Urban Experience Economy Market Forecasts to 2032 – Global Analysis By Experience Type (Cultural & Heritage Experiences, Entertainment & Events, Adventure & Outdoor Activities, Culinary & Gastronomic Tourism, Art & Creative Experiences, and Digital & Imme
Description
According to Stratistics MRC, the Global Urban Experience Economy Market is accounted for $130.0 billion in 2025 and is expected to reach $307.2 billion by 2032 growing at a CAGR of 13.1% during the forecast period. Urban Experience Economy refers to the collective design and delivery of immersive, interactive, and emotionally engaging activities within city environments. It includes cultural events, entertainment, dining, art, and recreational offerings that prioritize personal enjoyment and memorable experiences. These are often curated to enhance social interaction, sensory stimulation, and emotional connection in urban settings. The concept emphasizes how people value experiences over material goods and how cities can be shaped to offer meaningful, participatory moments that enrich daily life and foster community engagement.
According to McKinsey, cities are investing in immersive technologies like augmented reality to create unique retail and cultural attractions, driving tourism and local spending through enhanced, shareable urban experiences.
Market Dynamics:
Driver:
Growing urban tourism demand
The Urban Experience Economy Market is primarily driven by surging urban tourism demand as travelers increasingly seek immersive, culturally rich, and socially engaging experiences. Fueled by expanding middle-class populations, improved connectivity, and global exposure through digital platforms, urban destinations are evolving into experience-centric hubs. Millennials and Gen Z consumers prefer authentic and personalized urban adventures over traditional sightseeing. Additionally, rising investments in city branding, events, and creative districts are enhancing tourism appeal. Consequently, this trend accelerates demand across experiential economy verticals.
Restraint:
Infrastructure congestion
Infrastructure congestion remains a major restraint hindering the Urban Experience Economy Market’s scalability. Rapid urbanization and overcrowded city centers often strain transport systems, accommodation, and public amenities, reducing visitor satisfaction. The lack of efficient crowd management and zoning regulations further exacerbates these issues. Moreover, limited accessibility in heritage and entertainment zones can deter high-value tourism activities. As cities struggle to balance growth with livability, infrastructure bottlenecks continue to impede seamless experiential travel expansion in major urban centers.
Opportunity:
Smart city integration
Integration with smart city initiatives offers significant growth opportunities for the Urban Experience Economy Market. Digital technologies such as IoT, AI, and geospatial analytics are enabling real-time navigation, crowd control, and personalized visitor engagement. Smart infrastructure enhances connectivity among cultural, retail, and entertainment districts, enriching urban exploration. Furthermore, immersive technologies and data-driven planning support sustainable tourism and equitable resource utilization. As urban areas transition toward intelligent ecosystems, the synergy between tourism and smart city frameworks will drive transformative market advancements.
Threat:
Economic slowdown
Global and regional economic slowdowns pose substantial threats to the Urban Experience Economy Market. Reduced disposable incomes and shifting spending priorities directly impact travel, entertainment, and leisure activities. Inflationary pressures and geopolitical instability further constrain consumer confidence in discretionary spending. Additionally, rising operational costs for urban experience providers can limit innovation and service quality. Consequently, prolonged economic uncertainty may delay large-scale investments in cultural, recreational, and experiential infrastructure, affecting market momentum in the short to medium term.
Covid-19 Impact:
The COVID-19 pandemic severely disrupted the Urban Experience Economy Market, with lockdowns halting tourism, live events, and cultural gatherings. However, the crisis accelerated digital transformation across experiential sectors, leading to the rise of virtual tours, online festivals, and contactless engagement models. As restrictions eased, travelers increasingly sought open-air, wellness-oriented, and localized experiences. Moreover, cities began reimagining urban spaces for safer, more interactive experiences. Post-pandemic recovery emphasizes resilience, sustainability, and digital-physical hybrid formats shaping the next era of urban experiences.
The cultural & heritage experiences segment is expected to be the largest during the forecast period
The cultural & heritage experiences segment is expected to account for the largest market share during the forecast period, owing to rising global appreciation for authenticity, tradition, and storytelling in urban travel. Heritage tourism is being revitalized through digital interpretation, guided tours, and preservation programs. Governments and private sectors are investing in cultural districts, museums, and performing arts to attract diverse audiences. Furthermore, heritage festivals and immersive exhibitions enhance engagement, reinforcing this segment’s leadership in the urban experience landscape.
