Location-Based VR Market Size

Location-Based Virtual Reality Market Analysis

The Location-Based Virtual Reality (VR) Market was valued at USD 1.58 billion in the current year and is expected to register a CAGR of 32.8%, reaching USD 8.73 billion in five years.

• Virtual Reality (VR) technology has evolved by leaps and bounds over the years, offering immersive experiences that transport users to a digital realm. A significant aspect of this evolution is the emergence of the location-based virtual reality (LBVR) market. LBVR takes VR experiences beyond the confines of homes and offices, allowing users to explore interactive virtual worlds in dedicated physical spaces. Location-based VR centers provide high-quality immersive VR experiences to consumers. These centers have advanced hardware motion-tracking systems and various interactive content, giving users an unparalleled and shared experience. The LBVR concept aims to create a social and communal environment for users to enjoy VR, fostering a unique experience.
• Since its inception, the LBVR market has witnessed remarkable growth, driven by a surge in demand for immersive experiences and advancements in VR technology. Players like The VOID, Dreamscape Immersive, Zero Latency, and others have spearheaded this growth by creating innovations. For instance, the previous year, Dreamscape and Majid Al Futtaim launched an immersive virtual reality (VR) destination in Saudi Arabia. Moreover, Dreamscape's revolution combines the captivating storyline of Hollywood with the exhilarating thrill of theme park rides; powered by full-body tracking technology, these heart-pumping dynamic adventures offer an unprecedented level of immersion, engaging visitors in a visceral experience.
• Furthermore, high-quality VR technology, such as improved headsets, motion controllers, and tracking systems, is critical in allowing users to interact with virtual surroundings more naturally and engagingly. The need for hardware becomes more apparent in location-based VR, where virtual features are superimposed on physical spaces. Premium VR headsets with high-resolution displays and accurate motion tracking systems, such as HTC Vive Cosmos Elite, Meta Quest series, Sony PlayStation VR, etc., allow participants to fluidly navigate the virtual world and interact with things in the physical area of the LBVR entertainment center, giving an escape room experience. As a result, constant developments in VR hardware are essential in attracting customers to embrace location-based VR, propelling market growth and driving innovation.
• Retail arcades are the highest growing consumers, as companies invest extensively in arcade franchises. Seekers VR, based in the eastern city of Wenzhou, owns a franchised chain of 200 arcades in more than 70 cities across China. With the significant growth in the global market, companies are strongly focusing on creating influential high-definition 360-degree content and reducing the price per minute for the customers, as many people are required to manage single events with fewer audiences at a time.
• The market for LBVR is still in a nascent stage. Making the VR experience more real is critical for market adoption and penetration. Increasing the implementation of VR technology, increasing investments in VR technology, and the growing popularity of 360-degree content are other significant factors influencing the growth of the LBVR market. High-quality content plays a crucial role in this industry. The market is expected to grow as more compelling, high-quality content that appeals to a wide demographic enters the market.
• In the previous year, Vertigo Games, the multi-platform VR publisher and developer best known for the platinum-selling VR shooter 'Arizona Sunshine,' announced that it had completed the acquisition of SpringboardVR, a leading provider of VR venue management software and the most extensive content marketplace for location-based entertainment (LBE), for an undisclosed amount.
• The COVID-19 crisis impacted most VR tech companies. Several VR gaming centers were closed due to stay-at-home orders during the initial months of the pandemic. Supply-chain disruptions, store closures, and delayed enterprise implementations cast shadows on the short-term outlook in the recent year. However, remote working requirements, augmented meeting places, contactless business processes, and virtual social togetherness are expected to increase the demand for enabling VR technologies during and after the pandemic.