Amusement Parks & Arcades Industry Profile

Companies in this industry operate amusement parks or arcades. Major amusement park companies include Six Flags, Universal Parks & Resorts, and Walt Disney World, (all based in the US); as well as Fantawild and OCT Group's Park World (both based in China); Merlin Entertainments (UK); and Parques Reunidos (Spain). Major arcade operators include US-based Andretti Indoor Karting & Games and CEC Entertainment.

Global theme park spending is expected to reach about $106.5 billion by 2023, and is expected to reach $122.5 billion by 2027, according to the Business Research Company. The most popular attractions as measured by attendance include the US, China, and Japan, according to Statista.

The US amusement parks and arcades industry includes about 4,300 establishments with an annual revenue of about $21 billion.

COMPETITIVE LANDSCAPE

Demand is driven by consumer income. The profitability of individual companies depends on good marketing. Large companies can more easily build expensive rides and have economies of scale in operations and advertising. Smaller companies can compete by serving smaller markets or offering special rides. The US industry is highly concentrated: the 50 largest companies generate about 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

About 70% of the industry's revenue comes from amusement park and arcade services, followed by about 20% from meals, snacks, and other food items. Other sources of revenues come from retail sales of other goods, alcoholic beverages, retail sales of toys, and parking services.

Amusement park operators offer ...