The AR/VR-enabled platforms segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the AR/VR-enabled platforms segment is predicted to witness the highest growth rate, reinforced by rapid technological adoption and demand for interactive urban experiences. Augmented and virtual reality tools are revolutionizing how visitors explore cities, enabling 3D visualization of historical sites, digital art exhibitions, and gamified city tours. Tech-driven personalization enhances user engagement and accessibility. As tourism becomes increasingly experience-oriented, AR/VR integration across cultural, entertainment, and retail spaces will fuel dynamic growth within this segment.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share, ascribed to rapid urbanization, thriving tourism economies, and large youth populations driving experiential spending. Major cities such as Tokyo, Bangkok, Singapore, and Seoul are emerging as experiential tourism hubs blending culture, gastronomy, and technology. Government initiatives promoting smart tourism and cultural revitalization further support growth. Moreover, rising disposable incomes and social media-driven travel aspirations amplify the region’s dominance in the global urban experience economy.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR associated with strong digital innovation, urban regeneration projects, and rising demand for immersive leisure experiences. U.S. and Canadian cities are integrating technology-driven storytelling, live entertainment, and community-based tourism models. Increasing investments in smart tourism infrastructure and hybrid cultural events are transforming urban engagement. Additionally, sustainability-focused tourism initiatives and partnerships between tech firms and cultural institutions are expected to further accelerate North America’s experiential market expansion.
Key players in the market
Some of the key players in Urban Experience Economy Market include Disney, Live Nation Entertainment, Inc., Cirque du Soleil Entertainment Group, Merlin Entertainments Group, Madame Tussauds, Nike, Inc., Estee Lauder Companies, Under Armour, Inc., Samsung Electronics, Apple Inc., Sony Corporation, Hard Rock International, Adidas AG, Chanel, LVMH Moët Hennessy Louis Vuitton, and Dior.
Key Developments:
In August 2025, Disney launched its “Disneyverse” immersive retail and entertainment concept in Tokyo, blending AR, themed merchandise, and live performances. The initiative targets Gen Z urban consumers seeking hybrid physical-digital experiences.
In July 2025, Live Nation Entertainment reported record Q2 revenue of $5.1B, driven by urban festivals and stadium tours. The company expanded its experiential footprint with new city-based concert residencies.
In April 2025, Merlin Entertainments launched “Urban Legends” at London Dungeon, integrating AR storytelling and interactive exhibits. The experience targets millennial and Gen Z tourists seeking immersive city attractions.
Experience Types Covered:
• Cultural & Heritage Experiences
• Entertainment & Events
• Adventure & Outdoor Activities
• Culinary & Gastronomic Tourism
• Art & Creative Experiences
• Digital & Immersive Experiences
Platform Types Covered:
• Offline Experience Venues
• Online Experience Platforms
• AR/VR-Enabled Platforms
• Hybrid (Phygital) Platforms
Revenue Models Covered:
• Ticketing & Entry Fees
• Membership & Subscription Plans
• Sponsorship & Brand Collaborations
• Advertising & Promotions
Applications Covered:
• Tourism & Hospitality
• Arts & Entertainment
• Retail & Lifestyle
• Education & Skill Development
End Users Covered:
• Millennials
• Gen Z
• Corporate Clients
• Tour Operators
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
According to McKinsey, cities are investing in immersive technologies like augmented reality to create unique retail and cultural attractions, driving tourism and local spending through enhanced, shareable urban experiences.
Market Dynamics:
Driver:
Growing urban tourism demand
The Urban Experience Economy Market is primarily driven by surging urban tourism demand as travelers increasingly seek immersive, culturally rich, and socially engaging experiences. Fueled by expanding middle-class populations, improved connectivity, and global exposure through digital platforms, urban destinations are evolving into experience-centric hubs. Millennials and Gen Z consumers prefer authentic and personalized urban adventures over traditional sightseeing. Additionally, rising investments in city branding, events, and creative districts are enhancing tourism appeal. Consequently, this trend accelerates demand across experiential economy verticals.
