In the original Immersive Revolution report we explored how the growth in immersive experience is also closely connected to the emergence of immersive technology. Examples of technology used to create immersive experiences includes VR, XR, Haptics, Scent Technology, AI, Projection, Lighting, high resolution LED screens and often a combination of these.

The Metaverse continues to inch closer but there is still some way to go

Many immersive technologies are closely connected to the concept of the Metaverse, popularised by novels and movies such as Ready Player One (2011) and also brought to the mainstream by the re-branding of Facebook to Meta.

Science Fiction has often provided a guide to potential futures and The OASIS in Ready Player One is perhaps the ultimate realisation of the metaverse. It provides some clues as to what is already happening and what is perhaps just around the corner for immersive entertainment.

The OASIS is a persistent, shared, user-inhabited virtual world accessed via immersive technologies. These include advanced VR headsets, omnidirectional treadmills, and haptic suits. Users appear as avatars and can travel instantly between imagined and replicated real world environments.

As immersive technology continues to develop the promise to users is virtually full immersion where the environments that are created become more and more convincing and realistic to users.

The Meta metamorphism has not been without its speedbumps, particularly in the sales of VR headsets as use cases for the home have not panned out with unmet expectations in the quality of experiences and the lack of a killer app alongside issues like comfort, social isolation and pricing linked to cost of living challenges. Sales have declined for three consecutive years including by 12% in 2024.  However, there has been growth in their use in immersive experiences particularly for shared VR experiences (see below) and there is projected growth for other metaverse devices such as MR, AI and AR glasses with the recent Ray-Ban Meta AI Glasses launched to great fanfare and strong reviews. Sales of wearable devices totalled $42 billion in 2025, representing approximately 230 million units sold and is the fasted growing accessories segment in fashion (this category includes other devices such as smartwatches as well as glasses). Therefore, when considered in its entirety the metaverse market (which is helping fuel the development of tech driven immersive experiences) is still expected to grow strongly. According to Fortune Business Insights, in 2021 the size of the worldwide Metaverse market was estimated at USD 63.83 billion. The market is anticipated to expand at a CAGR of 47.6% from 2022 to 2029, rising from USD 100.27 billion in 2022 to USD 1,527.55 billion.

Immersive technologies (or technologies that can be utilised to deliver immersive experiences) include AR, MR and VR headsets, 3D displays, 3D audio, gesture recognition, spatial sensing, holograms, speech recognition, haptics, AI, drones, cameras and omnidirectional treadmills. Some of them such as VR might not have taken off in the home as expected (yet) but are central to immersive experiences such as those produced by Zero Latency which now has 76 venues in 27 countries and uses free-roam VR to power social gaming experiences.

Precedence Research estimates that the immersive technology market will grow to USD 134.18 billion by 2030. In 2021 it was USD 21.66 billion so this suggests ‘a compound annual growth rate (CAGR) of 22.46% from 2022 to 2030’. These technologies are being deployed in multiple industries not just immersive experiences and entertainment, but they are offering new possibilities for how we tell stories and engage audiences.

• Dig Deeper – REMIX Talk – Matthew Sanders, Education and VR Director, Global Affairs, Meta

Social VR

Whereas we are not all sat at home plugged into the matrix quite yet, one part of the VR market that is showing huge promise is the idea of Social or Shared VR experiences. Audiences are drawn to shared VR experiences because exploring virtual worlds together creates a strong sense of social presence and collective discovery, making the experience feel more meaningful, memorable and emotionally engaging than solo VR.

Companies such as Zero Latency have helped popularise the concept as a commercial viable group entertainment experience (they have expanded rapidly with 100+ venues across 25+ countries with 4 million players). However, their content has focused primarily on video games. We are now seeing the rise of alternative, cultural and educational content (similar to how the slates of independent cinemas have carved out a different niche to the multiplexes).

Two breakthrough productions in the educational space are by French company Excurio: touring experience The Horizon of Khufu: A Journey in Ancient Egypt and Tonight with the Impressionists, Paris 1874 at the Musee D’Orsay. The former has sold an impressive 2 million tickets and the latter sold 80,000 as part of a larger exhibition that celebrated 150-years of Impressionism. This experience is now touring. In total Excurio’s VR experiences have been seen by 4 million people in 33 locations in 13 countries.

Close behind, Spain’s Univrse reports that its immersive productions have already been experienced over three million times worldwide. The model for both is to produce VR content experiences for high-traffic venues rather than take them to market directly themselves.

There has been a proliferation of new Shared VR experiences including Finding Vincent (Grande Experiences) and Colosseum: The Legendary Arena, and this market looks set to expand further. You know something is happening once competing shared VR experiences start appearing – for example Titanic: A Voyage Through Time (Fever) and Titanic: Echoes from the Past (Eclipso and Small Creative) and Titanic (a 20-minute VR experience within Titanic: An Immersive Voyage) are all in circulation currently.

