AI in Family/Indoor Entertainment Centers Industry: Studying the Impact of Innovative Technologies on the Sector

In today’s metropolitan cities, the pace of industrialization and urbanization has increased exponentially. This has not only modified the nature of employment but the overall habits and routines of people living in these industrial towns and urban areas have transformed significantly. Their busy lifestyles have changed dietary and leisure preferences, thus leading to the emergence of new industries and economic sectors. To address these demands, innovative concepts such as family/indoor entertainment centers have come up that offer a wide range of attractions and activities for family members of all ages. FECs are, in fact, small-scale amusement parks that are themed and marketed specifically toward small children and teenagers. With activities ranging from arcade games and thrill rides to sports, including golf, basketball, and squash, these centers provide an opportunity for families to strengthen their emotional bond and foster social interaction.

Introduction of Artificial Intelligence Opening New Avenues for Growth

Just like most other sectors in the global economy, the family/indoor entertainment centers market has undergone a huge transformation due to the emergence of advanced technologies such as AI, machine learning, automation, and robotics. According to a report published by Allied Market Research, this industry is expected to gather a revenue of $108.4 billion by 2033 on account of these technological advancements. The sector accounted for $30.8 billion in 2022 and is predicted to grow at a CAGR of 12.1% during 2024-2033.

In the last few years, AI is being increasingly used in FECs to ensure ride optimization. AI-powered tools are used by amusement park companies to provide personalized rides to visitors, thereby offering them immersive and tailored experiences. Moreover, machine learning algorithms embedded in these tools help predict the problems FEC equipment and machines might face in the near future based on usage patterns and other parameters. From the company’s perspective, predictive maintenance brings down the chances of machine failure, thus reducing downtime and repair costs. On the other hand, from customers’ viewpoint, AI-based tools improve the safety and comfort of visitors, thus shaping a new dynamic for indoor gaming and family entertainment.

Strategic Alliances among Leading Players Bringing in New Investment Opportunities

In the last few years, several major companies and businesses have joined hands with their peers to pool their resources and expertise, thus expanding their footprint in the family/indoor entertainment centers industry. For instance, in September 2023, Family Entertainment Group (FEG), a key amusement park developer, released a press statement announcing the joining of PrimeTime Amusements, a global provider of video arcade machines, into its business portfolio. As per the press release, the merger is expected to help FEG widen its operational base in Orlando, Florida in the coming period. Similarly, in October 2023, VICI Properties Inc., a real estate investment company, announced the acquisition of 38 bowling entertainment centers owned by Bowlero Corporation. The move marks the company’s inaugural acquisition in the family entertainment center business and is predicted to help VICI Properties Inc. to compete with the other players dynamically in the coming period.
 

In summary, the family/indoor entertainment centers industry is anticipated to witness huge growth owing to rise in pace of urbanization and changing consumer preferences in metropolitan cities. In addition, a rise in the use of AI in amusement parks is anticipated to impact the sector positively.

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