Restraint:
Infrastructure congestion
Infrastructure congestion remains a major restraint hindering the Urban Experience Economy Market’s scalability. Rapid urbanization and overcrowded city centers often strain transport systems, accommodation, and public amenities, reducing visitor satisfaction. The lack of efficient crowd management and zoning regulations further exacerbates these issues. Moreover, limited accessibility in heritage and entertainment zones can deter high-value tourism activities. As cities struggle to balance growth with livability, infrastructure bottlenecks continue to impede seamless experiential travel expansion in major urban centers.
Opportunity:
Smart city integration
Integration with smart city initiatives offers significant growth opportunities for the Urban Experience Economy Market. Digital technologies such as IoT, AI, and geospatial analytics are enabling real-time navigation, crowd control, and personalized visitor engagement. Smart infrastructure enhances connectivity among cultural, retail, and entertainment districts, enriching urban exploration. Furthermore, immersive technologies and data-driven planning support sustainable tourism and equitable resource utilization. As urban areas transition toward intelligent ecosystems, the synergy between tourism and smart city frameworks will drive transformative market advancements.
Threat:
Economic slowdown
Global and regional economic slowdowns pose substantial threats to the Urban Experience Economy Market. Reduced disposable incomes and shifting spending priorities directly impact travel, entertainment, and leisure activities. Inflationary pressures and geopolitical instability further constrain consumer confidence in discretionary spending. Additionally, rising operational costs for urban experience providers can limit innovation and service quality. Consequently, prolonged economic uncertainty may delay large-scale investments in cultural, recreational, and experiential infrastructure, affecting market momentum in the short to medium term.
Covid-19 Impact:
The COVID-19 pandemic severely disrupted the Urban Experience Economy Market, with lockdowns halting tourism, live events, and cultural gatherings. However, the crisis accelerated digital transformation across experiential sectors, leading to the rise of virtual tours, online festivals, and contactless engagement models. As restrictions eased, travelers increasingly sought open-air, wellness-oriented, and localized experiences. Moreover, cities began reimagining urban spaces for safer, more interactive experiences. Post-pandemic recovery emphasizes resilience, sustainability, and digital-physical hybrid formats shaping the next era of urban experiences.
The cultural & heritage experiences segment is expected to be the largest during the forecast period
The cultural & heritage experiences segment is expected to account for the largest market share during the forecast period, owing to rising global appreciation for authenticity, tradition, and storytelling in urban travel. Heritage tourism is being revitalized through digital interpretation, guided tours, and preservation programs. Governments and private sectors are investing in cultural districts, museums, and performing arts to attract diverse audiences. Furthermore, heritage festivals and immersive exhibitions enhance engagement, reinforcing this segment’s leadership in the urban experience landscape.
The AR/VR-enabled platforms segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the AR/VR-enabled platforms segment is predicted to witness the highest growth rate, reinforced by rapid technological adoption and demand for interactive urban experiences. Augmented and virtual reality tools are revolutionizing how visitors explore cities, enabling 3D visualization of historical sites, digital art exhibitions, and gamified city tours. Tech-driven personalization enhances user engagement and accessibility. As tourism becomes increasingly experience-oriented, AR/VR integration across cultural, entertainment, and retail spaces will fuel dynamic growth within this segment.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share, ascribed to rapid urbanization, thriving tourism economies, and large youth populations driving experiential spending. Major cities such as Tokyo, Bangkok, Singapore, and Seoul are emerging as experiential tourism hubs blending culture, gastronomy, and technology. Government initiatives promoting smart tourism and cultural revitalization further support growth. Moreover, rising disposable incomes and social media-driven travel aspirations amplify the region’s dominance in the global urban experience economy.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR associated with strong digital innovation, urban regeneration projects, and rising demand for immersive leisure experiences. U.S. and Canadian cities are integrating technology-driven storytelling, live entertainment, and community-based tourism models. Increasing investments in smart tourism infrastructure and hybrid cultural events are transforming urban engagement. Additionally, sustainability-focused tourism initiatives and partnerships between tech firms and cultural institutions are expected to further accelerate North America’s experiential market expansion.
