Immersive Entertainment Market Size, Share & Trends Analysis Report By Technology Type (Virtual Reality, Augmented Reality, Mixed Reality), By Application (Gaming, Live Events), By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends  

The global immersive entertainment market size was estimated at USD 96.88 billion in 2023 and is expected to expand at a CAGR of 24.6% from 2024 to 2030. The major factors driving the market growth include the surge in the popularity of gaming, an increasing need for realistic experiences, the adoption of immersive technology in marketing music, and the growing popularity of live events. The demand for immersive entertainment is also being fueled by advancements in hardware capabilities as well as a growing number of engaging applications and content, which is further contributing to the market growth.

The rise of technological innovation in location-based entertainment, which generates exclusive experiences in real-world locations such as theme parks and entertainment centers, is an important driver leading the market's expansion. By serving consumers with unique and interactive experiences that extend beyond ordinary home entertainment, LBE expands its market reach. For instance, HTC Corporation, a technology company, has invested heavily in virtual reality, offering VR headsets and solutions for location-based entertainment, such as the HTC Vive Focus 3.

The COVID-19 pandemic accelerated the demand for immersive reality technologies to a greater extent as they provided remote alternatives for entertainment, education, and training. Virtual reality (VR), augmented reality (AR), and mixed reality (MR) offer individuals opportunities to engage in immersive gaming, attend events virtually, and explore diverse forms of entertainment from home. The pandemic-induced shift towards immersive technologies reflects a broader trend of increased reliance on digital experiences and virtual interactions, shaping the future of entertainment and social engagement in a post-pandemic world.

The increased demand for interactive and immersive content is propelling market growth largely driven by the evolving consumer preferences for dynamic and engaging experiences over traditional forms of entertainment. Moreover, the advancements in hardware and software capabilities have made VR and AR more accessible and affordable, driving their adoption across various industries and creating lucrative growth opportunities for the market.

In addition, key players consistently engage in forming strategic alliances, mergers and acquisitions, and new product launches to gain a competitive edge in the industry. For instance, in June 2023, Apple Inc. acquired Mira, an augmented reality (AR) headset startup. This acquisition aligns with the launch of Apple's Vision Pro AR Headset, which paved the way for the company to enter the AR-VR market. Such product launches by key players are expected to boost the market expansion over the forecast period.

Market Concentration & Characteristics

The degree of innovation in the market is high owing to the increasing investments by companies in new technologies and experiences to enhance user engagement. For instance, Niantic has created a variety of AR games, such as Pokemon Go and Harry Potter: Wizards Unite. The company uses AR technology to overlay virtual objects onto the real world, creating immersive gaming experiences for users. The market is expected to grow significantly in the coming years, driven by increasing consumer demand for lifelike and captivating experiences.

The level of merger and acquisition activities in the market is moderate. Companies are actively engaging in strategic moves to adapt to economic changes, optimize their industrial performance, and enhance their financial outcomes.Companies are leveraging mergers and acquisitions to strengthen their operations, enhance profitability, and streamline their business processes. For instance, in October 2023, Barco NV partnered with DWR Distribution, a South Africa based distributor for audiovisual and entertainment industries. This initiative solidified the latter's role as the official partner for the company’s innovative solutions in the region.

The impact of regulations on the market is expected to be high. Regulations play a significant role in this industry, affecting the amount of time users can spend in immersive environments, and the development and distribution of immersive entertainment solutions.For instance, regulatory bodies such as the Advertising Standards Authority (ASA) are responsible for advertising that occurs through the medium of immersive technologies.

The competition from product substitutes in the market is expected to be low. While there are other traditional forms of entertainment, such as television, conventional gaming, and holographic technologies, immersive entertainment provides a more interactive and personalized experience for the audience, making it a popular choice among consumers.

Technology Type Insights

The virtual reality (VR) segment dominated the market with the largest revenue share of over 46% in 2023 owing to the integration of this technology into social experiences, immersive theaters, gaming studios, amusement parks, and educational sectors. Moreover, the ongoing growth of VR hardware, has become accessible with more powerful and affordable headsets, enhancing end users' experiences in general, which is positively influencing the market outlook further.

The mixed reality segment is expected to register the fastest CAGR of around 25% from 2024 to 2030. Technological advances and the growing demand for experiences that seamlessly integrate both physical and virtual environments are factors that are driving segmental growth. In addition, the ability of mixed reality to introduce interactive features and multimedia content in the real world has created fascinating and dynamic entertainment scenarios, which is further contributing to segmental growth.

Application Insights

The gaming application segment accounted for the largest market share in 2023 on account of rising demand among gamers driven by the advancement in technology, specifically in terms of graphics, processing speed, and virtual reality (VR). The rise in online multiplayer gaming and Esports has promoted competition and social engagement, and the widespread availability of mobile gaming has boosted the number of users, which is propelling the segment's growth.

The music and concerts segment is expected to grow at the fastest CAGR from 2024 to 2030, driven by the growing significance of virtual concerts, which have broadened the artists' reach and exceeded regional limitations. Advanced audio technology combined with multidimensional sound design has made live music experiences more immersive, recreating the experience of a conventional performance. Furthermore, an upsurge in consumer behavior toward digital alternatives, stimulated by the COVID-19 pandemic, has led to the development of virtual and hybrid concert forms.

Regional Insights

The North America immersive entertainment market accounted for a share of more than 43% of the global revenue in 2023 due to a strong presence of leading technology companies that are at the forefront of developing immersive entertainment solutions, such as Microsoft Corporation, Apple Inc., Magic Leap Inc., and Meta Platforms, Inc., in the region. They are constantly collaborating to provide end-users with a more improved and engaging experience. For instance, in December 2023, Samsung Electronics Co., Ltd. announced a partnership with Netflix, an American streaming media company, to provide immersive live streaming of Netflix’s “Squid Game: The Trials”.

