The sector is currently valued at approximately ₹15,000 crore, reflecting strong consumer demand, increased formalization, and a post-pandemic shift toward experience-driven consumption.

New Delhi: India’s indoor amusement industry, comprising Indoor Amusement Centres (IACs), has evolved from a children-centric niche into a significant pillar of the country’s fast-growing experience economy, according to the report “Ready, Set, Play: India’s Indoor Amusement Industry at a Turning Point” released by ANAROCK Group in collaboration with the Indian Association of Amusement Parks and Industries (IAAPI).

The sector is currently valued at approximately ₹15,000 crore, reflecting strong consumer demand, increased formalization, and a post-pandemic shift toward experience-driven consumption.

Consumer spending across indoor amusement formats has increased 30–40% compared to pre-pandemic levels, with Tier I cities recording 10–15% higher per-customer spend than Tier II markets. Industry suppliers also report a 15–20% rise in consumer outlay in recent years, driven by higher participation rates, longer dwell times, and the emergence of immersive entertainment formats.

Despite this growth, India accounts for just 2% of the global indoor amusement market, indicating significant untapped potential.

Globally, the indoor amusement centre industry was valued at USD 51.29 billion in 2024 and is projected to reach USD 84.03 billion by 2030, growing at a CAGR of 9%.

Post-Pandemic Boom in Experiential Demand

The COVID-19 pandemic accelerated a broader consumer shift from product-led consumption to experience-driven spending. Extended lockdowns heightened the importance of recreation and family outings, boosting organized experiential categories.

Indoor amusement centres benefit from being climate-controlled, safe environments suited to urban family recreation. Demand is largely family-led, particularly among households with young children, with visits typically purpose-driven—social, celebratory, or experiential rather than habitual.

ANAROCK’s Market Pulse Survey—with respondents primarily aged 25–44, of whom 65% reside in metros—shows strong engagement with indoor entertainment formats.

• 52.4% visit IACs once a month or more

• 22.9% visit once every 2–3 months

• 15.3% visit once or twice a year

• Only 9.4% reported visiting rarely

Consumers show a strong preference for multi-attraction, socially interactive formats such as arcades, kids’ play zones, and bowling.

Non-ticket spending also plays a major role in revenue generation. Over 50% of visitors spend more than ₹1,000 per visit beyond ticket purchases, on gaming, food and beverages, and add-on experiences.

While value perception outweighs price sensitivity, respondents identified high ticket prices (50%) and crowding (20%) as the main deterrents to visits. Proximity and accessibility—especially within malls—significantly increase visit frequency.

Industry Perspectives

“India’s indoor amusement industry is entering a decisive phase of transformation, evolving from predominantly children-centric recreation into a key component of the country’s experience-driven economy,” said Anuj Kejriwal, CEO – Retail, Leasing & Industrial Logistics, ANAROCK Group.

“Consumer spending intensity across IAC formats has strengthened materially. As the industry scales, safety and regulatory clarity must remain foundational priorities. Indoor amusement centres manage complex equipment and high footfall, primarily for families and children, making standardized norms essential. A harmonized regulatory framework will enable responsible expansion.”

“For 27 years, IAAPI has been at the heart of India’s amusement industry growth,” said Ankur Maheshwari, Chairman, IAAPI and Founder of Masti Zone.

“This first-of-its-kind report integrates perspectives from operators, developers, consumers, and government stakeholders. Indoor amusement centres have evolved from mall add-ons to becoming anchors of the amusement economy. With policy support and manufacturing incentives, the industry can enter its next phase of growth.”

Market Scale and Growth Outlook

India’s indoor amusement centre market generated approximately ₹8,400 crore (USD 1.01 billion) in 2024 and is projected to reach ₹15,600 crore (USD 1.88 billion) by 2030, growing at a CAGR of 11.3%, faster than the global industry average of 9% CAGR.

Globally, North America currently leads the sector with a 39% market share, while Asia-Pacific markets—including India and China—are expected to drive the next phase of growth due to rapid urbanization and rising disposable incomes.

Landscape of Indoor Amusement Formats

Across age groups, arcades remain the most popular format, while kids’ play zones are preferred among families with younger children.

Operator Economics

Operators are increasingly focusing on capital efficiency and measured expansion over the next three to five years.

• Mall-based multi-format centres dominate in major urban markets

• Standalone and hybrid formats are emerging in high-density locations

Revenue streams typically include entry tickets, gaming redemption, food and beverages, and merchandise. In some centres, vouchers and prepaid packages now account for up to 25% of sales.

Regular reinvestment is required to upgrade equipment and maintain customer engagement as technologies and attractions evolve rapidly.

Regulatory and Taxation Challenges

Despite strong demand, the sector faces several operational hurdles.

The 18% GST on tickets and rides adds cost pressure in price-sensitive markets. Additionally, varying state-level licensing requirements and the absence of a unified national framework for indoor amusement centres slow down project development.

Industry stakeholders also note that incidents in unorganized setups often affect perceptions of the organized sector, reinforcing the need for standardized safety norms, streamlined fire and municipal approvals, and mandatory training programs.

Recommendations for Sustainable Growth

The report recommends several measures to accelerate industry growth:

• Establish standardized national safety and compliance frameworks

• Rationalize GST rates for amusement services

• Introduce a national policy recognizing indoor amusement centres as key urban infrastructure

• Provide incentives for domestic manufacturing of amusement equipment

• Accelerate formalization and expansion in Tier II and Tier III cities

With supportive policy measures and continued consumer demand, indoor amusement centres are expected to play an increasingly important role in urban entertainment, employment generation, and the broader experience economy.