Virtual Production Industry Overview
The global virtual production market size is expected to reach USD 6.79 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 17.8% from 2022 to 2030. The rising popularity of virtual production in the media and entertainment industry, combined with its capabilities to create high definition visuals and real-time virtual environments, is the key factor propelling the growth of the market.
The technology enables filmmakers to reduce the demand for on-set production teams and crew members by integrating virtual background environments into live-action footage. This allows for a significant reduction in video production costs. For instance, in 2020, after the Covid-19 pandemic, filmmakers in the Hollywood industry found the hi-tech solution of shooting without gathering 100s of people on set. The use of techniques such as cloudbusting, stagecraft LED setup, and robotic camera to shoot actors remotely, known as the Solo Cinebot has helped the filmmaker a lot.
Virtual Production Market Segmentation
Grand View Research has segmented the global virtual production market based on component, type, end-user, and region:
Based on the Component Insights, the market is segmented into Hardware, Software, and Services.
- The software segment accounted for the largest revenue share of over 40.0% in 2021 and is expected to maintain its lead over the forecast period. The rising visual effects applications and computer-generated graphics in movies and commercial advertisements are expected to influence the market growth positively.
- The hardware segment emerged as the second-largest segment in 2021 and is projected to expand at a significant pace over the forecast period. This can be attributed to the considerable rise in LED video wall screens for real-time background visuals required for in-house shoots.
- The services segment is anticipated to register the highest CAGR of 19.7% over the forecast period. Owing to the lack of trained professionals in VFX and virtual production technology, moviemakers or film studios often hire professional agencies for their services to implement VFX in their video productions.
Based on the Type Insights, the market is segmented into Pre-production, Production, and Post-production.
- The post-production segment dominated the market in 2021 and accounted for over 50.0% share, in terms of revenue. This can be attributed to its crucial role in editing and collaborating post-shoot videos with graphics and visual effects (VFX).
- The production segment is anticipated to register a promising CAGR of 19.8% over the forecast years. The collaboration of high-quality visual graphics with a motion-captured imagery character in a three-dimensional environment has become highly popular in recent times.
Based on the End-user Insights, the market is segmented into Movies, TV Series, Commercial Ads, Online Videos, and Others.
- The movies segment accounted for the largest revenue share of over 25.0% in 2021. A substantial increase in movie production budgets and the high usage of VFX in Hollywood and other regional movie studios fuel the growth of the movies segment.
- The television segment is expected to register the fastest CAGR of 19.4% over the forecast period. This can be attributed to the increased penetration of television sets in developing regions.
Virtual Production Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile
The market is fragmented and is characterized by the presence of several market players. In recent years, the market has witnessed several mergers, acquisitions, and strategic partnerships. For instance, in November 2020, Epic Games Inc. acquired Quixel, a photogrammetry asset library company that makes three-dimensional models based on high-definition photography. With the acquisition, Epic Games Inc. aims to provide Quixel’s existing library of models to Unreal Engine users. In March 2020, Epic Games Inc. acquired Cubic Motion, a highly detailed digital facial animations provider for both films and video games. The acquisition would further enrich visuals and three-dimensional graphic environments for the users of Epic Games Inc. solutions.
Some prominent players in the global virtual production market include:
- Arashi Vision Inc. (Insta 360)
- Autodesk Inc.
- BORIS FX, INC.
- Epic Games, Inc.
- HTC Corporation (VivePort)
- HumanEyes Technologies
- Mo-Sys Engineering Ltd.
- NVIDIA Corporation
- Pixar (The Walt Disney Company)
- Side Effects Software Inc. (SideFX)
- Vicon Motion Systems Ltd.
Order a free sample PDF of the Virtual Production Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Corporate Sales Specialist, USA
Grand View Research, Inc.
Toll Free: 1-888-202-9519