Location-based Entertainment Market Share, Size, Trends, Industry Analysis Report, By Component (Hardware, Software), By End-Use (Amusement Parks, Arcade Studios, 4D Films), By Technology (2 Dimensional [2D], 3 Dimensional [3D], Cloud Merged Reality [CMR]), By Region; Segment Forecast, 2021 - 2028
- Published Date:Oct-2021
- Pages: 101
- Format: PDF
- Report ID: PM2044
- Base Year: 2020
- Historical Data: 2016 - 2019
Report Summary
The global location-based entertainment market was valued at USD 3.08 billion in 2020 and is expected to grow at a CAGR of 34.2% during forecast period. The rising market demand for Advanced Visual Effects (VFX) along with virtual reality (VR) headsets is impelling the market growth across the globe. In addition, the launch of 360-degree VR technology is tied with the integration of Mixed Reality (MR) and Augmented Reality (AR) in location-based entertainment also acts as catalyzing factors for the market demand. Moreover, growing spending on R&D activities and increasing investment by the major players for technological innovation are further significant factors contributing to market development of location-based entertainment industry in the forecasting years.
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The overall globe is fighting against the COVID-19 pandemic and trying to prevent the spread of deadly coronavirus. Therefore, several governments regulate mandatory lockdown in various regions, which leads to the temporary shutdown of location-based VR entertainment centers, and arcades owing to the social distancing norm. Prior to the pandemic market exhibited significant growth, but COVID-19 slowed down the market demand for location-based entertainment.
However, major players in these industries are investing in enhancing the quality and infrastructure of the location-based VR content. For instance, VRstudios, Inc., introduced a new foundation- VRstudios Sports, in September 2020. This initiative aims to bring consumers together in location-based VR surroundings to share their experiences, connect, and socialize. VRstudios Sports offers its players a chance to explore their VR-based game plays at home with a comprehensive LBE ability. Therefore, this initiative is likely to accelerate the global market demand for location-based entertainment.
Industry Dynamics
Growth Drivers
Increasing investment by the market competitors on the research and development activities for introducing innovative recreational entertainment products into the global market is a key driver for location-based entertainment. Companies are pursuing several initiatives to meet consumers' preferences, like out-of-home entertainment, as it offers more interactive ways to gather people and use shared social places. For instance, in March 2020, IMAX Corporation collaborated with Tribeca Enterprises LLC for the "Tribeca Drive-In”- a Tribeca Film Festival.
In this festival, 30 iconic movies in the U.S. were showcased with the aim of gathering people for storytelling and facilitating the display of their creativity by opting for IMAX Corporation’s immersive experiences. Therefore, these strategic frameworks of the companies may contribute to the market demand for location-based entertainment around the world.
Furthermore, the adoption of the LBE by the retail sector, such as malls, hypermarkets, retail stores, cinemas, etc., for offering a convenient purchasing experience propels the market demand for location-based entertainment. For instance, in October 2017, Yue Cheng Technology set up a professional VR cinema in partnership with China Gome Group and HTC Vive. The company is working on constructing the biggest, high-quality VR content platform in China. Hence, LBE services in community cultural centers and malls for immersive experience foster the location-based entertainment market growth in the forecasting years.
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Report Segmentation
The market is primarily segmented on the basis of component, end-use, technology and region.
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By Component |
By End-Use |
By Technology |
By Region |
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Insight by Component
The hardware location-based entertainment segment is leading in terms of revenue generation in the year 2020 and is expected to dominate the location-based entertainment market in approaching years. Location-based VR entertainment hardware devices present a fascinating experience to their spectators at a reasonable amount in the LBE centers. In addition, constant developments of the AR/VR devices like haptic suits, headsets, Data Glasses / Smart Glasses, and further stimulation gadgets are significant factors that impel the segment growth. Furthermore, the rising penetration of low-end VR headsets by LBE suppliers coupled with increasing implementation of the VR entertainment devices for LBE for delivering a high-quality experience to the end-users also attributes to the segment growth. For instance, Two Bit Circus introduced a small amusement park in July 2018, which set-up VR- based gadgets for giving a fascinating experience to their consumers.
