Location-based Entertainment Market Size, Share & Trends Analysis Report By Component, By End-use (Amusement Parks, Arcade Studios, 4D Films), By Technology, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global location-based entertainment market was valued at USD 3.29 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 28.8% from 2023 to 2030. The growth can be credited to an increase in consumer inclination towards amusement parks, arcade studios, 4D films, etc. as a part of leisure. Rapid urbanization, rise in disposable incomes, and increase in international tourism are also driving the growth of location-based entertainment market. 

The market statistics are being positively influenced by rapid adoption of immersive video content, video games, and other entertainment content at location-based entertainment sites. Advanced Visual Effects (VFX) with sensory stimulus and archaic tactile presented with Location-based Entertainment (LBE) services are particularly expected to contribute to market’s growth.

The gaming industry is undergoing a paradigm shift and industry incumbents are looking forward to pursuing technology-driven initiatives. Consumers are seen to be widely adopting VR distinctly with the blend of multiplayer-orientated interest in the industry. This, in turn, is encouraging smaller firms to invest in location-based entertainment market.

The key market players are focusing on integrating state-of-the-art technologies, such as Augmented Reality (AR), VR, Mixed Reality (MR), interactive digital surfaces, and 3D projection mapping, with LBE to deliver high-end immersive experiences to consumers. For instance, in January 2023, Apple, Inc. discussed a potential deal with the Walt Disney Company to develop a VR content platform for its headset. The tech giant has developed a headset in collaboration with Sony Group Corporation, featuring high-resolution displays and AR full-color pass-through.

Location-based entertainment can potentially have a significant impact on the life of individuals looking forward to having a social and emotional experience. At this juncture, consumers prefer LBE as they do not have to invest in a simulation device for experiencing an immersive environment. Moreover, retail industry continues to witness a paradigm shift, retail stores, and malls are leveraging LBE to create a convenient buying experience for shoppers. As such, LBE is expected to create social spaces in malls and community culture centers to provide immersive entertainment for people looking forward to witnessing real-life experiences.

COVID-19 Impact

The outbreak of COVID-19 and subsequent lockdown restrictions enforced by government authorities made a severe impact on location-based entertainment market. Cross-border travel restrictions and temporary closure of theme parks, film studios, and arcade studios created a ripple effect not only on the LBE industry but also on hotels and tourism businesses that largely rely on it. However, with the gradual relaxation of the restrictions and increased consumer demand toward location-driven leisure activities, the industry is expected to gain momentum in coming years.

Several prominent companies operating in LBE market utilized this time for advanced analytics and data management by deploying these technologies to maximize responsiveness to customer behavior patterns and needs. They also made significant investments toward improving infrastructure and quality of location-based VR content. For instance, in September 2020, VRstudios, Inc., launched a new foundation, VRstudios Sports, to bring players together in a VR environment to socialize, connect, and share their experiences. VRstudios Sports provides players with an opportunity to explore VR-based gameplays at home with an extended LBE facility.

Market Dynamics:

Increasing Consumer Spending on Games and VideoContent

Trends shifting to mobility lead to a new segment of specialized virtual reality experiences for Three-Dimensional (3D) simulation with computerized technology. Additionally, they create an artificial environment mainly used for media and entertainment, and gaming. There is a growing convergence between augmented reality, virtual reality, and wearable devices, with changing application dynamics of technology, allowing consumers to gain immersive and interactive experiences. For instance, consumers can experience virtual reality with the help of their mobile phones. Various companies, such as Google LLC, offer affordable Google Cardboard for smartphones to experience virtual reality. These developments drive consumers to spend more on games and content through which they can gain an immersive experience from their mobile phones.

Technology Insights

The 3-Dimensional (3D) technology segment accounted for the revenue share of over 43.0% in 2022 owing to increased adoption in entertainment industry. With considerable advances in 3D animation, 3D mapping, and other 3D technologies, the scope of the adoption of 3D technology in LBE has significantly increased. For instance, 3D printing is gaining massive traction in movie industry for several applications from the creation of animated films to famous costume designs.

The Cloud Merged Reality (CMR) segment is anticipated to witness significant growth over the forecast period owing to unabated technological advancements. Several large technology-based enterprises have extensively adopted CMR owing to its time-saving attributes. Besides, the technology provides greater convenience of usage and lesser data loss, thereby impelling its adoption across several companies operating in gaming and entertainment sectors.

