Market Size of Global Location-Based Entertainment Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 35.16 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Location-Based Entertainment Market Analysis
The Global Location-Based Entertainment Market is expected to register a CAGR of 35.16% over the forecast period (2022-2027). The location-based entertainment (LBE) industry is driven by rising demand from the end-user sectors of theme parks, arcade studios, and movie theaters due to improved content with technology adoption.
- The gaming business is going through a paradigm transition, and the established players in the market are eager to pursue technology-driven projects. Customers are thought to be embracing virtual reality (VR) in large numbers, particularly considering the industry's focus on multiplayer games. The trend, in turn, drives smaller businesses to participate in the LBE sector, fueling the market's expansion.
- Moreover, several governments are supporting location-based entertainment. For instance, the ITA report mentioned that the United States government supports location-based entertainment (LBE) and themed attractions by exporting items to construct amusement parks and associated interests. Support for various service models, including franchise, public, and private experience-driven activities, is part of this. Individuals, businesses, and consortiums with at least 51% U.S. content may ask for international assistance for LBE services.
- Significant players, such as Reality Labs in Meta, HTC VIVE, Sony Interactive Environment, etc., are investing much in research and development to introduce simulation technologies. Due to customers' evolving preferences for out-of-home entertainment, businesses are looking into several initiatives to offer more engaging ways to use shared social spaces and integrate people.
- The rising population spending on outdoor activities and the use of 3D technology at entertainment locations offering a realistic experience are the primary drivers of the market. The high expense of creating the content makes it a difficult challenge for market participants.
- The COVID-19 pandemic outbreak has negatively impacted market conditions. As part of the lockdowns implemented in many countries to prevent the spread of coronavirus, several LBE facilities, such as amusement parks, theme parks, arcades, and theatres, were temporarily shuttered. To gain traction and draw a sizable audience in the post-pandemic era, these LBE centers can now make the most of their limited resources by engaging customers, providing them with compelling reasons to return, educating customers about best practices to reduce health risks, and implementing data analytics to address customer needs.
