Video Background Replacement Artificial Intelligence (AI) Market Report 2026

The video background replacement artificial intelligence (AI) market size has grown exponentially in recent years. It will grow from $1.77 billion in 2025 to $2.16 billion in 2026 at a compound annual growth rate (CAGR) of 21.6%. The growth in the historic period can be attributed to growth of video conferencing platforms, increasing demand for remote work tools, rising social media video content consumption, advancements in computer vision algorithms, expansion of cloud computing infrastructure.

The video background replacement artificial intelligence (AI) market size is expected to see exponential growth in the next few years. It will grow to $4.67 billion in 2030 at a compound annual growth rate (CAGR) of 21.3%. The growth in the forecast period can be attributed to integration of generative AI in video tools, growing demand for immersive digital experiences, increasing enterprise adoption of virtual production, rising investments in creator economy platforms, demand for cost-effective video production solutions. Major trends in the forecast period include real-time background replacement accuracy improvement, green-screen-free virtual production adoption, creator economy and influencer content growth, remote collaboration and virtual communication enablement, automated video editing workflow integration.

The growing demand for video content creation is expected to drive the expansion of the video background replacement artificial intelligence (AI) market in the coming years. Video content creation involves producing visual media, including recording, editing, and publishing videos, to convey information, tell stories, or engage audiences across digital platforms. This rise in video content creation is driven by the increasing need for engaging and easily consumable digital media, as more individuals and businesses leverage videos to communicate messages effectively and enhance online visibility. Video background replacement artificial intelligence (AI) supports video content creation by enabling creators to effortlessly change or remove backgrounds, simplify editing, and generate professional-quality videos without requiring complex studio setups. For example, in December 2024, the Australian Communications and Media Authority (ACMA), an Australia-based government agency, reported that 91% of Australians used an online service - either paid or free - to watch video content, up from 83% in 2023. YouTube remained the most popular online video platform, with 57% of Australians viewing content on the service during a typical week. Consequently, the rising demand for video content creation is fueling the growth of the video background replacement artificial intelligence (AI) market.

Key companies operating in the video background replacement artificial intelligence (AI) market are focusing on real-time multi-talent extraction to enhance live production workflows, enable smooth integration of virtual graphics, and improve broadcast and streaming quality. Real-time multi-talent extraction is an AI-driven process that isolates multiple on-screen subjects simultaneously in live video streams, enabling seamless integration with virtual graphics and environments. For instance, in November 2024, Pixotope Technologies AS, a Norway-based software company, launched Pixotope Reveal, an AI-powered background segmentation tool that enables real-time extraction of on-screen talent without using green screens. This innovation allows broadcasters to integrate two-dimensional (2D) and three-dimensional (3D) graphics into live productions, enhancing broadcast augmented reality (AR) experiences and enabling natural interaction between presenters and virtual graphics. The launch represents a key advancement in AI-driven virtual studio technology, offering faster workflows and higher-quality visual output for live news and sports broadcasting.

In June 2023, Banuba Limited, a UAE-based augmented reality (AR) company, partnered with Agora Inc. to integrate AI background replacement into its video platform. Through this partnership, Banuba and Agora aim to combine Banuba’s AR and AI-powered virtual background features with Agora’s real-time video communication platform for iOS, Android, and Web, streamlining implementation for customers. Agora Inc. is a US-based real-time engagement platform-as-a-service company.

Major companies operating in the video background replacement artificial intelligence (AI) market are Amazon Web Services Inc., Apple Inc., Google LLC, Microsoft Corporation, Meta Platforms Inc., NVIDIA Corporation, Adobe Inc., Zoom Video Communications Inc., Synthesia Ltd., CyberLink Corp., Perfect Corp., VEED Ltd, Descript Inc., Runway AI Inc., Banuba Limited, Reincubate Ltd, Lumen5 Technologies Ltd., InVideo, Pictory Corp., XSplit Broadcaster.

North America was the largest region in the video background replacement artificial intelligence (AI) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the video background replacement artificial intelligence (AI) market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the video background replacement artificial intelligence (AI) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The video background replacement artificial intelligence (AI) market consists of revenues earned by entities by providing services such as artificial intelligence (AI)-based background detection, real-time visual editing, virtual background generation, and integration of background effects. The market value includes the value of related goods sold by the service provider or included within the service offering. The video background replacement artificial intelligence (AI) market also includes sales of edge AI devices, cameras, video capture cards, and webcams. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

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