Location-based Entertainment Market Size, Share and Trends 2024 to 2034

Location-based Entertainment Market Size and Forecast 2024 to 2034

The global location-based entertainment market size is projected to be worth around USD 73.50 billion by 2034 from USD 5.84 billion in 2024, at a CAGR of 28.83% from 2024 to 2034. The North America location-based entertainment market size reached USD 1.63 billion in 2023. The growth of the location-based entertainment market can be attributed to an increase in consumer inclination towards amusement parks, arcade studios, 4D films, etc.

Location-based Entertainment Market Key Takeaways

• North America dominated the location-based entertainment market with the largest market share of 36% in 2023.
• Asia Pacific is expected to grow at a double digit CAGR of 31.05% over the forecast period.
• By technology, the 3 dimensional (3D) segment has contributed more than 44% in 2023.
• By technology, the cloud merged reality (CMR) segment is expected to grow at significant rate in the market over the forecast period.
• By component type, the hardware segment accounted for the biggest market share of 66% in 2023.
• By component type, the software segment is projected to expand at a fastest CAGR of 30.04% during the forecast period.
• By end-use, the amusement parks segment has generated more than 41% of the market share in 2023.
• By end-use, the arcade studios segment is anticipated to grow at a fastest CAGR of 31.05% over the projected period.

U.S. Location-based Entertainment Market Size and Growth 2024 to 2034

The U.S. location-based entertainment market size was exhibited at USD 1.22 billion in 2023 and is projected to be worth around USD 20.25 billion by 2034, poised to grow at a CAGR of 29.09% from 2024 to 2034.

North America dominated the location-based entertainment market in 2023. The growth in the region is driven by raising awareness of the advanced technologies and the ongoing adoption of North America is also a home for several major key players. Furthermore, the effective use of LBE across various fields in the media and gaming industry can further support the region's market growth.

• In March 2023, the second Peppa Pig theme park in North America will open in North Texas in 2024. The Peppa Pig attraction will be built and run by Merlin Entertainments, a global leader in location-based entertainment, under a licensing agreement with Hasbro, which owns the Peppa Pig brand.

Asia Pacific is expected to grow at the fastest rate in the location-based entertainment market over the forecast period. This growth is fueled by increased disposable incomes, rising urbanization, and a growing need for immersive entertainment. Moreover, the region is considered a hub for leading virtual reality software and hardware market players. Who has created new business opportunities for the LBE market? Also, the availability of cutting-edge technologies gives LBE operators a major benefit in creating mind-boggling concepts that relate to customers.

• In January 2024, Sony Music Masterworks, a division of Sony Music Entertainment, announced a new strategic venture with Roast Productions, a live entertainment company founded by Bonnie Royal and Michael Stevens. Based in London and operating internationally, Roast Productions focuses on producing theatre, concerts, and family entertainment events.

Global OTT Users Statistics

Market Overview

Location-based entertainment is defined as experiences that depend on physical location, such as amusement parks, themed attractions, and virtual reality centers. These experiences also utilized innovative technology like augmented reality (AR) and virtual reality (VR) to build immersive environments for guests. The future of the location-based entertainment market seems promising, with advancements and opportunities fueled by technological breakthroughs and increasing consumer demand for interactive experiences to improve customer engagement and satisfaction.

How AI is Changing the Location-Based Entertainment Market

In the location-based entertainment market, AI mainly improves the entertainment experience provided by AR and VR technologies and can enable AR and VR to understand natural language, analyze data, recognize objects, and generate realistic simulations by providing personalized and adaptive content that matches user preferences and demands. AI-created intelligent avatars are revolutionizing the VR scene. These avatars can adapt and respond to operators' emotions and actions in real-time. This stage of responsiveness improves social interactions within virtual space that can give a diverse experience to the user.

• In July 2024, Shemaroo Entertainment partnered with game-developing company GMetri to expand its metaverse platform, ShemarooVerse, into artificial intelligence (AI) based gaming. As per this partnership, some IP-based games featuring popular Bollywood movies will be made available on the Web3 platform.

Location-based Entertainment Market Growth Factors

• Increasing consumer demand for unique experiences is expected to drive the location-based entertainment market growth shortly.
• Rising investment and development in the industry can fuel the location-based entertainment market growth in the near future.
• Continuous improvements in VR, AR, and other advanced technologies can boost the location-based entertainment market growth further.

Market Scope

Market Dynamics

Driver

Growing consumer spending on games and video content

Users continually seek different sources of entertainment. They spend more money on buying subscriptions to entertainment parks, which can offer them an immersive experience. Players in the location-based entertainment market are also building content that is convenient for adults and children. Additionally, companies emphasize providing escape rooms, free user movement, and other content segments specific to consumer needs for standard-quality content. These factors raise consumers' expenditure on games and video content, which fuels market growth.

• In May 2024, iQIYI, a leading online entertainment service in China, announced the launch of a VR immersive theater on the first floor of Galaxy Promenade in Galaxy Macau this summer, adapted from its hit series Love Between Fairy and Devil, showcasing iQIYI's commitment to expanding location-based entertainment through its a unique blend of 'IP+ Technology.