The growth of content producers has also seen venues who are not tied to any particular content provider. An example is Eclipso Immersive Entertainment and they have partnered with the likes of Excurio running experiences such as Tonight with the Impressionists alongside their own productions. They claim 600,000 tickets sold across all locations (as of Nov 2024) at nine locations including New York, London, Paris, Lyon, Bordeaux & Atlanta. The model is interesting as it does not require huge or purpose-built spaces. The New York location in Hell’s Kitchen is 10,000 square feet and a former BMW car showroom. Eclipso are not alone with other venues such as EXP opening their doors this time in Chicago as new immersive arms race begins.

New research from Persistence Market Research indicates that the global location-based virtual reality (LBE) market is set to grow from $3.97 billion in 2025 to approximately $20.47 billion by 2032. This rapid expansion—at a projected compound annual growth rate of 26.4 per cent—underscores rising global demand for shared, immersive experiences delivered in high-tech physical settings such as theme parks, arcades, and entertainment centres.

A new report from Zion Market Research forecasts that the global location-based entertainment (LBE) market will grow from $5.04 billion in 2024 to $15.11 billion by 2034, representing a compound annual growth rate of 11.6%.

LBEs (including VR arcades, interactive museums, themed pop-ups, escape rooms and AR/MR attractions) are becoming a core part of the out-of-home entertainment landscape. Growth is being driven by rising demand for shared, immersive experiences, advances in next-generation VR/AR hardware and AI-enabled content, and increasing public-sector support across Asia-Pacific, the Middle East and Latin America. However, the sector continues to face challenges around high content development costs, headset fatigue and shortages of specialist immersive design skills. While North America currently leads market adoption, Asia-Pacific is emerging as the fastest-growing region.

https://www.zionmarketresearch.com/report/location-based-entertainment-market

• Dig Deeper – REMIX Talk – Agnès Abastado, Deputy Director of Digital & Head of Digital Development, Musée d’Orsay

Shared Reality

The concept of shared reality is created using several different immersive technologies but primarily curved large format high-resolution LED screens that provide a similar experience to VR but without the need for a headset.. COSM and The Sphere are examples of “Shared Reality”. The curved screen environment is designed to make audiences feel immersed by the action in a similar way to VR, but as importantly it also taps into the trend of technology enabling shared social experiences.

Like The Sphere, which has achieved huge success through its immersive screening and reimagining of The Wizard of Oz (more than 2 million tickets sold), COSM has also identified film as a major opportunity beyond live events. They have developed a partnership with Warner Bros. to present Blockbuster Films for COSM venues. So far this has included Shared Reality Productions of ‘The Matrix’ and ‘Willy Wonka & the Chocolate Factory’ with Harry Potter to follow.

AI

Artificial Intelligence (AI) is transforming every industry and Immersive Entertainment is no different. The sector has always been quick to embrace new technologies and AI offers particular opportunities and challenges to existing models on a rapidly-accelerating timetable. This will only be enhanced as we move nearer to Artificial General Intelligence (AGI) on whichever timeframe you believe. When we explore the promise of the Metaverse earlier, AI creates the potential to move from fixed, one-off installations into living, adaptive systems that evolve in real time in response to audiences, data and environments. It enables deeper personalisation, non-linear storytelling and responsive worlds where no two visits are the same. The role of artists, designers and other creatives will also evolve, perhaps becoming system-builders rather than content producers (including co-creation with AI tools). Beyond the visitor experience, AI will reshape the operational mechanics of immersive experiences, optimising everything from crowd flow, energy use and maintenance. This has the potential to unlock more sustainable business models through content refresh (increasing repeat visitation) and hybrid physical-digital extensions that engage visitors before, during and after their visit. As AI becomes a more visible tool for creators and consumers of these experiences, the importance of ethical data use, transparency and environmental impact will become more important as core creative and brand considerations. AI will not only be a tool, but it has the potential to be the defining force in the future of immersive culture.

Refik Anadol was named in TIME Magazine’s AI 100, and he is a pioneer in the use of artificial intelligence in the development of new forms of creative and immersive experiences. The influence of his work has seen it added to the permanent collection of MoMA in New York and his studio team are also pushing technology boundaries collaborating with technology partners including NVIDIA, Samsung, and Google.

The digital format in which his work is created and shared has also allowed him to develop new business models and he has generated over USD$30 million in NFT sales.

While some critics suggest Anadol’s work offers an uncritical celebration of a divisive technology, it is more accurately understood as advancing an optimistic vision of human–machine collaboration, where data, memory and imagination converge.

