Revenue will bounce back from recessionary setbacks as consumer spending increases
Los Angeles, CA (PRWEB) October 10, 2012
In the five years to 2012, the Laser Tag Arenas industry managed to expand despite the recession. Industry revenue is expected to grow at an annualized rate of 2.2% to $378.4 million during the period. “The industry was hurt by the economic downturn, which made laser tag a costly luxury for most consumers,” says IBISWorld industry analyst Nima Samadi. “Yet, it still managed to grow due to rising consumer interest in playing laser tag.” The industry also benefited from favorable demographic shifts and a growing amount of leisure time. The industry will experience a 2.3% uptick in revenue in 2012 due to a stronger economy buoying consumer interest in laser tag activities.
Participation in laser tag has grown aggressively over the past five years. However, in 2008 and 2009, deteriorating economic conditions caused demand for laser tag arenas to slow. Consumer spending growth slowed in 2008 and sank sharply in 2009 as unemployment grew. This factor led consumers to tighten their belts and cut back on nonessential expenditures like playing laser tag. Consequently, demand for industry services began to drop and cut into revenue, which only grew 0.5% in 2008 and stalled out at 0.0% in 2009. “The Laser Tag Arenas industry rebounded slightly in 2010 and 2011, as consumers, though still spending cautiously, demanded more leisure activities,” adds Samadi. “Industry venues experienced growing demand as consumers sought high-value entertainment options such as laser tag.” The industry is highly fragmented because most enterprises only operate locally and independently. An exception is major company Versent Corporation (Laser Quest), which manages 47 laser tag arenas across the United States. The remaining laser tag arena operators are smaller and account for a minimal share of industry revenue.
Moreover, positive demographic and leisure trends encouraged growing consumer interest in laser tag. The slight growth in the number of adolescents boosted industry revenue. The primary demographic for laser tag is consumers between the ages of 6 and 14; consumers under 18 make up nearly 70.0% all laser tag players.
Over the five years to 2017, industry revenue is forecast to continue growing, though at a faster rate than during the five years prior. Stronger consumer confidence and consumer spending levels will increase the rate at which consumers embrace the sport. For more information, visit IBISWorld’s Laser Tag Arenas in the US industry report page.
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IBISWorld industry Report Key Topics
This industry operates indoor and outdoor recreational laser tag facilities.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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