Location-Based Entertainment Market Overview
As per MRFR analysis, the Location-Based Entertainment Market Size was estimated at 15.97 (USD Billion) in 2022.The Location-Based Entertainment Market Industry is expected to grow from 17.52(USD Billion) in 2023 to 40.3 (USD Billion) by 2032. The Location-Based Entertainment Market CAGR (growth rate) is expected to be around 9.7% during the forecast period (2024 - 2032).
Key Location-Based Entertainment Market Trends Highlighted
Technological advancements and the consumer desire for more immersive experiences have led to an increase in the location-based entertainment sector (LBE). Among them are virtual and augmented reality technologies that have emerged, smartphone penetration, and the popularity of online gaming.
This market has various potential opportunities, including creating customized and personalized experiences, venturing into emerging markets, and incorporating artificial intelligence (AI) to enhance involvement. Trends show that there has been a change from universalized amusement, which is individually focused, to others, which are therapeutic, while some are educational, with the level of immersion into mixed reality increasing.
To maintain their competitiveness in the industry, competitors need to invest in research and development (R), adopt new technologies, and work with content developers to deliver unique experiences. Furthermore, they should be ready to satisfy the rising demand for mobile-first gaming and build strategies aimed at tapping into developing markets that will take advantage of the changing LBE landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Location-Based Entertainment Market Drivers
Rising Popularity of Immersive Technologies
The location-based entertainment market industry is increasingly witnessing the use of disruptive and immersive technologies such as virtual reality and augmented reality. VR and AR technologies give users an interactive environment that depends on location-based entertainment facilities. In addition, they allow developers to produce versatile simulations of desired objects and phenomena such as games, education, and others for all age groups.
Furthermore, the continuous development process of VR/AR technologies is very promising in ensuring the sense of reality in terms of graphics and simulation remains uninterrupted, even for a moment.
Growing Demand for Shared and Social Experiences
One of the most promising drivers of the GLBE market is the increasing popularity of shared and social experiences. Today, people tend to look for experiences they can share with friends and family. Various location-based entertainment venues present an excellent opportunity to do so. For example, several options for group entertainment are available via such venues as multiplayer games, escape rooms, interactive exhibits, and more. Future growth of the market is closely connected to this driver, as the social aspect of the considered type of entertainment appears to be one of its most important features.
Increasing Investment in Location-Based Entertainment
The investment is another factor driving the growth of the Location-Based Entertainment Market Industry. Investors are ready to commit their money to fresh and creative notions in the LBE market. This one comes with funding, the development of new technologies, the creation of new experiences, and the extension of existing ones. The market will further expand with continued investments.
Location-Based Entertainment Market Segment Insights
Location-Based Entertainment Market Revenue Model Insights
The market is divided on the basis of revenue model into subscription, transaction-based, advertising-based, and freemium. During the forecast period, the transaction-based revenue model is projected to acquire the biggest market share globally for the Location-Based Entertainment Market. This will be achieved by purchasing virtual items or in-app purchases during game plays or apps, thereby making it able to get the largest share of the location-based entertainment market through revenue. The advertising-based revenue model introduces a substantial market portion.
The subscription-based one, which is expected to increase slightly in the years ahead, has been driven by an increase in the availability of subscription services offering vitaminized content and premium options for subscribed users. In order to enjoy basic features in freemium models, payment must first be made before access can be allowed for other features or content that is alternative.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Location-Based Entertainment Market Type Insights
The Location-based AR/VR segment held the largest market share in 2023 and is projected to continue to dominate the market throughout the forecast period. This growth is attributed to the increasing adoption of augmented reality (AR) and virtual reality (VR) technologies in the entertainment industry. Geocaching is expected to witness the highest CAGR during the forecast period due to the growing popularity of outdoor activities and the increasing use of mobile devices. Location-based escape rooms are also gaining popularity, as they offer a unique and immersive experience.
Interactive city tours are expected to grow at a steady rate as they provide a convenient and informative way to explore new cities. Overall, the Type segment of the Location-Based Entertainment Market is expected to grow significantly in the coming years, driven by the increasing adoption of new technologies and the growing popularity of location-based entertainment experiences.
Location-Based Entertainment Market Target Audience Insights
The target audience for the Location-Based Entertainment Market consists of various segments, including Families, Young adults, Tourists, and corporate groups. Families are a key target audience, as they seek entertainment options that are suitable for all ages. Location-based entertainment venues that offer interactive experiences, educational opportunities, and family-friendly activities are likely to attract a significant portion of family visitors. Young adults are another important target audience, as they are often seeking immersive and engaging experiences.
Venues that offer cutting-edge technology, social interaction, and unique entertainment options are likely to appeal to this demographic. Tourists are also a valuable target audience for the Location-Based Entertainment Market. As more and more people travel for leisure and seek out unique experiences, location-based entertainment venues can offer them memorable and immersive attractions. Corporate groups represent another growing segment of the target audience. Companies are increasingly using location-based entertainment venues for team-building exercises, corporate events, and client entertainment.
