Virtual Production Market Size & Share by Component (Technology/System, Services); Offering (Hardware, Software, Services); Type (Pre-Production, Production, Post-Production); End User (Movies, TV Series, Commercial Ads, E-Sports, Online Videos) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5716
  • Published Date: Feb 21, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Virtual Production Market size is expected to surpass USD 21 Billion by the end of 2036, growing at a CAGR of 16% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of virtual production was USD 3 Billion. With the ease of access to entertainment, the over-the-top (OTT) platform's virtual production business is projected to expand. The growth of over-the-top (OTT) spaces has been expedited by the capacity to stream an infinite library at any time. The entertainment sector has experienced changes as a result of the emergence of OTT platforms. 3.26 billion people watched over-the-top (OTT) videos in 2022; this number is expected to rise to 3.51 billion in 2023 and 4.22 billion by 2027, according to Statista.

In addition to these, with virtual production, filmmakers can explore and visualize digital scenarios with realistic virtual characters, three-dimensional graphics, and an interactive virtual background that changes in real time within the studio. Filmmakers can now use motion-captured actor movements to create virtual characters that can be previewed in real-time alongside live-action footage and virtual set extensions thanks to significant advancements in the field of virtual production over the years.


Virtual Production Market overview
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Virtual Production Sector: Growth Drivers and Challenges

Growth Drivers

  • Increasing Use of LED Wall Mechanisms to Promote Market Development- LED video walls match the camera's viewpoints and parallax with a dynamic backdrop during the filming process. Mass visual effects may be produced with real-time, low-cost real-scene productions owing to LED wall productions. Because of its updated technology, it facilitates set adjustments and changes for directors and filmmakers, increases team productivity, and gives performers a fully immersive experience.
    As a result, a number of businesses are using LED video walls to advance and modernize their solutions and provide their users and audiences with an immersive experience. Thus, in virtual film-making studios, traditional displays are replaced by sophisticated end-to-end systems. With the ability to create instantly transformable backgrounds that appear behind performers, such LED walls are revolutionizing the way that TV, movies, and streaming entertainment may be created.
  • Growing Adoption of Real-time Game Engines Contributes Significantly to Market Development- Teams may seamlessly and virtually integrate augmented reality with computer-generated imagery and footage captured on set by using real-time game engines like Unreal Engine.
    The current version of Unreal, Unreal Engine 5 (UE5), has made animation and video production easier with its technological advancements. As a result, gaming engines have played a significant role in democratizing advanced production techniques including in camera and pre-visualization effects. As a result, real-time game engines are being used in a wider range of applications, including gaming, film, and television shows. The most recent research indicates that there are 3.32 billion active video gamers globally.
  • Introduction of Cutting-Edge Technologies for Virtual Production- Filmmakers can now construct more complex computer graphic characters by utilizing facial-capture training data to turn images into real-time characters thanks to the development of modern technology in virtual production market.

In addition, it is anticipated that technologies pertaining to artificial intelligence and machine learning would improve the calibre of visual effects even more and streamline the three-dimensional model design process. Advanced visual effect software features are anticipated in the near future because to the expanding uses of artificial intelligence in content creation for action simulation, three-dimensional texturing, and post-process motion-capturing data.

Challenges

  • Insufficient Experience and Skill in the Workforce Could Stifle Market Growth- Production studios face personnel challenges due to a lack of proactive experience in the sector and the ongoing evolution of technology. Additionally, the business as a whole has historically been lacking in diversity when it comes to industry knowledge and lessons learned, creating a talent funnel problem when hiring applicants from a variety of backgrounds for virtual positions. Because of this, the majority of production companies and filmmakers search for workers in related sectors like gaming, animation, AR/VR, and the automotive industry. Additionally, the directors and producers are continuing to use conventional production techniques because of a shortage of skilled labour.
  • Deepfake regulations may have an effect on how virtual production technologies are used and distributed.
  • The difficulty facing the virtual production sector is figuring out how to provide filmmakers access to strong technologies without interfering with their tried-and-true methods.

