Location Based Virtual Reality (VR) Market By Type (Hardware, Software), By Application (Entertainment, Training and Simulation, Education and Research, Other), By End-User (Individuals, Enterprises), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

Location Based Virtual Reality (VR) Market size is expected to be worth around USD 68.1 Bn by 2032 from USD 6.0 Bn in 2022, growing at a CAGR of 28.2% during the forecast period from 2023 to 2032.

In today's rapidly evolving digital landscape, virtual reality (VR) has emerged as a groundbreaking technology with immense potential. One significant sector that has embraced VR is the location-based virtual reality market. Location-based virtual reality (VR) refers to the immersive experience created through VR technology, which incorporates real-world settings, enhancing user experience by simulating physical environments. It enables users to interact with the surroundings while being positioned in a virtual realm.

The primary goal of the location-based VR market is to provide users with an immersive experience by blending real-world elements with virtual environments. By integrating real-world elements, such as physical objects, spaces, or landmarks, into VR experiences, users can enjoy a more realistic and captivating engagement with the virtual world. The location-based VR market aims to create an environment that seamlessly integrates the physical and virtual worlds.

The location-based VR market holds significant importance in various sectors, including entertainment, education, tourism, healthcare, and more. By merging virtual reality with real-world settings, it enhances user engagement, facilitates interactive learning experiences, and offers unique entertainment options. This technology revolutionizes the way people communicate and consume content, opening up a multitude of exciting possibilities.

The location-based VR market has witnessed numerous remarkable innovations that have further fueled its growth. One notable innovation is the development of advanced VR headsets with improved graphics, higher resolution, and enhanced tracking capabilities. Additionally, the integration of haptic feedback systems allows users to experience a sense of touch and tactile interaction within the virtual environment, enhancing the overall immersion.

Driving factors

Immersive Entertainment Experiences

The entertainment industry has been revolutionized in recent years with the emergence of immersive experiences. More and more consumers are seeking out entertainment options that provide them with a sense of immersion and engagement like never before. This increasing demand for immersive entertainment experiences is fueling the growth of the location-based virtual reality (VR) market. Immersive entertainment experiences, such as virtual reality gaming and interactive virtual reality attractions, offer users the opportunity to step into a whole new world.

Gaming and Entertainment Industries

The gaming and entertainment industries have witnessed significant growth over the years, and virtual reality has played a crucial role in driving this growth. With the increasing popularity of VR gaming, more and more developers are investing in the creation of immersive and captivating VR games. This growth in the gaming industry has had a direct impact on the location-based VR market, as it provides a strong foundation for the development and adoption of VR technologies.

Technologies and Content Development

The rapid advancements in VR technologies have been instrumental in significantly enhancing the immersive entertainment experiences offered by location-based VR setups. With the development of high-quality VR headsets, motion tracking systems, and haptic feedback devices, users can now experience a more realistic and immersive virtual environment. The content development for location-based VR attractions has also advanced, with developers creating more diverse and engaging experiences. From thrilling VR roller coasters to interactive VR escape rooms, the range of content available in the location-based VR market is continually expanding.

Restraining Factors

Motion Sickness and Discomfort Issues

One of the major concerns in the location based VR market is the potential for motion sickness and discomfort. As users engage in virtual experiences, the discrepancy between their visual perception and physical motion can lead to dizziness, nausea, and disorientation. This can greatly impact the overall user experience and potentially deter individuals from fully embracing this technology.

Tracking and Rendering

Tracking and rendering are vital aspects of a seamless and immersive VR experience. However, in the location based VR market, there may be potential technical limitations that can hinder the overall quality and performance of these systems. Challenges such as limited tracking range, occlusion devices, latency, and rendering capabilities can impact the effectiveness and realism of the virtual environment. Developers and operators must continually innovate and invest in advanced tracking technologies, such as inside-out tracking or markerless systems, to overcome these limitations.

High Costs of VR Hardware and Setups

Another restraining factor in the location based VR market is the potential high costs associated with VR hardware and setups. VR systems require significant investments in high-performance computers, headsets, tracking sensors, and other peripheral devices. These costs can pose a significant barrier for both businesses and consumers, limiting the widespread adoption of location based VR experiences.

Content Availability and Quality Concerns

Content availability and quality are crucial factors that influence the success of any VR platform or experience. In the location based VR market, ensuring a diverse range of engaging and high-quality content can be a challenge. Developers and content creators need to cater to the specific requirements of physical locations, such as theme parks or entertainment centers, and continually refresh the content to keep users engaged.