U.S. Immersive Entertainment Market Trends

The immersive entertainment market in the U.S. is growing owing to the presence of major tech companies, such as Microsoft Corporation, Apple Inc., and Qualcomm Incorporated, and their large-scale investments in immersive entertainment technology. Moreover, the strong presence of market players in the U.S., working toward the development of innovative immersive solutions, is also contributing to the market growth.

Europe Immersive Entertainment Market Trends

The immersive entertainment market in Europe is expected to grow at a CAGR of over 26% from 2024 to 2030. The increasing demand for immersive and engaging experiences across various sectors, including gaming, film, live events, education, and virtual tourism drives this growth.

The UK immersive entertainment market accounted for over 23% of revenue share in 2023, owing to the emerging trend of location-based entertainment (LBE) employing immersive technologies to create unique and engaging consumer experiences.

The immersive entertainment market in Germany is expected to grow at a CAGR of 48% from 2024 to 2030 with the increasing adoption of VR technology in the country, driven by the creation of high-quality VR headsets and the widespread distribution of VR content across multiple businesses.

France immersive entertainment market is projected to grow at a CAGR of over 50% from 2024 to 2030. Technological advancements such as virtual reality (VR), augmented reality (AR), mixed reality (MR), gesture recognition, spatial sensing, holograms, speech recognition, 3D displays, 3D audio, haptics, AI, drones, and cameras are driving the market.

Asia Pacific Immersive Entertainment Market Trends

The immersive entertainment market in Asia Pacific is estimated to record the highest CAGR of 26% from 2024 to 2030. The growth is driven by the increasing need for immersive and realistic experiences, which stimulates the development of augmented and virtual reality technology. Furthermore, rising disposable incomes in the region are fueling the demand for immersive experiences, such as concerts, virtual reality gaming, and experiential events, contributing to market growth.

China immersive entertainment market is projected to grow at a CAGR of over 53% from 2024 to 2030. This is attributed to the demand for realistic and immersive experiences, which is driving the developments in augmented and virtual reality technology.

The immersive entertainment market in Japan accounted for over 13% of the market in 2023. The rising demand for lifelike and captivating gaming experiences among customers, driven by innovative visuals, engaging gameplay, and virtual reality experiences, is fueling the market growth.

India immersive entertainment market is expected to grow at a CAGR of 56% from 2024 to 2030. This growth is driven by rising affordability and disposable incomes, which have led to increased consumer expenditure on engaging and realistic forms of entertainment and interactive experiences.

Middle East & Africa Immersive Entertainment Market Trends

The immersive entertainment market in the Middle East & Africa is anticipated to grow at a CAGR of over 53% from 2024 to 2030. The market is expected to witness substantial expansion owing to the increasing investments in immersive and engaging experiences across various sectors, including gaming, film, live events, education, and virtual tourism.

Saudi Arabia immersive entertainment market accounted significant market share in 2023 owing to increasing focus of the governing bodies to position the country as an international hub for entertainment by building theme parks and entertainment complexes.

Key Immersive Entertainment Company Insights

Some of the key players in the immersive entertainment market include Meta Platforms, Inc., Barco NV, and HTC Corporation.

• Meta Platforms Inc. has made substantial investments in VR and AR technologies to enhance user experiences and drive innovation in the immersive entertainment space. One of its flagship products is the Oculus Rift, a high-end VR headset that offers users an immersive gaming and entertainment experience. In addition, the company has introduced the Oculus Quest series, standalone VR headsets that provide untethered experiences for users.

• Barco NV, a global company specializing in visualization and collaboration technology, offers innovative projectors that have been instrumental in transforming traditional cultural experiences into modern, immersive visual spectacles across various sectors.

Telefonica, Signify, and Cosm are some of the emerging market participants in the market.

• Telefonica is a telecommunications company that partnered with Meta Platforms, Inc. to bring mixed reality experiences to a broader audience, highlighting the company’s interest in leveraging immersive technologies to deliver innovative entertainment solutions to users.

• Signify, a lighting company, partnered with Samsung Electronics Co., Ltd., foraying into the immersive entertainment industry through collaborations with established players. By joining forces with the latter, Signify aims to explore opportunities to enhance immersive experiences using lighting technologies.

Recent Developments

• In December 2023, Sony Pictures announced the opening of an immersive indoor entertainment park at Oakbrook Center in Chicago. The park features interactive exhibits, racing simulators, VR attractions, bumper cars, and themed food and drink areas based on popular hits such as Zombieland, Jumanji, and Ghostbusters from Sony's movie, TV, and video game franchises.

• In October 2023, AXA XL Risk Consulting unveiled AXA Immersive Solutions, an innovative training solution utilizing Virtual Reality (VR) and Digital Twin technologies. This tool provides risk consultants with a 3D model of a standard factory for engaging and immersive training experiences

• In December 2023, Amazon MGM Studios launched a collection on the AR platform Really, offering Fandime NFTs to reward users with exclusive movie-related content. This launch is a part of the broader trend of companies deploying immersive technologies in diverse settings, such as e-commerce, interactive web applications, immersion marketing, brand engagements, and targeted geographical explorations

Immersive Entertainment Market Report Scope

Global Immersive Entertainment Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global immersive entertainment market report based on technology type, application, and region:

• Technology Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Virtual Reality (VR)

  • Augmented Reality (AR)

  • Mixed Reality (MR)

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Gaming

  • Live Events

  • Museum and Cultural Experiences

  • Music and Concerts

  • Sports

  • Arcade Studios

  • Immersive Theater

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • South America

    • Brazil

  • Middle East & Africa (MEA)

    • UAE

    • South Africa

    • Rest of Middle East & Africa