Venues that offer customizable experiences and opportunities for networking and collaboration are likely to be successful in attracting corporate groups.
Location-Based Entertainment Market Technology Insights
The Location-Based Entertainment Market is segmented by technology into Augmented Reality (AR), Virtual Reality (VR), Mobile GPS, and Beacon technology. Among these, AR is expected to hold the largest market share in 2023, primarily due to its increasing adoption in the gaming, retail, and tourism industries. VR is also gaining traction, owing to its immersive and interactive experiences. Mobile GPS is widely used in location-based services such as navigation and tracking, while beacon technology is gaining popularity for proximity marketing and indoor navigation.
The overall market growth is attributed to the rising demand for immersive and interactive entertainment experiences, increasing penetration of smartphones and mobile devices, and advancements in wireless technologies.
Location-Based Entertainment Market Application Insights
The Location-Based Entertainment Market segmentation by Application includes Entertainment, Education, Marketing, and Tourism. The Entertainment segment holds the largest market share due to the growing popularity of immersive entertainment experiences such as virtual reality (VR) and augmented reality (AR). VR and AR technologies offer users a unique and engaging way to interact with digital content, making them ideal for location-based entertainment venues such as theme parks, arcades, and museums. The Education segment is also expected to witness significant growth in the coming years as location-based entertainment technologies are increasingly used to create interactive and engaging learning experiences.
For instance, VR and AR can be used to create virtual field trips, simulations, and other immersive learning experiences that can enhance student engagement and understanding. The Marketing segment is another key application area for location-based entertainment technologies. Location-based marketing campaigns can be highly effective in reaching consumers at the right time and place, and they can also be used to track consumer behavior and preferences. The Tourism segment is also expected to witness significant growth in the coming years as location-based entertainment technologies are used to create more immersive and engaging travel experiences.
For instance, VR and AR can be used to create virtual tours of destinations, provide information about local attractions, and allow tourists to interact with the local culture in a more immersive way. Overall, the Location-Based Entertainment Market is expected to witness significant growth in the coming years, driven by the increasing adoption of location-based entertainment technologies across a variety of industries.
Location-Based Entertainment Market Regional Insights
The regional segmentation of the Location-Based Entertainment Market showcases distinct market dynamics across various geographical regions. North America holds a significant market share, driven by the presence of major players and a high adoption rate of advanced technologies. The region is projected to maintain its dominance in the coming years. Europe follows closely, with a growing demand for immersive entertainment experiences. The Asia-Pacific (APAC) region is expected to witness substantial growth, fueled by the increasing disposable income and urbanization in countries like China and India.
South America, the Middle East, and Africa (MEA) regions are also expected to contribute to the overall market growth, albeit at a slower pace. These regions present opportunities for market expansion due to the rising popularity of location-based entertainment concepts.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Location-Based Entertainment Market Key Players And Competitive Insights
The industry of location-based entertainment is characterized by a variety of technologies that are constantly developed and launched by market players with the aim of improving their competitive positions. One of the major trends in the market is that the leading proprietors of concept parks are actively engaging in R processes and investment to attract clientele and provide fun and immersive experiences. In addition to this, the market’s development is stimulated by the rising popularity of mobile technologies and an increase in the use of AR and VR equipment.
The LBE market competitive landscape is likely to stay high in the coming years with such phenomena as new market players entering the market and a high rate of acquisition of some old participants by those who occupy leading positions.
One of the top market players in the industry is the organization known as Walt Disney Parks and Resorts. The organization represents a chain of concept parks and resorts across the globe. Walt Disney is traditionally recognized for its innovative approach to the application of technologies and its attempts to offer highly entertaining experiences to customers utilizing such LBE solutions.
The company is one of the main investors in the development of AR and VR technologies. At the same time, the most apparent competitors to this company are Universal Parks and Resorts. Universal is also the proprietor of an extensive park and resort chain across the world. The attempt to provide highly immersive and thrilling experiences to its clientele is facilitated in organizations of this type first and foremost due to the huge variety of popular licensed properties and LBE technologies that are to be put into motion.
Key Companies in the Location-Based Entertainment Market Include:
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Zero Latency
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Dave Buster's
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Round1
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The VOID
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Victory Lane Racing
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Main Event
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EXOS Heroes
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Dreamscape Immersive
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Survios
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GameWorks
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The VOID R/X
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Sandbox VR
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Chuck E. Cheese's
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Two Bit Circus
Location-Based Entertainment Market Industry Developments
The location-based entertainment market is projected to reach USD 40.3 billion by 2032, exhibiting a CAGR of 9.7% during the forecast period (2024-2032). The growth of the market is attributed to the increasing popularity of location-based entertainment venues, such as theme parks, water parks, and family entertainment centers. These venues offer immersive and interactive experiences that cater to a wide range of audiences, including families, young adults, and tourists.
