Global Location-based Entertainment Market Size, Share & Industry Trends Analysis Report By Technology (3 Dimensional (3D), Cloud Merged Reality and 2 Dimensional (2D)), By Component, By End-use, By Regional Outlook and Forecast, 2022 - 2028

Global Location-based Entertainment Market Size, Share & Industry Trends Analysis Report By Technology (3 Dimensional (3D), Cloud Merged Reality and 2 Dimensional (2D)), By Component, By End-use, By Regional Outlook and Forecast, 2022 - 2028

The Global Location-based Entertainment Market size is expected to reach $14.3 billion by 2028, rising at a market growth of 28.5% CAGR during the forecast period.

Location-based entertainment is a destination that brings people together for a shared activity, whether friends, families, or caring brand communities eager to spend time together. It aims to connect individuals in real life so they may exchange experiences. Users using LBE may move around freely and engage physically with their surroundings, including genuine portable props or equipment. LBE enables in-person interaction and experience sharing amongst users.

Any entertainment connected to a specific place away from home is called LBE. The licensed and brand-owned physical experiences on the LBE market range from immersive cinema and theme parks to virtual reality cafés and pop-up shops. Location-based entertainment (LBE) is also known as interactive multiplayer entertainment centers or "out-of-home entertainment." LBE generally refers to any entertainment connected to a particular location outside the house.

Using the involvement axis and the technology axis, immersive LBE experiences may be further divided into these two categories. Instead of being a group of distinct types, these many axes make up a spectrum. The breadth of experiences includes anything from very fun to profoundly contemplative. Technology may also be a part of them in varied degrees, from fully analog to virtually entirely digital. For instance, a large entertainment complex or amusement park could provide experiences that fall in various spectrums.

Customers are looking for one-of-a-kind experiences that will compel them to leave their homes, learn something new, or just be amazed. Owners and operators of immersive LBEs must get a solid grasp of their target customers and markets to succeed. Ambitious providers should explore outside of their field and draw ideas from successful immersive LBEs across the board.

COVID-19 Impact Analysis

The market is likely to grow in the future years as limitations loosen and consumer demand for location-based leisure activities rises. Numerous leading LBE organizations used sophisticated analytics and data management to optimize consumer response to behavior patterns and demands. They invested much in location-based VR infrastructure and quality. VRstudios Sports, announced in September 2020, brings participants together in VR to interact, network, and share their experiences. VRstudios Sports' expanded LBE lets people play VR games at home.

Market Growth Factors

The increasing popularity of 360-degree VR games

VR game creation has serviced major markets worldwide and has tremendous potential. The Samsung Gear VR, Oculus VR, and HTC Vive have become popular as virtual reality technology has grown. Virtual reality gadgets with tracking, sensory, and hand controls make games fun and interactive. As a result, the number of VR gaming firms grew to meet demand. VR games let players feel the surroundings. Immersive visuals and 360-degree video content stimulate adrenaline. Players may customize the game environment using virtual reality controllers. VR improved shooters, simulations, and adventures. This supports the growth of the market.

AR/VR and 3d projection mapping would increase demand.

AR/VR games are the most popular worldwide. Several game firms are exploring new technologies to better entertainment venue gaming. AR and VR are combined with 3D Projection-Mapping, interactive digital surfaces, and other technologies to create new gaming technologies. Family entertainment centers are upgrading their technology to provide more services via the internet and data instead of traditional games. Pure-play mapping software companies make projection mapping technologies to simplify project implementation and enhance audience watching. Consequently, the location-based entertainment market will grow due to the entertainment industry's mix of technology.

Market Restraining Factors

Health hazards of extensive VR headset use

VR headsets may emit electromagnetic frequency radiation. These gadgets link to your smartphone or computer through Bluetooth or WiFi and include clever sensors to immerse you in VR. Smartphone-powered VR headsets produce radiation. Cell phone radiation may influence sleep, temperament, and the reproductive system. VR headsets may wirelessly connect to WiFi and interact with smartphones, emitting radiation and offering long-term health problems.

Component Outlook

Based on the component, the Location-based Entertainment Market is divided into Hardware and Software. In 2021, the hardware sector had the largest revenue share. The development of VR/AR-based equipment, including headsets, haptic suits, and other simulation tools, is responsible for the increase. At the LBE facilities, VR-based hardware devices provide viewers an intense experience at a reasonable cost while giving them priceless memories. In particular, the growing use of low-cost VR headsets by LBE providers is encouraging for the expansion of the hardware market.

End-Use Outlook

Based on the end-use, the Location-based Entertainment Market is divided into Amusement Parks, Arcade Studios, and 4D Films. In terms of revenue share, the arcade studios category led the market in 2021. Arcades' popularity is especially fueled by the cutting-edge functionality that allows for several VR experiences in one commercial environment. In many places with heavy foot traffic, such As cafés, restaurants, and bars, entertainment or gaming devices are becoming increasingly popular. Segment growth is anticipated to be fueled by game improvements that are made continually to draw in more players.

Technology Outlook

Based on the technology, the location-based entertainment market is divided into 2D, 3D, and Cloud Merged Reality (CMR). Due to ongoing technical improvements, the Cloud Merged Reality (CMR) market shows a promising growth rate throughout the projection period. Due to its time-saving benefits, CMR has been widely embraced by several big technology-based businesses. Also, the technology offers better usability and fewer data loss, encouraging its adoption by many companies in the gaming and entertainment industries.

