Video Gaming Terminals (VGT) Market Size, Share, Growth, and Industry Analysis, By Type (Video Gaming Machines, Video Poker Machines & Mechanical Reel Gaming Machines), By Application (New/ expansion & Replacement), and Regional Forecast to 2032

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VIDEO GAMING TERMINALS (VGT) MARKET OVERVIEW

The Video Gaming Terminals (VGT) Market size was USD 4845.89 Million in 2023 and is projected to reach USD 9143.99 Million by 2032, exhibiting a CAGR of 7.31% during the forecast period 2024-2032.

The Video Gaming Terminals (VGT) market is growing progressively and is influenced by new game innovation, advancements in digital entertainment, and popularity for casino-style games in the legal territories. Most operating in casinos, bars, and gaming lounges, VGTs provide reeled gaming, video-limited-based gaming, and video-gambling machine-operated full and exclusive gaming. When more areas continue to approve VGTs and advanced characteristics such as the quality of high-definition presentations or even options to support multiple players, the market is expected to expand vastly more. Stakeholders in this industry therefore aim to improve the interactivity of users, improve operational productivity, as well as legal compliance.

GLOBAL CRISES IMPACTING VIDEO GAMING TERMINALS (VGT) MARKET - COVID-19 IMPACT

"Video Gaming Terminals (VGT) Industry Had a Positive Effect Due to several unique factors during COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Somewhat counterintuitively, the COVID-19 pandemic strengthened the position of the Video Gaming Terminals (VGT) market given the rise in demand created by the restrictions imposed. Since most entertainment facilities were shut down throughout the past year, individuals installed VGTs in convenient locations and increased market demand. Also, due to the shift in the payment system to cashless payment methods and measures being developed in VGTs, customer experience has been enhanced digitally. This period showed that the VGT market is quite flexible to change situations and pave the way for further growth as more areas open to online gaming.

LATEST TREND

"Cashless payments and innovations drive market growth"

A relatively new gender that has been observed in the VGT industry is cashless and contactless payment systems made possible by technological developments along with consumers’ preferences in the current society. The extensive use of this trend produces more significant benefits in terms of user satisfaction and security throughout gaming sessions, as well as lesser reliance on physical money. Also, high-definition graphics, multiplayer mode, and gamer’s customization features more and more penetrate into the structure of VGTs. These innovations have been pulling together a new generation of a modified VGT market ready for more growth.

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VIDEO GAMING TERMINALS (VGT) MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Video Gaming Machines, Video Poker Machines & Mechanical Reel Gaming Machines

• Video Gaming Machines: Computerised gambling machines offer ambulatory dynamic risk taking services which are digitalised games with interfaces such as in casinos or gaming halls. Available in a range of, they have high definition display with added features such as, skill based feature to challenged users. Their effectiveness and graphics content makes them popular attraction in its category within the VGT market.

• Video Poker Machines: Video poker encompasses poker game and involves the use of electronic devices in its gameplay to provide poker gaming in the simplest from. They are commonly played due to their element of luck as well as skill and can be enjoyed by inexperienced as well as professional gamblers. The portable and easily accessible VGTs have a strong market value in order to withstand the test of time.

• Mechanical Reel Gaming Machines: Most mechanical reel gaming machines include modern spinning reels with genuine physical reels employed as operating knobs or buttons providing a typical touch and feel of various games. These machines considered highly as are the conventional one which gives the players the vintage look which gives a feel of simple entertainment. However, mechanical reel machines have still loyal players each in the VGT segment.

BY APPLICATION

Based on Application, the global market can be categorized into New/expansion & Replacement

• New/Expansion: New/expansion Segment – VGTs are installed in new gaming establishments or new areas in existing facilities where gaming is proposed to be extended. This segment that focuses on growth and future and serves higher demand as regions liberalize and develop their gambling offering. It is here that an emphasis is placed on producing new content and introducing new and higher class of terminals to gain entry to new customers and revenues.

• Replacement: The replacement segment refers to the replacement of old VGTs with new ones in other to improve on the user experience or the compliance with newer regulations. Operators embark for replacements to incorporate professional aspects like the payment system by use of a digital platform and high definition in a bid to be competitive. I Support this segment to ensure that constant upgrading is done to keep player interested and conform to the trend in the market.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTOR

"Convenience features and technology enhance player interaction, boosting market growth"

Convenience features today in digital graphics, touch-screen controls, and integrated payment systems such as high-definition controls on VGTs’ are augmenting its appeal. Such improvements are entertaining and create more interaction with players, thus widening the players’ base. Advanced technology also creates room for meaningful differentiated game choices, thus enhancing usage and revenue derivation.

