According to our latest study on "Immersive Entertainment Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by component, technology, and end user," the immersive entertainment market size was valued at US$ 87.51 billion in 2023 and is expected to reach US$ 519.77 billion by 2031; it is estimated to record a CAGR of 24.9% from 2023 to 2031.
The immersive entertainment market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC, respectively. The Europe immersive entertainment market is segmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. In terms of revenue, UK dominated the immersive entertainment market share. The entertainment and gaming industries in the UK are gaining momentum at a fast pace. Moreover, various companies in the gaming industry are taking initiatives such as partnerships, product launches, and collaborations. In October 2023, Merlin Entertainments announced a multi-million pound and multi-territory partnership with Immersive Gamebox. This immersive group gaming platform brings families together through active shared play. In January 2024, Cinesite announced a long-term partnership with Frameless Creative, a company behind London's first and UK's largest permanent multi-sensory art experience. This coincides with the launch of an immersive division alongside its existing VFX as well as animation service offering. Thus, owing to the growing entertainment and gaming industries, the immersive entertainment market is gaining traction in the UK.
The gaming market in Germany is the largest in Europe and the fifth largest across the world. According to the German Games Industry Association (GAME), in November 2022, the German Bundestag approved an increase of US$ 72 million to the country's gaming fund. The funding is awarded to support game advancement and push the country's interactive entertainment industry ahead. The initiative was announced in 2019 and was notified by the EU in 2020. According to GAME, the German game industry experienced a big boost in 2021, with the number of companies increasing by 20%. With such investments, the demand for immersive entertainment is also increasing in Germany.
Key Findings of Immersive Entertainment Market Study:
The immersive entertainment market is segmented into component, technology, and end user. Based on component, the immersive entertainment market is categorized into hardware, and software & services. Based on technology, the market is segmented into virtual reality (VR), augmented reality (AR), mixed reality (MR), and others. In terms of end user, the market is segmented into media & entertainment, gaming, design & architecture, retail, education, and others. By geography, the immersive entertainment market is segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.
Based on technology, the market is divided into virtual reality (VR), augmented reality (AR), mixed reality (MR), and others. The virtual reality (VR)segment held the largest immersive entertainment market share. Virtual reality (VR) engages or submerges users in a fully artificial digital environment. The technology involves head-mounted displays (HMDs). It may contain additional hardware such as controllers and gloves to enhance user interactivity, which increases its adoption in a range of applications, including gaming, training, and simulation. The VR technology offers a risk-free simulated environment and allows users to interact with digital objects, tools, avatars, and others. The technology holds a significant position in the media & entertainment sector, primarily used to create and improve immersive video content such as TV series and films. In addition, VR is used in art galleries and museums to enhance user experience and make tours interactive with background information. Moreover, the increasing adoption of VR technology among businesses for design, employee training, and remote collaboration fuels the growth of the immersive entertainment market for the virtual reality (VR) segment.
Mixed reality (MR) segment is expected to grow with the highest CAGR over the forecast period of 2024 to 2031. Mixed reality (MR) technology is developed by combining VR and AR. MR creates a hybrid environment that includes both physical and digital elements that coexist and allows users to interact with digital items in the real world. Rising consumer demand for enhanced experience encourages market players to develop MR-based smartphones, tablets, and headsets. The MR-based devices use sensors to map the physical world and compare it to a digital replica of the same environment. This enables digital objects to understand their location inside a physical world by allowing users to modify them as per their needs. The technology allows users to interact with the digital environment around them naturally by using computer peripherals. The MR technology is highly used by gaming, media & entertainment, retail, and education industries to enhance contextually immersive experiences..
Microsoft Corp; Qualcomm Inc; Google LLC; Sony Group Corp; Infosys Ltd; HTC Corp; Samsung Electronics Co Ltd; Apple Inc; Magic Leap, Inc.; and Salesforce Inc are among the key players profiled in the immersive entertainment market report. Several other major players were studied and analyzed during the immersive entertainment market analysis to get a holistic view of the market and its ecosystem. The immersive entertainment market also provides detailed market insights, which help the key players strategize their growth. The report includes growth prospects owing to the current immersive entertainment market trends and their foreseeable impact during the forecast period.
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