Refik Anadol Studio has also taken a page from the teamLab playbook. A growing cultural brand, following and monetisation has led to the announcement of Dataland, the world’s first Museum of AI Arts and a digital ecosystem dedicated to data visualisation and AI-driven creativity. Dataland is intended to be a space where human imagination meets the creative potential of machines. Dataland’s inaugural exhibitions are built around Refik Anadol Studio’s Large Nature Model, the world’s first open-source AI model trained exclusively on nature-based data. The model draws on datasets from institutions including the Smithsonian Institution and the UK’s Natural History Museum. The project is committed to ethical data collection and responsible AI. He is also partnering with Google to explore non-fossil-fuel energy solutions.

Opening in Spring 2026 at The Grand LA, the Frank Gehry-designed cultural precinct in Downtown Los Angeles, Dataland will span 25,000 square feet across five distinct gallery spaces. Operating as a private museum, exhibitions will be ticketed, with additional revenue generated through the sale of digital artworks.

AI is also reshaping other connected industries such as travel. A recent study by McKinsey explore how AI is changing how people plan travel and discover experiences. They speculate that Gen AI will increasingly use the technology as a personalised digital travel assistant.

The leading experience and technology agency Disguise have produced a short guide to the future of immersive experiences and they believe one of the great benefits of AI is ‘Real Time content development’, which is created and shared instantly as it is being experienced creating more freedom and flexibility.

Robotics

Another connected technology to AI is robotics and the convergence of these two technologies is likely to have a revolutionary impact. It has been predicted by some that the dark side of this might be the move from Science Fiction to Science reality of dystopian movies like the Terminator franchise. Or perhaps more pertinent to the immersive sector, the WestWorld movie and series where robots both create the ultimate immersive story world (but then turn on the guests they were designed to serve and entertain). However, the more positive version is that intelligent semi or even fully autonomous robots offer the utopian dream of a limitless, virtually free source of labour. A recent Tesla launch featured their Optimus robots serving drinks to the invited guests (albeit with a fair amount of human intervention). Their efforts have already been upstaged by recent demonstrations by Unitree’s robots  in China at the country’s annual Spring Festival Gala so you can see where this is headed. Immersive could become one of the many testing grounds for the application of robotics. Early applications of robots in immersive attractions include the incredibly advanced (for the time) audio-animatronic figures created by Walt Disney Imagineering for The Hall of Presidents attraction at Walt Disney World Resort in Florida. This timeless attraction brings to life all 45 Presidents of the United States. The increasing dexterity and mobility of robots combined with the use of AI for learning, interaction and conversation offers countless possibilities for their use in immersive environments from operational roles to performance.

Gamification

Gamified environments appeal to audiences by making physical spaces more playful and rewarding, tapping into the instincts and behaviours shaped by gaming culture. These social experiences also play into the competitive socialising trend that has been a major growth segment of the hospitality sector. Interactive, social experiences resonate because they create shared moments, encouraging connection, participation and a sense of belonging.

Bridge Command, London, is a £3 million interactive production that blends theatre, video gaming, live roleplay and escape-room mechanics, drawing inspiration from Star Trek. Built around the real-time gaming engine EmptyEpsilon, the experience places audiences aboard fully functional starships, with two ships operating concurrently, each hosting 14 participants per show. Tickets are priced at £40, supported by an on-site bar with capacity for 100 people, and the project operates under a 10-year lease. Created by Parabolic Theatre, Bridge Command is housed beneath railway arches in Vauxhall, close to the redeveloped Battersea Power Station. As investor Sonny Schneider candidly notes, “Even at full capacity it can’t make any material money. It’s a midlife crisis or a venture of love — whatever you want to call it.”

Whether this experiment is sustainable  or not, gaming culture is bigger than all other entertainment segments so advancements in technology make hybrid digital and physical experiences more compelling for audiences. Developments in AI also means personalised experiences at scale are possible, engaging audiences by responding to individual preferences, allowing people to feel seen, involved and in control of their own journey.

Located in Canada Water, London, Phantom Peak is another popular example. Billing itself as “the world’s first fully immersive open-world adventure”, an experience NME described as “the Westworld experience you’ve always wanted.” Set within a fully realised 30,000-square-foot steampunk mining town, spanning indoor and outdoor environments, the attraction features nearly 100 games and challenges.

Software is key for underpinning the way guests explore the town, this time through Phantom Peak’s proprietary app Jonassist. This utilises their smartphones to trigger Trails to activate quests, drawing guests into evolving storylines and live interactions with a large cast of characters across multiple missions. A wide range of food, beverage and retail offers is embedded throughout the world to boost dwell time and spend per visitor.