Restraint

Economic and environmental factors

Economic hurdles, shifts in customers' buying habits, and natural disasters like pandemics can have a significant impact on tourist amounts. These factors can cause revenue fluctuations and might make it relatively difficult to keep operations persistent without losing profit. Moreover, rapid technical obsolescence can hinder the location-based entertainment market growth further.

Opportunity

Growing popularity of 360-degree content

The launch of 360-degree content is driven by various developments in VR as well as 3D, 4D, and 5D technologies, which can lead to major technological advancements in the entertainment sector. Furthermore, 360-degree content improves the experience of the viewer by providing an all-around view of the scene. Hence, the increasing popularity of 360-degree content, along with the advent of location-based VR as a main entertainment platform, will likely impact the location-based entertainment market positively. This new market trend can present market opportunities for the future.

• In June 2024, Paris-based production company Cercle launched a traveling, 360-degree immersive concert installation called Cercle Odyssey. The structure blends live music with a new type of visual storytelling. Cercle will collaborate with artists from various genres and backgrounds, but particularly with those who blend auditory and visual elements together.

Technology Insights

The 3 dimensional (3D) segment dominated the location-based entertainment market in 2023. This is due to the rise in adoption in the entertainment industry, such as the significant developments in 3D mapping, 3D animation, and other technologies. The adoption of 3D technology in location-based entertainment has grown substantially. For example, 3D printing has gained rapid traction in the film industry for various applications, such as designing famous costumes.

• In January 2024, Apple Vision Pro announced the launch of 150 3D movies, immersive films and series, Disney+, Max and more. Apple has detailed several entertainment experiences that will be available at the launch of its mixed-reality Apple Vision Pro.

The cloud merged reality (CMR) segment is expected to grow at significant rate in the location-based entertainment market over the forecast period. This technology combines physical and virtual environments by utilizing cloud computing. Which enhances the user experience by blending virtual reality and augmented reality features into the real world. The segment growth is fueled by the growing popularity of innovative content production and innovations in AR and VR technology.

• In May 2023, ARound, a next-generation fan engagement platform designed to enhance gameday fun with live, real-world augmented reality (AR) Experiences, has hired Dana Ware as its first chief creative officer, overseeing creative strategy and interactive storytelling for ARound's stadium-level shared AR experiences as it expands to new venues and partners.

Component Type Insights

The hardware segment led the location-based entertainment market in 2023. This can be linked to the technological developments in haptic suits, headsets, and VR/AR-based gadgets. The increasing adoption of low-end VR headsets by location-based entertainment players especially bodes well for segment expansion in the upcoming years.

The software segment is projected to expand at the fastest pace in the location-based entertainment market during the forecast period. Software developers are in a continuous process of improving the LBE systems to provide their clients with unique content. Additionally, the integration of immersive technology like augmented reality, virtual reality, 3D mapping, and mixed reality is anticipated to boost the growth of the software segment soon.

End-use Insights

The amusement parks segment dominated the global location-based entertainment market in 2023. The growth of the segment can be attributed to the rising adoption of VR-based interaction technology across the amusement park industry to provide visitors with a real experience. Businesses are also focusing on utilizing technologically advanced devices at location-based entertainment places.

• In September 2023, Licensing agency WildBrain CPLG launched a location-based entertainment (LBE) division to move its portfolio of kids brands further into this global business sector through a mix of new theme parks and entertainment centers. The plan is to focus initially on building out WildBrain’s brands in Asia Pacific, so former Paramount exec Evi Sari has been recruited to join the agency’s senior leadership team and run the new division out of Shanghai as VP of LBE.

The arcade studios segment is anticipated to grow at a significant pace in the location-based entertainment market over the projected period. The capability to offer a smooth physical experience with virtual animation videos by technologically innovative equipment to improve the customer's experience is estimated to contribute to the market expansion.

Recent Developments

• In April 2023, Netflix announced that it would open its first location-based entertainment (LBE) experience at KidZania in Japan, based on its upcoming animated series, Rilakkuma’s Theme Park Adventure.
• In May 2022, IMAX and AT&T joined together with Tribeca to debut a new summer drive-in movie series. Tribeca will collaborate closely with neighborhood suppliers that assist small businesses throughout the entire series. Tribeca Enterprises, AT&T, and IMAX expect that consumers will increase their demand and watch movies in a communal setting.
• In March 2022, the launch of ‘Star Wars: Galaxy's Edge’ was announced by Disneyland Resort and Walt Disney. This will be a theme park with VR-like technology that includes characters from the Star Wars universe in addition to completely immersive sights and sounds.

Location-based Entertainment Market Companies

• Disney Parks, Experiences, and Products
• Universal Parks & Resorts
• Merlin Entertainments
• Cedar Fair Entertainment Company
• Six Flags Entertainment Corporation
• SeaWorld Parks & Entertainment
• Village Roadshow Theme Parks
• Parques Reunidos
• OCT Parks China
• Fantawild Holdings Inc.
• The Sandbox
• VRCade
• Dave & Buster's Entertainment Inc.
• Hologate
• Zero Latency VR
• Sandbox VR
• The Void
• Exit Reality
• Nomadic
• Dreamscape Immersive

Segments Covered in the Report

By Component Type

• Hardware
• Software

By Technology

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

By End-use

• Amusement Parks
• Arcade Studios
• 4D Films

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa