Virtual Production Market by Components (Hardware, Software, and Services), Types (Pre-Production, Production, and Post-Production), End-users (Movies, TV Series, Commercial Ads, Online Videos, and Others) and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021–2028
The global virtual production market size was valued at 1260.3 million and is projected to register a CAGR of 15.2% during the forecast period, 2021–2028. 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.
| Attributes | Details |
| Report Title | Virtual Production Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
| Base Year | 2020 |
| Historic Data | 2018–2019 |
| Forecast Period | 2021–2028 |
| Segmentation | Components (Hardware, Software and Services), Types (Pre-Production, Production, and Post-Production) and End-users (Movies, TV Series, Commercial Ads, Online Videos and Others) |
| Regional Scope | Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
| Report Coverage | 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.
Segments
Segments Covered in the ReportThe global virtual production market has been segmented on the basis of
Components
- Hardware
- Software
- Services
- Pre-Production
- Production
- Post-Production
- Movies
- TV Series
- Commercial Ads
- Online Videos
- Others
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
- 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
- Vicon Motion Systems Ltd.
Competitive Landscape
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.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Virtual Production Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Virtual Production Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Virtual Production Market - Supply Chain
4.5. Global Virtual Production Market Forecast
4.5.1. Virtual Production Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Virtual Production Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Virtual Production Market Absolute $ Opportunity
5. Global Virtual Production Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Virtual Production Market Size and Volume Forecast by Types
5.3.1. Pre-Production
5.3.2. Production
5.3.3. Post-Production
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Virtual Production Market Analysis and Forecast by End Users
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by End Users
6.2.2. Y-o-Y Growth Projections by End Users
6.3. Virtual Production Market Size and Volume Forecast by End Users
6.3.1. Movies
6.3.2. TV Series
6.3.3. Commercial Ads
6.3.4. Online Videos
6.3.5. Others
6.4. Absolute $ Opportunity Assessment by End Users
6.5. Market Attractiveness/Growth Potential Analysis by End Users
7. Global Virtual Production Market Analysis and Forecast by Region
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Region
7.2.2. Y-o-Y Growth Projections by Region
7.3. Virtual Production Market Size and Volume Forecast by Region
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa (MEA)
7.4. Absolute $ Opportunity Assessment by Region
7.5. Market Attractiveness/Growth Potential Analysis by Region
7.6. Global Virtual Production Demand Share Forecast, 2019-2026
8. North America Virtual Production Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.2. North America Virtual Production Market Size and Volume Forecast by Country
8.2.1. U.S.
8.2.2. Canada
8.3. Absolute $ Opportunity Assessment by Country
8.4. North America Virtual Production Market Size and Volume Forecast by Types
8.4.1. Pre-Production
8.4.2. Production
8.4.3. Post-Production
8.5. Basis Point Share (BPS) Analysis by Types
8.6. Y-o-Y Growth Projections by Types
8.7. North America Virtual Production Market Size and Volume Forecast by End Users
8.7.1. Movies
8.7.2. TV Series
8.7.3. Commercial Ads
8.7.4. Online Videos
8.7.5. Others
8.8. Basis Point Share (BPS) Analysis by End Users
8.9. Y-o-Y Growth Projections by End Users
8.10. Market Attractiveness/Growth Potential Analysis
8.10.1. By Country
8.10.2. By Product Type
8.10.3. By Application
8.11. North America Virtual Production Demand Share Forecast, 2019-2026
9. Latin America Virtual Production Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Latin America Average Pricing Analysis
9.2. Latin America Virtual Production Market Size and Volume Forecast by Country
9.2.1. Brazil
9.2.2. Mexico
9.2.3. Rest of Latin America
9.3. Absolute $ Opportunity Assessment by Country
9.4. Latin America Virtual Production Market Size and Volume Forecast by Types
9.4.1. Pre-Production
9.4.2. Production
9.4.3. Post-Production
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. Latin America Virtual Production Market Size and Volume Forecast by End Users
9.7.1. Movies
9.7.2. TV Series
9.7.3. Commercial Ads
9.7.4. Online Videos
9.7.5. Others
9.8. Basis Point Share (BPS) Analysis by End Users
9.9. Y-o-Y Growth Projections by End Users
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.11. Latin America Virtual Production Demand Share Forecast, 2019-2026
