Market Size of Location-Based VR Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 1.58 Billion |
Market Size (2029) | USD 8.73 Billion |
CAGR (2024 - 2029) | 32.80 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Location-Based Virtual Reality Market Analysis
The Location-Based VR Market size is estimated at USD 1.58 billion in 2024, and is expected to reach USD 8.73 billion by 2029, growing at a CAGR of 32.80% during the forecast period (2024-2029).
- 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, in December 2023, Sandbox VR, a destination for location-based virtual reality experiences, announced a franchise deal with Next Level Erlebnisse, resulting in a significant European expansion. The companies would open ten new virtual reality locations across Germany, including Northrhine-Westphalia, Rhineland Palatinate, Saarland, and Hesse, showing the demand for future market growth.
- Location-based VR destinations have been combining 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 a significant level of immersion, engaging visitors in a visceral experience. The 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. Therefore, constant developments in VR hardware are essential in attracting customers to embrace location-based VR, propelling market growth and driving innovation.
- 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. However, the initial cost of investments in developing the location-based VR market could be a major hindrance to the market’s growth.
- 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 increased the demand for enabling VR technologies after the pandemic.
Location-Based Virtual Reality Industry Overview
A location-based virtual reality (LBVR) system is a collection of hardware and software components that allows users to perceive and experience a virtual environment in real time. Virtual reality refers to the hardware and software required to create and interact with a virtual environment for a real or fictional subject.
The location-based virtual reality (LBVR) market is segmented by type (hardware and software), application (VR arcades, VR theme parks, and VR cinemas), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Type | |||||||
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Software |
By Application | |
VR Arcades | |
VR Theme Parks | |
VR Cinemas |
By Geography | |
North America | |
Europe | |
Asia-Pacific | |
Rest of the World |
Location-Based VR Market Size Summary
The Location-Based Virtual Reality (LBVR) market is experiencing significant growth, driven by advancements in VR technology and the increasing demand for immersive experiences. This market segment extends VR experiences beyond personal devices, allowing users to engage with interactive virtual worlds in dedicated physical spaces, such as VR centers. These centers offer high-quality immersive experiences through advanced hardware and interactive content, creating a social environment for users. The market has seen contributions from key players like The VOID, Dreamscape Immersive, and Zero Latency, who have introduced innovative concepts and technologies to enhance user engagement. The development of premium VR hardware, including high-resolution headsets and motion tracking systems, is crucial in attracting customers and propelling market growth. Retail arcades are among the fastest-growing consumers, with companies investing heavily in arcade franchises to capitalize on the expanding market.
The LBVR market is still in its early stages, with high-quality content and technology adoption being pivotal for market penetration. The rise of 360-degree content and advanced VR technologies presents opportunities for businesses to meet the growing demand for immersive entertainment solutions. The Asia-Pacific region, particularly China and South Korea, is expected to hold a significant market share due to the increasing acceptance of VR devices and investments in VR technology. The market's expansion is further supported by developments in 5G networks and digital content industries. Despite challenges posed by the COVID-19 pandemic, such as temporary closures and supply chain disruptions, the demand for VR technologies is anticipated to grow, driven by trends in remote work and virtual social interactions. The competitive landscape of the LBVR market includes regional and global players focusing on strategic collaborations and technological innovations to enhance their market presence and profitability.
Location-Based VR Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Hardware
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2.1.1.1 Head Mounted Display
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2.1.1.2 Head-up Displays
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2.1.1.3 Glasses
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2.1.1.4 Sensor
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2.1.1.5 Camera
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2.1.2 Software
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2.2 By Application
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2.2.1 VR Arcades
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2.2.2 VR Theme Parks
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2.2.3 VR Cinemas
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2.3 By Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 Rest of the World
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Location-Based VR Market Size FAQs
How big is the Location-Based VR Market?
The Location-Based VR Market size is expected to reach USD 1.58 billion in 2024 and grow at a CAGR of 32.80% to reach USD 8.73 billion by 2029.
What is the current Location-Based VR Market size?
In 2024, the Location-Based VR Market size is expected to reach USD 1.58 billion.