Virtual Production Market is expected to reach US$ 4,733.04 million by 2028

Growing Production of Movies to Provide Growth Opportunities for Virtual Production

According to our latest market study on “Virtual Production Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component and End User,” the market was valued at US$ 1,463.46 million in 2020, and it is projected to reach US$ 4,733.04 million by 2028; it is expected to grow at a CAGR of 15.9% from 2021 to 2028.

Film making is one of the biggest applications of virtual production. Companies such as Perforce and Epic Games provide virtual production for movies. Virtual production helps in creating films with extraordinary features and better VFX. For instance, Avatar and The Lion King are among the prominent films, which have used virtual production feature. Virtual production is an emerging technique, which uses array of software tools to unite computer graphics and live action footage in real-time. Avengers: Endgame, 1917, The Irishman, and Star Wars: The Rise of Skywalker are among other movies that have used virtual production. Furthermore, upcoming marvel shows, including Loki, Hawkeye, and The Falcon and the Winter Soldier, are pegged to cost around $25 million/episode. This aspect will boost the adoption of virtual production.

In addition, trend of VR technology has further accelerated the scope of film making. Virtual production software help in designing and developing digital environments to facilitate filmmakers to grab more growth opportunities from virtual production. For instance, SideFX provides Destruction FX with Houdini’s award-winning particle & dynamics tools. The tool is appropriate for developing blockbuster VFX through particles and more. The virtual production software enables massive simulation through tools to make the visual experience more realistic.

Geographically, North America held the largest share of the virtual production market in 2020, followed by Asia Pacific and Europe. Further, Asia Pacific is projected to witness the highest growth rate during the forecast period. The virtual production market is segmented into component, end user, and geography. Based on component, the market is further categorized into solutions and services. The solutions segment represented the largest share of the overall market in 2020. In terms of end user, the market is segmented into movies, TV series, commercial ads, and online videos. In 2020, the movies segment accounted for a substantial share of the global virtual production market.

Impact of COVID-19 Pandemic on Virtual Production Market

COVID-19 outbreak first began in Wuhan (China) during December 2019, and since then, it has spread across the globe. The media & entertainment industry has also been impacted negatively. Hence, the pandemic would act as a restraining factor for the growth of various markets related to this industry in the coming months. One of the highly impacted critical areas is on-site shooting and production. The industry is fighting back to recover the loss and come up with new business models. To monetize, the companies are coming up with shows on streaming devices. The crisis has accelerated the trend of media streaming with the increasing penetration of OTT devices. The streaming companies are getting a significant number of subscriptions and viewers since the start of this pandemic. This has significantly created a demand for virtual productions. The COVID-19 pandemic has positively impacted the growth of the overall virtual production market.

360Rize; INSTA 360; Boris FX; Epic Games, Inc; Humaneyes Technologies; Adobe Inc.; Autodesk, Inc.; NVIDIA Corporation; HTC Corporation; and MO-SYS Engineering Ltd. are among the few major companies operating in the virtual production market.

Virtual Production Market – by Geography         

The report segments the global virtual production market as follows:

By Component

• Solutions
• Services

By End User

• Movies
• TV Series
• Commercial Ads
• Online Videos

By Geography

• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Italy
  • UK
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • South Korea
  • Japan
  • Australia
  • Rest of APAC
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA
• South America
  • Brazil
  • Argentina
  • Chile
  • Rest of SAM