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US – North America casino equipment market to grow by five per cent by 2024.
By Phil - 28 October 2019
The North America casino gaming equipment market is expected to grow at a CAGR of over five per cent during the period 2018 to 2024.
Growing demand for mass-market gaming equipment, increasing demand for electronic gaming tables, growing adoption of AR and VR in gambling, and innovations in slot machine designs are the factors that are likely to contribute to the growth of North America Casino Gaming Equipment Market during the forecast period.
The implementation of AR technology in online casinos offers the scope for improvement in gaming offerings. This technology can combine the best elements of live gaming and software with virtual reality add-ons and overlays to make a more engaging experience for their customers. Further, the implementation of VR offers a 360-degree surround-view and allows customers to experience games on other tables that they might want to try out. Online casino operators and betting vendors have been trying to use this application to offer a seamless gaming experience to their customers. Moreover, factors such as high spending power of the baby boomers and Gen X, the increased adoption of smartphones, inclination toward new technology, and high urbanization are driving the growth of the casino gaming equipment market in North America.
The study considers the present scenario of the North America casino gaming equipment market and its market dynamics for the period 2018?2024. It covers a detailed overview of several market growth enablers, restraints, and trends. The market study includes insights on market segmentation by demand type (new/expansionary and replacement) product types (slot machines, gaming tables, video lottery terminals (VLTs), video poker machines, gaming chips, and others), class types (class II machines, class III machines, others), and geography (North America (US and Canada)). The study covers both the demand and supply sides of the market. The study profiles and examines leading companies and other prominent companies operating in the North America Casino Gaming Equipment Market.
The market research report includes a detailed segmentation of the market by demand, product type, class type, and geography. In 2018, North America registered the highest revenue growth in new casino gaming equipment. Replacement and expansionary activities are likely to drive the future markets in the US and Canada. North America is expected to incur a majority of revenue from gaming operations through the expansion of the casino industry during the forecast period. North America is the largest market in the world for vendors to earn recurring revenue from lease models. Well established gambling markets in Las Vegas and emerging destinations such as New York is a significant reason for this growth. The recurring equipment segment is expected to be major revenue contributor for equipment manufacturers worldwide.New startups are likely to come with innovative solutions with advanced features while existing vendors will continue developing their product portfolio with upgrades. Further, old legacy systems are likely to be replaced in casinos worldwide, which would propel the market demand for replacement and expansion during the forecast period.
Slot machines, gaming tables, VLTs, video poker machines, and gaming chips are the major sources of revenue for the North America market. Slot machines have evolved considerably, and the segment is witnessing increasing automation. The transformation of slot machines technology from manual to automatic vending machines is a major driver for the growth of the segment.
Class II machines are mostly based on bingo matches. The North American market has been witnessing promising market dynamics for class II machines. Stepper machines are one of the old machines used in casinos worldwide. However, technical innovations have made these machines more appealing and empowered with virtual features along with multiplayer systems. The class II stepper market provides ample growth opportunities as vendors are considering the development of innovative and appealing products in this segment during the forecast period. Class II video machines are creative products to address the demand for tribal customers. Major players in the market have shifted their strategic focus toward emerging markets. As the growth potential of the class II video market is high, vendors are trying to penetrate the respective market. The market for class III steppers is diversified. Major players adopt a multi-channel approach for content commercialisation for different installed machines. The development of innovative products is constantly driving the market.
In 2018, North America was led by the US, where gambling is highly popular. The growing demand for EGTs has led to vendors increasing footprints in the market. The US is the largest revenue contributor to the casino gaming equipment market worldwide. The Canadian gambling market is dominated by cultural aspects and a rich society culture. The US casino industry recorded growth in 2018, and consumer spending on gaming witnessed an increase of one per cent. The growth has not been uniform as casinos in several states are witnessing an increased competition to attract gamers and gamblers.
Gambling in Canada has emerged as a legally allowed and widely accepted leisure activity. Currently, gambling activities are allowed throughout the country and are regulated through territorial and provincial governments. In 2018, Ontario accounted for the largest share of the gross gambling revenue in Canada with approximately 43 per cent of the gambling industry in Canada. The high revenues from Ontario can be attributed to the fact that Ontario is the most populated region of Canada. Also, Ontario is the only region where the gambling industry saw growth in double digits in 2018. Quebec and British Columbia were the second and third largest regions in terms of revenue from the gambling industry.
The North America Casino Gaming Equipment Market is highly concentrated with local and international players operating in the market and capturing a major share of the market. The competition is intense. The rapidly changing technological environment could adversely affect vendors as customers expect innovations and upgrades in the gambling domain. The present scenario is forcing vendors to alter and refine their unique value proposition to achieve a strong market presence. Aristocrat, Scientific Games, IGT, Ainsworth, Konami, Incredible Technologies, Everi, and AGS are the key leading vendors in the market. The competition is intense in the US and Canadian markets. The market concentration in developed countries such as the US is high. The adoption rate of gambling among end-users in the US and Canada has been impressive. As a result of increased demand, the market has witnessed the entry of many vendors that are already present in the traditional gaming market. However, the online presence in the gambling market is set to become a major base for competition among players to gain an edge over other vendors in the market.