Type Analysis

The location based virtual reality (VR) market has witnessed significant growth in recent years, with the hardware segment dominating this sector. The hardware segment includes devices such as headsets, controllers, and tracking systems that are essential for delivering immersive VR experiences. This dominance is primarily attributed to the advancements in technology and the increasing demand for high-quality VR content.

Consumer trends and behaviors also indicate a growing preference for the hardware segment. The popularity of VR gaming and entertainment has surged in recent years, with consumers seeking more immersive and interactive experiences. The hardware segment offers superior graphics, enhanced motion tracking, and realistic audio, enabling consumers to immerse themselves in virtual environments. Additionally, the affordability and accessibility of VR devices have made them more attractive to a wider consumer base, contributing to the growth of the hardware segment.

Application Analysis

Within the location based VR market, the entertainment segment dominates, catering to the growing demand for immersive gaming and virtual experiences. The entertainment segment includes VR gaming arcades, theme parks, and other recreational venues that provide interactive and engaging content for consumers. This segment has witnessed significant growth due to the increasing popularity of VR gaming and the emergence of high-quality VR content.

Consumer trends and behaviors also indicate a strong preference for the entertainment segment in the location based VR market. The surge in popularity of eSports and competitive gaming has created a demand for VR gaming experiences that provide a competitive edge and a sense of fulfillment. Additionally, the growing interest in experiential entertainment and the desire for unique and memorable experiences have contributed to the success of the entertainment segment.

End-User Analysis

The enterprises segment dominates the location based VR market, catering to the needs of businesses and organizations across various industries. This segment includes applications such as training and simulation, virtual meetings and conferences, and product demonstrations. Enterprises have recognized the potential of VR in enhancing productivity, improving decision-making, and reducing costs, thereby driving the adoption of the enterprises segment.

Consumer trends and behaviors indicate a growing interest in the enterprises segment in the location based VR market. Businesses are increasingly recognizing the benefits of VR in improving collaboration, communication, and decision-making processes. The ability to conduct virtual meetings and conferences reduces the need for travel and provides a more immersive and interactive alternative to traditional communication methods. Additionally, VR product demonstrations enable customers to experience and understand products before making purchasing decisions, leading to increased customer satisfaction.

Key Market Segments

Type Analysis

• Hardware
  • VR Headsets
  • Controllers and Accessories
• Software

Application Analysis

• Entertainment
• Training and Simulation
• Education and Research
• Other Applications

End-User Analysis

• Individuals
• Enterprises

Growth Opportunity

Captivating Emerging Markets

As the entertainment sector continues to thrive on a global scale, emerging markets present an incredible growth opportunity for location-based VR experiences. Countries such as China, India, Brazil, and Indonesia boast rapidly expanding middle-class populations and burgeoning entertainment industries. By strategically targeting these markets, businesses can tap into a substantial customer base hungry for immersive VR experiences.

Content Developers and VR Studios

The success of any VR venture relies heavily on captivating and immersive content. Collaboration with content developers and VR studios can significantly enhance the quality and variety of experiences offered to consumers. By forging strong partnerships, businesses can tap into the expertise and creativity of these professionals to create cutting-edge VR experiences that keep customers coming back for more.

Multi-User and Social VR Experiences

VR is a solitary experience no more! The adoption of multi-user and social VR experiences is a game-changer in unlocking the full potential of location-based VR. These experiences allow users to interact with friends, family, or even strangers, fostering a sense of community and shared adventure. By incorporating multiplayer capabilities, businesses can create immersive worlds where users can collaborate, compete, and connect.

Latest Trends

VR Arcades and VR Experience Centers

VR arcades and VR experience centers have become the latest hotspots for thrill-seekers and technology enthusiasts alike. These immersive environments offer a wide range of virtual experiences, such as simulated adventures, realistic sports simulations, and interactive simulations of different professions. With state-of-the-art VR hardware and cutting-edge software, these locations provide visitors with an unparalleled level of realism and immersion.

Entertainment and Gaming Experiences

The demand for VR-based entertainment and gaming experiences is skyrocketing, driven by the desire for a more immersive and interactive gaming environment. Traditional gaming, although still popular, is gradually being augmented by the possibilities offered by VR technology. Players can now step into the shoes of their favorite characters and experience the game from a first-person perspective, truly feeling as if they are part of the virtual world. This level of immersion elevates the gaming experience to a whole new level, captivating and exciting players like never before.