Regional Outlook

Based on the geography, the Location-based Entertainment Market is divided into North America, Europe, Asia Pacific, and LAMEA. Due to rising consumer preference for outdoor leisure activities over other forms of entertainment, Asia Pacific is predicted to see significant CAGR throughout the projected decade. Also, the area is home to several international VR hardware and software vendors, opening up significant market potential. China announced the inauguration of its first theme park outfitted with cutting-edge technology in January 2021.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Google LLC is the forerunner in the Location-based Entertainment Market. Companies such as Microsoft Corporation, Samsung Electronics Co., Ltd., and Huawei Technologies Co., Ltd. are some of the key innovators in Location-based Entertainment Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include The Walt Disney Company, Google LLC (Alphabet, Inc.), HTC Corporation, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Magic Leap, Inc., Microsoft Corporation, Samsung Electronics Co., Ltd. (Samsung Group), Niantic, Inc., VRstudios, Inc. (FOD Capital, LLC), and KidZania S.A.P.I. de C.V.

Recent Strategies Deployed in Location-based Entertainment Market

Partnerships, Collaborations and Agreements:

Feb-2023: Huawei came into partnership with STC TV, a UAE-based provider of digital entertainment. The partnership includes jointly working to introduce new offerings and bundles. Further, the partnership improves user experience across the Middle East and North African region.

Jul-2022: HTC partnered with VRdirect, a Germany-based developer of a virtual reality platform. Through this partnership, the companies aim to develop a B2B metaverse easily accessible, particularly to businesses.

Jul-2022: Walt Disney partnered with HYBE, a South Korea-based entertainment lifestyle platform company. The partnership involves the worldwide distribution of HYBE's five major content titles. The collaboration reflects the Walt Disney Company's vision to collaborate with content creators to let the mainstream audience enjoy their talent.

May-2022: Magic Leap partnered with Globant, a Luxembourg-based developer of software technology. By integrating Magic Leap’s spatial computing platform with Globant’s expertise in expansive software development, the companies intend to advance business adoption of AR. Further, this partnership would also result in increased innovation in AR.

May-2022: Microsoft came into a partnership with Kawasaki, a group of motorsport vehicles. Under this partnership, Kawasaki became a new customer for the tech giant’s “industrial metaverse”, which is a fancy way of saying factory floor workers wear a HoloLens headset to assist with production, repairs and managing supply chains.

Feb-2022: HTC Vive came into partnership with holoride, a Germany-based developer of in-vehicle media technology developed to connect XR and real-time motion data. The partnership includes jointly working to introduce VR entertainment in cars by making use of the Vive Flow headset.

Jan-2022: Microsoft joined hands with Qualcomm Technologies, an American multinational corporation. This collaboration aimed to expand and boost the adoption of augmented reality (AR) in the consumer and enterprise sector. Under this collaboration, Qualcomm Technologies would work with Microsoft across various initiatives to support the ecosystem, comprising the development of custom AR chips to allow a new wave of power-efficient, lightweight AR glasses to offer rich and immersive experiences, and plans to combine software such as Microsoft Mesh and Snapdragon Spaces XR Developer Platform.

Nov-2021: VRstudios came into partnership with Creative Works, a turnkey attraction developer. The partnership includes bringing VRstudios attractions to the real world.

Acquisitions and Mergers:

May-2022: Google acquired Raxium, a US-based innovator in single-panel MicroLED technologies. Through this acquisition, the acquirer intends to work on microLED display technologies intended to use in AR & VR headsets and wearables.

Apr-2022: Niantic acquired NZXR, a New Zealand-based operator of a game development studio. The acquisition is a part of Niantic's strategy to develop a real-world metaverse.

Feb-2022: Harman International, a subsidiary of Samsung Electronics took over Apostera, a German automotive software firm. This acquisition aimed to expand its business in the augmented reality and mobility technology sector. Integrated with Harman's digital cockpit product portfolio, Apostera's technologies would narrow the gap between the physical and digital worlds.

Jun-2020: Google took over North, a Canada-based developer of smart glasses. The addition of North aims to support Google to comprehend its vision of ambient computing, which is where everyday lives are powered by computing.

Product Launches and Expansions:

Jan-2022: Microsoft launched its mixed reality headset HoloLens 2 in India. HoloLens 2 assists companies and their employees to complete important tasks quickly, safely, and more efficiently, and develop new ways to connect with customers as well as partners.

Mar-2021: Microsoft unveiled Mesh, a service to build apps for people to collaborate in augmented reality. This product would allow developers to create applications wherein people can share holograms, speak with one another, create doodles, and appear as virtual avatars.

Scope of the Study

Market Segments covered in the Report:

By Technology

• 3 Dimensional (3D)
• Cloud Merged Reality
• 2 Dimensional (2D)

• Hardware
• Software

• Amusement Parks
• Arcade Studios
• 4D Films

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

• The Walt Disney Company
• Google LLC (Alphabet, Inc.)
• HTC Corporation
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• Magic Leap, Inc.
• Microsoft Corporation
• Samsung Electronics Co., Ltd. (Samsung Group)
• Niantic, Inc.
• VRstudios, Inc. (FOD Capital, LLC)
• KidZania S.A.P.I. de C.V

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