Location Based Entertainment Market (By Component: Hardware, Software; By End-use: Amusement Parks, Arcade Studios, 4D Films; By Technology: 2 Dimensional (2D), 3 Dimensional (3D), Cloud Merged Reality (CMR)) - Global Industry Analysis, Market Size, Opportunities and Forecast 2021 - 2028

The global location based entertainment market is expected to grow at a CAGR of around 36.7% from 2021 to 2028 and expected to reach the market value of around US$ 6.0 Bn by 2028.

Location-based entertainment (LBE) is a type of entertainment that takes place in a specific location. Immersive entertainment, experiential entertainment, and digital out-of-home entertainment are other terms for LBE. Family entertainment centers, multisensory digital experiences, theme parks, and immersive art installations are all examples of location-based entertainment.

Report coverage

Market Drivers

Virtual Reality (VR) shows a lot of promise for the growth of global location based entertainment market

VR provides lucrative business opportunities in location-based entertainment by hosting VR experiences that allow customers/users to physically interact with the environment. Location-based entertainment (LBE) is expected to account for approximately 11% of the virtual reality (VR) industry by 2023. VR is gaining popularity due to its uniqueness and the entertainment it provides, and it is the next generation differentiated experience for users. Furthermore, it has been observed that there will be a significant increase in the percentage of online bookings for location-based entertainment in 2020 as technology advances to new developments that customers are likely to adopt. According to BRIQ Bookings statistics, online bookings made by mobile for location-based entertainment reached 79.2% in 2020. This is one of the most significant location-based entertainment trends to watch in 2021.

Infrastructure development fuel the growth of global location based entertainment market

With strong government support and involvement in architecture and engineering, as well as a wide range of design services involving landscape and interiors, the global location-based entertainment market is on the rise. According to a report released by Louisiana Economic Development, the software development and digital media industry is climbing the ladder in Louisiana because it provides a competitive edge to software development and digital media companies. For example, the Digital Interactive Media and Software Program provides a 25% tax credit on qualified payroll for resident labor and an 18% tax credit on qualified production expenses.

Segmental Analysis

The global location based entertainment market is segmented as component, technology, and end-use. The component is classified into hardware and software. By end-use, the market is segregated as amusement park, arcade studio, and 4D films. Based on technology, the market is segmented as 2 dimensional (2D), 3 dimensional (3D), and cloud merged reality (CMR).

Based on component, the hardware segment held the largest market share in 2020 and is expected to maintain this trend throughout the forecast period.  Computer hardware is used to create a three-dimensional Virtual Environment (VE), which includes high-performance workstations with special components for multi-sensory displays, parallel processing for rapid computation of world models, and high-speed computer networks for information transfer among VE participants. This is one of the prominent factors that foster the growth of global location based entertainment market.

According to technology, the 3D segment is expected to hold a significant share of the location-based entertainment market in the coming years. 3D technology creates innovative interactive, engaging, and immersive products for shows, events, learning, training, and marketing. The use of 3D elements makes the characters and environment interactive, allowing the user to be an active participant in the VR experience. Such factors have a positive impact on the global location-based entertainment market growth.

The amusement park segment accounts for a significant share of the location-based entertainment market in terms of end-use. As amusement parks increasingly use VR-based technology to provide users with a true-to-life experience, the global market for location-based entertainment has grown significantly.

Regional Landscape

North America dominates; Asia Pacific registers all time high CAGR for the location based entertainment market

North America held the largest market share in 2020 and is expected to maintain this trend throughout the forecast period. Among North American provinces, the United States dominates the location-based entertainment market and will continue to do so in the coming years. According to a report released by the U.S. Department of Commerce's International Trade Administration, the US Government strongly supports location-based entertainment (LBE) and themed attractions involving architecture/engineering, machinery, and products exported for the delivery of amusement parks and other attractions. These significantly increase support for various service models such as franchising, public and private experience-driven activities. Individuals, firms, and consortiums accounting for 51% of the US content have requested international assistance in LBE services. Furthermore, the US Embassies and Consulates present around the world have a dedicated staff to support the LBE industry. These aforementioned factors have positive influence on the location based entertainment market to grow exponentially.

Apart from that, Louisiana provides the ideal space for any production, with theatres and live performance venues readily available, as well as competitive incentives, a business-friendly climate, and a rich creative culture. This is, once again, the most important factor driving the growth of the location-based entertainment market.

On the other hand, Asia Pacific has historically had the fastest growing CAGR and is expected to contribute to an all-time high CAGR for the location-based entertainment market in the coming years. As virtual reality and augmented reality (AR and VR) have demonstrated massive potential in a wide range of industries and research fields, the Asia Pacific location-based entertainment market will grow at the fastest pace. For instance, the Government of India has announced collaboration with the Government of Odisha, Software Technology Parks of India (STPI), IIT-Bhubaneswar, and a philanthropist to establish a Centre of Excellence for Virtual and Augmented Reality (VARCoE) at IIT-Bhubaneswar. Currently, nine AR&VR application projects are in the works. Such factors promote the expansion of the location-based entertainment market.

Competitive Landscape

The prominent players of the global location based entertainment market involve The VOID, Hologate, Sandbox VR, Zero Latency, Spaces, HTC Corporation, IMAX Corporation,  and among others.

Market Segmentation

Market By Component

Hardware
Software

Market By End-use

Amusement Parks
Arcade Studios
4D Films

Market By Technology

2 Dimensional (2D)
3 Dimensional (3D)
Cloud Merged Reality (CMR)

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa