Location-Based Entertainment Market Size, Share, Trends, Industry Analysis Report: By Technology [Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality], Application, End User, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Forecast, 2025–2034
- Published Date:Mar-2025
- Pages: 129
- Format: PDF
- Report ID: PM2044
- Base Year: 2024
- Historical Data: 2020-2023
Location-Based Entertainment Market Overview
The global location-based entertainment market size was valued at USD 5.65 billion in 2024. The market is projected to grow from USD 7.25 billion in 2025 to USD 68.69 billion by 2034, exhibiting a CAGR of 28.4% during 2025–2034.
Location-based entertainment (LBE) refers to immersive and interactive entertainment venues where people participate in group-based experiences. These include virtual reality (VR) arcades, augmented reality (AR) gaming zones, theme parks, escape rooms, and other interactive attractions.
The increasing adoption of VR and AR technologies at entertainment venues drives the location-based entertainment (LBE) market growth. Entertainment venues are now offering highly immersive experiences, attracting a broader audience, including millennials and Gen Z, with the adoption of VR/AR. Additionally, the market is fueled by rising disposable incomes and growing urbanization, which has led to more spending on location-based entertainment services. For instance, according to the World Bank, 4.4 billion people currently live in cities, and this number is expected to double by 2050.
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Location-Based Entertainment Market Dynamics
Advancements in AR and VR Technologies
The integration of advanced AR/VR hardware, such as head-mounted displays and motion-tracking devices, enables entertainment venues to deliver hyper-immersive experiences. The continuous innovation in VR and AR content creation tools also contributes to maintaining customer engagement, ensuring recurring visits. As AR and VR technologies become more affordable and accessible, they are expected to contribute to the LBE market expansion.
Increasing Investments in Themed Entertainment
Companies operating in location-based entertainment are investing in innovative themes, advanced technologies, and captivating storytelling to elevate the quality and appeal of attractions, drawing in both local visitors and tourists. These investments create unique, memorable experiences that encourage repeat visits and positive word-of-mouth marketing, further expanding the audience base. For instance, continuous investments by Disney and Universal have transformed Orlando into the world's major location-based themed entertainment destination. Thus, rising investments in themed entertainment are fueling the location-based entertainment revenue.
Location-Based Entertainment Market Segment Insights
Location-Based Entertainment Market Assessment by Technology Insights
Based on technology, the location-based entertainment market is divided into virtual reality (VR), augmented reality (AR), and mixed reality. The virtual reality (VR) segment dominated the market in 2024 due to its ability to offer immersive, interactive experiences that are difficult to replicate at home. VR technology allows users to explore simulation environments and participate in collaborative adventures, making it an attractive option for entertainment venues such as theme parks and others. Advances in VR hardware and software have improved the quality, accessibility, and affordability of VRs, encouraging entertainment venue operators to adopt the technology, thereby contributing to segment dominance.
Location-Based Entertainment Market Evaluation by Application Insights
In terms of application, the location-based entertainment market is divided into amusement parks, themed entertainment venues, and arcades. The themed entertainment venues segment accounted for a major market share in 2024 due to their ability to deliver highly personalized and unique experiences. These venues capitalize on popular intellectual properties, such as movie franchises, cultural narratives, and gaming themes, which attract diverse audiences. The trend of creating smaller, more accessible themed attractions in urban areas has also driven the popularity of themed entertainment, catering to consumers seeking convenient entertainment options. The use of advanced storytelling techniques and interactive technologies at themed entertainment, such as holography and gamification, ensures a rich, engaging experience, further contributing to the segment’s leading position in the market.
Location-Based Entertainment Market Regional Analysis
By region, the report provides location-based entertainment market insights into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America dominated the location-based market share in 2024 due to high consumer spending on entertainment and a well-established infrastructure of venues. The US dominated this region, supported by its vast network of world-renowned amusement parks, themed attractions, and advanced arcade experiences. The presence of major industry players, such as Disney and Universal Studios, significantly contributes to North America’s leadership. Additionally, the strong demand for experiential and family-focused entertainment, coupled with substantial investments in innovation, boosts regional market growth.
The Asia Pacific location-based entertainment market is expected to grow at a rapid pace during the forecast period, owing to rapid urbanization and rising disposable incomes. As per the data published by the UN-Habitat, the urban population in Asia is expected to grow by 50% by 2050. China holds the largest share within the region due to its massive population, growing middle class, and significant government and private sector investments in entertainment infrastructure. Countries such as Japan and South Korea also contribute significantly, using their advanced technological capabilities and rich cultural heritage to create highly appealing attractions. The increasing focus on tourism, coupled with a shift toward digital and interactive experiences, positions Asia Pacific as a key region in the regional market expansion.
