Location-Based Entertainment Market: Cloud Merged Reality (CMR) Segment Is Anticipated To Witness Significant Growth
Location-based Entertainment Industry Overview
The global location-based entertainment market size is anticipated to reach USD 30.29 billion by 2028, registering an estimated CAGR of 34.4% from 2021 to 2028, according to a new report by Grand View Research, Inc. The introduction of Virtual Reality (VR) in the gaming industry has added a new dimension by offering a simulated realm for gamers looking forward to an immersive and real-like experience. As such, several video game developers are entering into mergers and acquisitions with VR and Location-based Entertainment (LBE) technology providers to increase their respective market shares.
For instance, in February 2021, Vertigo Games, a VR publisher and game developer, acquired Springboard VR, a VR venue management software and content marketplace provider for LBE. The acquisition was aimed at offering operators access to VR content through Vertigo Games' Haze VR distribution platform and providing both game studios and operators with new tools and technology to expand their LBE business.
LBE services are offered in arcades, amusement parks, and VR cafes, among other entertainment services. The integration of Augmented Reality (AR), VR, 3D animation, and other immersive technologies with LBE is driving the growth of the market for location-based entertainment. LBE operators are concentrating on expanding their global footprint and gaining a competitive advantage over their rivals. For instance, in September 2020, Koch Media GmbH, a video game company, acquired Vertigo Games to strengthen its global reach and network while opening new publishing opportunities for itself and for Vertigo Games and its subsidiaries.
Location-based Entertainment Market Segmentation
Grand View Research has segmented the global location-based entertainment market based on component, end use, technology, and region:
Based on the Component Insights, the market is segmented into Hardware, and Software.
- The hardware segment accounted for the largest revenue share of over 65.0% in 2020 and is expected to continue dominating the market growth over the forecast period. The growth of the segment can be attributed to the continued innovations in VR/AR-based gadgets, such as headsets, haptic suits, and other simulation devices.
- The software segment is anticipated to witness the fastest CAGR of over 35.0% from 2021 to 2028. The growth can be attributed to the continued innovations in the software and applications used in LBE services. The growing popularity of mobile-based gaming using VR devices is also expected to drive the growth of the segment.
Based on the End-use Insights, the market is segmented into Amusement Parks, Arcade Studios, and 4D Films.
- The amusement parks segment accounted for the largest market share of around 40.0% in 2020 and is expected to continue dominating the market over the forecast period. Theme parks are increasingly adopting VR-based immersive technology to offer visitors a real-like experience.
- The arcade studios segment is anticipated to register the fastest CAGR of over 35.0% from 2021 to 2028. A looming lack of high-fidelity immersive content in VR headsets at home has been prompting visitors to visit arcade studios.
Based on the Technology Insights, the market is segmented into 2 Dimensional (2D), 3 Dimensional (3D), and Cloud Merged Reality (CMR).
- The 3 Dimensional (3D) technology segment accounted for the largest revenue share of over 40.0% in 2020. The growing acceptance of 3D technology in the entertainment industry is anticipated to drive the segment growth. With considerable advances in 3D animation, 3D mapping, and others 3D technologies, the scope of the adoption of 3D technology in LBE has significantly increased.
- The Cloud Merged Reality (CMR) segment is anticipated to witness significant growth over the forecast period owing to the unabated advances in technology. Several large technology-based enterprises have extensively adopted CMR owing to its time-saving attributes.
Location-based Entertainment Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market can be described as a moderately fragmented market owing to the presence of many market players. The deployment of VR technology in location-based entertainment is growing constantly in line with the rapid advances in the realm. Several operators are aggressively implementing extended reality in LBE. At the same time, the leading LBE companies have started investing in the entertainment industry. For instance, in August 2019, Disneyland Resort and Walt Disney World opened Star Wars: Galaxy's Edge, a theme park that has successfully deployed VR technology with various fully immersive sights and sounds, and the characters of the Star Wars Universe. The rising popularity of LBE is prompting key market players, such as VRstudios, HTC Corporation, and IMAX Corporations, to invest aggressively in expanding their business. Advances in technology and the incorporation of AR, VR, 3D mapping, mixed reality, and other immersive technologies continue to largely influence the market growth. The growing demand from consumers for high-quality, immersive, and real-like experiences is driving the growth of the market. Some of the prominent players operating in the global location-based entertainment market are:
- HTC Corporation
- IMAX Corporation
- Google LLC
- Microsoft Corporation
- Samsung Electronics Co., Ltd.
- Springboard VR
Order a free sample PDF of the Location-based Entertainment Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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