According to the MarketsandMarkets report titled “Location-Based Entertainment Market by Systems (AR/VR, Projection Mapping, Interactive Gaming), Software (Content Management, Experience Design, Analytics & Monitoring), Application (Immersive Rides, Cinematic Experiences) – Global Forecast to 2029,” the global Location-Based Entertainment (LBE) market is expected to grow from USD 5.47 billion in 2024 to USD 15.33 billion by 2029, registering a strong CAGR of 22.9%.
Location-Based Entertainment refers to immersive, technology-driven experiences delivered at physical venues such as theme parks, family entertainment centers, arcades, and museums. LBE combines advanced systems including AR/VR, projection mapping, and interactive gaming with software platforms for content management, experience creation, analytics, and monitoring. These technologies enhance real-world entertainment by enabling applications across gaming, simulation, virtual tourism, and education, resulting in highly interactive and engaging visitor experiences. The integration of AI, motion tracking, and haptic feedback allows LBE operators to personalize content beyond what traditional entertainment formats can offer.
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Gaming to Lead the Market by Application
Based on application, gaming is projected to hold the largest share of the LBE market during the forecast period. Growing demand for deeply immersive and interactive gameplay is driving adoption across entertainment venues. The gaming sector is evolving into highly realistic, social, and experiential environments through AR/VR, motion tracking, projection mapping, and AI-driven personalization.
The rising popularity of VR gaming arenas, interactive simulators, and esports venues reflects consumers’ preference for shared, high-quality experiences that cannot be replicated at home. Free-roam VR setups enhanced with haptic feedback allow users to move naturally while feeling real-time physical interactions, significantly increasing immersion. Projection mapping further expands gaming experiences by creating large-scale interactive environments without the need for headsets. Additionally, cloud gaming and AI-based customization dynamically adapt content based on player behavior.
For example, Sandbox VR offers multiplayer experiences with full-body tracking, while Zero Latency operates free-roam VR arenas with real-world movement. Japan’s Mazaria arcade blends mixed reality with projection mapping to deliver seamless interactions between physical and digital worlds. These innovations continue to position gaming as the primary growth driver in the LBE market.
Software to Record the Fastest Growth by Offering
By offering, the software segment is expected to witness the highest growth rate during the forecast period. As LBE venues adopt complex AR/VR, projection mapping, and AI-powered interactions, the need for robust software platforms to manage content, design experiences, and analyze visitor behavior is increasing.
Content management systems ensure smooth synchronization of high-resolution visuals and storytelling elements. Experience design tools help create lifelike virtual environments and personalized user journeys, while analytics platforms improve operational efficiency and visitor satisfaction. AI-powered software further enables real-time adaptation of experiences based on customer interaction patterns.
For instance, Disney’s Genie+ uses AI-driven software to optimize guest experiences in real time, while Holovis delivers immersive attractions using its experience design platform combined with projection mapping and AI. The rise of cloud-based deployment and real-time analytics is accelerating software adoption, making it the fastest-growing component of the LBE market.
Amusement Parks to Dominate by Venue
By venue, amusement parks are expected to hold the largest market share due to their large-scale infrastructure and continuous technological upgrades. These parks leverage AR/VR, projection mapping, AI, and interactive displays to offer differentiated, immersive attractions that attract high visitor volumes.
Projection mapping transforms traditional rides into dynamic visual narratives, while AR enables interactive storytelling and scavenger-hunt-style experiences. VR attractions provide simulated environments and immersive worlds, enhancing guest engagement. AI-driven personalization further improves visitor satisfaction by tailoring experiences based on preferences and behavior.
In addition, real-time analytics and IoT systems help manage crowd flow, reduce wait times, and improve operational performance. Universal Studios uses projection mapping in attractions such as the Harry Potter rides, while Disney applies AR and AI to enhance experiences at Star Wars: Galaxy’s Edge. Continuous innovation ensures amusement parks remain a dominant force within the LBE ecosystem.
Key Market Players
Major companies operating in the Location-Based Entertainment market include Microsoft, Google, Meta, NVIDIA, Unity Technologies, Sony Interactive Entertainment, Samsung, Barco, Panasonic, Huawei, HTC Vive, Niantic, Vicon Motion Systems, OptiTrack, Springboard VR, Hologate, Ultraleap, Magic Leap, Sandbox VR, Virtuix, Pico, Illumix, and others.
These players focus on strategic initiatives such as partnerships, collaborations, product launches, technology enhancements, and acquisitions to strengthen their presence and expand their reach within the global LBE market.
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