Immersive Entertainment Market Size, Share & Trends Analysis Report By Technology Type (Virtual Reality, Augmented Reality, Mixed Reality, Others), By Application, By Region, And Segment Forecasts, 2023 - 2030

Immersive Entertainment Market Trends

The global immersive entertainment market size was valued at USD 83.82 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 23.6% from 2023 to 2030. The increasing demand for realistic and engaging experiences has fueled advancements in virtual and augmented reality technologies, catering to consumers seeking more immersive content. Additionally, the gaming sector, in particular, has capitalized on this trend by offering cutting-edge graphics, interactive gameplay, and virtual reality experiences, attracting a diverse and dedicated consumer base, thereby driving the market’s expansion.

The rise of virtual concerts and events provides consumers with the opportunity to enjoy live entertainment from the comfort of their homes, addressing changing preferences and the need for accessible experiences. The integration of immersive technologies in everyday consumer activities, from virtual travel experiences to interactive museum tours, further enhances the appeal of immersive entertainment, which is contributing to the rising popularity of the market.

Furthermore, key organizations are continuously supporting the evolution of immersive entertainment industry by merging and acquiring companies for technology adaptation, which are expected to enhance end-user experience. For instance, in June 2023, Apple Inc. acquired Mira, an augmented reality (AR) headset startup. This acquisition is aligned with Apple’s launch of the Vision Pro AR Headset, which led to company’s entry into the AR-VR space. Such product launches by key players are expected to boost the market expansion over the forecast period.

The COVID-19 pandemic had a global impact on the demand and supply chain, causing disruptions in various businesses. However, the pandemic had a significant impact on the market as the lockdown heightened the demand for immersive technologies such as virtual VR, AR, and MR. These technologies offered individuals the opportunity to engage in immersive gaming experiences, attend virtual events, and explore different forms of entertainment. Furthermore, the ongoing innovation and development in the market are anticipated to propel the market growth over the forecast period.

Moreover, the rise of location-based entertainment (LBE), where immersive technologies are used to create unique experiences in physical venues like theme parks and entertainment centers, is anticipated to boost the market growth. LBE has been influential in expanding the market by offering consumers innovative and interactive experiences beyond the conventional home environment, which is expected to propel the market growth over the forecast period.

Technology Type Insights

The mixed reality segment is expected to register the fastest CAGR of around 22% over the forecast period. This growth is driven by technological advancements and an increasing need for seamlessly integrated virtual and real-world experiences. Moreover, the capacity of MR to overlay digital content onto the physical world, complemented by interactive elements, has given rise to engaging and dynamic entertainment scenarios, which is fueling the segment growth.

The virtual reality (VR) segment accounted for the largest market share of over 46% in 2022. This growth in market share is attributed to the ongoing advancements in VR hardware, equipped with more accessible and powerful headsets, which augment the overall experience of end-users. Furthermore, VR's implementation in amusement parks, arcade studios, immersive theaters, social experiences, and educational sectors has further diversified its usage, which is fueling the segment's growth over the forecast period.

Regional Insights

The North American region observed the highest market share of around 44% in 2022. North America has been at the forefront of technological innovation, with a robust ecosystem of tech companies continually pushing the boundaries of immersive technologies such as virtual and augmented reality. The region's well-established entertainment industry, including Hollywood and the gaming sector, has played a pivotal role in driving consumer awareness and adoption of immersive experiences. Additionally, the prevalence of high disposable incomes in North America has facilitated the widespread adoption of immersive entertainment, including virtual reality gaming, concerts, and experiential events.

The Europe region is projected to grow at the fastest CAGR of around 25% during the forecast period. The region's rich cultural heritage and history provide a fertile ground for innovative applications of immersive technologies in museums, theaters, and heritage sites, enhancing visitor experiences. As European consumers embrace these cutting-edge experiences, coupled with the region's proactive investment in technological infrastructure, Europe is positioned to experience significant growth in the immersive entertainment market in the coming years.

Application Insights

The gaming application segment accounted for the largest market share of over 39% in 2022. Technological advancements, particularly in graphics, processing power, and virtual reality (VR), have significantly enhanced the gaming experience, captivating a broad audience. The surge in esports and online multiplayer gaming has fostered community engagement and competitiveness, while the accessibility of mobile gaming has broadened the user base, which is driving the segment growth over the forecast period.

The music and concerts segment is expected to grow at the fastest CAGR of over 22% over the forecast period. The global reach afforded by virtual concerts has broadened the artist's audience, transcending geographical boundaries. The integration of cutting-edge audio technologies and spatial sound design has enhanced the immersive nature of live music experiences, replicating the atmosphere of traditional concerts. Moreover, the COVID-19 pandemic has accelerated the adoption of virtual and hybrid concert formats, prompting a shift in consumer behavior towards digital alternatives.

Key Companies & Market Share Insights

The market is classified as highly competitive, with the presence of several market players. The key players operating in the industry are focusing on strategic alliances, expansion, and new product launch to remain competitive in the industry. For instance, in November 2023, Sony Pictures Entertainment is expected to debut its first immersive entertainment destination, titled "Wonderverse," next month at the Oakbrook Center mall in the vicinity of Chicago. Covering an area of 45,000 square feet, the indoor space will feature a blend of interactive installations, physical and immersive multimedia experiences, dynamic attractions, and themed dining. Such strategies by the key players are anticipated to augment the market growth over the forecast period.

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 the purpose of this study, Grand View Research has segmented the global immersive entertainment market report on the basis of 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

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Rest of Asia Pacific

  • South America

    • Brazil

    • Rest of South America

  • Middle East & Africa (MEA)

    • UAE

    • South Africa

    • Rest of Middle East & Africa