The global slot machine market is poised for substantial growth, with an estimated market size of approximately US$9.9 Bn (2022) projected to surge to a valuation of US$18.2 Bn by the end of 2030. This impressive growth trajectory indicates an impressive CAGR of 7.9% from 2023 to 2030.

REPORT SCOPE

The robust expansion in market revenue is propelled by a combination of factors, including the increasing popularity of digital and online gaming applications, advancements in technology enhancing player experiences, and the steady rise in disposable incomes, particularly in key regions such as North America, and Asia Pacific.

The flourishing casino industry, and the dynamic shift toward digitalisation primarily positions the slot machine industry as a lucrative area that expects sustained growth and investment opportunities in the coming years.

“The adoption of progressive slot machines, and the integration of cutting-edge technologies will most likely drive sustained growth in the market. The global slot machine market is navigating a dynamic landscape with the rise of digital applications, progressive features, and regional expansions,” predicts the company analyst.

Key Research Insights

• Video slot machines lead the machine type segment, garnering high demand due to their incorporation of free spins and mini-games, appealing to a broad customer base with their engaging features.
• While mechanical products historically dominated the slot machine market, serving as its foundational elements due to early adoption, their market share has waned over the years. The rise of digital and electronic slot machines has eclipsed the appeal of traditional mechanical slots, offering enhanced features and interactivity.
• Presently, North America holds sway in the slot machine market, attributed to its well-established gambling culture, technological advancements, stringent regulatory framework, and robust consumer spending on leisure activities.

Insights into Segmentation Analysis

Casino Application Remains Dominant

Casinos capture the largest market share, serving as major hubs for slot machines. Digitalisation of casinos and online platforms expands the reach of slot machines, making casino applications the primary platform for gaming and revenue generation.

Mobile gaming, social gaming, and online platforms witness high growth, driven by changing player preferences and technological advancements.

Mechanical Product Category Leads

Traditional mechanical slot machines historically held the largest market share. Digital and electronic slot machines gain ground with enhanced features and interactivity. Digital products experience the highest growth rate, offering dynamic and immersive gameplay for modern players.

Computerisation Technology Spearheads

Progressive slot machines with collective jackpots attract players with the promise of substantial winnings. Interconnected progressive jackpots across casinos, and online platforms foster larger prize pools. The surge in demand for progressive slots makes them a persistent favorite among gamblers.

Key Report Highlights

• Casino applications, particularly in the digital realm, continue to dominate. The demand for progressive slot machines with captivating jackpot features will rise high.
• As the gambling industry evolves, other applications like mobile gaming, and online platforms will also experience significant growth in the years to come.
• The market is witnessing a shift from traditional mechanical products to digital and electronic slot machines. The latter will however offer more enhanced features, and interactive experiences.

Insights into Regional Analysis

North America Represents the Largest Regional Market

North America secures the largest market share due to a long-established gambling culture. Technological advancements in slot machines draw players seeking immersive experiences.

Robust regulatory frameworks, and a strong economy collectively contribute to North America’s leadership position in the global market for slot machines, says the report.

Asia Pacific Develops a Stream of Opportunities

Rapid economic growth, increasing disposable incomes, and a growing middle-class population drive demand in Asia Pacific. The region’s expanding tourism industry, particularly in Macau and Singapore, contributes to the surge in casino resorts and slot installations.

Integration of cutting-edge technologies like virtual reality (VR), and blockchain presents a wealth of growth opportunities to the manufacturers and other participants in the slot machine market, across the Asia Pacific region.

Major Competitors in Global Slot Machine Market

Key players like IGT, Aristocrat Leisure Limited, Scientific Games Corporation, Konami Gaming, Inc., Everi Holdings Inc., Novomatic Group, SuzoHapp, APEX Gaming, and Zytronic are at the forefront.

The SuperScale Good Games Don’t Die white paper reveals 83% of mobile games die in 3 years and 43% are killed in development 

SuperScale, the revenue growth engine for mobile games, today unveils startling new research about the mortality rate of mobile games development. Based on data from SuperScale’s Good Games Don’t Die white paper published today, it reveals that a staggering 83% of launched games die within three years, and 43% of games are killed in development before they launch, clearly illustrating significant issues prevalent in contemporary mobile game development.

The new study draws on interviews conducted with 500 game developers across the UK and US, carried out by Atomik Research on behalf of SuperScale. The report reveals that regardless of this critical high failure rate, 78% of mobile game developers prefer to work on new titles, creating a catch-22 scenario for the $96.2 billion international mobile games industry. Trends like global recessionary pressures, the redundancy of 6,000+ developers in 2023, and a general downturn in investment throughout the sector are echoed in the report in which 32% of developers conducted layoffs, and nearly a quarter came close to shutting down the business.

The report’s findings also provide insights into the human impact of the high failure rate of mobile games; ranging from loss of motivation, risk aversion and increased commercial focus. Creative unfulfillment from cancellations was reported by 30% of junior developers with less than one year of experience.

Given the endemic high failure rate in mobile gaming, the SuperScale white paper explores the untapped opportunities present in the ‘good games’ that died either in development or since launch. These ‘legacy games’ are titles that no longer receive regular UA investments or live-op updates, or those that are declining in revenue. Based on the study data, a mobile gaming portfolio features an average of 18 legacy games, and these could hold significant further commercial potential for developers and publishers. Across its 18 pages, the Good Games Don’t Die white paper unveils current trends in additional categories such as outsourcing, performance measurement, and monetization methods, which can be utilized to unlock the potential of good games which ‘died’.

Ivan Trancik, CEO and Founder of SuperScale, commented:

“These are volatile times for the games industry. Many mobile game developers are finding it hard to remain profitable in the face of challenges such as ATT, heavy competition in a mature mobile market, and macroeconomic conditions like high inflation. 83% of games are flat-lining in the first three years is an eye-opening statistic, which indicates a new mindset is needed within the industry. Findings from the ‘Good Games Don’t Die’ white paper serve as a wake-up call for the industry, a source of inspiration with actionable data; equipping developers and publishers with insight on how revenue can be maximized across their portfolio – for games both new and old.”

He added:

“The art and business of making games is often borne from a place of indescribable passion, and not always for pure commercial gain. We believe there is an opportunity for the entire games industry to reflect on the incredible gaming content that has already been created, and to take a second look at what can be done to inject new life into them.”

To hear more from Ivan, sign up here and catch the SuperScale team’s deep-dive on how to fix underperforming mobile games.

Key findings:

Recession in Gaming: 32% of studios have made layoffs in the past 12 months, 40% of studios have outsourced development tasks in the last 12 months. Collectible card games and hypercasual developers were affected most. Only a third of studios (32%) said they did not have to make layoffs, downsize or shut down.

Monetizing mobile games: 62% of developers are using LiveOps in their most profitable titles, and 37% of studios update their most profitable titles weekly, with less than half pushing out monthly updates.

Game failure and success: 43% of games in development are killed before they launch, 76% of launched games hit peak revenue within year one, 83% of mobile games die within three years and a mere 5% receive support beyond seven years.

Passion versus profit: 78% of developers prefer to work on new titles, 30% of developers believe a focus on legacy games is the path forward in the current industry climate. 37% of respondents said that industry uncertainty is stopping them from developing new games, while 30% said the market is too difficult to succeed in right now, and 30% also believe their niche is too competitive.