The market is also driven by the growing adoption of mobile devices and the proliferation of location-based technologies, which enable the development of innovative and engaging location-based entertainment experiences. Key market players are investing in the development of new technologies and attractions to meet the evolving demands of consumers.
Location-Based Entertainment Market Segmentation Insights
Location-Based Entertainment Market Revenue Model Outlook
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Subscription
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Transaction-based
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Advertising-based
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Freemium
Location-Based Entertainment Market Type Outlook
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Location-based AR/VR
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Geocaching
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Location-based escape rooms
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Interactive city tours
Location-Based Entertainment Market Target Audience Outlook
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Families
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Young adults
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Tourists
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Corporate groups
Location-Based Entertainment Market Technology Outlook
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Augmented Reality (AR)
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Virtual Reality (VR)
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Mobile GPS
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Beacon technology
Location-Based Entertainment Market Application Outlook
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Entertainment
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Education
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Marketing
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Tourism
Location-Based Entertainment Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2022
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15.97(USD Billion)
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Market Size 2023
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17.52(USD Billion)
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Market Size 2032
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40.3(USD Billion)
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Compound Annual Growth Rate (CAGR)
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9.7% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Zero Latency, Dave & Buster's, Round1, The VOID, Victory Lane Racing, Main Event, EXOS Heroes, Dreamscape Immersive, Survios, GameWorks, The VOID R/X, Sandbox VR, Chuck E. Cheese's, Two Bit Circus.
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Segments Covered
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Revenue Model, Type, Target Audience, Technology, Application, Regional.
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Key Market Opportunities
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1 Augmented Reality AR and Virtual Reality VR Integration2 Growth of Theme Parks and Amusement Centers3 Location-Based Entertainment as a Social Activity4 Expansion into Emerging Markets5 Technological Advancements in Gaming and Entertainment
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Key Market Dynamics
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Growing demand for immersive experiencesTechnological advancements in AR and VRShift towards mobile-based entertainment.Increasing popularity of escape rooms and theme parksGrowing focus on personalized entertainment
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Location-Based Entertainment Market is expected to reach a valuation of USD 17.52 billion in 2023, with a projected CAGR of 9.7% from 2024 to 2032, leading to an estimated market value of USD 40.3 billion by 2032.
North America region is anticipated to lead the Location-Based Entertainment Market, primarily driven by the increasing adoption of smartphones, the growing popularity of augmented reality (AR) and virtual reality (VR) technologies, and the rising disposable income in countries.
The major factors propelling the growth of the Location-Based Entertainment Market include the increasing popularity of immersive technologies like AR and VR, the growing demand for personalized and interactive entertainment experiences, and the rising number of location-based entertainment venues such as theme parks, trampoline parks, and escape rooms.
Location Based Entertainment finds applications across various sectors, including gaming, education, tourism, and marketing. It transforms real-world environments into interactive and engaging experiences, enhancing user engagement and creating memorable moments.
Prominent players in the Location-Based Entertainment Market include The Walt Disney Company, Universal Parks Resorts, Merlin Entertainments, Six Flags Entertainment Corporation, and Parques Reunidos. These companies are continually innovating and expanding their offerings to cater to the evolving demands of consumers.
The Location-Based Entertainment Market is witnessing several notable trends, including the integration of artificial intelligence (AI) and machine learning (ML), the growing popularity of cloud-based platforms, and the increasing focus on immersive and personalized experiences. These trends are reshaping the industry and creating new opportunities for growth.
Despite its growth potential, the Location-Based Entertainment Market faces certain challenges, such as high development costs, the need for specialized infrastructure, and the impact of seasonality on revenue generation. It is crucial for market players to address these challenges effectively to ensure sustainable growth.
The regulatory landscape for the Location-Based Entertainment Market varies across regions. Governments are implementing regulations to ensure safety standards, protect intellectual property, and address data privacy concerns. Market participants must stay abreast of these regulations to ensure compliance and avoid legal complications.
The COVID-19 pandemic has had a significant impact on the Location-Based Entertainment Market, leading to temporary closures of venues and a decline in consumer spending. However, the market is expected to rebound as restrictions ease and consumer confidence returns. Market players are adapting to the changed consumer behavior by implementing hygiene measures, offering virtual experiences, and exploring new revenue streams.
The future of the Location-Based Entertainment Market is promising, driven by technological advancements, increasing demand for immersive experiences, and the growing popularity of location-based entertainment as a form of social interaction. Market players are expected to focus on innovation, collaboration, and sustainability to capitalize on the growth opportunities and meet the evolving needs of consumers.