10. Europe Virtual Production Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Europe Average Pricing Analysis
10.2. Europe Virtual Production Market Size and Volume Forecast by Country
10.2.1. Germany
10.2.2. France
10.2.3. Italy
10.2.4. U.K.
10.2.5. Spain
10.2.6. Russia
10.2.7. Rest of Europe
10.3. Absolute $ Opportunity Assessment by Country
10.4. Europe Virtual Production Market Size and Volume Forecast by Types
10.4.1. Pre-Production
10.4.2. Production
10.4.3. Post-Production
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Europe Virtual Production Market Size and Volume Forecast by End Users
10.7.1. Movies
10.7.2. TV Series
10.7.3. Commercial Ads
10.7.4. Online Videos
10.7.5. Others
10.8. Basis Point Share (BPS) Analysis by End Users
10.9. Y-o-Y Growth Projections by End Users
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.11. Europe Virtual Production Demand Share Forecast, 2019-2026
11. Asia Pacific Virtual Production Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Asia Pacific Average Pricing Analysis
11.2. Asia Pacific Virtual Production Market Size and Volume Forecast by Country
11.2.1. China
11.2.2. Japan
11.2.3. South Korea
11.2.4. India
11.2.5. Australia
11.2.6. Rest of Asia Pacific (APAC)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Asia Pacific Virtual Production Market Size and Volume Forecast by Types
11.4.1. Pre-Production
11.4.2. Production
11.4.3. Post-Production
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Asia Pacific Virtual Production Market Size and Volume Forecast by End Users
11.7.1. Movies
11.7.2. TV Series
11.7.3. Commercial Ads
11.7.4. Online Videos
11.7.5. Others
11.8. Basis Point Share (BPS) Analysis by End Users
11.9. Y-o-Y Growth Projections by End Users
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.11. Asia Pacific Virtual Production Demand Share Forecast, 2019-2026
12. Middle East & Africa Virtual Production Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Middle East & Africa Average Pricing Analysis
12.2. Middle East & Africa Virtual Production Market Size and Volume Forecast by Country
12.2.1. Saudi Arabia
12.2.2. South Africa
12.2.3. UAE
12.2.4. Rest of Middle East & Africa (MEA)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Middle East & Africa Virtual Production Market Size and Volume Forecast by Types
12.4.1. Pre-Production
12.4.2. Production
12.4.3. Post-Production
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Middle East & Africa Virtual Production Market Size and Volume Forecast by End Users
12.7.1. Movies
12.7.2. TV Series
12.7.3. Commercial Ads
12.7.4. Online Videos
12.7.5. Others
12.8. Basis Point Share (BPS) Analysis by End Users
12.9. Y-o-Y Growth Projections by End Users
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.11. Middle East & Africa Virtual Production Demand Share Forecast, 2019-2026
13. Competition Landscape
13.1. Global Virtual Production Market: Market Share Analysis
13.2. Virtual Production Distributors and Customers
13.3. Virtual Production Market: Competitive Dashboard
13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
13.4.1. 360Rize
13.4.2. Adobe
13.4.3. Arashi Vision Inc. (Insta 360)
13.4.4. Autodesk Inc.
13.4.5. BORIS FX, INC
13.4.6. Epic Games, Inc.
13.4.7. HTC Corporation (VivePort)
13.4.8. HumanEyes Technologies
13.4.9. Mo-Sys Engineering Ltd.
13.4.10. NVIDIA Corporation.
The global virtual production market has been segmented on the basis of
Components
- Hardware
- Software
- Services
- Pre-Production
- Production
- Post-Production
- Movies
- TV Series
- Commercial Ads
- Online Videos
- Others
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
- 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
- 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.
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