The software segment of location-based entertainment is estimated to show substantial growth in the forecasting period. The rising consumer base for mobile-based gaming by utilizing VR entertainment devices as well as frequent innovations and developments in the applications and software which is preferred in LBE services are the factors that may lead the segment growth.
Moreover, the adoption of the guardian systems, 3D animation, 360-degree cameras, gesture tracking, etc., by the market developers for fulfilling the demand of the consumers propels the segment demand. Besides, numerous enterprises are targeting advancing LBE applications by increasing investments. For instance, in 2020, Augmedics- provider of AR software and Librestream provider of an enterprise platform, increases the company’s finances worth above USD 1.0 million. Hence, these factors exhibit segment growth for location-based entertainment in the upcoming years.
Insight by End-Use
Based on the location-based entertainment end-use segment, the amusement parks is accounted for the largest revenue generator by holding the highest shares in the global market in 2020. The segment is growing due to the increasing adoption of location-based VR immersive technology by amusement parks. The segment presents some gaming-associated activities by deploying location-based VR. Thereby, these factors lead to the dominance of the segment because it offers a real-like experience to its end-users. Furthermore, several companies are focusing on the installation of technologically advanced location-based AR/VR gadgets at LBE locations. Thus, growing expenditures on outdoor activities by population and the incorporation of 3D technology at entertainment sites further create a lucrative segment growth around the world.
The arcade studios segment is expected to show the highest CAGR in the near future. The increasing number of arcade studios visited by consumers because of increasing wants for high-fidelity immersive content in the VR headsets is propelling the segment growth. In addition, the superior feature which facilitates many location-based VR experiences in a sole commercial set is largely boosting the popularity of arcades, especially among game players. Moreover, gaming machines and entertaining sets are getting trendier in diverse locations such as restaurants, VR cafes, and bars. Therefore, these are some prominent factors that fuel the segment demand owing to the constant innovation in games, which, in turn, gained huge traction among the population over the forecasting period.
Geographic Overview
Geographically, North America is the largest contributor of revenue and dominates the overall global market. The rising responsiveness regarding novel technologies is tied with intensifying consumer base for the LBE technology, and increasing penetration of the location-based VR attributes to the regional market growth. Moreover, the growth of the media and entertainment industries and the rising efficiencies of the location-based VR in gaming coupled with the existence of the chief vendors in North America leads to market dominance. Therefore, these factors create a productive market demand for location-based entertainment market across the region in the near future.
Moreover, Asia Pacific is projected to grow at the highest pace across the globe in the approaching years. Owing to the factors such as the growing trend for outdoor leisure activities in comparison to other location-based entertainment types coupled with the presence of various providers of VR software and hardware. Besides, intensifying popularity for the VR-based games in countries like Japan, China, South Korea, and India is boosting the market development in the APAC region. Furthermore, several governments are promoting the implementation of LBE technology at famous tourists and visiting spots for increasing regional growth. Accordingly, these factors are fostering market growth across the Asia Pacific.
Competitive Landscape
Some of the major players operating in the global location-based entertainment market include Google LLC, HQSOFTWARE, HTC Corporation, Huawei Technologies Co., Ltd., IMAX Corporation, Microsoft Corporation, Neurogaming Ltd., Samsung Electronics Co., Ltd, Sony Interactive Entertainment LLC, Springboard VR, The VOID LLC, VRstudios, Walt Disney World.
Location-based Entertainment Market Report Scope
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Report Attributes |
Details |
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Market size value in 2020 |
USD 3.08 billion |
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Revenue forecast in 2028 |
USD 21.42 billion |
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CAGR |
34.2% from 2021 - 2028 |
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Base year |
2020 |
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Historical data |
2016 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
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Segments covered |
By of Component, By End-use, By Technology, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key Companies |
Google LLC, HQSOFTWARE, HTC Corporation, Huawei Technologies Co., Ltd., IMAX Corporation, Microsoft Corporation, Neurogaming Ltd., Samsung Electronics Co., Ltd, Sony Interactive Entertainment LLC, Springboard VR, The VOID LLC, VRstudios, Walt Disney World |
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- Regional analysis
- Segmentation analysis
- Industry outlook
- Competitive landscape
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