location-based entertainment Market

The location-based entertainment market size is expected to grow from US$ 1,444.92 million in 2022 to US$ 2,918.91 million by 2028. It is estimated to grow at a CAGR of 12.4% from 2022 to 2028.

The anticipated expansion of the location-based entertainment market during the forecast period is expected to be significantly contributed by the development of 360-degree virtual reality (VR) technology. This technology enables viewers to have a 360-degree view of the projected content, making it possible to introduce VR-based games with 360-degree content that provide immersive and thrilling experiences for people, thereby boosting the industry's growth. Consequently, leading players in the location-based entertainment market are working with technology providers to advance LBE technology. For example, TacHammer, StrikerVR, Inc., and Nanoport Technology Inc. collaborated on the Linear Magnetic Ram (LMR) haptic technology in September 2019. As part of the partnership, Sticker VR launched Arena Infinity LITE VR peripheral, designed to deliver realistic tactile experiences for LBE and VR.

The VR gaming market has seen significant growth in the hardware sector, particularly in VR gaming headsets and other gaming-related products. This growth is attributed to both established hardware manufacturers such as Oculus VR, Sony, Samsung, and Google, as well as smaller start-ups entering the market. As competition increases, manufacturers are expected to compete on style and price to capture the attention of gamers. As the popularity of 360-degree content continues to rise and more users adopt the technology, the cost of VR hardware components such as joysticks and headsets is projected to decrease. The increasing adoption of location-based VR technology, which is becoming one of the most popular gaming platforms, is also expected to boost the appeal of 360-degree video in the future. Overall, these factors are expected to drive growth in the global location-based entertainment market in the coming years.

The Asia Pacific region is expected to exhibit the highest compound annual growth rate (CAGR) in the location-based entertainment market during the forecast period. This growth can be attributed to the presence of numerous emerging economies, including China, India, Japan, Australia, and South Korea. These countries have a high number of amusement and theme parks, providing lucrative growth prospects for location-based entertainment providers. Recently, in July 2022, Netflix launched its first theme park pavilion at KidZania in Fukuoka, demonstrating the increasing demand for LBE in the Asia Pacific region, which is expected to drive the growth of the location-based entertainment market.

Impact of COVID-19 Pandemic on Asia Pacific Location-based Entertainment Market Growth

The Asia Pacific governments took various measures to mitigate the impact of the COVID-19 pandemic, such as implementing lockdowns. As a result, the uptake of digital entertainment platforms increased among customers and organizations during Q1 and Q2 2020 when many companies temporarily closed down. The entertainment sector, including the location-based entertainment market, was severely affected, leading to job losses. However, with the relaxation of lockdown restrictions, the location-based entertainment market began to recover. In response to the outbreak, amusement parks, arcade studios, and film studios in the region are adopting touchless technology, physical-distancing enablers, and temperature checks to ensure consumer safety while focusing on developing their location-based entertainment offerings.

With business getting recommenced in region, the adoption of LBE will rise since media & entertainment industry is reviving. This factor will gradullay boost the location-based entertainment market player's businesses.

The Asia Pacific location-based entertainment market size is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Countries in Asia Pacific are known for adopting technological advancements in the early phase. Due to this, the region is home to many companies that are providers of location-based entertainment, such as Panasonic Connect, SKonec Entertainment, and Sony Interactive Entertainment LLC.

SKonec Entertainment, a South Korean LBE company, opened a VR Square in Los Angeles in December 2019, expanding its presence. In January 2021, Enlight Media, a Chinese film and TV studio, began constructing a movie-inspired adventure park in China called "Enlight Epicenter," with Legacy Entertainment designing the core component. To develop this location-based entertainment project, Enlight plans to invest about US$2.5 billion. Furthermore, in November 2019, Shinsegae, a retail giant from South Korea, announced that it would build a theme park worth US$3.8 billion in South Korea, which would begin construction in 2021 and open partially in 2026, with full operations by 2031.

China held the largest share in the location-based entertainment market in 2021, due to its rapid development in technology and construction. One of China's film and TV studios, Enlight Media, is currently constructing a movie-inspired theme park in Yangzhou, with Hollywood firm Legacy Entertainment designing the core component of the park, called Enlight Epicenter. The project requires an investment of around US$ 2.5 billion. China also boasts various tourist attractions, including Lionel Messi-inspired and VR Star theme parks, which are anticipated to create lucrative business opportunities for VR headsets and haptic suits. The adoption of such products is expected to expand the scope of LBE in China during the forecast period.

India is expected to grow at the fastest CAGR. The country is one of the developing countries in the region. The country is focusing on developing its infrastructure with the help of technology. With the rising technological advancements in the country, companies are focusing on bringing advanced technologies, such as AR and VR, into businesses. For instance, Seasons Mall, Pune, installed a wireless virtual reality gaming zone lounge. This is said to be the country's first wireless VR gaming zone. Such developments in the country are expected to increase the location-based entertainment market growth.

BidOn Games Studio; Dimension; HQSoftware; IMAX CORPORATION; Neurogaming LTD; TESLASUIT; SpringboardVR; Samsung Electronics Co., Ltd.; Vicon Motion Systems Ltd.; and VRstudios Inc. are some of the prominent market players. The location-based entertainment market is highly fragmented, with several players localized in a specific region, which has increased their focus on catering to domestic demands.

The analysis of the location-based entertainment market is based on both primary and secondary sources. The secondary research involved extensive data collection from various internal and external sources to gather qualitative and quantitative information related to the location-based entertainment market. This process also provided an overview and market forecast of the market growth for all market segments. Furthermore, several primary interviews were conducted with industry participants and experts to verify the collected data and gain additional analytical insights on the subject. The primary interviewees included industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders, who specialize in the location-based entertainment market.