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The Location-Based Virtual Reality (VR) Market size is forecast to increase by USD 7,673.64 million, growing at a CAGR of 33.7% between 2022 and 2027. The growth of the market depends on several factors, including the penetration of head-mounted displays in the gaming and entertainment sector, the growing popularity of 360-degree content, and growing advancements in VR gaming. Location-based VR lets consumers experience VR at an affordable price as they need not own the required hardware. The location-based VR entertainment offers better entertainment compared with traditional VR. They are deployed in a place of business, allowing users to physically experience the environment.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the market growth is the growing popularity of 360-degree content. The launch of 360-degree content is fuelled by several advancements in VR as well as 3D, 4D, and 5D technologies. As a result, there is a significant advancement in technologies in the entertainment sector.
Additionally, 360-degree content enhances the experience of the viewer by offering an all-around view of the scene, and VR games supported with 360-degree content provide an improved entertainment experience. Therefore, the growing popularity of 360-degree content coupled with the emergence of location-based VR as a mainstream entertainment platform will positively impact the market. Hence, such factors will drive market growth during the forecast period.
A key factor shaping the market growth is the new product launches by the market players. There are several new product launches in the global location-based VR market. Additionally, there is an increasing focus by several market players on premiumization. For example, in October 2022, Sandbox VR introduced its two arcade games in Germany, Deadwood Valley and Deadwood Mansion.
Similarly, in June 2022, Vertigo Games added new VR games by launching Hellsweeper VR with Meta Quest 2 and the VR puzzle game PathCraft. Therefore, it will positively impact the market. Hence, such product launches are expected to drive market growth during the forecast period.
The requirement for high-speed Internet and computation power is one of the key challenges hindering market growth. The infrastructural and integration issues across processes are one of the major concerns regarding the growth of the market. High-speed and high-bandwidth Internet are required for the effective implementation of virtual reality solutions. Thus, the factors such as lack of connectivity, lack of electricity, or slow network can result in o system downtime and hamper business productivity.
Hence, such factors are a significant concern for the effective implementation of advanced systems across different enterprises, mainly in developing countries. Additionally, several integration issues are associated with virtual reality technologies as different VR technologies have their own configurations. These integration issues can lead to interoperability issues which can negatively impact the location-based VR market. Hence, such factors are expected to hinder market growth during the forecast period.
The VR arcades segment is estimated to witness significant growth during the forecast period. One of the emerging mainstream platforms in the entertainment industry is Location-based VR which is expanding across various digital arenas. The main objective is to enhance the user's physical presence in a virtual environment.
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The VR arcades segment was the largest segment and was valued at USD 281.49 million in 2017. There have been several launches of location-based arcade games over the last few years. For example, in October 2022, Sandbox VR launched its two arcade games in Germany Deadwood Valley and Deadwood Mansion. Similarly, HOLOGATE provides Ghostbusters VR Academy, a location-based VR arcade game. In 2021, Vertigo Games acquired Springboard VR which is a platform offering VR venue management software and content. Such strategic partnerships are expected to fuel the introduction of VR-based arcade games in the future. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing adoption of the location-based VR hardware segment across various enterprises increases market growth. The location-based VR hardware comprises tethered head-mounted displays (HMDs), standalone HMDs, cameras, and screenless viewers. The main need users of these hardware segments include industries, such as entertainment and education. There is increasing adoption of location-based VR technology to offer a higher quality of teaching in several educational fields. The main advantage of this technology is that it provides students with a more visually appealing and interesting lesson that can be offered at a cheaper cost. Furthermore, there is an increase in the adoption of the VR hardware segment in the gaming industry. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the key factors which are significantly contributing to the location-based VR market growth in APAC is due to the presence of key vendors, the rising gaming industry in APAC, especially in Japan, China, and India; and increasing investments in virtual reality technologies to expand their application in different fields.
Additionally, many new market players are entering into location-based VR in the APAC region, mainly in countries such as China, Japan, and South Korea. Some of the prominent market players such as HTC, Tyffon, and Nvidia are leading the manufacturing of virtual reality hardware, and they have a competitive advantage from the low-cost labor. Hence, such factors are expected to drive market growth in the region during the forecast period.
The market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Embracer Group AB: The company offers Springboard VR.
EXIT Adventures GmbH: The company offers HUXLEY VR, it combines the gameplay of Room Escape Games with the endless technology of Virtual Reality into a Multiplayer Adventure.
HOLOGATE GmbH: The company offers VR Escape Rooms, Free-Roam, Motion-Sim, Mini-Golf.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market has experienced significant changes due to the pandemic, with supply-chain disruptions and store closures affecting operations. Remote working requirements have led to a rise in augmented meeting places, facilitating contactless business processes.
Despite these challenges, the market has seen innovations like Holoride, which enhance the virtual social togetherness experience. This development highlights the industry's adaptability to changing circumstances and its commitment to providing immersive experiences. Components play a crucial role in the market, enabling the creation of immersive VR environments. As the market continues to evolve, it is expected to offer more innovative solutions to meet the growing demand for immersive experiences in various industries.
Location-based Virtual Reality (VR) Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 33.7% |
Market growth 2023-2027 |
USD 7,673.64 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
32.85 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Dreamscape Immersive Inc., Embracer Group AB, EXIT Adventures GmbH, Groove Jones LLC, HOLOGATE GmbH, HTC Corp., Intel Corp., Meta Platforms Inc., Neurogaming Ltd., Next Now, NVIDIA Corp., Positron, Sandbox VR Inc., Survios Inc., Tetra Studios, The VOID, Tiffon Co. Ltd., WHO VR, Zero Latency Pty Ltd., and VRstudios Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our market research report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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