US – Slot sector to grow by US$8.91bn by 2025By Phil - 10 December 2021
The potential growth difference for the slot machine market between 2020 and 2025 is US$8.91bn, according to the latest report from Technavio. The report also identifies the market to grow at an accelerating growth momentum at a CAGR of 12.14 per cent during the forecast period.
The growing vendor involvement in the market is one of the prominent market drivers likely to influence the market growth during the forecast period. Rising number of casinos are providing ample opportunities for vendors to deliver casino-related products and solutions for facilitating casino gambling. Vendors operating in the global slot machine market are increasingly focusing on expanding their product portfolio with new product launches. In addition, they are also trying to attract more consumers by introducing new variants of slot machines with improved features. Thus, the introduction of new models helps increase sales, which would positively influence the growth of the slot machine market. In addition, other factors such as the legalisation of gambling and the expansion of casinos are further expected to accelerate the market’s growth during the forecast period.
The rising number of fraud cases is one of the crucial factors that will limit market growth. A significant threat for the entire gaming and gambling industry arises from illegal activities, which may drain significant betting volumes from the regulated gambling industry. Tampering of slot machines is quite rampant among casino owners. The presence of gray machines threatens revenue generation in the gambling industry. If people opt to use the machines instead of spending money on lotteries or going to a casino, the government revenue will be diminished. Furthermore, other factors such as the popularity of other forms of gambling and presence of black market and restrictions on gambling in many countries will limit the market’s growth during the forecast perio
The slot machine market report is segmented by product (digital and mechanical) and geography (Europe, North America, APAC, South America, and MEA). The digital product segment led the slot machine market share in 2020 and will continue to dominate the market growth during the forecast period. Digital slot machines are considered highly user-friendly equipment as they provide all the information in a display format of commentaries and help one play without any assistance or help. Such attributes have led to the widespread demand for these machines in casinos.
In terms of Geography, Europe was the largest revenue-generating regional segment of slot machine market in 2020 and will continue to remain the largest growth contributor with 35% of the overall market’s growth during the forecast period. The UK, Italy, and France are the key markets for slot machines in Europe. However, the market growth rate in Europe will be slower than the growth of the market in other regions. The changing regulatory landscape in European countries will facilitate the slot machine market growth in Europe over the forecast period.