drop their footfalls over theme parks.
Geography- Segment Analysis
North America dominated the global amusement parks market share, accounts for more than 40%, followed by APAC and Europe. It is due to the offers provided by the regional park team in terms of the full program of shows and festivals all through the year. Starting from the small independent parks to giants which include Disney resort attractions and Universal Studios. The maximum number of amusement parks presence in the U.S. and Canada are engaged in spreading the fun for thrill-seekers through jaw-dropping thrill rides, Frisbee rides, spider-man motion-simulating ride, and dizzying roller coasters. Disney World, LEGOLAND Florida Resort, Hersheypark, Canada’s Wonderland, and Kings Dominion are the best amusement parks for families in North America.
Drivers –Amusement Parks Industry Outlook
• Growing Prevalence of IoT enabled Theme Parks:
Revolution of IoT is evident in varied operations of the amusement parks. This technology is assisting in tracking and monitoring all the activities and also to manage the crowd at the park. Furthermore, the IoT wristband functions such as a passport that serves as an entrance ticket for visitors and also enable credit-card transactions facility. IoT-enabled educational theme parks help parents to track their children’s movement all through the park, with the help of sensors. All these factors together boosting the amusement park market demand.In theme parks, manually submitted information to a State agency by a user is excluded either in written or electronic form, and this information of users is accessible to the people who are serving in a business capacity along with business owners, officers of a business.
• The Rise in the Disposable Income of People especially in the Emerging Economies.
Now-a-days, consumers are investing more amount in experiencing rather than purchasing to spend their leisure time. As a part of it, they are spending disposable incomes for unique experiences with personalization, thereby driving the experience economy. Social media platform plays a key role in guiding the consumers to accelerate the demand for such experiences. In this contemporary world, all age group people specifically corporate workers are willing to have experience at amusement parks to spend a healthy family-friendly time. Changing lifestyle, cultural shift and increasing prominence to lead a holistic life with a balance of work and leisure is contributing to the expansion of amusement park market revenue.
Challenges – Amusement Parks Industry
• Increased Input Cost – Unfavorable Demographic Changes:
Lack of availability of skilled labor to provide quality services and increased input costs involved in the labor-intensive industry such as the recreation industry are estimated to hamper the growth of the amusement parks market. Moreover, unfavorable demographic changes will act as a threat to experience home entertainment in theme parks.
Riderlaunches, new park establishments, and R&D activities are key strategies adopted by players in the amusement parks market. In 2018, the market of amusement parks has been consolidated by the top five players accounting for 44% of the share. Walt Disney Company, Ardent Leisure Group, Six Flag Entertainment Corporation, Cedar Fair Entertainment Company, Merlin Entertainments, Chimelong Group Co. Ltd, Comcast Corporation, Fantawild Group, Ilyas Mustafa Galadari Group Theme Park Association, and Sea Park Entertainment, Inc. are the Amusement Parks top 10 companies. These players are working to introduce unique rides to mark their position in the global amusement parks market.
Rider launches/ New park establishment
- In October 2019, the establishment of the largest indoor theme park Nickelodeon Universe has happened at the American Dream Mall in New Jersey, North America. It is equipped with 35 rides, SpongeBob, the Teenage Mutant Ninja Turtles and Dora the Explorer.
- In May 2018, Six FlagEntertainment Corporation announced the launch of a new Twisted Cyclone hybrid roller coaster.
- In August 2017, Efteling, a Dutch theme park in the Netherlands, invested an amount of $35 million to establish an expensive indoor attraction namely“Symbolica-Palace of Fantasy”.This expansion in its theme-based offerings will be helpful for this park to maintain its position in the European amusement parks market.
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