The global virtual production market size was valued at USD 539.21 billion in 2022 and is projected to reach USD 1926.77 billion by 2031, expanding at a CAGR of around 15.2% during the forecast period, 2023 – 2031. The growth of the market is attributed to rising demand for visual effects (VFX) in movie production studios across the globe and increasing application of virtual production in commercial ads.
Virtual production helps filmmakers to bilaterally visualize and explore digital scenes such as three-dimensional graphics, realistic virtual characters, and real-time interactive background environment within the studio. Recent technological advancements in the field of virtual production enables filmmakers to convey the motion-captured movement of an actor similarly to virtual characters.
It is then previewed in real-time with live-action footage and virtual set extension elements. These solutions help filmmakers communicate and convey their innovative ideas in new ways. LED video walls display computer-generated graphics in the background and allow filmmakers to capture real-time visual effects. It provides a lifelike background visual, which replicates a real shoot location and helps in saving time and travel costs of the entire crew.
For instance, the Mandalorian, a TV series, used semicircular LED video walls for domestic shoots. Furthermore, they used virtual production technology for the overall production and eliminated the need for on-location shoots. Web series and television series such as The Last Kingdom, Game of Thrones, Black Mirror, and Outlander used visual graphics to create historical and epic scenes.
VFX helps in creating high-quality video content with artificial scenes and realistic graphic characters, which enriches the viewing experience. Additionally, virtual production technology aids in reducing video production costs by eradicating the need to shoot at expensive sites. With the advancement in technologies of virtual production, filmmakers produce advanced computer graphic characters by using facial-capture training data, which transforms visuals into real-time characters.
The most recent example of advanced visual effects is transformation of actors into various characters in movies. For instance, the transformation of actor Josh Brolin’s face into Thanos in Marvel Avengers is an example of advanced visual effects.
Market Drivers, Restraints, Trends, and Opportunities
Rising adoption of the LED video wall technology is expected to boost the implementation of virtual production process across the entertainment and media sectors.
Growing consumer inclination towards web series having visual effects and three-dimensional graphic environments motivates video-makers to execute virtual production technology in their video content. This is expected to boost the virtual production market during the forecast period.
Rising applications of artificial intelligence in content creation for three-dimensional texturing, action stimulation, and post-process motion-capturing data are anticipated to boost the development of the advanced visual effect software during the forecast period.
Increasing use of virtual production in advertisements and rising demand for visual effects (VFX) in global production studios are expected to spur the growth of the virtual production market during the forecast period.
Artificial Intelligence (AI) and machine learning features are projected to improve the quality of visual effects and simplify the design process of a three-dimensional model. This is expected to further boost the market during the forecast period.
The emergence of COVID-19 pandemic adversely affected the global virtual production market. Restrictions on on-site shooting and production restrains the market growth.
Scope of the Report
The report on the virtual production market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Virtual Production Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Hardware, Software and Services), Types (Pre-Production, Production, and Post-Production) and End-users (Movies, TV Series, Commercial Ads, Online Videos and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
360Rize, Adobe, Arashi Vision Inc. (Insta 360), Autodesk Inc., BORIS FX, INC, Epic Games, Inc., HTC Corporation (VivePort), HumanEyes Technologies, Mo-Sys Engineering Ltd., NVIDIA Corporation., Panocam3d.com, Pixar (The Walt Disney Company), Side Effects Software Inc (SideFX), Technicolor, and Vicon Motion Systems Ltd.
Market Segment Insights
Software segment expected to represent a considerable market share.
On the basis of components, the market is segmented into hardware, software, and services. The software segment is expected to represent a considerable market share during the forecast period. The growth of the segment is attributed to growing implementation of visual effects and computer-generated graphics in commercial advertisements and movies.
Additionally, recent technological advancements in virtual production software solutions enable development of attractive content through implementation of advanced VFX features. Incorporation of machine learning and deep learning in virtual production solutions is projected to drive the segment during the forecast period.
The hardware segment is expected to expand at a healthy CAGR during the forecast period. Increasing number of LED video wall screens for real-time background visuals in in-house shoots is expected to drive the segment. Rising use of virtual production technology in TV shows and film studios is projected to fuel the demand for motion capture workstations, virtual camera systems, and simulation cameras during the forecast period.
Growing consumer preference for three-dimensional design and realistic virtual characters for video games and movies is driving the demand for computer graphics cards.