The growing influence of gamified environments and gaming on a new wave of immersive experiences was given further oxygen when the pioneering immersive theatre company Punchdrunk announced Lander23, a major departure for a company that has been experimenting with multiple new formats and models over the last few years. Punchdrunk’s 2022 London production The Burnt City became the company’s longest-running home-city show, launching alongside the opening of its first permanent venue at One Cartridge Place in Woolwich. Reflecting Punchdrunk’s commitment to sustainability and creative accountability, the production repurposes and reimagines the vast world of Troy from The Burnt City, transforming it into a new narrative landscape rather than starting from scratch. Early reviews have been mixed but LANDER 23 divides participants into two interdependent teams: Command (Drivers) and Ground Team (Fields). As the Fields traverse an alien terrain, they are guided entirely by the voices of their Drivers, who remain stationed aboard the ship.

At Meow Wolf, gamification is a core strategy for driving repeat visitation, deeper narrative discovery and long-term fan engagement. For just USD$3, visitors can purchase an employee card to become part of Omega Mart, unlocking a progression-based experience in which guests “boop” their card at access points to reveal hidden story layers and earn collectible rewards such as digital badges. Live performers and in-world phone-based guides actively steer players through the unfolding narrative, while optional artefacts (including a Factory Operations Guide or Jesse’s Journal) allow fans to dig deeper into Dramcorp’s corporate mythology and uncover the Resistance Movement operating beneath the surface.

This story world extends beyond the physical venue. Meow Wolf has partnered with Mighty Coconut to create Walkabout Mini Golf: Meow Wolf, a virtual reality course based on the Numina storyline from Convergence Station, translating narrative exploration into a digital format. Meanwhile, experiences like Jared’s Journey subvert traditional gameplay by positioning the player not as the protagonist, but as the world itself, shaping events around the main character. Together, these layered mechanics transform Meow Wolf from a one-off visit into an evolving game universe — one that rewards curiosity, loyalty and repeated return.

• Dig Deeper – REMIX Talk – Nick Moran, Director, Phantom Peak

Audio

In the original report we talked about the pioneering work of Darkfield as an exemplar in this space. Their use of immersive 360-degree audio and compelling narratives taps into the imaginations of their audiences in such a way that the story worlds they have conjured appear much larger than the small spaces (shipping containers) in which they take place. The use of shipping containers is a masterstroke as it has made their work transportable and tour-able and they have continued to grow with audiences reaching 750,000 from 250,000 at the time of the last report in 2023. They have also added to their library of shows, most recently with Arcade.

The success of Darkfield has seen other immersive companies recognise the power of great storytelling combined with audio. Punchdrunk’s Viola’s Room is an intimate, 45-minute immersive experience built around a linear binaural audio journey, narrated by Helena Bonham Carter. With no live actors, audiences move barefoot through a labyrinthine installation, guided solely by sound via headphones. Clever use of miniaturisation creates a surprising sense of scale and depth within a compact footprint. Originally conceived as a limited run, a Christmas edition extended the season to more than six months, supported by a partnership with Bowers & Wilkins and complemented by an on-site Prop Store Bar. Each timeslot accommodates six people (with the option to book privately), departing every 15 minutes. Capacity peaks at 240 visitors on Saturdays and 198 on Sundays, with weekday operations adding significant additional throughput. The production also now toured internationally, playing at The Shed in New York from 17 June to 16 November 2025.

• Dig Deeper – REMIX Podcast – David Rosenberg, Co-Founder, Darkfield & Shunt Vaults & Glen Neath, Co-Founder, Darkfield

Holographic technology

Holograms are another technology increasingly used in immersive experiences to blur the boundary between the physical and digital, enabling lifelike characters, performers and environments to appear present in real space without traditional screens. Today, they are deployed in concerts, museums, brand activations and live events to resurrect historical figures, extend live performers, or create impossible scenography that responds to audiences in real time. As volumetric capture, real-time rendering and spatial computing mature, holograms have the potential to become persistent, interactive story agents: guides, characters or collaborators that react to movement, voice and emotion. Combined with AI and mixed reality, future holographic experiences could support personalised narratives, shared social encounters and scalable live performances, offering creators a powerful tool to deliver spectacle, intimacy and repeatable engagement within immersive worlds.

The counter trend: escaping digital

Technology advances like AI are fundamentally changing what is possible in the experience economy and have the potential to unlock a lot more free time (of which the experience economy could be a prime beneficiary). However, the experience economy and more analogue experiences are also a counter force to these trends as noted in a recent World Economic Forum briefing:

“As artificial intelligence makes digital content abundant, frictionless and individualized, people crave scarce, sensory, unpredictable in-person experiences that technology cannot replicate.” (World Economic Forum Annual Meeting)