Location-based VR Entertainment (LBE) Market

Location-based VR Entertainment (LBE) Market Outlook (2023 to 2033)

The global location-based VR entertainment (LBE) market was valued at US$ 3.21 billion in 2022, and by the end of 2033, it is expected to balloon to a valuation of US$ 49.3 billion, surging ahead at a CAGR of 28.3% from 2023 to 2033.

Location-based entertainment, also known as 'out-of-home entertainment' and 'interactive multiplayer entertainment centers', is precisely what it sounds like; it transports participants out from their homes to a special area where they can enjoy entertainment. The industry for virtual reality is expanding rapidly and is having a significant influence on contemporary life.

The gaming industry has been and will continue to be significantly impacted by virtual reality, which is also expanding to other industries such as automotive and retail. Location-based virtual reality has a lot of potential. Users can physically engage with the environment in a way that would not be feasible without location-based virtual reality.

The location-based VR entertainment setup is made for numerous participants and a group of individuals can share the same feelings through a virtual reality encounter. According to estimations, the virtual reality business will account for around 11% share of location-based entertainment.

North America accounts for a leading market share of 28.1% and will remain the market leader over the next ten years as well. Demand for location-based VR entertainment in the European region was around 21.4% of the global market.

Which Factor Will Accelerate the Demand for Location-based VR Entertainment?

"3D Projection Mapping Combined with AR & VR Technology to Drive Market Development"

Currently, augmented reality (AR) and virtual reality (VR) games are the most played (AR) around the world. Some game companies are focusing on developing innovative technology to improve the gaming settings at entertainment venues.

Game developers are seeking to mix AR and VR technologies with 3-D projection mapping, interactive digital surfaces, and other technologies to generate new technological advancements in their games. Family entertainment centers are continually enhancing their technical capabilities to offer a variety of services through connectivity and data in place of conventional gaming choices.

• In October 2021, Spike connected to the metaverse revolution. As Facebook expands the sorts of apps available in the Store to include 2D panel programs that can be used in Home on Quest 2, Spike is among the first 2D productivity apps to launch in the Oculus Store.
• In June 2022, Positron, a Los Angeles-based company, significantly expanded by putting its VR motion seats in special virtual reality event locations in ten significant cities. By the end of the year, a New York VR theater hosted Positron's inaugural installation. Although Positron is considering locations in Paris and London, a majority of the theaters will be in North America.

Why is the United States Market for Location-based VR Entertainment Booming?

“Increasing Applications of AR & VR in Entertainment & Gaming Industry”

Where VR and AR are concerned, the entertainment and gaming industries have led the way. Without such platforms, unique gaming experiences are not conceivable. Here, users can interact with one another while playing a game in a 3D virtual reality environment. More crucially, the social component of gaming has permeated games to the point where it makes them a destination for chat rooms.

Due to these factors, the United States dominated the global LBE market with a share of 18.1% in 2022.

Will the Indian market Provide High-growth Opportunities to Market Players?

“Increased Usage of AR & VR Technology in Education and Training Programs"

One of the most important advantages of virtual reality in training and education is the modelling of real environments. Imagine engaging geography courses that include excursions across continents and interactive timelines that function to visualize historical events. Older material is transformed into far more engaging, memorable ways using VR and AR technologies. These factors all fuel pupils' motivation and curiosity.

As such, the location-based VR entertainment market in India is estimated to skyrocket at a CAGR of 30.1% over the forecast period.

Why is Adoption of Location-based VR Entertainment Surging in Europe?

“Increased Usage of AR & VR in European Automotive Industry”

VR implementation in the automobile sector enables time and cost savings. Newest automotive applications examples include training for assembly, workstation optimization in manufacturing, and vehicle design.

The advancement of industrial automation and remote help requires virtual reality. It provides digital opportunities for real-time instructions, object manipulation, and remote supervision. It also enables businesses to automate production lines and conduct real-time problem-solving. The ability of remote employees to work concurrently is improved by the deployment of such software to numerous users. Remote teamwork in virtual reality is made possible by VR social platforms.

Germany is one of the most economically significant countries in the European region and it holds a leading market share of 14.3% in the European location-based VR entertainment market.

Category-wise Insights

Why Does the Hardware Segment Lead Revenue Generation in the Global LBE Market?

“Benefits Offered by Hardware Components of Location-based VR Entertainment to Drive Market Demand”

A location-based VR system's hardware is extremely important because it primarily provides the environment required to separate a modern VR experience from a location-based one. A VR system's hardware generates sensations that override the user's senses based on human emotions. The user's movements, including button pushes, controller movements, eye movements, and other body part movements, are tracked by sensors to do this.

The hardware segment leads the market with a share of 68.2%.

Which End User Will Account for High Demand for Location-based VR Entertainment?

“Amusement Parks Implementing LBE Solutions on a Large Scale”

The amusement parks segment is anticipated to dominate the global market over the forecast period. Virtual galleries, theaters, cinemas, theme parks, and museums are also included in VR entertainment. Through VR equipment, it is now even feasible to touch unspoiled museum objects.

Famous masterpieces such as Michelangelo's David and the Head of Nefertiti have already been virtualized. Users can touch it with gloves that can simulate various materials, and, in addition, enable haptic feedback. For those who are blind or have little vision, this is a completely different experience.

Competitive Landscape

Major location-based VR entertainment companies are focusing on the development of their solutions in video games and theme parks.

• In July 2021, the world's first 5G VR multipurpose headset and another computer-generated simulation stage were unveiled by XRSpace. It has a sensor tracker, a sturdy optical framework, and a 5G, 4G, or Wi-Fi network. It is designed to be used with hand following as the primary control approach.
• In February 2021, SpringboardVR, an identifiable VR setting the executive's programming provider, was acquired by Vertigo Games, a multi-stage virtual reality distributor. The design and development team at SpringboardVR will continue to operate under the present game with the assistance and resources of the Vertigo Games team.

Recent developments related to key players providing location-based VR entertainment solutions have been tracked by analysts at Persistence Market Research, which will be accessible in the full report.

LBE Industry Report Scope

Key Segments of LBE Industry Research

By Component:

• Hardware
  • Head-Mount Displays
  • Sensors
  • Head-Up Displays
  • Cameras
  • Others
• Software
• Services

By Technology:

• 2D
• 3D
• Cloud-Merged Reality

By End User:

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

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia Pacific
• Middle East and Africa

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