Location-Based VR Entertainment Market

Location-Based VR Entertainment Market Outlook (2024 to 2034)

Expanding at a high-value CAGR of 27.1%, the global location-based VR entertainment market is projected to increase from a valuation of US$ 3.89 billion in 2024 to US$ 42.86 billion by 2034.

Often referred to as "out-of-home entertainment" or "interactive multiplayer entertainment centers," location-based entertainment does exactly what it sounds like. It takes players away from their homes and into a designated space where they enjoy entertainment. The virtual reality sector is growing quickly and is significantly impacting modern living.

Virtual reality continues to have a big influence on the gaming business, and it is also spreading to other sectors, including the retail and automobile industries. Virtual reality based on location is a lot promising. Without location-based virtual reality, users are not able to interact with the world in the same manner.

The entertainment sector benefit from artificial intelligence and the development of generative AI is transforming the way that content is created. Accelerated content production, cost reduction, efficiency gains, improved creativity, customization, and innovation are all made possible with the use of generative AI. .

The development of artificial intelligence has greatly increased accessibility to augmented reality, as per the newly published location-based VR entertainment industry analysis.

Augmented Reality (AR) enhances real-world objects on a virtual platform, such as a headset or mobile device, to create an immersive environment, whereas Artificial Intelligence (AI) focuses on human-like intelligence that analyzes data, makes predictions, solves problems, and offers solutions.

Location-enabled entertainment and experiences are the focus of augmented reality technology created by Illumix, a media and technology business.

The industry standard for large venues, such as theme parks, resorts, sports stadiums, and music festivals, is Illumix's enterprise augmented reality platform. The business unveiled Illumix's in-house Spatial Positioning System, which enables digital material to precisely blend and connect with the physical world both inside and out while maintaining privacy.

The business is utilizing generative AI to speed up and lower the cost of 3D animation, asset production, and experience development, which boosts the overall augmented reality market.

Report Attribute	Detail
Location-Based VR Entertainment Market Size (2024E)	US$ 3.89 Billion
Forecasted Market Value (2034F)	US$ 42.86 Billion
Global Market Growth Rate (2024 to 2034)	27.1% CAGR
East Asia Market Value (2034F)	US$ 14.44 Billion
North America Market Growth Rate (2024 to 2034)	27.4%
Arcade Studios Segment Value (2034F)	US$ 6.26 Billion
Japan Market Value (2034F)	US$ 4.35 Billion
Key Companies Profiled	HTC Vive (HTC Corporation); Oculus VR (Meta); Hologate; Survios Inc.; The Void LLC; VRstudios Inc.; Zero Latency VR; Exit Reality VR; Positron

Why is the VR Products Gaining Huge Popularity among More People than Ever Recently?

“Rise in Gaming Industry Positively Pushing the Market for VR Entertainment Products”

With VR for gaming and immersive experiences, AR for location-enabled entertainment, and XR's promise for live events and performances, the entertainment sector is spearheading the adoption of XR technology. Virtual reality (VR) in gaming opened up new possibilities for interactive encounters and immersive storytelling.

AR is also utilized to incorporate digital components into real-world settings, increasing the entertainment value of consumers’ experiences and attractions. New avenues for artistic expression and audience participation have also been made possible by XR's potential in live performances and events.

XR will have a huge influence on entertainment in the future by opening up new possibilities for participation, innovation, and narrative. All these factors are cumulatively contributing to the overall expansion of the location-based VR entertainment market growth.

Users interact with digital items, explore virtual settings, and participate in simulated experiences that make it difficult to distinguish between fact and fiction thanks to XR technology. XR technology gives entertainment venues countless opportunities to create distinctive and captivating experiences for their guests, ranging from interactive storytelling and instructional simulations to virtual gaming experiences. With applications in several sectors, including retail, healthcare, education, and tourism, XR technology is appealing beyond conventional entertainment offers.

For instance, healthcare practitioners are adopting virtual reality (VR) simulations for medical training and rehabilitation, while merchants are utilizing AR technology to offer immersive shopping experiences. Location-enabled entertainment venues now have more opportunities to expand their products and draw in a wider audience because of XR technology's adaptability, which is leading to the growing location-based VR entertainment market size.

“Customers Liking the Concept of AR and VR Parks”

Consumers today look for diverse forms of entertainment and are spending more money on it. They are spending money at VR parks to play games as AR and VR becoming popular. Industry analysts estimate that in 2023, consumers spent USD 844 million on virtual reality entertainment.

In addition, customers are purchasing subscriptions to amusement parks that provide them with a fully immersive experience. The market's participants are producing material that is appropriate for both children and adults and are focusing on providing their consumers with top-notch content via theme parks, escape rooms, gaming establishments, and other location-based entertainment options.

As stated in the location-based VR entertainment industry outlook, to reach a wider audience and draw in new ones, several players are forming alliances and working together. Collaborations take diverse forms, such as collaborative marketing initiatives or co-branded events.

For example, a movie studio and a location-based entertainment company collaborate to develop a themed attraction based on a well-known movie series. Because there are different types of material, people inevitably try them all, which increases their entertainment budget to a more engaging experience.

Which Factors are Hard to Cope Up for Key Players in the Market?