Key players in the market
Some of the key players in Urban Experience Economy Market include Disney, Live Nation Entertainment, Inc., Cirque du Soleil Entertainment Group, Merlin Entertainments Group, Madame Tussauds, Nike, Inc., Estee Lauder Companies, Under Armour, Inc., Samsung Electronics, Apple Inc., Sony Corporation, Hard Rock International, Adidas AG, Chanel, LVMH Moët Hennessy Louis Vuitton, and Dior.
Key Developments:
In August 2025, Disney launched its “Disneyverse” immersive retail and entertainment concept in Tokyo, blending AR, themed merchandise, and live performances. The initiative targets Gen Z urban consumers seeking hybrid physical-digital experiences.
In July 2025, Live Nation Entertainment reported record Q2 revenue of $5.1B, driven by urban festivals and stadium tours. The company expanded its experiential footprint with new city-based concert residencies.
In April 2025, Merlin Entertainments launched “Urban Legends” at London Dungeon, integrating AR storytelling and interactive exhibits. The experience targets millennial and Gen Z tourists seeking immersive city attractions.
Experience Types Covered:
• Cultural & Heritage Experiences
• Entertainment & Events
• Adventure & Outdoor Activities
• Culinary & Gastronomic Tourism
• Art & Creative Experiences
• Digital & Immersive Experiences
Platform Types Covered:
• Offline Experience Venues
• Online Experience Platforms
• AR/VR-Enabled Platforms
• Hybrid (Phygital) Platforms
Revenue Models Covered:
• Ticketing & Entry Fees
• Membership & Subscription Plans
• Sponsorship & Brand Collaborations
• Advertising & Promotions
Applications Covered:
• Tourism & Hospitality
• Arts & Entertainment
• Retail & Lifestyle
• Education & Skill Development
End Users Covered:
• Millennials
• Gen Z
• Corporate Clients
• Tour Operators
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Table of Contents
200 Pages
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Application Analysis
- 3.7 End User Analysis
- 3.8 Emerging Markets
- 3.9 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Urban Experience Economy Market, By Experience Type
- 5.1 Introduction
- 5.2 Cultural & Heritage Experiences
- 5.3 Entertainment & Events
- 5.4 Adventure & Outdoor Activities
- 5.5 Culinary & Gastronomic Tourism
- 5.6 Art & Creative Experiences
- 5.7 Digital & Immersive Experiences
- 6 Global Urban Experience Economy Market, By Platform Type
- 6.1 Introduction
- 6.2 Offline Experience Venues
- 6.3 Online Experience Platforms
- 6.4 AR/VR-Enabled Platforms
- 6.5 Hybrid Platforms
- 7 Global Urban Experience Economy Market, By Revenue Model
- 7.1 Introduction
- 7.2 Ticketing & Entry Fees
- 7.3 Membership & Subscription Plans
- 7.4 Sponsorship & Brand Collaborations
- 7.5 Advertising & Promotions
- 8 Global Urban Experience Economy Market, By Application
- 8.1 Introduction
- 8.2 Tourism & Hospitality
- 8.3 Arts & Entertainment
- 8.4 Retail & Lifestyle
- 8.5 Education & Skill Development
- 9 Global Urban Experience Economy Market, By End User
- 9.1 Introduction
- 9.2 Millennials
- 9.3 Gen Z
- 9.4 Corporate Clients
- 9.5 Tour Operators
- 10 Global Urban Experience Economy Market, By Geography
- 10.1 Introduction
- 10.2 North America
- 10.2.1 US
- 10.2.2 Canada
- 10.2.3 Mexico
- 10.3 Europe
- 10.3.1 Germany
- 10.3.2 UK
- 10.3.3 Italy
- 10.3.4 France
- 10.3.5 Spain
- 10.3.6 Rest of Europe
- 10.4 Asia Pacific
- 10.4.1 Japan
- 10.4.2 China
- 10.4.3 India
- 10.4.4 Australia
- 10.4.5 New Zealand
- 10.4.6 South Korea
- 10.4.7 Rest of Asia Pacific
- 10.5 South America
- 10.5.1 Argentina
- 10.5.2 Brazil
- 10.5.3 Chile
- 10.5.4 Rest of South America
- 10.6 Middle East & Africa
- 10.6.1 Saudi Arabia
- 10.6.2 UAE
- 10.6.3 Qatar
- 10.6.4 South Africa
- 10.6.5 Rest of Middle East & Africa
- 11 Key Developments
- 11.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 11.2 Acquisitions & Mergers
- 11.3 New Product Launch
- 11.4 Expansions
- 11.5 Other Key Strategies
- 12 Company Profiling
- 12.1 Disney
- 12.2 Live Nation Entertainment, Inc.
