Location-Based VR Market Size (2024 - 2029)

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.