Component Type Insights

The hardware segment accounted for a revenue share of around 65.0% in 2022 and is expected to grow significantly in the coming years. The growth can be attributed to the ongoing technological developments in VR/AR-based gadgets, such as headsets, haptic suits, and other simulation devices. VR-based hardware devices offer viewers an immersive experience in LBE centers at an affordable price while creating memorable moments for them. The rising adoption of low-end VR headsets by LBE providers particularly bodes well for the growth of hardware segment.

The software segment is anticipated to witness a CAGR of over 30.0% from 2023 to 2030 with continued innovations in software and applications used for LBE services. The growing popularity of mobile-based gaming using VR devices is also expected to drive growth of the segment. Developers are implementing 3D animation, gesture tracking, guardian systems, and 360-degree cameras to cater to the growing demand for high-end immersive experiences from consumers.

End-use Insights

The amusement parks segment accounted for a sizeable market share of around 39.0% in 2022 owing to increasing adoption of VR-based immersive technology across amusement parks to offer visitors a real-like experience. Moreover, they also provide several gaming-related activities through location-based VR to enhance customer experiences. Businesses are also concentrating on deploying technologically advanced, operation-based AR/VR devices at location-based entertainment sites, which is expected to enhance the market outlook further.

The arcade studios segment is anticipated to register the fastest CAGR of over 30.0% from 2023 to 2030. The advanced feature that facilitates multiple VR experiences in one commercial setting is particularly driving popularity of arcades. Entertainment or gaming machines are getting popular at various venues with high footfall, such as VR cafes, restaurants, and bars. The continued enhancement of games to attract more players is expected to drive segmental growth.

Regional Insights

Asia Pacific is expected to register a CAGR of around 31.0% from 2023 to 2030 owing to increasing consumer preference for outdoor leisure activities over other modes of entertainment. The region is also home to several global VR software and hardware providers, thereby creating lucrative opportunities for location-based entertainment market. In January 2021, China announced opening of its first theme park endowed with high-end technology that combines extended reality and 5G. The visitors are provided with AR glasses that allow them to gain real-life experience of Liuzhou culture. The theme park also provides simulation games and rides.

North America accounted for the largest revenue share of over 34.0% in 2022 and is expected to witness significant growth in the forecast period with increasing awareness about latest technologies and rapid adoption of location-based VR. Besides, North America is home to numerous major market participants. The effective use of location-based VR across various applications in media and entertainment and gaming industries is also favoring the growth of regional market.

Key Companies & Market Share Insights

The location-based entertainment market is consolidated with strong presence of several leading market players, such as Walt Disney Company, Universal Parks and Resorts, Six Flag Entertainment Corporation, Cinepolis, etc. The deployment of VR technology in location-based entertainment is growing constantly in line with rapid advances in AR & VR technologies. Major technology providers include Microsoft Corporation, Google LLC, VRstudios, Inc., Springboard VR, HTC Corporation, etc.

Several leading LBE companies have started investing in the entertainment industry. For instance, in September 2022, Shanghai Disney Resort introduced an immersive virtual reality (VR) experience at its Disneytown entertainment, dining, and shopping center. VR entertainment has been developed by China’s prominent VR Company SoReal. Some of the prominent players in global location-based entertainment market are:

• 4Experience

• AEON Fantasy Co

• Barron Games International

• Bob’s Space Racers

• CamOnApp

• Cinepolis

• Disney Parks, Experience, and Products (The Walt Disney Company)

• E-Learning Studios

• Google LLC

• HQ Software

• HTC Corporation

• Huawei Technologies Co., Ltd.

• KidZania Operations S.A.R.L.

• Magic Leap Inc.

• Microsoft Corporation

• Niantic Inc.

• Overseas Chinese Town Enterprise Co. (OCT) Parks

• Regal Entertainment Group

• Samsung Electronics Co., Ltd.

• Six Flag Entertainment Corporation

• Springboard VR

• Universal Parks and Resorts

• VRstudios, Inc.

Global Location-based Entertainment Market Report Scope

Global Location-based Entertainment Market 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 location-based entertainment market report based on component, end-use, technology, and region:

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

  • Hardware

  • Software

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

  • Dimensional (2D)

  • 3 Dimensional (3D)

  • Cloud Merged Reality

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Amusement Parks

  • Arcade Studios

  • 4D films

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • South America

    • Brazil

  • Middle East and Africa