The global location-based entertainment market size is expected to reach US$ 2,918.91 million by 2028, registering a CAGR of 12.4% from 2022 to 2028, according to a new research study conducted by The Insight Partners.
Increasing Uptake of Advanced Technologies to Offer Growth Opportunities for Location-based Entertainment Market
Numerous businesses spend a lot of money building new sites where customers can fully experience virtual reality. There are currently many possibilities to integrate immersive technology in LBE VR. Two-bit Circus raised millions of dollars to open what they call a "mini amusement park" with virtual reality (VR). In location-based entertainment, technologies like object recognition can identify the form and shape of different objects and their position in space. Object recognition can help one overlay digital information and provide additional textual and visual information that can be easily built into AR/VR applications. ARKit helps various theme and amusement parks provide AR experiences with extraordinary 3D graphics. The most remarkable feature of ARKit is that one can incorporate real-world objects into AR experiences, resulting in fabulous immersive experiences.
Motion sensing is essential in portable designs built around augmented reality (AR) and virtual reality (VR) applications. While motion sensors are bridging the real and virtual worlds, a more specialized device, the inertial measurement unit (IMU), is ideally suited to serve the developing location-based entertainment with the help of AR and VR. Using virtual reality headsets on their own or as part of a ride or simulator has become the most recent trend for operators. With the help of virtual reality, it is relatively easy for an amusement park to create a 3D computer-generated environment that can suit a theme, style, story, or even season that is relevant to the location. Unlike traditional rides, it can be changed relatively easily as consumer tastes change or different brand alliances are formed. The expectation of end users to experience virtual environments in various applications, regardless of location or time, is increasing due to recent breakthroughs in location-based entertainment technology.
Location-based Entertainment Market Share — by Geography, 2021
Location-based Entertainment Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Hardware and Software), Technology (2-Dimensional and 3-Dimensional), and End-use (Amusement Parks, Arcade Studios, and Film Studios)
Location-based Entertainment Market Size, Share | Report 2028
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Source: The Insight Partners Analysis
The Europe location-based entertainment market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. Countries, such as the UK, Italy, and France, are major tourist attractions in the region. Due to this, several entertainment companies are interested in entering the regional market. In August 2020, Vicon Motion Systems Ltd. announced that the company had signed a contract with Electric Playbox. Through this contract, the company is targeting the fastest-growing location-based entertainment market. Further, The Void is aiming to open VR entertainment centers in some of the major cities in the US and Europe. The company will open its centers in Copenhagen, Amsterdam, London, Oberhausen, Stockholm, Paris, and Vienna.
Moreover, the region has one of the world's largest virtual reality parks in Mouscron. Similarly, Mymall has become a major tourist attraction in the UK due to being the world's first virtual reality shopping mall. Thus, the rising demand for VR entertainment led to the construction of virtual reality parks and malls, which is expected to increase location-based entertainment-providing companies in the region.
France held the largest location-based entertainment market share in 2021. Due to the rising virtual reality trend, prominent companies look forward to expanding their businesses in the country. In 2019, EVA, a virtual reality gaming company, launched its first VR gaming arena at Paris Games Week. This 5,000 sq. ft large esports arena enables the players to battle with other players while wearing a backpack computer, VR headset, and a connected rifle. Moreover, in June 2020, France increased its incentives for the VFX -heavy international productions with an increased rebate that generated around US$ 2.2 million in VFX-related spending. Such incentives are expected to increase future investments in LBE and propel the location-based entertainment market growth during the forecast period.
Impact of COVID-19 Pandemic on Europe Location-based Entertainment Market Growth
Russia, France, Italy, the UK, Spain, and Germany emerged as the worst-affected countries in Europe by COVID-19. Businesses in this region have been facing severe economic difficulties as they had to either suspend their operations or reduce their activities substantially during the pandemic. Due to business lockdowns, travel bans, and supply chain disruptions, the region witnessed an economic slowdown in 2020, which continued in 2021. European countries, such as the UK, Spain, and Germany, implemented drastic measures and travel restrictions to curb the spread of this virus among their citizens. These countries make significant markets for location-based entertainment with the presence of many amusement parks and film studios.
The location-based entertainment industry analysis has been segmented by component, technology, end-use, and geography. Based on component, the location-based entertainment market size is segmented into hardware and software. Based on technology, the market size is bifurcated into 2D and 3D. Based on end-use, the market analysis is categorized into amusement parks, arcade studios, and film studios. Based on geography, it is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.
BidOn Games Studio; Dimension; HQSoftware; IMAX CORPORATION; Neurogaming LTD; TESLASUIT; SpringboardVR; Samsung Electronics Co., Ltd.; Vicon Motion Systems Ltd.; and VRstudios Inc. are the key location-based entertainment market players profiled in this study. In addition, several other important location-based entertainment market players were studied and analyzed during the course of this study to get a holistic view of the market and its ecosystem.
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