How Location-Based Entertainment Is Taking Virtual Reality to New Heights

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, underscoring the enduring appeal of physical entertainment venues.

One of LBE’s key strengths is its ability to foster shared experiences. Unlike solitary home-based VR setups, LBE VR experiences are designed for groups, allowing friends, family, or colleagues to enjoy immersive adventures together. This social aspect drives connection and creates lasting memories, setting LBE apart from traditional VR.

Beyond its social appeal, LBE is a lucrative business opportunity. The global LBE market, valued at approximately $5.63 billion in 2024, is projected to reach $7.39 billion by 2025 and grow at a Compound Annual Growth Rate (CAGR) of 28.5% from 2025 to 2030, potentially reaching $25.90 billion by 2030. This growth is fueled by rising demand for immersive entertainment, advancements in VR and AR technology, and increasing consumer preference for unique experiences over material goods.

For entrepreneurs eyeing LBE, success hinges on key factors: selecting a concept that resonates with your target audience, crafting a robust business plan for this capital-intensive industry, and implementing effective marketing to stand out in a competitive market. LBE offers substantial growth potential, making it an exciting opportunity for those seeking a profitable venture.

Now is an ideal time to invest in entertainment venues like bowling alleys, amusement parks, theme parks, water parks, and arcades, as consumers crave fun, out-of-home experiences. Diversification is critical, and offering a variety of attractions, particularly virtual reality games, is a growing trend.

The Next Big Thing: Location-Based VR

Virtual reality has captivated millions worldwide, transporting users to new cities, games, and worlds through personal VR systems or mobile devices. This initial exposure has sparked demand for more immersive experiences, which location-based entertainment is uniquely positioned to deliver.

What is Location-Based Entertainment?

Location-based entertainment (LBE) refers to entertainment experiences hosted in specific venues, typically Family Entertainment Centers, outside the user’s home. These spaces are equipped with props, tools, and technology to create immersive environments. Businesses invest in building captivating experiences that encourage repeat visits, offering diverse attractions like bowling, arcade games, rides, and VR. Partnering with experts like Infinitycade to recommend the best activities for your venue is invaluable.

The Power of Shared Virtual Reality Games

Location-based VR is often designed as a multiplayer experience, allowing multiple players to engage simultaneously. This enables families or friends to share the same sights, sounds, and emotions, as seen in experiences like Mario Kart VR or Alien Zoo. These shared adventures enhance entertainment beyond what home-based systems can offer, making social interaction a core component of LBE’s appeal.

Location-based VR delivers significant value for both consumers and operators. The global location-based VR market, valued at USD 387.09 million in 2021, is projected to reach USD 4,939.12 million by 2030, growing at a CAGR of 32.70% from 2022 to 2030. The gaming segment remains a dominant force in the LBE market, driven by demand for realistic, immersive gameplay that home setups cannot replicate. Projections suggest the global LBE market could reach $15.3 billion by 2029.

Join the LBE Revolution with Infinitycade

If you’re looking to bring cutting-edge game rooms to your customers, Infinitycade is here to help. Join the booming location-based entertainment market! Our dedicated team is ready to find the perfect solution for your facility.

Infinitycade collaborates with top vendors and manufacturers to provide tailored equipment, whether you’re adding a game room, vending equipment, monitors, kiosks, or embracing VR. We offer customized equipment and financing options to ensure a successful investment, along with comprehensive support, including training programs, parts, services, and regular industry trend updates.

Contact Infinitycade today to elevate your entertainment venue with immersive VR experiences!

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