Regional Analysis

North America Region Dominates the Location based virtual reality (VR) market. Location-based virtual reality (VR) technology has been gaining significant traction in recent years, opening up new possibilities for immersive experiences. One cannot deny the growing influence of North America in dominating the location-based VR market. With its advanced technological infrastructure, strong consumer base, and thriving entertainment industry, the region has emerged as a frontrunner in harnessing the potential of this cutting-edge technology.

The North America region's dominance in the location-based VR market can be attributed to several key factors. Firstly, the presence of major industry players and tech giants such as Oculus, HTC, and Google has accelerated the development and adoption of location-based VR. These companies have not only introduced innovative VR devices but have also collaborated with entertainment venues and theme parks to offer immersive experiences to consumers.

Furthermore, the region boasts a robust infrastructure with a high-speed internet connection and widespread access to VR hardware. This technological advantage has allowed North America to establish numerous VR arcades and gaming centers, enabling a wide range of consumers to dive into the world of location-based VR. As a result, the market has witnessed a surge in demand for VR experiences, further solidifying North America's position as the leader in this domain.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

The VOID pioneered immersive LBVR experiences. Their advanced technology lets users engage with virtual environments via haptic feedback and realistic props. The VOID has created remarkable adventures with Disney and Sony Pictures by emphasizing storytelling and teamwork.

Zero Latency is known for its multiplayer LBVR experiences that bring families and friends together. Their cutting-edge tracking system and motion capture technology create an immersive experience. Zero Latency has gained a global following with arena-scale setups and a wide selection of games.

Immersive storytelling and interactive gameplay distinguish Dreamscape Immersive. This LBVR player provides realistic and emotionally engaging experiences that keep users hooked. Their agreements with Warner Bros. and AMC Entertainment have strengthened their market position, allowing them to deliver unique virtual reality adventures.

Customization and personalization distinguish Sandbox VR. Sandbox VR customizes multiplayer activities for individuals or groups using cutting-edge motion capture technology. Users laud their high-quality content and engrossing gaming, making them a major participant in the LBVR market.

IMAX VR entered the LBVR market with their movie brand reputation. They provide high-quality VR action, adventure, and simulation games. IMAX VR has gained a large audience and innovates in LBVR with their visually amazing content.

Each of these LBVR market leaders has unique competitive advantages. However, the LBVR market is still young, with lots of possibilities for growth and competition. New firms may enter the market as technology evolves and user demand rises, introducing exciting innovations and challenging the leaders.

Top Key Players in Location Based Virtual Reality (VR) Market

• IBM (U.S.)
• Blippar (U.K.)
• 360 Labs (U.S.)
• Matterport Inc.(U.S.)
• Koncept VR LLC (U.S.)
• SubVRsive (U.S.)
• Panedia Pty Ltd.
• WeMakeVR (Netherlands)
• VIAR (U.S.)
• Scapic Innovations Private Limited (India)
• Dell Inc (U.S.)
• Intel Corporation (U.S.)
• McAfee LLC (U.S.)
• Trend Micro Incorporated (Japan)
• VMware (U.S.)
• Juniper Networks Inc. (U.S.)
• Fortinet Inc (U.S.)
• Sophos Ltd.(U.K)
• Cisco Systems Inc. (U.S.)

Recent Development

• In 2023, The Void, a prominent location-based VR market participant, wants to launch an immersive VR experience in New York City. Their expansion strategy to revolutionize VR includes this innovative development.
• In 2022, The Void's move follows significant location-based VR market growth. Dreamscape Immersive, an industry leader, brought immersive VR encounters to ten additional cities. Dreamscape Immersive's market dominance and commitment to reimagining virtual reality were strengthened by this move.
• In 2021, The Mill, a leading innovation firm, collaborated with Google to create a groundbreaking location-based VR experience for teaching. This relationship shows the growing interest in using VR technology to create dynamic and interactive classrooms.
• In 2020, The location-based VR market has made significant progress recently. Entertainment giant The Walt Disney Company announced intentions to construct a Star Wars-themed location-based VR experience. This widely awaited development hinted at the future merger of two legendary worlds—Star Wars and VR technology.

Report Scope