Location-Based Entertainment Market Report 2026

The location-based entertainment market size has grown exponentially in recent years. It will grow from $4.81 billion in 2025 to $5.99 billion in 2026 at a compound annual growth rate (CAGR) of 24.5%. The growth in the historic period can be attributed to expansion of amusement park infrastructure, increasing consumer spending on out-of-home entertainment, adoption of digital gaming experiences, growth of themed entertainment venues, rising popularity of experiential leisure activities.

The location-based entertainment market size is expected to see exponential growth in the next few years. It will grow to $14.35 billion in 2030 at a compound annual growth rate (CAGR) of 24.4%. The growth in the forecast period can be attributed to increasing investments in immersive entertainment technologies, rising demand for personalized visitor experiences, expansion of mixed reality entertainment formats, growing integration of data analytics in venue operations, increasing global tourism footfall. Major trends in the forecast period include increasing deployment of immersive theme-based attractions, rising adoption of vr and ar experiences, growing demand for interactive entertainment venues, expansion of story-driven location-based experiences, enhanced focus on visitor engagement.

The growth of the location-based entertainment market is expected to be driven by an increase in consumer spending on games and video content. This spending encompasses purchases or subscriptions to video games, downloadable content, in-game purchases, streaming services, and other digital entertainment products. It mirrors a rising demand for digital and immersive entertainment experiences, alongside a shift towards online streaming platforms. Such spending also strengthens location-based entertainment by showcasing the potential for immersive experiences, thereby generating interest in similar interactive offerings at physical venues. For instance, in February 2024, total video game sales surged to $57.2 billion, up from $56.6 billion in 2022, with a notable boost in video game content spending reaching $48 billion in 2023, compared to $47.5 billion in 2022. Thus, the growth of the location-based entertainment market is propelled by increasing consumer spending on games and video content.

Major companies operating in the location-based entertainment (LBE) market are prioritizing the development of innovative solutions - such as open-source Unity SDKs for multi-user XR experiences - to reduce technical barriers, enable cross-device synchronization, and enhance the quality of immersive entertainment production in commercial and public venues. The term “Unity-based SDKs for multi-user XR experiences” refers to a suite of developer tools that enable multiple users to interact simultaneously within AR, VR, or MR environments, supported by networking capabilities, device compatibility, and server-side infrastructure. For example, in December 2025, STYLY Inc., a Japan-based provider of spatial computing technologies, XR content creation platforms, and immersive entertainment solutions, introduced an open-source project for the LBE sector. The project delivers lightweight, high-performance networking capable of synchronizing up to 50 head-mounted devices, Unity-compatible SDKs that work with various HMDs - including Meta Quest, Apple Vision Pro, Pico, HTC Vive, and SteamVR - and server-side functionality using Unity or Python to implement scalable multi-user logic. Additional features include one-click XR rig setup, automatic switching between VR and MR modes, avatar synchronization, and simple integration into both new and existing Unity projects, allowing creators to concentrate on production quality and immersive experience design while minimizing technical complexity.

In December 2023, Lionsgate, a US-based motion picture company, acquired the eOne entertainment platform from Hasbro for $375 million. This acquisition expanded Lionsgate's library with 6,500 film and television titles, strengthened its scripted and unscripted television divisions, and extended its presence in Canada and the UK. Hasbro, a US-based play and entertainment company, is a provider of location-based entertainment.

Major companies operating in the location-based entertainment market are The Walt Disney Company, Universal Parks & Resorts, Merlin Entertainments, Six Flags Entertainment Corporation, Cedar Fair Entertainment Company, SeaWorld Entertainment, VRstudios, Dreamscape Immersive, The VOID, Niantic, Sandbox VR, Zero Latency, Hologate, Two Bit Circus, Meow Wolf, AREA15, Fever, Secret Cinema, Illuminarium Experiences, TeamLab.

North America was the largest region in the location-based entertainment market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the location-based entertainment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the location-based entertainment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The location-based entertainment market consists of revenues earned by entities by providing services such as gameplay, storytelling, projection mapping, and others. The market value includes the value of related goods sold by the service provider or included within the service offering. The location-based entertainment market also includes sales of virtual reality (VR) headsets, augmented reality (AR) devices, interactive controllers, and audio systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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