Virtual Production Market

Global Virtual Production Market Size (2024 to 2029)

The global virtual production market is expected to reach USD 3.57 billion in 2024 and USD 6.99 billion by 2029, growing at a CAGR of 14.4% during the forecast period.

Virtual production allows filmmakers to interactively view and explore digital scenes such as lifelike virtual characters, 3D graphics, and a real-time interactive virtual background environment in the studio. Great advances in the field of virtual production over the years have led to the introduction of solutions that allow filmmakers to transfer motion captured by an actor's movement to virtual characters, which are then previewed in real time, in combination with the live action. images and extension elements of the virtual scene. These solutions help filmmakers plan and communicate their creative ideas in new and more intuitive ways.

Global Virtual Production Market Drivers:

The increasing popularity of virtual production in the media and entertainment industry, combined with its capabilities to create high-definition images and virtual environments in real time, is the key driver for the growth of the market. This technology enables filmmakers to reduce the demand for production crews and crew members on set by integrating virtual background environments with live action footage. This enables a significant reduction in video production costs. In addition, technological advances in virtual production help broadcasters to improve their operational efficiency with less physical presence of technicians in the broadcast room.

Factors such as operating a three-dimensional environment have increased companies' focus on developing compact and comfortable virtual gaming devices, and constant technological innovation in virtual production platforms, such as audio. 3D, unconnected VR headsets, and cloud scalability are expected to drive market growth through gaming applications. In addition, the introduction of an immersive experience enables 360 ° views of graphical content and a new level of game interaction, allowing players to control and modify the game environment through their senses. Therefore, the increased application of virtual production technology in games is likely to drive market growth.

The software segment accounted for the largest market share of nearly 42% in 2019 and is supposed to maintain its dominance during the forecast period. The hardware segment is expected to grow at a significant rate and is estimated to occupy the second position in terms of market revenue during the conjecture period. This can be attributed to the dramatic increase in the number of LED video wall displays with real-time background image required for indoor shooting.

Another trend in the film industry that improves the quality of production is the use of 4K. Film production units are increasingly using 4K technology to produce high quality content and allow editorial and visual effects departments to improvise without losing information. 4K technology refers to content and screens with a resolution of 4096 x 2160. 4K resolution in film production provides quality images with higher resolution and improvised product quality than previous (HD) versions. TV series, feature films, independent films, natural history, and music programming currently use 4K technology in production. Short commercials of a relatively high budget nature are also filmed with 4K cameras. However, these movies are downgraded from 4K to HD upon delivery to meet the availability of 4K displays in homes and theatres. Additionally, high bandwidth and storage requirements had contributed to minimal penetration of 4K technology in the film and video industry.

Impact COVID-19 on the global virtual production market:

As the world becomes more and more virtual by the day and especially during the lockdowns of Coronavirus last year, analysis of the film industry also shows filmmakers using virtual production to imagine the film before it designed to increase the complex action and visual effects. For example, in “Solo: A Star Wars Story,” the filmmakers used virtual cameras to create realistic camera movements in space battles.

GLOBAL VIRTUAL PRODUCTION MARKET REPORT COVERAGE:

This research report on the global virtual production market has been segmented and sub-segmented based on the component, type, end user, and region.

Global Virtual Production Market - By Component:

• Material

• Software

• Service features

In terms of components, the software segment is supposed to grow at a significant rate due to the integration of artificial intelligence. The inclusion is likely to improve animation performance and graphics quality.

Global Virtual Production Market - By Type:

• Preproduction

• Production

• Post-production

Global Virtual Production Market – By End User:

• Film

• TV Series

• Commercial Announcements

• Online Videos

• Others

In terms of end users, the motion picture segment is expected to generate a significant amount of revenue to the market during the forecast period. The growth can be attributed to the growing demand for visual effects and a three-dimensional model in movies.

Global Virtual Production Market – By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus

Based on the region, North America accounted for the dominant portion in the worldwide virtual production market, followed by Asia Pacific and Europe. The market is likely to expand with the rising budget in movies and TV series around the world.

KEY MARKET PLAYERS:

The main players in the global virtual production market include 360Rize, Adobe, Arashi Vision Inc. (Insta 360), Autodesk Inc, BORIS FX, INC, Epic Games, Inc., 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.

RECENT DEVELOPMENTS:

• In June 2020, Epic Games, Inc. updated its Play Station software, Unreal Engine 4.25, and introduced an advanced version of Unreal Engine 5. Unreal Engine is visual effects software that can be used to view, design, and modify visual effects in a real-time environment.

• In November 2020, Epic Games Inc. acquired Quixel, a photogrammetry asset library company that makes three-dimensional models based on high-definition photographs.

• March 2020, Epic Games Inc. acquired Cubic Motion, a provider of highly detailed digital facial animations for movies and video games.

• In March 2020, Sky Sports rolled out a virtual production suite, which enabled its teams to create content and deliver it remotely.