Location-based entertainment (LBE) is a growing sector. According to IBIS World, “The market size, measured by revenue, of the Arcade, Food & Entertainment Complexes industry is $3.2bn in 2023.”
Location-based entertainment (LBE) is a rapidly growing trend in the entertainment industry. It refers to immersive experiences outside the home, often in physical spaces like amusement parks, arcades, and escape rooms. LBE experiences leverage cutting-edge technology, such as virtual reality and augmented reality, to create interactive and engaging environments that appeal to a wide range of demographics.
One of the key benefits of LBE is that it can be a shared experience for groups of friends, family, or colleagues. This social aspect is a major draw for many people, as it allows them to connect with others fun and engagingly. Traditional VR experiences, which are often single-player, can feel isolating in comparison.
In addition to being a fun and social activity, LBE can also be a profitable business venture. The global LBE market is expected to reach $7.1 billion by 2025, with a compound annual growth rate (CAGR) of 14.2%. This growth is driven by several factors, including the increasing popularity of VR and AR technology, the rising disposable incomes of consumers, and the growing demand for unique and memorable experiences.
If you are considering investing in LBE, there are a number of things to keep in mind. First, it is important to choose a concept that is likely to appeal to your target audience. Second, you must ensure that you have a solid business plan in place, as LBE can be a capital-intensive industry. Finally, you need to be prepared to market your business effectively, as there is a lot of competition in the market.
LBE is a promising industry with a lot of potential for growth. If you are looking for a fun and profitable business opportunity, LBE is definitely worth considering.
This is a great time to be an owner of a bowling alley, amusement park, theme park, water park, or arcade because consumers are looking for new experiences outside of the home. But it’s important to diversify and offer various things for customers to do. One trend that’s beginning to take hold is virtual reality games.
In recent years, millions of people from across the globe have become enamored with the world of virtual reality. Through the magic of their cell phones or personal VR systems, they have been transported into new cities, games, and environments.
Of course, this first dip into the virtual reality industry has left many wanting more; location based entertainment is the answer.
Location-based entertainment (LBE) is most generally used to describe any form of entertainment in a specific location outside of the user’s home – often in a Family Entertainment Center. The LBE experience usually involves creating a physical space with all the props, tools, and equipment needed to create a truly immersive environment. There is an initial investment from the business to build an experience that captures people’s attention and makes them want to return. With various experiences like bowling, arcade games, rides, and VR, the possibilities are essentially limitless. Hence, working with a partner who can suggest the best activities for your location is important.
However, location-based entertainment is not a one-player experience. In fact, many set-ups are designed for as many as six players to enjoy at any time. VR experiences such as Mario Kart VR and Alien Zoo let a family or group of friends experience identical sights, sounds, and feelings together. Sharing feelings with a group is an important key to the out-of-home experience.
Given that location-based VR has so much to offer consumers and operators, it is perhaps no surprise to see the interest and growing offerings in the marketplace. Some estimates place its current market share at around $1 billion – approximately seven percent of the entire virtual reality industry. Indeed, projections by Greenlight Insights suggest that LBE could become a $12 billion market as soon as 2023.
Contact us today if you want to help your customers explore the world of game rooms and enjoy your slice of the growing location-based entertainment market. Our friendly team will happily help you find a perfect solution for your facility.
Betson works with vendors and manufacturers in many spaces so we can offer our customers the best equipment for their specific needs. Whether you’re looking to add a game room, some vending equipment, monitors, or kiosks or are ready to jump to VR, we can help. We’ll work with you to tailor equipment and financing needs to make the investment work. After the sale, we are there for you with training programs, parts & services, and keeping you updated on the latest industry trends.
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