Discover key trends driving FEC market growth

The family entertainment center (FEC) market is set for significant growth. According to a June 2024 FEC market analysis, the FEC market is projected to reach USD 70.1 Billion by 2032, with a compound annual growth rate (CAGR) of 10.5% from 2024.

According to the report:

“This increase is driven by growing consumer demand for entertainment activities spanning all age groups, offering a mix of entertainment, and interactive experiences.”

“The fusion of virtual reality, augmented reality, and immersive gaming environmentshas further increased the appeal of FECs, making them popular options for family outings and social gatherings.”

“Moreover, the trend toward creating multifunctional spaces that can accommodate events such as birthday parties, corporate meetings, and school visits is also gaining momentum.”

In addition to the FEC market report, we identified further trends impacting FECs from analyses of the retail and gaming industries. For operators of FECs, amusement parks, or active indoor entertainment venues, staying ahead of these trends is key to sustained success.

Trend #1: Shift from traditional to modern FECs 

The blend of classic and modern attractions keeps FECs a top choice for family outings. Traditional amusement arcades are being replaced by centers that offer more dynamic and interactive experiences. Younger audiences, including teens and adults, are increasingly drawn to activities combining physical engagement with social interaction.

Trend #2: Innovation in game technology

The evolution from 2D gameplay to immersive virtual reality (VR), augmented reality (AR), and mixed reality (MR) experiences has transformed the gaming industry. These technologies now allow gamers to interact with digital environments in ways that feel physically real, enhancing the overall entertainment experience. 

Valo Motion’s interactive game platforms—ValoArena, ValoJump, and ValoClimb—seamlessly blend physical activity with digital gaming for an interactive experience. The company's mission is to inspire movement through innovative technology.

“To create games and technology that motivate people to move regardless of age or skill level – and have fun while doing it.”

Trend #3: The rise of mall entertainment 

The concept of “Retailtainment,” where shopping and entertainment blend seamlessly, is also gaining momentum. Mall-based entertainment venues attract families seeking a comprehensive outing experience by combining retail therapy with engaging activities for all ages. Incorporating entertainment and interactive attractions into malls can also significantly boost foot traffic and increase visitor dwell time. 

In 2023, Valo Motion expanded into retail space by launching ValoPark, an active entertainment park designed specifically for high-traffic retail location.

Trend #4: North America has dominated growth 

According to the June 2024 FEC market report, North America dominated the family entertainment center market with around 40% of the market share in 2023. As disposable incomes rise and families seek more leisure activities, FECs offering immersive attractions are becoming increasingly popular. The shift towards experiential spending, where unique experiences are valued over physical goods also drives this trend. 

Recently, Valo Motion partnered with Creative Works in the USA to introduce ValoArena, a mixed-reality playground for up to six people, to the North American FEC market.

6 benefits of Valo Motion’s attractions for FECs

Valo Motion’s attractions offer shared experiences for broad demographics where players can interact with both the physical and digital worlds simultaneously.

#1 Interactive, family-friendly attractions 

Valo Motion’s proprietary ValoVision motion-tracking software captures players’ every movement and seamlessly translates it into the digital game world. Players can interact with virtual objects in real-time, creating fully immersive experiences without headsets or extra gear. For instance, in the popular ValoArena game Groundfall, the virtual floor crumbles beneath players who fail to reach a safe platform, creating a thrilling, realistic experience.

#2 Broad appeal across demographics

Valo Motion’s inclusive designs appeal to a wide range of ages, from children to adults, making their games ideal for families and groups of friends. With multiple game levels that challenge players of all ages, these attractions cater to a broad audience. By combining innovative technology with physical activity, Valo Motion products draw in a new generation of digitally savvy visitors while offering accessible entertainment for a wider audience.

“ValoClimb is just so unique, it’s like nothing you’ve experienced anywhere else. Both kids and adults get in there and they just love it.”
- Samatha Urmston, General Manager, Laser Quest, UK

#3 Boost repeat visits and revenue with unique experiences and events

Modern consumers crave unique, memorable experiences they can't replicate at home. Valo Motion’s regularly updated game library and immersive game environments ensure fresh, engaging experiences with each visit, encouraging repeat customers.

Valo Motion’s mixed-reality attractions are also designed to boost your venue's revenue by hosting events like tournaments, casual challenges, and birthday parties for kids and adults. Paired with our subscription package, these attractions make it easy to organize engaging social and competitive events at your location-based entertainment venue.

#4 Reduce operational costs

Running an entertainment venue involves high maintenance costs, staffing shortages, and labor expenses, which can pose significant growth challenges. Valo Motion’s products eliminate the need for complex headsets, simplifying operations and reducing costs. These attractions also offer a fully automated solution with 24/7 customer support that requires minimal staffing. Their user-friendly design allows guests to simply step in and start playing.

“ValoArena is a hit! Everybody loves it – it’s been so flawless and amazing. Going forward, we're going to put ValoArena in every single location because it's been so flawless and so amazing."
- Archie Wright, AR's Entertainment Hub’s CFO and co-owner, Texas, USA

#5 Enhance profitability with data

Operators who utilize visitor and product usage data can boost profitability. Valo Motion provides detailed usage insights, helping operators adjust ticket pricing, optimize electricity use, and improve operational efficiency. These attractions easily integrate with various monetization methods, such as open access, pay-per-play ticketing, or reserved group sessions. They also support coins, cards, and RFID tags, making them adaptable to any existing business model.

#6 Tap into the impact of gaming: Everyone is a gamer

According to the ESA (Entertainment Software Association) 2024 report, over 61% of Americans (aged 5-90) play video games. Gaming today spans all demographics, with players of all ages and backgrounds enjoying a wide range of experiences. Valo Motion’s products cater to this broad audience, offering inclusive games perfect for families, kids, teens, and players of all skill levels. 

The growing esports trend also presents a significant opportunity for FEC operators. By incorporating ValoLeague, Valo Motion’s mixed-reality esports league, venues can host exciting competitions, attracting more visitors and generating new revenue streams.

"ValoJump has taken Play Factore to another level in terms of technology at a family entertainment center."
- Fawad Munir, Founder and CEO of Play Factore, Manchester, UK

Come and experience our mixed reality attractions yourself!

In the rapidly evolving FEC landscape, staying ahead of market trends is essential for success. Mixed-reality attractions like Valo Motion’s ValoArena, ValoJump, and ValoClimb offer a strategic investment that can expand your target audience, increase repeat visits, and optimize operational efficiency. 

Read more about our solutions for family entertainment centers here.

Events in the USA:

• On September 10–12, 2024, Creative Works’ Amusement360 event will include ValoArena as a featured product. 
• Valo Motion will also exhibit the full product suite at IAAPA 2024 on October 19-22, 2024.

Events in Europe:

• Valo Motion will exhibit the full product suite at IAAPA Expo Europe 2024 on September 24-26, 2024.

Valo Motion will exhibit ValoPark at Mapic 2024, November 26-28, 2024.