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DUBLIN--(BUSINESS WIRE)--Nov 29, 2022--
The "Location-based Entertainment Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component, Technology and End-use" report has been added to ResearchAndMarkets.com's offering.
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 development of 360-degree virtual reality (VR) technology is anticipated to significantly contribute to the location-based entertainment market's expansion during the forecast period. Viewers can get a 360-degree view of the projected content. Introducing VR-based games with 360-degree content can provide people with thrilling and immersive experiences, boosting the industry's growth.
These developments are prompting major location-based entertainment market players to work with technology providers and advance LBE technology. For instance, in September 2019, TacHammer; StrikerVR, Inc.; and Nanoport Technology Inc. collaborated on the Linear Magnetic Ram (LMR) haptic technology. As part of the partnership, Sticker VR launched Arena Infinity LITE VR peripheral, designed to deliver realistic tactile experiences for LBE and VR.
The hardware sector had the most significant growth in the VR gaming market. Hardware categories include VR gaming headsets and other products tailored to the gaming industry. The dynamics of the worldwide gaming market are anticipated to shift due to the presence of smaller start-ups and major hardware manufacturers, such as Oculus VR, Sony, Samsung, and Google.
Players will engage in fierce competition based on the style and cost of VR gadgets. The rising popularity of 360-degree content, high adoption of this technology, and increasing implementation and acceptance of the technology are projected to decrease the prices of VR hardware components such as joysticks and VR headsets.
Being one of the most sought-after major gaming platforms, location-based VR technology is predicted to increase the appeal of 360-degree video in the near future. In the years to come, it is predicted that these elements will encourage the growth of the worldwide location-based entertainment market.
Asia Pacific is estimated to register the highest CAGR in the location-based entertainment market during the forecast period because of many emerging economies, such as China, India, Japan, Australia, and South Korea. The number of amusement and theme parks present in countries, such as Japan, Australia, South Korea, India, and China, is enormously high, which is expected to create lucrative growth opportunities for location-based entertainment providers.
Recently in July 2022, Netflix launched its first theme park based on location-based entertainment, which is a pavilion at KidZania in Fukuoka. Thus, the demand for LBE in APAC is rising significantly which in turn will contribute towards location-based entertainment market growth.
Impact of COVID-19 Pandemic on Asia Pacific Location-based Entertainment Market Growth
The governments of Asia Pacific countries took all possible steps to reduce the impact of the COVID-19 pandemic, with the major one being the announcement of a lockdown. The temporary shutdown of companies resulted in increased uptake of the digital entertainment platform among customers and organizations.
During Q1 and Q2 2020, several companies were temporarily shut down. Due to this, the entertainment sector, and related markets, especially LBE, were disturbed, and many people working there were asked to leave their jobs. With relaxation in the lockdown rules, the location-based entertainment market began to revive. Since the outbreak, amusement parks, arcade studios, and film studios in Asia Pacific have been focusing more on transforming their core operations and working on location-based entertainment by providing various technologies, such as touchless technology, physical-distancing enablers, and temperature checks for consumer safety.
With business getting recommenced in region, the adoption of LBE will rise since media & entertainment industry is reviving. This factor will gradually 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.
In December 2019, a South Korean location-based entertainment company, SKonec Entertainment, expanded its presence by opening a VR Square in Los Angeles. Moreover, in January 2021, Enlight Media, a Chinese film and TV studio started building a movie-inspired adventure park in China.
Legacy Entertainment will design the park's core component, "Enlight Epicenter." For location-based entertainment, Enlight requires about US$ 2.5 billion investment. Similarly, in November 2019, Shinsegae, a South Korea-based retail giant, announced that the company is building a US$ 3.8 billion worth of theme park in South Korea. The construction was to start in 2021 and set for an initial opening in 2026 and a full opening by 2031.
China dominated the location-based entertainment market share in 2021. The country is well-known for its fast development, whether in technology or construction. A Chinese film and TV studio, Enlight Media, is developing a theme park in Yangzhou. For this movie-inspired theme park, a Hollywood firm Legacy Entertainment was selected to design the park's core Enlight Epicenter component.
The company requires an investment of approximately US$ 2.5 billion. Moreover, the country has various tourist attractions, such as Lionel Messi-inspired and VR Star theme parks. The presence of VR Star theme parks is projected to create lucrative business opportunities for headsets and haptic suits. Using the products mentioned above, the scope of LBE is estimated to get augmented in China over 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.
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.
Key Market Dynamics
Market Drivers
Market Restraints
Market Opportunities
Future Trends
Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/1a19bo
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Copyright Business Wire 2022.
PUB: 11/29/2022 09:35 AM/DISC: 11/29/2022 09:36 AM
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