In recent years, the claw machine market has exploded, particularly among young people and families. Market research shows that the global claw machine market has reached $3 billion and is expected to grow by 12% annually over the next five years.
Market Size
According to market size, the overall claw machine industry has now risen close to $3 billion, displaying a twelve percent annual growth trend. This expansion is almost entirely due to the Asian market, specifically China. In 2022, China’s claw machine market reached $1 billion, accounting for a third of the global market. The size of the Chinese market is expected to grow to $1.5 billion by 2025 as urbanization speeds up and consumption levels increase, according to Economic Times.
To be more specific, claw arcade games can make a monthly average revenue of 5,000 to 10,000 yuan per unit in first-tier cities like Beijing and Shenzhen. However, it would be about half of that (3,000 to 6,000 yuan) in second- and lower-tier cities. In a large shopping center in Beijing, the revenue from the claw machine area exceeds 300,000 yuan per month, making it an important source of income for the mall. The claw machine market size in Japan was around $500 million in 2022 and is expected to grow to more than $700 million by 2025.
Meanwhile, the North American and European markets continue to expand. The North American market was estimated to be worth around $300 million in 2022, with an annual growth rate of 8%. At the U.S. chain Dave & Buster’s, claw machine revenue makes up over 20% of total gaming area revenues. France and the UK are the two largest European markets, worth $150 million and $120 million, respectively, in 2022.
The business of claw machines mainly operates in shopping malls and large supermarkets, accounting for 70% of the market share. For example, a large Tokyo shopping mall attracts over 100,000 players every month to its claw machine section, with each machine averaging a daily intake of 5,000 yen.
User Groups
The main users of claw machines are young people and families. The survey data for 2022 shows that approximately 60% of claw machine users are between 18 and 30 years old, with women making up 65%. A survey of 5,000 Chinese claw machine users reported that around 70% were college students or recent graduates. A shopping mall survey in Shanghai showed that more than 50% of claw machine players are parents with children, with the proportion growing from 30% in 2019 to 45% in 2022.
User groups differ by country. In Japan, 75% of users are office workers and couples aged 20 to 40. In Tokyo’s Akihabara district, more than 10,000 couples visit claw machine shops each month, with about 30% being repeat customers. In the U.S., 55% of users are teenagers aged 15 to 25 and young families.
Social media sharing from young users on claw machine prizes gets even more attention, generating additional participation. According to various surveys, 80% of young gamers share their experiences and prize photos on social networks. Claw machine videos on TikTok and Xiaohongshu have received over 1 billion views.
When it comes to consumption frequency, there are clear differences between young users and family users. Young players visit the claw machine area at least once a week, spending 200 to 500 yuan per month, while family users mainly play on weekends, spending 300 to 600 yuan monthly. Data from a large shopping center in Guangzhou shows that young users spend an average of 450 yuan per month, while family users spend 550 yuan.
Operational Models
There are mainly three operational models for claw machines: self-operation, cooperation, and mobile operation. Self-operation is when malls or entertainment venues purchase and operate claw machines directly. For example, a large shopping mall in Beijing owns 50 claw machines, each generating a monthly income of 8,000 yuan, totaling over 400,000 yuan. In the cooperation model, malls and professional claw machine operators share risks and profits. For instance, a large chain mall in China cooperates with a well-known claw machine company to operate 100 claw machines, generating a monthly income of 500,000 yuan in 2022, with the mall earning a profit share of 150,000 yuan.
The mobile operation model is flexible and suitable for short-term events and holiday promotions. For example, a claw machine operator set up a mobile claw machine truck at the 2022 Shanghai International Amusement Equipment Exhibition, attracting over 20,000 players in three days and earning 150,000 yuan. At a music festival in Guangzhou, 20 mobile claw machines generated over 100,000 yuan in two days.
Technological innovation drives the development of these operational models. In 2023, a well-known claw machine operator launched a smart claw machine with AI recognition technology for unmanned automatic operation. In a shopping mall in Shenzhen, the smart claw machine’s monthly income rose from 8,000 yuan to 9,600 yuan. The smart claw machine’s backend analyzes data on prize ratios and operation strategies, increasing user stickiness and satisfaction.
In the U.S., claw machines are beginning to be operated digitally. A chain entertainment venue’s online points system in 2022 enabled claw machine bonuses to be used to exchange prizes and participate in raffles. This increased revenue by $2 million in 2022, accounting for 15% of total income.
