Market Trends of Global Location-Based Entertainment Industry
This section covers the major market trends shaping the Location-Based Entertainment Market according to our research experts:
Cinemas to Hold a Significant Share
- Box office revenue is anticipated to increase when movies return to theatres in 2022, although recovering pre-pandemic levels will be challenging owing to new release schedules meant to prevent theatre closures. It is predicted that the symbiotic relationship between offering high-value movies to streaming services more quickly and rising costs would increase costs and delay profitability for new entrants while easing the post-pandemic growth landing.
- While, the entertainment industry includes segments including the movie and live events industry, sports, gaming, and theme parks and amusement parks. Virtual and augmented reality may be used differently in each of these divisions.
- Further, a broadband internet connection can deliver the majority of alternative material, such as TV shows or sports, to cinemas. However, fewer than half of American movie theatres have displays that can broadcast content from the internet. In truth, the majority of cinemas in the United States still rely on shipments of actual hard drives holding films, which they subsequently load into their computers, or on downloading data from satellites. Industry insiders anticipate that movie theatres will use internet streaming more and more.
- The Motion Picture Association's annual THEME report states that global combined ticket sales in 2021 increased by 81 percent over 2020 (USD 11.8 billion) to USD 21.3 billion. However, they are behind 2019's USD 42.3 billion by 50%.
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Asia Pacific is Expected to Have Significant Growth
- The Asia Pacific region is predicted to have the fastest CAGR. As opposed to other forms of entertainment, people in the Asia Pacific region are starting to favor outdoor activities for recreation.
- A number of international VR hardware and software vendors are based in the Asia Pacific, which is encouraging the expansion of the local market. Another factor anticipated to aid in expanding the regional market is the growing number of VR game players in China. Due to the availability of several VR hardware and software suppliers, as well as the rising popularity of outdoor leisure activities relative to other location-based entertainment kinds.
- Additionally, the market development in the APAC region is being boosted by the growing popularity of VR-based games in nations like Japan, China, South Korea, and India. In order to boost regional prosperity, numerous governments are also supporting the use of LBE technology at well-known tourist destinations. This is encouraging market expansion in the Asia Pacific.
- For instance, In March 2022, the Research & Entrepreneurship Park of IIT Bhubaneswar (IIT BBS-REP) hosted an Open Challenge Program (OCP) in AR-VR in collaboration with Software Technology Parks of India (STPI), the Ministry of Micro, Small and Medium Enterprises (MSME), the Government of Odisha, Start-up Odisha, and the Ministry of Electronics and Information Technology (MeitY), the Government of India. Open Challenge Program (OCP) aims to choose up to 20 of the top entries created and performed by start-ups actively engaged in AR-VR-related research, development, and application activities.
- Meanwhile, North America dominates the global market and contributes the most revenue. Increased adaptability to innovative technologies is linked to a growing customer base for LBE technology, and the rising adoption of location-based VR contributes to regional market expansion.
- Additionally, the existence of major suppliers in North America, the expansion of the media and entertainment sectors, and the increasing efficacy of location-based VR in gaming contribute to market domination. Therefore, in the near future, these characteristics will generate a healthy market demand for location-based entertainment in the region.
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