PUBLISHER: The Business Research Company | PRODUCT CODE: 1678614
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678614
Virtual production streamlines the convergence of physical and virtual elements in real-time through specialized software tools. It empowers filmmakers to interactively engage with digital scenarios within studio settings.
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 from The Business Research Company 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 size has grown rapidly in recent years. It will grow from $2.86 billion in 2024 to $3.3 billion in 2025 at a compound annual growth rate (CAGR) of 15.4%. The growth in the historic period can be attributed to increasing use of virtual production in the film industry, expansion of the gaming industry, integration of machine learning and deep learning into virtual production, demand for realism.
The virtual production market size is expected to see rapid growth in the next few years. It will grow to $6.77 billion in 2029 at a compound annual growth rate (CAGR) of 19.7%. The growth in the forecast period can be attributed to rising visual effects and computer-generated graphics, increased use of virtual production for live events and concerts, adoption of virtual production in the automotive and aerospace industries, expanded content creation, rise in streaming platforms. Major trends in the forecast period include technological advancements, development of new virtual production technologies and solutions, integration of artificial intelligence (AI) and machine learning (ML), blockchain in content creation.
The rising demand for visual effects in movie production worldwide is expected to drive the growth of the virtual production market in the future. Visual effects (VFX) refer to imagery modifications used to create, alter, or enhance visuals for films or other moving media that do not occur during live-action filming. VFX enables creators to conceptualize content through virtual production, allowing them to develop their ideas earlier in the process. For example, in June 2024, a report published by UK Screen Alliance, a UK-based trade body, revealed that out of the £4.2 billion ($4.53 billion) allocated through the UK's four film and TV tax incentives, £363.5 million ($392.39 million), or 8.5%, is dedicated to visual effects (VFX). Additionally, £346.5 million ($374.04 million) is spent on VFX in genres that do not benefit from tax relief, such as advertising. Altogether, VFX contributes £1.6 billion ($1.72 billion) to the UK economy in gross value added (GVA) annually. Therefore, the increasing demand for visual effects in movie production is set to propel the growth of the virtual production market.
The growth of the virtual production market is expected to be fueled by the expanding gaming industry. The gaming industry encompasses the various businesses, organizations, and individuals involved in the creation, development, marketing, distribution, and monetization of video games. Virtual production enhances visual realism and interactivity in gaming by utilizing real-time rendering, motion capture, and immersive technologies, thereby transforming game design and player experiences. For instance, a report from the American Gaming Association, a US-based gambling industry association, indicated that consumer demand for gaming entertainment resulted in record-breaking commercial gaming revenue of $60 billion in 2022, reflecting a 14 percent increase compared to the previous year. Consequently, the expanding gaming industry is driving the growth of the virtual production market.
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 October 2022, Sony Pictures Entertainment, a US-based entertainment company, acquired Pixomondo for an undisclosed amount. This acquisition is anticipated to bolster Sony's visual effects and virtual production capabilities, thereby enhancing its film and television projects. Pixomondo is a US-based company specializing in virtual production.
Major companies operating in the virtual production market include 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 2024. 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.
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.
Virtual Production Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on virtual production market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for virtual production ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The virtual production market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.