Market Trends of Location-Based VR Industry
VR Arcades Contribute Significantly to Market Growth
- The emergence of virtual reality (VR) arcades has significantly impacted the gaming market by introducing a novel entertainment concept. These arcades offer immersive experiences that transport users to new worlds, fueling demand for location-based VR hardware and software.
- Advanced technologies such as 3D, 4D, 5D, and immersive VR content, particularly 360-degree videos, are driving the growth of the global gaming content market. VR arcades are increasingly adopting these technologies, creating a greater demand for camera systems capable of recording complete 360-degree views to provide users with fully immersive experiences.
- The expansion of VR arcades has made virtual reality gaming more accessible to the general public. Many individuals who may not have otherwise been able to afford or access VR technology can now enjoy these immersive experiences at their local arcade. This increased accessibility is expected to further fuel the growth of the VR arcade market.
- In April 2024, Ctrl V, a virtual reality arcade, announced plans to expand its presence across Canada and the United States. This expansion strategy indicates strong future demand for VR arcades.
- The pricing models in VR arcades, such as pay-per-play, are becoming increasingly economical. By charging customers based on the time they spend playing a particular game, these arcades allow users to experience VR without committing to a long-term membership. This flexibility is supporting the growth of VR arcades worldwide and driving demand for location-based VR technology.
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Asia-Pacific Expected to Witness Significant Growth
- The Asia-Pacific region is expected to hold a substantial share of the market studied due to its large and growing economies and increasing acceptance of VR devices. This favorable market outlook is likely to attract significant investments from industry players.
- China, in particular, is anticipated to play a pivotal role in the region's VR market growth. The country's rising adoption of VR technology has led to a surge in VR startups. The widespread deployment of ultra-fast 5G networks is expected to further accelerate VR development and foster growth in sectors like education and training.
- South Korea, another key player, was among the first countries to implement VR, augmented reality (AR), and artificial intelligence (AI) technologies in this industry. In March 2024, the South Korean government established a USD 38 million "Metaverse Fund" to support domestic small and medium-sized enterprises in the metaverse sector. This initiative demonstrates the government's increasing focus on VR and AR, which is expected to contribute to the growth of the location-based VR market in the Asia-Pacific region.
- Rapid advancements in retail technology are reshaping consumer behaviors and transactions worldwide. Taiwan has emerged as a significant player in the virtual reality (VR) industry, with its VR films gaining recognition at international film festivals. Last year, a Taiwanese VR film even won an award at an extended reality (XR) art festival in Paris. Industry experts believe this success solidifies Taiwan's position as a leader in XR content, including VR and other computer-generated realities.
- Furthermore, in August 2023, HavenXR, a global cinematic immersive experience provider, announced plans to expand its presence in Malaysia and Singapore using location-based virtual reality (LBVR). This expansion reflects the growing demand for VR experiences in Southeast Asian countries and contributes to the overall growth of the market.
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