- 12.3 Cirque du Soleil Entertainment Group
- 12.4 Merlin Entertainments Group
- 12.5 Madame Tussauds
- 12.6 Nike, Inc.
- 12.7 Estee Lauder Companies
- 12.8 Under Armour, Inc.
- 12.9 Samsung Electronics
- 12.10 Apple Inc.
- 12.11 Sony Corporation
- 12.12 Hard Rock International
- 12.13 Adidas AG
- 12.14 Chanel
- 12.15 LVMH Moët Hennessy Louis Vuitton
- 12.16 Dior
- List of Tables
- Table 1 Global Urban Experience Economy Market Outlook, By Region (2024-2032) ($MN)
- Table 2 Global Urban Experience Economy Market Outlook, By Experience Type (2024-2032) ($MN)
- Table 3 Global Urban Experience Economy Market Outlook, By Cultural & Heritage Experiences (2024-2032) ($MN)
- Table 4 Global Urban Experience Economy Market Outlook, By Entertainment & Events (2024-2032) ($MN)
- Table 5 Global Urban Experience Economy Market Outlook, By Adventure & Outdoor Activities (2024-2032) ($MN)
- Table 6 Global Urban Experience Economy Market Outlook, By Culinary & Gastronomic Tourism (2024-2032) ($MN)
- Table 7 Global Urban Experience Economy Market Outlook, By Art & Creative Experiences (2024-2032) ($MN)
- Table 8 Global Urban Experience Economy Market Outlook, By Digital & Immersive Experiences (2024-2032) ($MN)
- Table 9 Global Urban Experience Economy Market Outlook, By Platform Type (2024-2032) ($MN)
- Table 10 Global Urban Experience Economy Market Outlook, By Offline Experience Venues (2024-2032) ($MN)
- Table 11 Global Urban Experience Economy Market Outlook, By Online Experience Platforms (2024-2032) ($MN)
- Table 12 Global Urban Experience Economy Market Outlook, By AR/VR-Enabled Platforms (2024-2032) ($MN)
- Table 13 Global Urban Experience Economy Market Outlook, By Hybrid (Phygital) Platforms (2024-2032) ($MN)
- Table 14 Global Urban Experience Economy Market Outlook, By Revenue Model (2024-2032) ($MN)
- Table 15 Global Urban Experience Economy Market Outlook, By Ticketing & Entry Fees (2024-2032) ($MN)
- Table 16 Global Urban Experience Economy Market Outlook, By Membership & Subscription Plans (2024-2032) ($MN)
- Table 17 Global Urban Experience Economy Market Outlook, By Sponsorship & Brand Collaborations (2024-2032) ($MN)
- Table 18 Global Urban Experience Economy Market Outlook, By Advertising & Promotions (2024-2032) ($MN)
- Table 19 Global Urban Experience Economy Market Outlook, By Application (2024-2032) ($MN)
- Table 20 Global Urban Experience Economy Market Outlook, By Tourism & Hospitality (2024-2032) ($MN)
- Table 21 Global Urban Experience Economy Market Outlook, By Arts & Entertainment (2024-2032) ($MN)
- Table 22 Global Urban Experience Economy Market Outlook, By Retail & Lifestyle (2024-2032) ($MN)
- Table 23 Global Urban Experience Economy Market Outlook, By Education & Skill Development (2024-2032) ($MN)
- Table 24 Global Urban Experience Economy Market Outlook, By End User (2024-2032) ($MN)
- Table 25 Global Urban Experience Economy Market Outlook, By Millennials (2024-2032) ($MN)
- Table 26 Global Urban Experience Economy Market Outlook, By Gen Z (2024-2032) ($MN)
- Table 27 Global Urban Experience Economy Market Outlook, By Corporate Clients (2024-2032) ($MN)
- Table 28 Global Urban Experience Economy Market Outlook, By Tour Operators (2024-2032) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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