Mumbai, Mar 11: India’s indoor amusement industry is rapidly evolving from a children-centric segment into a major pillar of the country’s growing experience economy, according to a new report titled “Ready, Set, Play: India’s Indoor Amusement Industry at a Turning Point” released by ANAROCK in collaboration with the Indian Association of Amusement Parks and Industries (IAAPI).
The report estimates the current market size of Indoor Amusement Centres (IACs) at approximately ₹15,000 crore, reflecting sustained consumer demand, increasing formalization, and changing post-pandemic leisure preferences. Consumer spending in the sector has surged 30–40% compared to pre-pandemic levels, while Tier I cities are recording 10–15% higher per-customer spend than Tier II markets.
According to industry suppliers, consumer outlay in indoor amusement centres has increased by 15–20% in recent years, driven by greater participation, longer dwell times, and the growing popularity of immersive entertainment formats.
Commenting on the findings, Anuj Kejriwal, CEO – Retail, Leasing & Industrial Logistics at ANAROCK, said the industry is entering a transformative phase.
“India’s indoor amusement industry is 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 significantly. As the sector expands, safety standards and regulatory clarity must remain top priorities, especially given the high footfall and complex equipment involved in these facilities.”
Post-Pandemic Boom in Experiential Demand
The COVID-19 pandemic accelerated a shift from product-led consumption to experience-driven leisure activities. With families seeking safe and engaging recreational options, indoor amusement centres have benefited from being climate-controlled and family-friendly entertainment environments.
The report’s market survey, which primarily included respondents aged 25–44, found strong demand for multi-attraction formats such as arcades, kids’ play areas, bowling alleys, and immersive gaming experiences. More than 50% of visitors spend over ₹1,000 per visit beyond ticket purchases, with additional spending on gaming credits, food and beverages, and other add-ons.
Industry Evolution and Market Outlook
The report notes that India’s indoor amusement sector generated approximately ₹8,400 crore (USD 1.009 billion) in 2024 and is projected to grow to ₹15,600 crore (USD 1.879 billion) by 2030, registering a compound annual growth rate (CAGR) of 11.3%, which surpasses the global growth rate of around 9%.
Globally, North America currently dominates the indoor amusement industry with nearly 39% market share, but the Asia-Pacific region, including India and China, is expected to drive future growth due to rapid urbanization and rising disposable incomes.
Expanding Formats and Business Models
Indoor amusement centres today span a wide variety of formats, including kids’ play zones, arcade gaming arenas, sports attractions such as bowling and trampoline parks, adventure experiences like go-karting and obstacle courses, as well as technology-driven entertainment including VR and esports gaming.
Arcades continue to remain the most popular attraction across age groups, while family-oriented play zones are particularly favored by households with young children.
Operators are increasingly focusing on capital efficiency and measured expansion, with mall-based multi-format centres becoming a dominant model in urban locations. Meanwhile, standalone and hybrid formats are emerging in densely populated areas to attract new customer segments.
Regulatory and Safety Challenges
Despite the industry’s growth potential, the report highlights several structural challenges. These include the 18% GST applied on tickets and rides, which increases pricing pressure in a cost-sensitive market, as well as varying licensing requirements across different states.
Industry stakeholders have also raised concerns about the absence of a national regulatory framework for indoor amusement centres, which can lead to operational risks and inconsistent safety standards. Operators are calling for standardized safety guidelines, streamlined municipal and fire clearances, and structured training programs for staff.
Roadmap for Sustainable Growth
The report recommends a number of measures to strengthen the sector’s long-term growth. These include rationalizing GST rates, establishing national safety and compliance standards, introducing policies that recognize indoor amusement centres as key urban entertainment infrastructure, and encouraging domestic manufacturing of amusement equipment.
According to Ankur Maheshwari, Chairman of Indian Association of Amusement Parks and Industries and Founder of Masti Zone, the report represents an important milestone for the sector.
“For over two decades, IAAPI has been at the center of India’s amusement industry. This report brings together insights from operators, developers, consumers, and policymakers to provide a comprehensive view of the indoor amusement ecosystem. With the right policy support and incentives, the industry can unlock significant growth and employment opportunities in the coming years.”
As experiential entertainment continues to gain traction across urban India, the report concludes that indoor amusement centres are poised to become a key component of the country’s evolving leisure and lifestyle economy.
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