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.
Growth Drivers
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
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 |
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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 |
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Offering |
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Type |
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End User |
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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.
Author Credits: Abhishek Verma
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