Location-Based Virtual Reality (VR) Global Market Report 2025

The location-based virtual reality (VR) market size has grown exponentially in recent years. It will grow from $6.77 billion in 2024 to $9.0 billion in 2025 at a compound annual growth rate (CAGR) of 32.9%. The growth during the historic period can be attributed to rising investment in VR arcades and theme parks, the growing popularity of multiplayer VR gaming, the increasing adoption of VR in entertainment and education, the expanding availability of VR content, and heightened awareness of VR through marketing campaigns and events.

The location-based virtual reality (VR) market size is expected to see exponential growth in the next few years. It will grow to $27.83 billion in 2029 at a compound annual growth rate (CAGR) of 32.6%. The projected growth in the forecast period can be attributed to the rising adoption of VR for corporate team-building, increasing government support for digital innovation, the decreasing cost of VR hardware, the rise in 5G deployment enabling low-latency experiences, and growing collaboration between tech companies and entertainment venues. Key trends expected during this period include advancements in wireless and 5G connectivity, improved motion tracking technologies, innovations in immersive storytelling, the integration of cloud computing for seamless updates, and the incorporation of AI to create personalized VR experiences.

The growth of the gaming and entertainment sectors is expected to drive the expansion of the location-based virtual reality (VR) market in the coming years. These sectors encompass industries focused on interactive gaming, digital content, and various leisure activities. Technological advancements in these fields have significantly enhanced user experiences, leading to the development of more immersive and interactive games that attract a wider audience. The gaming and entertainment sectors contribute to the growth of location-based VR by offering engaging, interactive experiences that draw in large audiences. They incorporate advanced location-based VR technologies to create immersive environments that elevate social interactions and entertainment experiences beyond home-based setups. For example, in June 2024, the Interactive Games and Entertainment Association (IGEA), an Australia-based nonprofit, reported that Australians spent $2.82 billion (AUD 4.4 billion) on video games and related hardware in 2023, a 5% increase from 2022, with an 11% rise in digital game sales. As a result, the growth of these sectors is fueling the rise of the location-based virtual reality market.

Major players in the location-based virtual reality market are increasingly adopting strategic partnerships to deliver highly immersive and interactive VR experiences. A strategic partnership involves collaboration between two or more independent companies that combine resources and expertise to achieve common objectives, creating mutual benefits such as expanded market reach, cost reduction, and enhanced competitive advantages. For example, in September 2022, Majid Al Futtaim Group, a UAE-based shopping mall company, partnered with Dreamscape, a Saudi Arabia-based immersive VR entertainment company, to open an immersive VR destination in Saudi Arabia. This VR experience features four free-roaming and free-flying adventures with full-body tracking technology, integrated with Majid Al Futtaim’s entertainment venues such as VOX Cinemas, Yalla! Bowling, and Magic Planet, forming a family-friendly entertainment hub.

In February 2025, SynthesisVR, a US-based VR solutions company, acquired SpringboardVR for an undisclosed amount. This acquisition allows SynthesisVR to strengthen its position in the location-based virtual reality market by integrating SpringboardVR’s comprehensive venue management platform and content library, thereby expanding its market reach and enhancing operational efficiency for VR arcades and entertainment centers. SpringboardVR is a US-based provider of location-based virtual reality services.

Major players in the location-based virtual reality (vr) market are Meta Platforms Inc., IMAX Corporation, HTC Corporation, Matterport Inc., Varjo Technologies Oy, EON Reality Inc., Survios Inc., Magnopus LLC, The VOID LLC, HOLOGATE GmbH, Pure Imagination Studios Inc., Virtuix Inc., Dreamscape Immersive Inc., Sandbox VR Inc., Immotion Group PLC, Arcadia Earth LLC, 360 Labs LLC, Holoride GmbH, Tyffon Inc., HQSoftware Industrial Ltd., Positron Inc., EXIT VR.

North America was the largest region in the location-based virtual reality (VR) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in location-based virtual reality (VR) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the location-based virtual reality (VR) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Location-based virtual reality (LBVR) involves immersive VR experiences hosted at dedicated physical venues that provide highly interactive and socially engaging environments. These setups offer rich, multi-sensory adventures that go beyond what is possible with at-home VR, often blending real-world motion with virtual simulations for a more dynamic and realistic experience.

The main types of location-based virtual reality (VR) are head-mounted displays (HMDs), handheld devices, smart glasses, and controllers. Head-mounted displays are wearable devices that position screens near the eyes, offering immersive virtual reality experiences vital for gaming, training, and entertainment. These systems utilize various technologies, including two-dimensional (2D) and three-dimensional (3D) visuals, along with content such as 360-degree videos, 360-degree images, augmented reality (AR), and mixed reality (MR). LBVR is applied in various settings, such as VR arcades, VR theme parks, and VR cinemas, and is used across a variety of industries, including gaming, entertainment, travel, education, and healthcare.

The location-based virtual reality (VR) market research report is one of a series of new reports that provides location-based virtual reality (VR) market statistics, including the location-based virtual reality (VR) industry global market size, regional shares, competitors with the location-based virtual reality (VR) market share, detailed location-based virtual reality (VR) market segments, market trends, and opportunities, and any further data you may need to thrive in the location-based virtual reality (VR) industry. This location-based virtual reality (VR) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The location-based virtual reality (VR) market consists of revenues earned by entities by providing services such as immersive entertainment experiences, virtual tourism, corporate training and simulations, and educational virtual reality programs. The market value includes the value of related goods sold by the service provider or included within the service offering. The location-based virtual reality market also includes sales of immersive simulators, haptic feedback suits, virtual reality (VR) arcade machines, and virtual reality (VR) pods. 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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