What is the global market size of Location-Based Entertainment Market?

Location-Based Entertainment Market size was valued at USD 2.55 billion in 2019 and is poised to grow from USD 3.29 billion in 2023 to USD 35.42 billion by 2031, growing at a CAGR of 28.8% in the forecast period (2024-2031).

Location-Based Entertainment Market Size

Location-Based Entertainment Market Insights

Global Location-Based Entertainment Market size was valued at USD 3.2 billion in 2023 and is poised to grow from USD 4.08 billion in 2024 to USD 28.49 billion by 2032, growing at a CAGR of 27.5% during the forecast period (2025-2032).

A new dimension has been brought to the gaming business with the arrival of virtual reality (VR), which provides a simulated world for players seeking an immersive and lifelike experience. To boost their respective market shares, various video game developers are forming mergers and acquisitions with VR and location-based entertainment (LBE) technology providers. For example, in February 2021, VR publisher and game developer Vertigo Games purchased VR venue management software and content marketplace company Springboard VR for LBE. The acquisition sought to give game studios and operators additional tools and technologies to grow their LBE business in addition to giving operators access to VR content through Vertigo Games' Haze VR distribution platform.

Arcades, theme parks, and VR cafes are just a few of the entertainment venues that provide LBE services. The market for location-based entertainment is expanding as a result of the integration of immersive technologies such as Augmented Reality (AR), Virtual Reality (VR), 3D animation, and other technologies with LBE. LBE operators are focusing on increasing their global presence and getting an edge over their competitors. For instance, in September 2021, the video game business Koch Media GmbH purchased Vertigo Games to expand its global network and reach while also creating new publishing options for both Vertigo Games and its affiliates.

COVID-19 started in Wuhan (China) and has since quickly expanded throughout the world. In terms of confirmed cases and reported deaths, the US, India, Brazil, Russia, France, the UK, Turkey, Italy, and Spain are among the nations that have been most severely impacted. Due to lockdowns, travel restrictions, and business closures, COVID-19 has had an impact on the businesses and industries of numerous nations. The closing of numerous plants and factories has hurt the production, delivery schedules, and sales of goods on the international market. Only a few businesses have already warned of potential delivery delays and future sales declines.

US Location-Based Entertainment Market is poised to grow at a sustainable CAGR for the next forecast year.

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Major businesses in these sectors are making investments to improve the infrastructure and quality of location-based VR content. For instance, in September 2021, VRstudios, Inc. unveiled a brand-new foundation called VRstudios Sports. With this effort, users will be able to connect, socialize, and share experiences in a location-based VR environment. With a thorough LBE capability, VRstudios Sports gives its users the possibility to experiment with their VR-based game plays at home. Therefore, this endeavor is anticipated to increase the demand for location-based entertainment on the global market. 'Microsoft ', 'Google ', 'Meta ', 'Unity Technologies ', 'Nvidia ', 'Sony Interactive Entertainment ', 'Samsung ', 'Barco Electronic Systems ', 'Panasonic ', 'Huawei Technologies ', 'HQ Software ', 'HTC Vive ', 'Niantic Inc. ', 'Vicon Motion Systems ', 'OptiTrack ', 'SpringboardVR ', '4Experience ', 'Hologate ', 'Ultraleap ', 'Magic Leap'

Growth is expected to be fueled by the rising demand for immersive video content, video games, and other entertainment offerings, which may eventually lead to the sales of Virtual Reality (VR) headsets.

Family entertainment centers recently made changes to the games available in these facilities. The "triple revolution" of social media, the Internet, and mobile devices—which are digitally upending family entertainment centers—brings about this change and is creating some fierce competition. The most popular games right now are those that use virtual reality (VR) and augmented reality (AR). Some game developers are concentrating on creating various technologies to enhance the gaming environments in entertainment centers.

From 2021 to 2028, Asia Pacific is expected to have the fastest CAGR, at about 35.0%. People in the Asia Pacific region are starting to favor outdoor recreational activities above other forms of entertainment. Additionally, the presence of numerous international VR software and hardware suppliers in the Asia Pacific is encouraging the development of the local market. It is also expected that the growing number of VR game players in China will help the regional market expand. The governments in these regions are promoting the implementation of LBE technology at popular tourist destinations to promote foot traffic, therefore it is projected that the regional markets in the Middle East, Africa, and South America will also experience significant growth over the forecast period.