Location-based Entertainment Market Analysis Report By Component, By End Use, By Technology, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global location-based entertainment market size was accounted for USD 1.2 billion in 2018. It is projected to witness a 32.1% CAGR over the forecasted years, 2019 to 2025. The rapid emergence of the entertainment and gaming industry coupled with the increased spending on video content and games prevailing among the millennial population is projected to drive the market growth of location-based entertainment systems.

The market for VR (virtual reality) and AR (augmented reality) has been gaining traction over the last few years. Earlier, few players were operating in this market with their traditional business models and lower-quality content. However, in the last few years, on account of surging demand from service providers of games, they have started developing advanced software and systems for entertainment purposes.

Huge investments for developing gaming systems coupled with the amalgamation of VR, AR, and mixed reality have driven the market growth. Also, improvements in software and hardware for catering to the customer’s demand are being undertaken by several players. Such factors help in propelling the market growth for entertainment systems.

Several advanced products like VR pods are being used across malls, food courts, resorts, complexes, theme parks, and cruises for enhancing customer engagement. The VR arcades are also gaining popularity due to features like reduced operational complexity and fast playback. Moreover, the usage of advanced features like visual effects and sensor simulation in such entertainment systems is anticipated to drive market growth in the upcoming years.

Component Insights

The global market can be segmented into software and hardware based on component type. In 2018, the segment of hardware dominated the global location-based entertainment market. This can be associated with the rising demand for experiencing virtual reality.

The segment of software is projected to witness the highest CAGR from 2019 to 2025 across the global market. This can be associated with the development of enhanced software solutions by a majority of key players operating in this market. For example, a startup named Sandbox VR gained USD 68 million in 2019 as an investment for enhancing software development.

End-use Insights

The global market can be segmented into arcade studios, 4D films, and amusement parks. In 2018, the end-use segment of amusement parks held the largest share across the global market. This can be associated with the surging adoption of such systems across several parks and amusement centers for public entertainment.

The segment of arcade studios is projected to register the highest CAGR from 2019 to 2025. This can be associated with the rising inclination of the millennial population for experiencing coin-operated games. Also, rapid technological advances across VR and AR are anticipated to enhance experiences like roller coasters, tunnel diving, and other activities at home, thereby driving market growth across the globe.

Technology Insights

The global market can be segmented into 2D (2 Dimensional), 3D (3 Dimensional), and CMR (Cloud Merged Reality) based on technology type. The technology of 3D (3 Dimensional) is projected to hold the largest share across the global market from 2019 to 2025.

The industry of entertainment is largely being driven by the development of VR and AR technologies. Also, the integration of this 3D technology across LBE sites and amusement parks is driving the market growth. For example, a company named Ultrahaptics provides textures and 3D shapes by using haptic technology. It has patented the technology of virtual touch which makes use of ultrasound for projecting shapes and textures on the hands of users.

Regional Insights

In 2018, North America held the largest share across the global location-based entertainment market. This can be attributed to the rising popularity of many location-based entertainment services like VR services coupled with the surging presence of key players across this region.

The Asia Pacific is projected to register the fastest growth over the forecasted years. Rising disposable income coupled with the need for amusement activities for children is anticipated to drive the demand for entertainment systems across this region. Moreover, the emergence of the tourism sector across countries like India, Malaysia, and China coupled with the need for integration of LBE technologies at tourist places is further expected to fuel up the market growth.

COVID-19 Impact Insights

The global location-based entertainment market has been impacted on account of the ongoing COVID-19 crisis. Reduction in the number of international travelers on account of lockdown and travel restrictions imposed by governmental authorities is anticipated to hinder the market growth for entertainment systems. While, the advancements in technologies like VR and AR are expected to facilitate ease of learning, thereby promoting online education. Moreover, the usage of such entertainment systems can help in reducing unnecessary travel. These factors are projected to fuel up the market growth over the post-pandemic period.

Key Companies & Market Share Insights

The market for location-based entertainment includes players like Exit Reality, Springboard VR, IMAX Corporation, VRstudios Inc., The VOID LLC, and HTC Corporation. These players are constantly engaged in product and software development to provide a realistic experience across the entertainment industry.

The market is dominated by the presence of a few key players operating the location-based entertainment industry. They are also investing hugely in R&D activities to gain a competitive advantage over other players. Also, several domestic players are developing technologically advanced entertainment systems for widening their global reach.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global location-based entertainment market on the basis of component, end-use, technology, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)
    • Hardware
    • Software

• End-use Outlook (Revenue, USD Million, 2014 - 2025)
    • Amusement Park
    • Arcade Studios
    • 4D Films

• Technology Outlook (Revenue, USD Million, 2014 - 2025)
    • 2 Dimensional (2D)
    • 3 Dimensional (3D)
    • Cloud Merged Reality (CMR)

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • France
        • The U.K.
    • The Asia Pacific
        • China
        • India
        • Japan
        • South Korea
    • South America
        • Brazil
    • MEA