According to our latest market study, titled "Location-based Entertainment Market Forecast to 2028 -Global Analysis - by Component, Technology, and End-use," the market is expected to grow from US$ 1,444.92 million in 2022 to reach US$ 2,918.91 million by 2028. It is anticipated to grow at a CAGR of 12.4% from 2022 to 2028.
The analysis of the location-based entertainment market in the Middle East & Africa region is divided into four segments: South Africa, Saudi Arabia, the UAE, and the Rest of the Middle East & Africa. Dubai, a renowned city in the region, attracts a large number of tourists and, therefore, focuses on constructing additional tourism infrastructure. The world's largest indoor virtual reality (VR) park is located in this country, which is a significant tourist attraction. Moreover, major players in the location-based entertainment market, such as Zero Latency, operate in major countries in the region, including Saudi Arabia and the UAE. Any strategic initiatives implemented by these companies contribute to the growth of the location-based entertainment market in the region. In February 2020, Saudi Entertainment Ventures (SEVEN) decided to support Saudi Vision 2030 by investing in several entertainment destinations in Riyadh, Saudi Arabia. SEVEN is a company established by the Public Investment Fund (PIF).
Moreover, several associations related to location-based entertainment are present in the region. For instance, the Virtual Reality South Africa Association (VRSA) is a South African association established to promote augmented reality and virtual reality companies in the region. Such associations are expected to increase the development of LBE in the region over the next few years.
Middle East countries, especially Saudi Arabia, the UAE, Qatar, Turkey, and Israel, invest significant amounts in developing and procuring advanced technologies. The increasing number of VR parks and malls is significantly driving the demand for LBE in the countries.
Impact of COVID-19 Pandemic on Middle East & Africa Location-based Entertainment Market
The COVID-19 outbreak severely affected the economy of Iran, which recorded the highest number of confirmed cases in the MEA region. Other significant MEA countries like South Africa, Iraq, Turkey, Saudi Arabia, the UAE, and Qatar also faced social and economic impacts of the pandemic. Despite this, the MEA region presents several opportunities for location-based entertainment market players due to the presence of growing economies like the UAE and Saudi Arabia. However, the pandemic has accelerated the adoption of digital platforms for daily operations, negatively impacting the MEA location-based entertainment market. The UAE, which has the largest amusement parks in the region, located in Dubai and Abu Dhabi, witnessed a significant impact on its LBE market. The trend of using touchless technology, physical distancing enablers, and other factors are expected to contribute to the growth of the location-based entertainment market analysis in the region.
Key Findings of Market Study
The MEA location-based entertainment market companies continuously focus on growth strategies. Due to this, the companies have achieved several awards and recognitions. For instance, in June 2022, SPREE Interactive was awarded the "Best in Location-Based" for its AR and VR at Augmented World Expo 2022.
The largest share of the location-based entertainment market in 2021 was held by Saudi Arabia, which is actively promoting the use of virtual reality. The Red Sea International Film Festival in the country showcased 21 virtual reality experiences, with 13 of them competing for the Golden Yusr Immersive Award. This event aimed to encourage content creators to embrace virtual reality, and VR goggles were used to achieve this. Additionally, Frontgrid announced its first project in the country in February 2020, where the ParadropVR is expected to be included in the new entertainment center TEKZONE at Red Sea Mall in Jeddah. Such developments in the mentioned countries are likely to boost the market share of location-based entertainment in Saudi Arabia.
The location-based entertainment market in the UAE is expected to exhibit the fastest CAGR during the forecast period. The country's market is likely to benefit from the growth of its tourism industry. In 2020, more than 7.25 million international tourists visited Dubai. To support the tourism sector, the world's largest virtual reality theme park was launched in Dubai, with Jones Lang LaSalle IP, Inc. (JLL), a key market player in the virtual reality market, awarded the contract. Additionally, a virtual reality gaming center is already operational in the country. These initiatives are projected to drive growth in the location-based entertainment market in the UAE in the future.
Countries such as Qatar, Turkey, Kuwait, and Israel, among others, fall under the Rest of MEA category. These nations are adopting virtual reality in their businesses and are witnessing a surge in online gaming. For instance, Qatar recently launched the Virtucity Gaming Theme Park that includes escape rooms, video gaming, and virtual reality. Similarly, Israel has its amusement park, where visitors get an avatar that accompanies them on their journey through XSPACE. The visitors can create their own stories and navigate between exotic worlds in their character. These countries' developments are expected to continue growing in the coming years, contributing to the growth of LBE and, in turn, the location-based entertainment market.
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