Virtual Production Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 16%

Base Year Market Size (2023)

 ~ USD 3 Billion

Forecast Year Market Size (2036)

 ~ USD 21 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Virtual Production Segmentation

Offering (Hardware, Software, Services);

Based on offering, software segment in the virtual production market is predicted to hold largest revenue share of about 50% during the forecast period. Positive market growth is anticipated as a result of the growing use of computer-generated graphics and visual effects in motion pictures and commercials. The proliferation of different items in the gaming sector and the growing use of virtual production will also have a favourable effect on market growth. Global gaming population is predicted to reach 3.32 billion by 2024. Additionally, by combining cutting-edge VFX capabilities, virtual production software solutions are making it possible to create interesting video through continual technological improvements. Furthermore, it is anticipated that the increasing use of deep learning and machine learning in virtual production solutions would spur the creation of software with additional features that offer value, which will support the segment's expansion.

End User (Movies, TV Series, Commercial Ads, E-Sports, Online Videos)

Based on end user, movies segment in the virtual production market is projected to hold largest revenue share of about 30% during the forecast period. The expansion of this market is driven by the significant rise in film production budgets as well as the widespread use of visual effects in Hollywood and other local studios. Over the course of the forecast year, the growing trend of moving movie broadcasts from theatres and multiplexes to over-the-top (OTT) platforms will likely propel the segment's growth as it enables filmmakers to reach a wider audience.

Our in-depth analysis of the global virtual production market includes the following segments:

          Component

  • Technology/System
  • Services

          Offering

  • Hardware
  • Software
  • Services

          Type

  • Pre-Production
  • Production
  • Post-Production

          End User

  • Movies
  • TV Series
  • Commercial Ads
  • E-Sports
  • Online Videos)

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Virtual Production Industry - Regional Synopsis

North American Market Forecast

Virtual production market in North America region is anticipated to hold largest revenue share of about 30% during the forecast period. North America is leading the way, especially in the entertainment industries of esports, TV shows, and filmmaking/movies. The film business in North America uses technology to provide visually appealing content that improves viewer engagement and storytelling. This is explained by the widespread use of virtual production in the area's top film studios, such as Walt Disney Studios, Viacom CBS, NBC Universal, and Warner Media. For instance, following the outbreak, esports experienced a 14% surge in the number of users downloading Twitch for the first time a live broadcasting platform for gamers. The growth of the regional market is further aided by the large expenditures made by local businesses in R&D to create cutting-edge virtual production software.

APAC Market Statistics

Virtual production market in Asia Pacific region is attributed to hold second largest market revenue share of about 27% during the forecast period. Film studios in the area market are implementing virtual production technologies at one of the highest rates. South Korea, Japan, Australia, China, and India are the main nations fuelling the demand for virtual production solutions. For example, in May 2022, South Korean broadcasters and cinematographers will have access to virtual production and augmented reality thanks to a partnership between U.S. software development business GMS International and London-based media production company Mo-Sys Engineering Ltd.

Research Nester
Virtual Production Market size
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Companies Dominating the Virtual Production Landscape

top-features-companies
    • Samsung Electronics
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Arashi Vision Inc.
    • Studio Fares
    • HTC Corporation
    • Autodesk, Inc.
    • ARRI AG
    • Mo-Sys Engineering Ltd.
    • Epic Games, Inc.
    • Adobe Inc.
    • NVIDIA Corporation

In-the-news

In The News

  • June 2023: At the premier audio-visual trade show in North America, InfoComm 2023, held in Orlando, Florida, Samsung Electronics unveiled its newest line of digital signage. Samsung unveiled The Wall, a dedicated display set for improved storytelling and audience interaction, at the event.
  • January 2023: The largest projector-based production wall in Europe, EEN, was unveiled by Swedish studio Fares. The second-biggest soundstage in Scandinavia, Studio Fares is located in Trollhattam and spans 1,100 square meters. This project represents a significant step forward for production facilities, demonstrating how state-of-the-art technology can be integrated for better corporate operations and innovative events.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5716
  • Published Date: Feb 21, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The ease of access to entertainment and the over-the-top (OTT) platforms are the major factors driving the growth of the virtual production market.

The market size of virtual production is anticipated to attain a CAGR of 16% over the forecast period, i.e., 2024 - 2036.

The major players in the market are Arashi Vision Inc., Studio Fares, HTC Corporation, Autodesk, Inc., ARRI AG, Mo-Sys Engineering Ltd., Epic Games, Inc., Adobe Inc., NVIDIA Corporation, and others.

The software segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Virtual Production Market Report Scope
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