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The Location-based Entertainment market is set to experience explosive growth, with a new study predicting the market to be worth more than US$15bn globally by 2029
Tom Anstey | Planet Attractions | 19 Feb 2025
The gaming segment is a powerful driver in the LBE market Credit: HTC Vive
The Location-based Entertainment (LBE) market, encompassing immersive technology-driven experiences in physical venues, is set to experience explosive growth, according to a new report by MarketsandMarkets.
LBE includes immersive experiences across theme parks, arcades, family entertainment centres, and museums, where augmented reality (AR), virtual reality (VR), projection mapping, and interactive gaming technologies create dynamic environments. The market, valued at US$5.47bn (€5.15bn, £4.56bn) last year, is projected to soar to US$15.33bn (€14.39bn, £12.62bn) by 2029, achieving a compound annual growth rate (CAGR) of 22.9%.
According to the report, the gaming segment continues to dominate LBE, driven by rising demand for realistic, immersive gameplay experiences. Virtual reality arenas, interactive simulators, and esports venues are also on the rise, providing social gaming experiences with features that cannot be replicated at home. Technological innovations, such as free-roam VR systems with haptic feedback, enable players to engage in real-time physical interactions that deepen immersion. Finally, projection mapping is expanding gaming experiences by generating interactive environments that don’t require headsets, while AI-driven customisation enhances personalisation.
Software solutions that manage content, optimise experiences, and provide data analytics, are expected to see the fastest growth in the LBE market. These solutions, says the report, are essential for creating and managing immersive environments powered by AR, VR, and AI technologies.
Meanwhile, theme parks are expected to maintain the largest share of the LBE market, leveraging advanced technologies such as AR, VR, projection mapping, and AI to enhance guest experiences. These parks are transforming traditional attractions, from roller coasters to dark rides, with interactive visual storytelling and augmented reality-based games. AI applications offer personalised experiences tailored to visitor preferences, while real-time analytics improve ride quality and reduce wait times.
According to the report, key companies shaping the LBE market include Microsoft, Google, Meta, Sony, and Unity Technologies, among others. These companies are actively expanding their presence through strategic partnerships, product launches, and acquisitions. As the sector continues to evolve, collaboration between tech giants and entertainment venues is expected to accelerate growth in immersive location-based entertainment.
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