Location-based Entertainment Industry Overview
The global location-based entertainment market size is anticipated to reach USD 30.29 billion by 2028, registering an estimated CAGR of 34.4% from 2021 to 2028, according to a new report by Grand View Research, Inc. The introduction of Virtual Reality (VR) in the gaming industry has added a new dimension by offering a simulated realm for gamers looking forward to an immersive and real-like experience. As such, several video game developers are entering into mergers and acquisitions with VR and Location-based Entertainment (LBE) technology providers to increase their respective market shares.
LBE services are offered in arcades, amusement parks, and VR cafes, among other entertainment services. The integration of Augmented Reality (AR), VR, 3D animation, and other immersive technologies with LBE is driving the growth of the market for location-based entertainment. LBE operators are concentrating on expanding their global footprint and gaining a competitive advantage over their rivals. For instance, in September 2020, Koch Media GmbH, a video game company, acquired Vertigo Games to strengthen its global reach and network while opening new publishing opportunities for itself and for Vertigo Games and its subsidiaries.
Location-based Entertainment Market Segmentation
Grand View Research has segmented the global location-based entertainment market based on component, end use, technology, and region:
Based on the Component Insights, the market is segmented into Hardware and Software.
- The hardware segment accounted for the largest revenue share of over 65.0% in 2020 and is expected to continue dominating the market growth over the forecast period.
- The growth of the segment can be attributed to the continued innovations in VR/AR-based gadgets, such as headsets, haptic suits, and other simulation devices.
- The software segment is anticipated to witness the fastest CAGR of over 35.0% from 2021 to 2028.
- The growth can be attributed to the continued innovations in the software and applications used in LBE services. The growing popularity of mobile-based gaming using VR devices is also expected to drive the growth of the segment.
Based on the End-use Insights, the market is segmented into Amusement Parks, Arcade Studios, and 4D Films.
- The amusement parks segment accounted for the largest market share of around 40.0% in 2020 and is expected to continue dominating the market over the forecast period.
- The arcade studios segment is anticipated to register the fastest CAGR of over 35.0% from 2021 to 2028.
- The introduction of 4D films and other state-of-the-art technological experiences leveraging 4D haptic movements and holometric chairs are offering exciting, real-like immersive experiences to viewers, thereby driving the growth of the 4D films segment over the forecast period.
Based on the Technology Insights, the market is segmented into 2 Dimensional (2D), 3 Dimensional (3D), and Cloud Merged Reality (CMR).
- The 3 Dimensional (3D) technology segment accounted for the largest revenue share of over 40.0% in 2020.
- The growing acceptance of 3D technology in the entertainment industry is anticipated to drive the segment growth.
- With considerable advances in 3D animation, 3D mapping, and others 3D technologies, the scope of the adoption of 3D technology in LBE has significantly increased.
- The Cloud Merged Reality (CMR) segment is anticipated to witness significant growth over the forecast period owing to the unabated advances in technology.
- Several large technology-based enterprises have extensively adopted CMR owing to its time-saving attributes.
Location-based Entertainment Regional Outlook
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market can be described as a moderately fragmented market owing to the presence of many market players. The deployment of VR technology in location-based entertainment is growing constantly in line with the rapid advances in the realm. Several operators are aggressively implementing extended reality in LBE. At the same time, the leading LBE companies have started investing in the entertainment industry. Advances in technology and the incorporation of AR, VR, 3D mapping, mixed reality, and other immersive technologies continue to largely influence the market growth. The growing demand from consumers for high-quality, immersive, and real-like experiences is driving the growth of the market.
Some of the prominent players operating in the global location-based entertainment market are:
- 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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