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LAN Gaming Centers in the US - Market Research Report (2014-2029)

Jonathan Burns Jonathan Burns New York, United States Last Updated: January 2024 NAICS OD6339 Spotlight Report

Revenue

$358.5m

2024

$358.5m

Past 5-Year Growth

Profit

$XX.Xm

Employees

17,059

Businesses

554

Wages

$XX.Xm

LAN Gaming Centers in the US industry analysis

Over the past five years, LAN gaming centers have experienced substantial fluctuations in revenue and customer demand. At the height of the COVID-19 pandemic, dwindling foot traffic and widespread stay-at-home orders brought on a significant drop in revenue. However, as the pandemic subsided, consumers who took up gaming as a pastime during quarantines were able to visit LAN gaming centers and the industry saw a surge in revenue that more than made up for the previous year's dip. This release of pent-up demand sustained the industry through 2021 and 2022, protecting LAN gaming centers from the more severe effects of dropping disposable income amid inflation. Industry revenue has been surging at a CAGR of 5.8% to an estimated $358.5 million over the five years through 2024, including an expected rise of 2.1% in 2024 alone.

Trends and Insights

  • Revenue boomed in the wake of COVID-19. Many consumers picked up gaming through quarantines, and the release of pent-up demand allowed both new and old gamers to get some much-needed social interaction at a LAN gaming center.
  • Consumers between 18 and 54 make up over half the industry's revenue. These individuals have grown up playing video games and now have the disposable income to enjoy their hobby at a LAN gaming center.
  • It's incredibly expensive to start up a LAN gaming center. The price of acquiring a fleet of high-tech computers and the regular costs of internet, electricity and depreciation make barriers to entry high for the industry.

Everything you need in one report

  • Reliable market estimates from 2014-2029
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 5.8 % over the past five years, to reach an estimated $358.5m in 2024.

Trends and Insights

Demand boomed as the pandemic subsided

  • Stay-at-home orders and concerns surrounding the virus's transmission brought a drop in revenue for LAN gaming centers through the COVID-19 pandemic, but the industry has enjoyed solid growth in the aftermath that has more than made up for 2020's challenges.
  • Additional trends and insights available with purchase
LAN Gaming Centers in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The rapid expansion of esports is set to boost demand for LAN centers

  • Over the last decade, the popularity of esports has grown immensely, bringing in fans, companies and players from all over the world. Because of the rapidly increasing popularity of esports, many investment and private equity companies have swarmed the market with money to invest, bringing further attention and organization never seen by esports.

Biggest companies in the LAN Gaming Centers in the US

There are no companies that hold a large enough market share in the LAN Gaming Centers in the US industry for IBISWorld to include in this product.

Products & Services Segmentation

LAN Gaming Centers in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Real-time strategy games, Multiplayer online battle arena games and First-person shooter games. Real-time strategy games is the largest segment of the LAN Gaming Centers in the US.

Trends and Insights

Multiplayer online battle arena games make up over a third of the industry's revenue

  • Multiplayer online battle arena (MOBA) games are staples in the top ten list of the most lucrative competitive video games. In these games, players control unique characters with special abilities in a battle to destroy the opposing team's base or core structure while defending their own.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

LAN gaming centers provide a network of interconnected computers or gaming consoles for customers. A local area network (LAN) connection is established between the devices for the purpose of playing multiplayer video games.

What's included in this industry?

Hosting gaming tournamentsHosting private groupsDaily and hourly PC and video game console rentals

Companies

Purchase this report to view all major companies in this industry.

Related Terms

E-SPORTSLOCAL AREA NETWORK (LAN)MULTIPLAYER ONLINE BATTLE ARENA (MOBA)

Industry Code

NAICS 2017

NAICS 713120 - LAN Gaming Centers in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Revenue boomed in the wake of COVID-19. Many consumers picked up gaming through quarantines, and the release of pent-up demand allowed both new and old gamers to get some muc...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Factors that influence volatility in the industry
  • Key success factors for businesses to overcome volatility

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Consumers between 18 and 54 make up over half the industry's revenue. These individuals have grown up playing video games and now have the disposable income to enjoy their ho...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Purchase this report to unlock analyst insights.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

It's incredibly expensive to start up a LAN gaming center. The price of acquiring a fleet of high-tech computers and the regular costs of internet, electricity and depreciati...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The industry self-regulates. LAN gaming centers hosting competitive events and tournaments are subject to the rules of each game's esports league.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profit remains high after taking a hit. Supply chain issues and the trade war with China have lifted the price of the industry's inputs, though loyal customers keep profit hi...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the LAN Gaming Centers in the US industry in United States in 2024?

The market size of the LAN Gaming Centers in the US industry in United States is $358.5m in 2024.

How many businesses are there in the LAN Gaming Centers in the US industry in 2024?

There are 554 businesses in the LAN Gaming Centers in the US industry in United States, which has declined at a CAGR of 0.3 % between 2019 and 2024.

Has the LAN Gaming Centers in the US industry in United States grown or declined over the past 5 years?

The market size of the LAN Gaming Centers in the US industry in United States has been growing at a CAGR of 5.8 % between 2019 and 2024.

What is the forecast growth of the LAN Gaming Centers in the US industry in United States over the next 5 years?

Over the next five years, the LAN Gaming Centers in the US industry in United States is expected to grow.

What does the LAN Gaming Centers in the US in United States include?

Hosting gaming tournaments and Hosting private groups are part of the LAN Gaming Centers in the US industry.

How competitive is the LAN Gaming Centers in the US industry in United States?

The level of competition is moderate and increasing in the LAN Gaming Centers in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Arcade, Food & Entertainment Complexes in the US
  • Electronic & Computer Repair Services in the US
  • Coffee & Snack Shops in the US
  • Video Game Software Publishing in the US

International industries

  • Global Internet Service Providers
  • Graphic Designers in Canada
  • Software Suppliers in Australia
  • Computer & Gaming Product Retailers in the UK
  • Gaming

View all industries in United States

Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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