The service segment is expected to expand at a CAGR of 17.5% during the forecast period. Lack of trained professionals in VFX and virtual production technology encourages the film studio and moviemakers to hire professional agencies for their services, which is boosting the demand for the virtual production service segment.
Additionally, services are required during production and post-production. Increasing number of new videos on broadcasting platforms is expected to boost the service segment during the forecast period
Post-production segment projected to constitute a large market share
Based on types, the market is segmented into pre-production, production, and post-production. The post-production segment is projected to constitute a large market share during the forecast period. Editing and collaborating post-shoot videos with VFX and graphics is boosting the segment.
Additionally, constant growth in video production projects on various video platforms across the globe is boosting the segment. Increasing number of video broadcasters across the internet is expected to create various opportunities for the segment growth.
The production segment is expected to expand at a CAGR of 17.6% during the forecast period. High-quality visual graphics and motion captures imagery character in a three-dimensional environment, which is propelling the segment. A virtual camera enables video makers to portray an imagery character’s action by imitating a real actor’s movements.
The scene is simultaneously projected in a realistic graphic environment created through a live LED wall in the background or computer. Depiction of visual graphics and imagery characters through motion capture is gaining significant importance and is expected to positively affect the global virtual production market during the forecast period.
Movies segment expected to account for a considerable market share
On the basis of end-users, the market is divided into movies, TV series, commercial ads, online videos, and others. The movies segment is expected to account for a considerable market share during the forecast period. A significant rise in the budget of movie production and increasing usage of VFX in Hollywood and other movie studios is expected to boost the segment.
Shift of movie broadcast from cinema halls and multiplexes to Over the Top (OTT) platforms is encouraging filmmakers to reach a large number of audience. This is anticipated to fuel the segment during the forecast period.
The television segment is estimated to expand at a CAGR of 17.1% during the forecast period. Increasing adoption of television sets in emerging economies is driving the television segment. Additionally, growing penetration of smart television sets with advanced technological features such as interactive web and integrated internet enables users to access the internet on these devices.
Market in North America anticipated to constitute a significant revenue share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is anticipated to constitute a significant revenue share during the forecast period. Increasing application of virtual production in film studios such as NBC Universal, Viacom CBS, Warner Media, and Walt Disney Studios is expected to fuel the segment during the forecast period.
Additionally, companies in this region are heavily investing in R&D activities to develop advanced virtual production software solutions. For instance, in June 2020, Epic Games, Inc. enhanced its paly station software, Unreal Engine 4.25, and introduced an upgraded version of Unreal Engine 5. It is a VFX software used for designing, editing, and pre-visualizing in a real-time environment.
Moreover, the growing penetration of visual effects in sporting events and commercial ads is expected to drive the virtual production market. The market in Asia Pacific is projected to expand at a CAGR of 17% during the forecast period. Growing adoption of virtual production technology in film studios of emerging economies such as China, Australia, India, Japan, and South Korea is driving the demand for virtual production solutions.
Growing consumer inclination towards online video streaming and on-demand video content across the region is expected to positively affect the market growth. Furthermore, technologically advanced filmmaking solutions were initially implemented in the film-making industries in this region.
The global virtual production market has been segmented on the basis of
- TV Series
- Commercial Ads
- Online Videos
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Arashi Vision Inc. (Insta 360)
- Autodesk Inc.
- BORIS FX, INC
- Epic Games, Inc.
- HTC Corporation (VivePort)
- HumanEyes Technologies
- Mo-Sys Engineering Ltd.
- NVIDIA Corporation.
- Pixar (The Walt Disney Company)
- Side Effects Software Inc (SideFX)
- Vicon Motion Systems Ltd.
Some of the key players in the global virtual production market are 360Rize, Adobe, Arashi Vision Inc. (Insta 360), Autodesk Inc., BORIS FX, INC, Epic Games, Inc., HTC Corporation (VivePort), HumanEyes Technologies, Mo-Sys Engineering Ltd., NVIDIA Corporation., Panocam3d.com, Pixar (The Walt Disney Company), Side Effects Software Inc (SideFX), Technicolor, and Vicon Motion Systems Ltd.
Industry participants are focusing on several business strategies such as mergers & acquisitions and strategic partnerships in recent years. For instance, in November 2020, Epic Games Inc. acquired Quixel, that makes three-dimensional models on the basis of high-definition photography. Epic Games Inc. aims to enable access to Quixel’s existing library of models to unreal engine users.