Moving beyond traditional child-centric play areas, indoor amusement centres have undergone a major transformation to evolve as experiential entertainment hubs, driven by high-spending urban consumers in Tier-1 cities.

According to a recent report, ‘ Ready, Set, Play: India’s Indoor Amusement Industry at a Turning Point’ by Anarock and Indian Association of Amusement Parks & Industries (IAAPI), the sector’s current market size stands at approximately INR 15,000 crore, reflecting sustained demand, formalization, and post-pandemic shifts toward experiential consumption. Consumer spending has surged 30-40% compared to pre-pandemic levels, with Tier I markets recording 10-15% higher per-customer spend than Tier II cities. Industry suppliers note a 15-20% rise in consumer outlay over recent years, driven by higher participation, longer dwell times, and immersive formats.

Anuj Kejriwal, CEO-Retail, Leasing & Industrial Logistics, Anarock Group, 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. “Consumer spending intensity across IAC formats has strengthened materially. As the industry scales, safety and regulatory clarity must remain foundational priorities. IACs manage complex equipment and high footfall, primarily for families and children, making standardized norms essential. A harmonized framework would enable responsible expansion, he adds.”

The COVID-19 pandemic accelerated a shift from product-led to experience-driven consumption. Extended lockdowns emphasized recreation and family outings, boosting organized experiential categories. IACs benefit as climate-controlled, safe environments suited to urban families. Demand is family-led, with households having young children showing highest engagement. Visits are purpose-driven—social, celebratory and experiential, rather than habitual.

Anarock’s Market Pulse Survey (respondents primarily 25-44 years, 65% in metros, over 50% visiting IACs monthly) confirms preferences for multi-attraction, socially interactive formats like arcades, kids play areas, and bowling. Non-ticket spend (gaming, F&B, add-ons) forms a major revenue share. Over 50% spend over ₹1,000 per visit beyond tickets. Value perception trumps price sensitivity, though high tickets (50%) and crowding (20%) deter visits. Proximity and mall-based access boost frequency. According to Ankur Maheshwari, Chairman, IAPPI & Founder, Masti Zone ,IACs have grown from mall add-ons to amusement economy anchors.  With policy support and manufacturing incentives, this maturing industry can leap forward.

India’s IAC market generated ~₹8,400 crore (USD 1,009 mn) in 2024 and is  projected to reach INR 15,600 crore (USD 1,879 mn) by 2030 at  a CAGR of 11.3% —outpacing the global CAGR of 9.0% (USD 51-84 bn). Globally, North America leads (39% share), but Asia-Pacific (India, China) drives growth via urbanization and incomes.

Arcades lead preferences across generations, while kids’ areas are more preferred by families.Operators are focusing on capital efficiency with measured expansion plans over the next 3-5 years. Mall-based multi-format centres drive growth in urban areas, while standalone and hybrid setups target high-density locations. Key revenue streams include tickets, gaming redemption, food & beverage – which boosts dwell time and merchandise. In some centres, vouchers and prepaid packages now account for up to 25% of sales. Regular reinvestment is essential to combat equipment obsolescence.

Notwithstanding a creditable growth, the sector faces regulatory, taxation and safety challenges. The 18% GST on tickets and rides creates pressure in price-sensitive markets, impacting overall economics. Varying state licensing requirements slow down new project rollouts, while the lack of a national framework for IACs increases operational risks. Incidents in unorganized setups often cast a shadow on organized players. Operators call for standardized safety norms, streamlined fire and municipal clearances, and mandatory training programmes.

Looking ahead, the report calls for standardized safety and compliance frameworks, rationalized GST rates, a national policy recognizing IACs as vital urban anchors, incentives for domestic manufacturing, and accelerated formalization in Tier 2/3 cities. With these measures, IACs can scale effectively as major generators of employment and urban infrastructure.