Location-based entertainment (LBE) is a burgeoning sector within the broader entertainment industry. It includes fun experiences outside the home. These are typically found in locations such as amusement parks, arcades, and VR centers. These LBE experiences are increasingly driven by cutting-edge technologies, such as virtual reality (VR) and augmented reality (AR), which craft interactive and engaging environments that captivate diverse audiences.
A Growing Industry
According to IBISWorld, the Arcade, Food & Entertainment Complexes industry in the US generated $5.989 billion in revenue in 2024, and is projected to reach $6.086 billion in 2025. This highlights the continued strength and relevance of physical entertainment venues.
One of the most compelling advantages of LBE is its capacity to deliver shared experiences. Unlike many traditional VR setups that are often used alone, LBE VR experiences are made for groups. Friends, family, or colleagues can enjoy them together. This social aspect is a big attraction. It helps people connect and create shared memories in ways that home-based VR often cannot.
Beyond its social appeal, LBE is proving to be a highly profitable business venture. The global LBE market was approximately $5.63 billion in 2024 and is projected to reach $7.39 billion by 2025. Experts predict strong growth. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 28.5% from 2025 to 2030. It is expected to reach approximately $25.90 billion by 2030. This impressive growth is attributed to several factors. These include the rising demand for immersive and interactive entertainment. There are also ongoing advancements in VR and AR technology. Additionally, people have more disposable income. Consumers increasingly desire unique and memorable experiences over material goods.
For those considering an investment in LBE, several crucial factors demand attention. Firstly, selecting a concept that resonates with your target audience is paramount. Secondly, a robust business plan is essential, given that LBE can be a capital-intensive industry. Ultimately, effective marketing strategies are crucial for differentiating oneself in an increasingly competitive market.
LBE presents a highly promising industry with substantial growth potential. For entrepreneurs seeking a fun and profitable business opportunity, LBE is undoubtedly worth exploring.
Now is a great time to invest in entertainment places like bowling alleys, amusement parks, theme parks, water parks, and arcades. People are looking for fun experiences outside their homes. However, diversification is key. It is essential to offer a variety of attractions. A significant trend that is gaining popularity is the use of virtual reality games.
The Next Big Thing: Location-Based VR
In recent years, virtual reality has amazed millions of people worldwide. It takes them to new cities, games, and places using personal VR systems or their cell phones. This initial experience with VR has left many wanting more. Location-based entertainment is well-suited to meet this need.
What is Location-Based Entertainment?
Location-based entertainment (LBE) refers to any form of entertainment that takes place in a specific location. This is usually outside the user’s home, often in a Family Entertainment Center. An LBE experience typically involves creating a physical space. This space has the right props, tools, and technology in place. The goal is to create an immersive environment. Businesses make an initial investment to build an experience that captivates and encourages repeat visits. With diverse offerings such as bowling, arcade games, rides, and VR, the possibilities are virtually limitless. Therefore, partnering with experts who can recommend the best activities for your specific location is invaluable.
The Power of Shared Virtual Reality Games
Crucially, location-based VR is often designed as a multi-player experience. Many setups allow multiple players to join simultaneously. This lets families or groups of friends share the same sights, sounds, and feelings. Experiences like Mario Kart VR and Alien Zoo demonstrate how virtual adventures enhance entertainment beyond the home. The ability to share these intense feelings with a group is a fundamental aspect of the LBE appeal.
Location-based VR is very valuable for both consumers and operators. It is not surprising that interest and offerings in this market are growing. The global location-based virtual reality market was worth USD 387.09 million in 2021. It is expected to grow to USD 4,939.12 million by 2030. This means it will grow at a rate of 32.70% each year from 2022 to 2030. Market share figures for LBE in the VR industry vary depending on the report. However, the gaming segment remains a strong force in the LBE market. There is a growing demand for realistic and immersive gameplay that cannot be experienced at home. Projections indicate that the global LBE market could reach $15.3 billion by 2029.
If you want to help your customers discover game rooms, reach out to us today. Join the growing location-based entertainment market! Our dedicated team is eager to help you find the perfect solution for your facility.
Betson works with many vendors and manufacturers. This enables us to provide our customers with the best equipment tailored to their specific needs. Whether you’re aiming to add a game room, vending equipment, monitors, kiosks, or are ready to embrace VR, we can help. We’ll work with you to customize equipment and financing options to ensure your investment is successful. We provide full support beyond the sale. This includes training programs, parts, services, and regular updates on industry trends.
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