Virtual reality (VR) arcades and other location-based VR entertainment venues could generate more than $800 million in worldwide revenue by 2022, according to the latest Futuresource Consulting VR Tracker Report.
Consumers are expected to spend $299 million on location-based VR entertainment in 2018, according to Futuresource. By 2022, that amount is expected to grow to $809 million.
At the moment, much of the growth of location-based VR is being driven by VR arcades, which often offer access to the same gaming titles also available to consumers who have VR setups at home. In 2017, some 4000 estimated VR arcades worldwide brought in $79 million, or 40 percent of all location-based VR revenue.
However, Futuresource estimates that higher-end location-based VR will play an increasing role over the next five years. By 2022, multiplayer VR experiences will make up 41 percent of all the global location-based VR revenue, the company estimates.
“Multi-player location-based VR allows players to roam free, untethered and with others in a VR environment,” said Futuresource associate director Carl Hibbert in a statement. “This category is expected to have the highest CAGR rate across the forecast period, despite a lower number of installations. This is due to consumer desire to pay for sociable experiences with friends, especially in more developed markets.”
The VR industry has in recent months increasingly bet on location-based VR, with companies like Survios betting on VR arcades, while others are increasingly investing in multiplayer experiences. The trend has also caught Hollywood’s eye: Just this week, FoxNext announced a new multiplayer VR experience based on the “Alien” franchise.