By Michael Knott and Michael MacLaren

The immersive entertainment market is worth billions and growing fast. But to harness its potential, players first need to understand what is and isn’t an immersive experience, the market size and how they can tap into it. We developed a market model to provide clarity. Below we present some of the results, including a case study on immersive art, and highlight the most promising opportunities in the market, from 3D animation to advanced projection technology.

The world of consumer experiences is evolving fast, and immersive entertainment is quickly becoming a popular consumer segment, attracting both entrepreneurs and investors. But tapping into this growth market is difficult if you don’t know what differentiates an immersive experience from an experiential experience. What is and isn’t immersive, and are there different levels of immersion? Defining this is challenging, yet these parameters must be known to gauge potential market size and uncover growth opportunities in the segment.

At Roland Berger, we “get” immersive entertainment. We recognize that it’s not about escape rooms or clever lighting, but spellbinding experiences driven by cutting-edge technology that engage the senses and transport the user to a different world. Immersive theme-park rides or virtual reality (VR) concerts, for example. With this definition in mind, we developed a framework to evaluate different experiences and distinguish immersive experiences from experiential ones.

Market analysis: immersive experiences ranked

• Our Immersive Technology Scale categorizes experiences based on sensory and non-sensory engagement, with each level of the five-point scale having specific criteria. Sensory engagement focuses on how technologies stimulate your senses – we used visual and audio as our benchmarks, as technologies for touch, smell and taste are still in their infancy (although they are exciting prospects for the future). Non-sensory engagement includes the elements of storytelling and interactivity with the environment.

Using the immersion scale of framework, we mapped and analyzed 11 digitally enabled experiences to determine their position on the scale. Experiences achieving a rating of three or more were considered immersive.

Location-based entertainment using virtual reality and immersive theme park rides were found to be the most immersive experiences. Four other experiences also fulfilled the criteria of immersive entertainment: VR concerts; immersive art exhibitions; immersive museums; and 4D cinema. All six are outlined in more detail below.

Following this analysis, we developed a market sizing for each experience. We provide an illustration below of this analysis for the ‘immersive art’ market.

Immersive art: a gallery of opportunity

The immersive art market has grown significantly since its beginnings as a handful of landmark exhibitions in the early 2000s. Today, it is a burgeoning industry with experiences across 14 countries and 23 cities. There are two main segments: fixed installations that change their artwork every 18 to 24 months, and touring exhibits featuring renowned artists, such as Van Gogh, and popular themes, such as ancient Egyptian history.

To calculate the global market value for the fixed installations segment, we reviewed ticket prices for every immersive art exhibitor to create a country-specific ticket price. We then analyzed the top 10 visitor attractions in each city with an immersive art exhibit, including their annual visitor numbers to combine with previously obtained ticket price and achieve market size. This city-specific methodology increased the accuracy of our estimation. The result was an estimate of around GBP 1.24 billion in 2024.

Estimating touring exhibits presented a greater challenge due to the lack of consistent data. However, by analyzing historic news articles and employing tools to examine archived webpages, we were able to calculate an estimated value of approximately GBP 240 million in 2024.

These figures give a total global market value of almost GBP 1.5 billion. In addition, the market has significant growth potential – an estimated GBP 300 million over the next 1-2 years. This is largely based on the projection that major tourist destinations currently lacking immersive art experiences, such as Dubai, Milan and Sydney, are likely to develop them in the future. Additional growth drivers include more art entering the public domain – creating new attractions that encourage repeat visits to fixed installations – and advancements in generative AI technology, which make unique, one-off displays more cost-efficient. These developments, combined with other technological, economic, societal, and cultural drivers, present a compelling business case for both fixed and touring exhibits, making this an exciting investment area.xxxxx

Who stands to gain from the boom?

So, which markets can benefit from the fast-growing potential of immersive entertainment, and which areas should investors focus on? Based on our experience, these areas include:

Digital Content Creation and Animation: Immersive art experiences rely on digital content, including 3D animation, motion graphics and interactive visuals. As the demand for more complex and engaging installations grows, it will open further revenue opportunities for high-end VFX and animation studios – a trend we are already observing in our clients.

Projection Technology and Display Systems: Advanced projection technology is the backbone of many immersive art exhibitions. Companies that develop and manufacture projectors, LED walls and other display systems will likely see significant growth as more venues invest in high-quality equipment. The need for cutting-edge projection mapping technology that can cover large surfaces and adapt to various environments will drive innovation and expansion.

Interactive Technology and Software Development: Interactivity is a key feature of many immersive art experiences. As this immersive market grows, so will the demand for software developers and technology companies that create interactive platforms, including touch-sensitive displays and motion tracking systems. These technologies enable visitors to engage with the art, making this area a critical growth driver of the immersive art market.

Why choose Roland Berger

Roland Berger consultants don’t just have a deep understanding of the immersive entertainment market. They also understand that clients have unique needs. We combine specialized industry insights with deep strategy expertise and tailored solutions to guide organizations through challenges and capitalize on emerging opportunities. Our many successful collaborations with leading industry players are testament to this.

Whether you are an immersive experience exhibitor, an IP owner, a technology provider, or a systems installer, we can help you to achieve your growth ambitions and meet investor demands. Contact one of our experts for more information.