Location-Based Entertainment Market – Key Players and Competitive Insights
Major market players are investing heavily in research and development in order to expand their offerings, which will help the location-based entertainment market grow even more. These market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including innovative launches, international collaborations, higher investments, and mergers and acquisitions between organizations.
The Walt Disney Company, headquartered in Burbank, California, is a multinational mass media and entertainment conglomerate that has significantly shaped the era of family entertainment. Originally established as the Disney Brothers Cartoon Studio in 1923, the company gained fame with the release of Steamboat Willie, which introduced synchronized sound to animation and launched the iconic character Mickey Mouse. Over the decades, Disney expanded beyond animation into live-action films, television, and theme parks, establishing itself as a dominant force in the industry. The opening of Disneyland in 1955 marked a crucial moment in entertainment history, setting a new standard for theme parks with its innovative design and immersive experiences. This success was followed by the launch of Walt Disney World Resort in Florida in 1971, which has grown to become the most visited vacation resort globally, attracting millions each year.
Universal Studios, established in 1912, is a prominent American motion-picture studio and entertainment company known for its significant contributions to the film industry and its expansive theme park operations. Originally focused on producing low-budget serials and later gaining fame for its horror films like Frankenstein and Dracula, Universal has evolved into one of Hollywood's major studios, recognized for blockbuster hits such as Jaws, E.T., and the Jurassic Park series. Universal Studios offers immersive theme parks, attractions, resorts, and entertainment experiences featuring blockbuster franchises, cutting-edge rides, live shows, dining, retail, and interactive adventures across multiple global locations for all ages.
List of Key Companies in Location-Based Entertainment Market
- Cineplex Inc.
- Dark Slope Studios
- Dreamscape Immersive
- Hologate
- Illumination Entertainment
- LEGOLAND
- Lionsgate Entertainment
- Merlin Entertainments
- Sandbox VR
- SeaWorld Entertainment
- The VOID
- The Walt Disney Company
- Two Bit Circus
- Universal Studios
- Zero Latency VR
Location-Based Entertainment Market Developments
June 2024: iQIYI, a major online entertainment service in China, announced to launch of new VR Location-Based entertainment across major Chinese cities.
September 2023: WildBrain CPLG, a licensing agency, launched a location-based entertainment (LBE) division to move its portfolio of kids brands further into this global business sector through a mix of new theme parks and entertainment centers.
Location-Based Entertainment Market Segmentation
By Technology Outlook (Revenue, USD Billion, 2020–2034)
- Virtual Reality (VR)
- Augmented Reality (AR)
- Mixed Reality
By Application Outlook (Revenue, USD Billion, 2020–2034)
- Amusement Parks
- Themed Entertainment Venues
- Arcades
By End User Outlook (Revenue, USD Billion, 2020–2034)
- Families
- Corporate Groups
By Regional Outlook (Revenue, USD Billion, 2020–2034)
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Location-Based Entertainment Market Report Scope
|
Report Attributes |
Details |
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Market Size Value in 2024 |
USD 5.65 billion |
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Revenue Forecast in 2025 |
USD 7.25 billion |
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Revenue Forecast by 2034 |
USD 68.69 billion |
|
CAGR |
28.4% from 2025 to 2034 |
|
Base Year |
2024 |
|
Historical Data |
2020–2023 |
|
Forecast Period |
2025–2034 |
|
Quantitative Units |
Revenue in USD billion and CAGR from 2025 to 2034 |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
|
|
Regional Scope |
|
|
Competitive Landscape |
|
|
Report Format |
|
|
Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
• The global location-based entertainment market size was valued at USD 5.65 billion in 2024 and is projected to grow to USD 68.69 billion by 2034.
• The global market is projected to register a CAGR of 28.4% from 2025 to 2034.
• North America had the largest share of the global market in 2024.
• Some of the key players in the market are The Walt Disney Company, Universal Studios, SeaWorld Entertainment, Cineplex Inc., Dreamscape Immersive, The VOID, Hologate, Zero Latency VR, Sandbox VR, LEGOLAND, Illumination Entertainment, Lionsgate Entertainment, Merlin Entertainments, Two Bit Circus, and Dark Slope Studio.
• The virtual reality (VR) segment dominated the market in 2024.
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