Location-Based Entertainment Market by Component (Hardware, Services, Software), Technology (5G & Networking, Augmented Reality, Mixed Reality), Type, Application/Function, End Use - Global Forecast 2024-2030

Location-Based Entertainment Market by Component (Hardware, Services, Software), Technology (5G & Networking, Augmented Reality, Mixed Reality), Type, Application/Function, End Use - Global Forecast 2024-2030

The Location-Based Entertainment Market size was estimated at USD 4.73 billion in 2023 and expected to reach USD 5.72 billion in 2024, at a CAGR 22.78% to reach USD 19.93 billion by 2030.

Location-based entertainment (LBE) is an arrangement of entertainment that needs physical presence at a specific location, often providing bespoke and immersive experiences that cannot be replicated in the home or through static media. This includes a variety of formats, such as theme parks, arcades, escape rooms, virtual reality (VR) experiences, and augmented reality (AR) interventions, among others. The applications of LBE are broad, ranging from entertainment and education to cultural enrichment and social engagement. Rising preference for arcade studios, amusement parks, and arcade studios as a part of leisure is driving market growth. The rapid expansion of the tourism industry, particularly in popular tourist destinations, is benefiting market growth. Establishing and maintaining LBE venues, such as theme parks or VR arcades, requires substantial upfront investment in infrastructure, technology, equipment, and staff, subsequently hampering the adoption of location-based entertainment solutions. Advances in technology, including virtual reality (VR), augmented reality (AR), and mixed reality (MR), that enable the development of high-quality, interactive, and realistic content are anticipated to increase the demand for LBE solutions. The growing incorporation of innovative technologies, unique themes, interactive elements, and personalized experiences across LBE platforms is expected to provide growth opportunities for the market.

Regional Insights

In the Americas, there is a noticeable trend towards immersive, engaging experiences such as virtual reality and live-action themes, influenced by high consumer spending on leisure. These nations, with cities including Los Angeles and Orlando, are notable for their vibrant entertainment industries and significant tourist activities. Meanwhile, Canada emphasizes seasonal outdoor activities, adapting its LBE offerings to its diverse climate and integrating family-centered technologies, including VR. The European Union emphasizes regulatory compliance and consumer safety, with a cultural penchant for educational and immersive experiences ranging from escape rooms to historical tours. With the UAE as a central hub, the Middle East rapidly expands its LBS sector through significant investments in large theme parks and cultural attractions to boost tourism. Although still in its early stages, Africa sees a rising demand for diverse entertainment options, particularly in urban areas, including South Africa and Egypt, focusing on mobile entertainment and live events. In the Asia Pacific, China is at the forefront, capitalizing on urban growth and increased incomes, with substantial investments in AR and VR technologies supported by governmental initiatives. Japan offers a unique mix of traditional and modern LBE experiences, focusing on high-quality, detailed entertainment options that drive competitive innovation. On the other hand, India is emerging as a potential LBE market, with its growing middle class and youthful demographics favoring mobile-based and scalable physical entertainment solutions as urbanization and digital integration continue to rise.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Location-Based Entertainment Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Growing consumer inclination toward amusements parks, 3D, and 4D films
Rapid expansion of the tourism industry worldwide
High potential for 360-degree content and cloud-merged reality

Market Restraints

High investment cost and safety issues with location-based entertainment

Market Opportunities

Growing introduction of integrating advanced technologies to deliver immersive experiences
Increase in investment to expand amusement parks and gaming industry

Market Challenges

Technical challenges associated with location-based entertainment

Market Segmentation Analysis

Type: Burgeoning utilization of the theme parks featuring rides, shows, and other attractions
Application/Function: Evolving adoption of location-based entertainment (LBE) across the entertainment sector

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Location-Based Entertainment Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Location-Based Entertainment Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

iQIYI Launches Immersive Theater in Macao, a Significant Advancement in Location-Based Entertainment

The Chinese online video platform iQIYI announces the inauguration of its cutting-edge virtual reality (VR) immersive theater in Macao. This initiative is part of iQIYI's broader strategy to diversify entertainment experiences beyond traditional media formats. The VR immersive theater, iSpace, plans to offer a diverse array of premium VR content that promises audiences an unparalleled and immersive viewing experience. This launch underscores iQIYI's commitment to innovation and excellence in digital entertainment with an aim to set a new standard for integrating technology and traditional entertainment, thereby attracting more visitors and augmenting the entertainment landscape in Macao.

Sandbox VR’s Strategic Franchise Partnership with Apparel Group in the Middle East

Sandbox VR, a company that provides location-based virtual reality (VR) experiences, has strategically partnered with Apparel Group to extend its reach into the Middle East market. This initiative marks a significant step in leveraging VR technology to revolutionize the entertainment landscape in this region. By partnering with Apparel Group, which boasts a robust presence in retail and lifestyle sectors across the Middle East, Sandbox VR aims to introduce immersive, hyper-realistic VR experiences tailored to local tastes and preferences. This partnership reflects a growing trend of integrating cutting-edge technology in regional entertainment, enhancing the consumer experience while setting new standards in the industry.

Hershey Advances into Location-Based Entertainment with New Venture

The Hershey Company is set to broaden its market reach through a new venture in location-based entertainment. This initiative aligns with Hershey's strategic objective to enhance brand engagement and grow its consumer base through innovative experiential platforms. By integrating its product line with entertainment experiences, Hershey intends to create a unique, engaging environment that encourages longer visitor stays and increases consumer interaction with the brand. This move emphasizes the trend of experiential marketing within the retail and entertainment sectors and underscores Hershey's commitment to innovation and customer engagement.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Location-Based Entertainment Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Location-Based Entertainment Market, highlighting leading vendors and their innovative profiles. These include 4Experience sp. z o.o., AEON Fantasy Co.,Ltd., Barron Games International, CyberGlove Systems LLC, Dreamscape Immersive, Inc., Falcon’s Beyond Global, LLC, Fantawild Holdings Inc., Fennec Labs Ltd., Google LLC by Alphabet, Inc., Habo Studio Inc., HQ Software, HTC Corporation, Huawei Technologies Co., Ltd., IMAX Corporation, KABUM S.N.C., Kingsmen Creatives Ltd., Magic Leap Inc., Microsoft Corporation, NBCUniversal Media, LLC, Niantic Inc., Panasonic Holdings Corporation, Samsung Electronics Co. Ltd., Sandbox VR, Inc., Sony Group Corporation, SpringboardVR by Vertigo Studios B.V., Starbreeze AB, Tencent Holdings Ltd., The VOID LLC, Vicon Motion Systems Limited by Oxford Metrics PLC, and Zero Latency Pty Ltd..

Market Segmentation & Coverage

This research report categorizes the Location-Based Entertainment Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
Hardware
Services
Software
Technology
5G & Networking
Augmented Reality
Mixed Reality
Virtual Reality
Type
Arcades
Escape Rooms
Family Entertainment Centers
Theme Parks
Application/Function
Corporate Training
Education
Entertainment
Tourism
End Use
Commercial Use
Consumer Use
Educational Institutions
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year