Virtual Production Global Market Report 2024

The virtual production market size has grown rapidly in recent years. It will grow from $2.51 billion in 2023 to $2.92 billion in 2024 at a compound annual growth rate (CAGR) of 16.6%. The growth in the historic period can be credited to various factors, including the increased utilization of virtual production within the film industry, the expansion of the gaming sector, the integration of machine learning and deep learning technologies into virtual production processes, and the rising demand for enhanced realism in visual content.

The virtual production market size is expected to see rapid growth in the next few years. It will grow to $5.6 billion in 2028 at a compound annual growth rate (CAGR) of 17.7%. Anticipated growth in the forecast period can be linked to several factors, including the heightened demand for visual effects and computer-generated graphics, the increased utilization of virtual production in live events and concerts, the adoption of virtual production techniques in the automotive and aerospace industries, amplified content creation across various sectors, and the proliferation of streaming platforms. Notably, major trends expected during this period encompass technological advancements, the development of new virtual production solutions and technologies, the integration of artificial intelligence (AI) and machine learning (ML), as well as the application of blockchain in content creation processes.

The surge in the virtual production sector can be attributed to the escalating global demand for visual effects (VFX) in movie-making. VFX represents a significant portion of film budgets and is anticipated to substantially grow in future productions. In August 2022, reports from Livemint indicated that VFX currently accounts for 10-15% of an Indian movie's budget and is projected to rise to 30-35% in upcoming years. Similarly, in October 2020, data from the Vancouver Economic Commission revealed that the B.C. film, television, visual effects, and animation industry reached a spending milestone of over $4.1 billion in 2019, with more than $3.1 billion allocated to physical production, highlighting a robust post-production and animation sector. This escalating demand for visual effects in film production is a driving force behind the burgeoning virtual production market.

The burgeoning gaming industry is expected to drive the growth of the Virtual Production market. This industry, encompassing game creation, development, and distribution, benefits from Virtual Production's enhancement of visual realism and interactivity. In February 2022, Australia's Department of Foreign Affairs and Trade highlighted the country's growing gaming sector, contributing $226.5 million in revenue in 2021, with 83% stemming from overseas markets. This expansion within the gaming industry serves as a catalyst for the Virtual Production market's growth.

Technological advancements drive growth in the virtual production market. For instance, in September 2023, Samsung Electronics launched "Wall for Virtual Production." This innovation offers creators an expansive and immersive workspace for collaboration within a virtual environment, amplifying the virtual production experience.

Major players in the virtual production sector are intensifying their focus on introducing groundbreaking products such as microLED displays to gain a competitive edge. LG Corporation, a South Korea-based consumer electronics company, introduced the LG Magnit in May 2023, a microLED display tailored for virtual production studios and extended-reality (XR) stages. This cutting-edge display technology delivers deep blacks and vibrant, natural colors, catering to immersive visual experiences. It seamlessly integrates with monitors, cameras, camera trackers, and production computers, facilitating the seamless blending of virtual and live-action elements. The LG Magnit offers versatility and customization options for large-screen configurations, solidifying its role in the market.

In November 2021, Netflix, the US-based subscription streaming service and production company, acquired Scanline VFX. This undisclosed deal marks Netflix's entry into controlling a major player in the special effects industry. Scanline VFX operates in the realm of virtual production and is headquartered in the US.

Major companies operating in the virtual production market report are Sony Group Corporation, NVIDIA Corporation, Adobe Inc., Epic Games Inc., Autodesk Inc., Technicolor SA, Arashi Vision Inc., Unity Software Inc., Pixar Animation Studios, ARRI Aktiengesellschaft, Double Negative Visual Effects, Perforce Software Inc., HTC Corporation, Mo-Sys Engineering Ltd., The Third Floor Inc., FuseFX Inc., Vicon Motion Systems Ltd., SideFX, Pixotope Technologies AG, SolidAnim Ltd., TILTLABS Inc., Fabric Engine Inc., HumanEyes Technologies Ltd., Lightcraft Technology Ltd., 360Rize Inc., 80six Ltd., Zero Density Ltd., Boris FX Inc., TREE Digital Studio Inc., VIVE Mars CamTrack, Panocam3d.com, Wcta Fx Ltd., Golaem, MocapX Inc.

North America was the largest region in the virtual production market share in 2023. The regions covered in the virtual production market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the virtual production market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Virtual production encompasses three main phases: pre-production, production, and post-production. Production involves preparing content for public presentation. This domain offers hardware, software, and services utilized across various mediums such as movies, TV series, commercial advertisements, online videos, and other visual media.

The virtual production market research report is one of a series of new reports that provides virtual production market statistics, including virtual production industry global market size, regional shares, competitors with a virtual production market share, detailed virtual production market segments, market trends and opportunities, and any further data you may need to thrive in the virtual production industry. This virtual production market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The virtual production market includes revenues earned by entities by providing virtual production solutions such as set-scanning and digitalization, visualization, performance capture, on-set visualization, and in-camera visual effects (ICVFX). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.