“Multiple Changes Making it Hard for Key Players to Manage”

It is difficult for several location-based entertainment service providers to keep up with the quickly evolving technological landscape. Since technology is an essential part of the LBE experience, new advancements in the field render old equipment and technology obsolete.

In addition, LBE necessitates a large capital expenditure to remain competitive in the market, which will be difficult for small enterprises with tight finances.

Upgrading technology and maintaining equipment are crucial for improving the client experience, but they are costly for some LBEs. High capital expenditure is therefore anticipated to impede market expansion going forward, as per the location-based VR entertainment industry outlook.

Country-wise Evaluation

The entertainment industry is performing well since the disposable income is escalating for customers, allowing people to spend their money more on entertainment. This factor is one of the primary reasons for rising trends of VR products becoming more popular in developed countries, including the United States, Canada, and Japan. The market in the United States is forecasted to hold a significant location-based VR entertainment market share in North America.

What is Making the Market Boom in the United States?

“Widespread Application of VR and AR in Entertainment and Gaming Industry”

Attribute	United States
Market Value (2024E)	US$ 784.8 Million
Growth Rate (2024 to 2034)	26.9% CAGR
Projected Value (2034F)	US$ 8.52 Billion

The market in the United States is experiencing a significant boom primarily due to the widespread application of Virtual Reality (VR) and Augmented Reality (AR) in the entertainment and gaming industry. These technologies transformed how content is created and consumed, providing immersive experiences that engage users in diverse ways traditional media cannot.

The growth of gaming, particularly among younger demographics who seek more interactive experiences, is a major driver. In addition, innovations in hardware, such as advanced VR headsets and AR-capable devices, made these technologies more accessible.

Why are Key Players in China Enjoying Good Profits Every Year?

“Extensive Application of VR Technology in the Automotive Industry”

Attribute	China
Market Value (2024E)	US$ 600.6 Million
Growth Rate (2024 to 2034)	27.9% CAGR
Projected Value (2034F)	US$ 7.02 Billion

Key players in the automotive industry in China are enjoying robust profits yearly, chiefly due to the widespread acceptance of Virtual Reality (VR) technology. This integration of VR is revolutionizing the way vehicles are designed, tested, and marketed.

Automotive manufacturers in China are leveraging VR for advanced simulations during the design process, allowing for faster innovation and reduced costs. VR also plays a critical role in customer engagement by providing immersive experiences at showrooms, enhancing the buying journey.

Category-wise Analysis

Technological progress is making buzz among people, and on the other hand, key players are focusing their profits to further escalate the innovations. As mentioned in the location-based VR entertainment industry analysis, some of the major innovations in VR entertainment include 2D, 3D, and cloud-merged reality.

Which End User Industry is Majorly Adopting VR and AR Products Worldwide?

“Amusement Parks are Using VR and AR Products to Better the Customer Experience”

Attribute	Amusement Parks
Segment Value (2024E)	US$ 1.41 Billion
Growth Rate (2024 to 2034)	26.8% CAGR
Projected Value (2034F)	US$ 15.99 Billion

Fact.MR in its location-based VR entertainment industry analysis opined that the amusement park industry is leading the charge in adopting VR and AR technologies to enhance customer experiences. By integrating immersive technologies into rides and attractions, parks offer visitors a unique blend of reality and fantasy.

VR experiences allow guests to embark on adventures that transport them to different worlds, while AR are creating interactive elements that enrich the attraction experience. For instance, some parks are using VR headsets to enhance roller coasters, making the ride more thrilling by adding virtual effects.

What Technologies in VR Entertainment are in Trend Nowadays?

“2D VR Entertainment Products are Huge Hit among More Customers”

Attribute	2D
Segment Value (2024E)	US$ 1.9 Billion
Growth Rate (2024 to 2034)	26.2% CAGR
Projected Value (2034F)	US$ 22.42 Billion

Currently, 2D VR entertainment products are experiencing a surge in popularity among consumers. These applications often provide engaging and accessible experiences without requiring the immersive headsets associated with more complex VR systems.

Several entertainment platforms are leveraging 2D VR graphics for gaming, storytelling, and interactive experiences, making it easier for users to enjoy virtual content. The rise of social VR platforms also heavily utilizes 2D environments, allowing users to connect with friends and share experiences in online spaces.

Competitive Landscape

Key players in the location-based VR entertainment market are investing a hefty amount towards research and development to keep up with the evolving location-based VR entertainment market trends.

• The debut of Wonderverse, an immersive entertainment venue in the Chicago metropolitan region, was announced by Sony Pictures in November 2023. Zombieland, 21 Jump Street, Bad Boys, Ghostbusters, and other Sony TV series, movies, and video games served as inspiration for the Wonderverse attraction.
• In April 2023, Netflix revealed plans to provide a location-based entertainment experience at Japan's KidZania. This LBE's theme will be inspired by Rilakkuma's Theme Park Adventure, a forthcoming animated series on Netflix.
• In April 2023, Samsung Electronics partnered with Qualcomm and Google to create an extended reality ecosystem.

Fact.MR provides detailed information about the price points of key providers of location-based VR entertainment services positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Location-Based VR Entertainment Market Research

• By Technology :

  • 2D
  • 3D
  • Cloud-Merged Reality

• By End User :

  • Amusement Parks
  • Theme Parks
  • Arcade Studios
  • 4D Films
  • Others

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa