The Location-based Virtual Reality (LBVR) market is anticipated to witness a CAGR of 32.5% over the forecast period 2019 - 2024. The LBVR is a place of business where VR devices are deployed, allowing users to experience VR by physically interacting with the environment in a way they can't in their own home. Some of the examples of experiences that LBVR enable include walking around a haunted house, or running around a warehouse with walls that are made of foam, but look like bricks in VR.
- While some of the LBVR experiences provide users with a VR headset, a VR backpack PC, and a custom-designed space, some other LBVR experiences provide users with a mobile untethered VR headset paired with roller coasters, wind tunnel diving, and other activities.
- The market for LBVR is still in a nascent stage. Making the VR experience more real serves as a critical driver for market adoption and penetration. Increasing implementation of VR technology, increasing investment in VR technology, and the growing popularity of 360-degree content are some other major factors influencing the growth of LBVR market. High-quality content plays a crucial role in this industry, and the market is expected to grow as more compelling, high-quality content that appeals to a wide demographic makes its way into the market.
- VR technology has gained widespread recognition and adoption over the past few years. Recent technological advancements in this field have revealed new enterprises. Numerous players are emerging in this market with a hope to navigate it toward mainstream adoption. The future of the market is expected to be more competitive with technology giants, like Google venturing into the field by investing considerable amounts in the tech startups for the development of VR devices, along with other prominent players investing in their R&D over this segment. it is estimated that owing to its huge scope of application LBVR are expecetd to garner a user base of over 1.5 billion, over the next five to six years. .
Scope of the Report
The location-based VR market is segmented by type, application, and region. By type, the market studied is segmented into hardware and software. By application, the market studied is segmented into VR arcades, VR theme parks, and VR cinemas. Integrated solutions offered by vendors of VR technology are also considered in the scope of the study.
Key Market Trends
Growing Popularity of 360-Degree Content
- The market for virtual reality is expanding at a rapid pace, and the location-based VR market is quickly following suit. With the development of new technologies like 3D, 4D, 5D and advanced VR content, 360-degree videos have been introduced in VR and have become one of the notable trends in the global gaming content market. These camera systems are known to record the entire 360-degree view of a scene simultaneously.
- The entertainment sector has witnessed prominent advances with the help of this advanced technologies. Various digital arenas and mainstream platforms of gaming are poised to grow with the rising demand for immersive environments. With the high-quality content being produced with the help of advanced camera systems, the popularity and acceptance of location-based VR is expected to grow and witness the massive potential for the VR market, over the forecast period.
- Early 2019 released statistics from YouTube show that around 3.1 million people are subscribed to YouTube's official VR channel that hosts best VR-ready 360-degree videos. Similarly, report from Tech Trends estimates put that that Facebook is currently hosting around 1 million 360-degree videos which have generated around 580 million views so far.
Asia-Pacific Region expected to Witness Significant Growth
- Asia-Pacific is expected to hold the major share, owing to the presence of large and several emerging economies, along with the rising acceptance of virtual reality devices in the region. This is, in turn, expected to encourage industry players to invest in the region.
- China is expected to account for a prominent share in the region, owing to the rising adoption of VR technology in the country. Many startups pertaining to virtual reality are on the rise, in the country. For instance, Palapple is developing its own VR products. The company also created a project called VResidence, which offers a number of virtual reality real estate products, including an online platform for the second-hand property.
- Digi-capital reported that the overall spending on virtual reality in the Asia-Pacific region is around USD 5.1 billion, in 2018 and China has the potential to take more than USD 1 of every USD 5 spent on VR market globally and the combined influence of other countries in Asia could account for more than half of worldwide VR revenues by the end of the forecast period.
The Location-based VR Market is highly competitive and is currently dominated by a few players with their technological expertise in VR technology. The global market is witnessing a rise in competitiveness among the companies. However, the market is expected to be nearly consolidated in nature. With increasing innovations in technology, the major players in the market are focusing on expanding their customer base across foreign countries by leveraging on strategic collaborative initiatives to increase their market share and their profitability. The Void, LLC, Exit Realty Corporation, SpaceVR, Survios, Inc., Hologate, Zero Latency PTY LTD, Oculus VR Inc., HTC Vive Tech Corporation, Tyffon Inc., and Neurogaming are some of the major players present in the current market.
- May 2019 - Hologate announced that its immersive VR offering has taken in 2 million players since they first launched in 2017.
- March 2019 - The Void announced its expansion into the Asia-Pacific, with a focus to make more investments in China, Malaysia, Hong Kong and Singapore.
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