Location-based Entertainment Industry Overview
The global location-based entertainment market size was valued at USD 3.05 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 34.4% from 2021 to 2028. The growing demand for immersive video content, video games, and other entertainment content, which can potentially trigger the sales of Virtual Reality (VR) headsets, is expected to drive the growth. Advanced Visual Effects (VFX) with sensory stimulus and archaic tactile presented with Location-based Entertainment (LBE) services are particularly expected to contribute to the market growth. The gaming industry is undergoing a paradigm shift and the 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 the LBE industry, thereby driving the market's growth.
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. Major industry participants are investing aggressively in research and development to launch innovative simulation products. Due to consumers’ shifting preferences for out-of-home entertainment, companies are pursuing various initiatives to create more interactive ways for using shared social spaces and assimilating people. For instance, in June 2020, IMAX Corporation partnered with Tribeca Enterprises LLC to work with Tribeca Film Festival's "Tribeca Drive-In" for showcasing over 30 iconic movies in the U.S. The strategic initiative was aimed at assimilating people for storytelling and allowing them to display their creativity using IMAX Corporation’s immersive experiences.
Gather more insights about the market drivers, restraints and growth of the Global Location-based Entertainment market
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, as the 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-like experiences.
The introduction of 360-degree VR technology is expected to play a decisive role in driving the growth of the location-based entertainment market. The 360-degree content can potentially provide an all-around view of the projected content for the viewers. The introduction of VR-based games with 360-degree content can also offer exciting and immersive experiences to individuals, thereby contributing toward the increasing popularity of 360-degree content and subsequently driving the growth. Such trends are prompting the key market players to collaborate with technology providers and further advance the LBE technology. For instance, in September 2019, StrikerVR, Inc. partnered with Nanoport Technology Inc. for the Linear Magnetic Ram (LMR) haptic technology, TacHammer. As part of the partnership, the company launched Arena Infinity LITE VR peripheral, which is designed to deliver realistic tactile experiences for LBE and VR.
The outbreak of the COVID-19 pandemic has taken its toll on the market. Several LBE centers, such as amusement parks, theme parks, arcades, and theaters, are closed temporarily as a part of the lockdowns imposed in various countries to arrest the spread of coronavirus. At this juncture, these LBE centers can utilize their limited resources critically, engage consumers, offer consumer compelling reasons to return, acquaint customers with ideal practices to mitigate health risks, and adopt data analytics to address the customer needs if they were to gain momentum and attract a large footfall in the post-pandemic era. Key market players are investing aggressively in improving the 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.
Browse through Grand View Research's Technology Industry Related Reports
Virtual Reality Headset Market - The global virtual reality headset market size was valued at USD 7.81 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 28.2% from 2021 to 2028.
Amusement Parks Market - The global amusement parks market size was valued at USD 45.2 billion in 2017. It is likely to expand at a CAGR of 5.8% from 2018 to 2025.
Location-based Entertainment Industry Segmentation
Grand View Research has segmented the global location-based entertainment market based on component, end use, technology, and region:
Location-based Entertainment Component Outlook (Revenue, USD Million, 2016 - 2028)
- Hardware
- Software
Location-based Entertainment End-use Outlook (Revenue, USD Million, 2016 - 2028)
- Amusement Parks
- Arcade Studios
- 4D Films
Location-based Entertainment Technology Outlook (Revenue, USD Million, 2016 - 2028)
- 2 Dimensional (2D)
- 3 Dimensional (3D)
- Cloud Merged Reality (CMR)
Location-based Entertainment Regional Outlook (Revenue, USD Million, 2016 - 2028)
- North America
- Europe
- Asia Pacific
- South America
- Middle East and Africa
Market Share Insights:
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.
June 2020: IMAX Corporation partnered with Tribeca Enterprises LLC to work with Tribeca Film Festival's "Tribeca Drive-In" for showcasing over 30 iconic movies in the U.S. The strategic initiative was aimed at assimilating people for storytelling and allowing them to display their creativity using IMAX Corporation’s immersive experiences.
Key Companies profiled:
Some prominent players in the global Location-based Entertainment Industry include
- HTC Corporation
- IMAX Corporation
- Google LLC
- Microsoft Corporation
- Samsung Electronics Co., Ltd.
- Springboard VR
Order a free sample PDF of the Location-based Entertainment Market Intelligence Study, published by Grand View Research.
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