"Regulation and legalization drive market growth "

With the increasing number of countries across the globe liberalizing and regulating the sector, owners of licensed facilities such as casinos, bars, and gaming lounges are increasingly calling for the installation of the VGTs. Legalization increases market capacity and brings in investments with regard to new terminals. This particular trend is in line with the general trend to expand the VGT market because such changes as improving accessibility and gaining the wider population’s interest are beneficial for producing companies and resulting Video Gaming Terminals market growth.

RESTRAINING FACTOR

"Regulatory constraints and costs hinder market growth"

A Tight regulatory framework and legal limitations on the allowed gambling in different territories act as a major market restraint to the VGT market. Standard across the industry: compliance costs are expensive and time-consuming for operators and therefore deter market entry and growth. Also, the regulatory risks provided negative feedback to investment, hence the slow rate of growth in the market.

OPPORTUNITY

"Regulated gaming legislation fosters market growth"

The Video Gaming Terminals (VGT) markets jointly have promising growth prospects in those countries where changes in gambling legislation are gradually taking place. As more countries understand that regulated gaming can be a source of revenues, they are emerging new opportunities for VGT to install in casinos, hotels, and entertainment places. This expansion enables VGT operators to unlock new markets, which implies growth in the market and increased innovation.

CHALLENGE

"Security challenges hinder market growth for Video Gaming Terminals"

One of the biggest issues faced by the Video Gaming Terminals (VGT) market is how to maintain solid security for their systems from fraud and hacking. Since VGTs are adopting methods of digital payments and online connectivity, there is a higher risk of them being vulnerable to cybercrime, which means monetary losses and exposure of their users data. This means the need to incorporate constant development of advanced security measures that, at times, may be expensive and difficult to fund and deploy continually by operators.

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VIDEO GAMING TERMINALS (VGT) MARKET REGIONAL INSIGHTS

• NORTH AMERICA

"North America's legal frameworks drive market growth"

North America has the highest market share in the Video Gaming Terminals (VGT) market since there is already a significant ground for gaming and the legal frameworks allow the sector and the population to have an interest in digital gaming. The other important primary driver is the United State Video Gaming Terminals (VGT) market, which is widely present in casinos, bars, and lounges all across the U.S. The current and expected future advancements in gaming technology and the continually growing number of legalized states in America also propel the market’s growth. This provides the strong North American presence that places the region at the fore-front in enhancing VGT.

• EUROPE

"Europe's regulations and demand drive market growth"

Europe plays a crucial role in the VGT market through a vast gamblers’ territory, which includes legal and highly regulated gaming facilities, and a resultant enabling environment for development. The gaming industry in the UK and Germany, for instance, is very developed, which is why there is a need for high-tech VGTs in casinos or betting shops. Also, online gaming and hybrid terminals become more popular as usage of those terminals increases customer interest and revenue streams. 

• ASIA

"Asia's demand and social liberalization drive market growth"

As illustrated, Asia holds remarkble video gaming terminals (VGT) market share due to the fast-growing number of gaming establishments and the remarkable growth of customers’ demand for various forms of digital entertainment. These countries, including Japan and Macao, are some of the main originators, with a continued appetite for novel forms of gaming experience in casinos and recreation centers. The increasing base of middle-class population and disposable income in this region helps in increasing the demand for recreational gaming. Also, the social liberalization, which is gradually opening most Asian countries to change, has led to the emergence of fresh prospects for the establishment of VGTs and more income.

KEY INDUSTRY PLAYERS

"Industry stakeholders drive market growth in VGTs through technology and compliance"

Major industry stakeholders are playing a major role in the growth of the Video Gaming Terminals (VGT) market through technology and improving consumer satisfaction. The companies develop machines with the highest resolution graphics and interface, making games attractive to more people. Establishing and maintaining compliance with regulations governing gaming further solidifies the company’s commitment towards these markets, while expansion into new frontiers remains key to unlocking the full revenue growth of VGTs.

LIST OF TOP VIDEO GAMING TERMINALS (VGT) COMPANIES

• Scientific Games (US)
• IGT (US)
• SYNOT GROUP
• Sisal Group (Italy)
• Aruze Gaming (US)

KEY INDUSTRY DEVELOPMENT

October 2024: A recent development in the Video Gaming Terminals (VGT) market came from Accel Entertainment. Accel expanded its VGT installations in Illinois, aiming to increase its market share by partnering with local establishments. This expansion leverages a growing demand for in-person gaming experiences alongside technological upgrades in VGT systems, including enhanced interactive gaming interfaces that increase player engagement. This move is part of a broader trend within the VGT market, as companies focus on scaling hardware innovations and user engagement features to meet evolving consumer expectations and increase market presence across key U.S. regions.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential Applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.