Virtual Production Market Overview by Industry Dynamics, Regional Analysis and Forecast 2021 to 2028 | Grand View Research, Inc.

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According to a new report published by Grand View Research, the increasing demand for visual effects (VFX) in movies production studios worldwide and the rising application of virtual production in commercial ads are likely to drive market growth from 2021 to 2028.

The global virtual production market size is expected to reach USD 4.71 billion by 2028, according to a new report by Grand View Research, Inc. The market is anticipated to register a CAGR of 16.7% from 2021 to 2028. 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 with live-action footage. This allows for a significant reduction in video production costs. Furthermore, technological advancements in virtual production help broadcasters improve their operational efficiency with the least physical presence of technicians in the broadcasting room. For instance, in March 2020, Sky Sports implemented a virtual production suite, which has enabled its teams to create content and stream it remotely. The suite connected 48 virtual workstations and an equal number of direct-to-workstation connections for remote editing, simultaneous live programming, and the distribution of live clippings directly on social media platforms. Although virtual production can produce a film with better visuals and low production costs, it also poses some challenges, especially arising from the lack of training and experience among industry professionals.

With the advent of artificial intelligence, virtual production technology has witnessed significant improvements in the quality of its computer-generated graphics. Design and visualization of all complex scenes in a three-dimensional model have also become convenient, which can be further edited and reviewed in a real-time environment. The technology is positively impacting the market by reducing the burden of transportation and logistics costs of crew members and equipment. It enables filmmakers to capture on-set live-action scenes through simul-cams or virtual cameras and seamlessly merge computer-generated 3D graphic elements with the film’s live shooting footage to conclude with the final visual effects.

Artificial intelligence facilitates pre-production support that helps to accelerate video production work. In the previous decade, pre-production works heavily relied on unstructured box office data and limited demographic information related to viewers, leading to the development of less engaging video content. However, now artificial intelligence can generate insights from large data sets collected from various platforms to understand the proposed content’s acceptance and interest. For example, Netflix creates video content based on accurate, personalized recommendations, and observations of its users’ behavior, such as surfing history, interest, and data action like pausing or rewinding videos. The company has invested USD 15 billion to create a dedicated database to develop original content based on its platform’s collected data. Artificial intelligence technology can also help understand scripts and screenplays to recognize the locations described in them and suggest real-world locations where directors can imagine and create realistic computer graphic imagery locations.

The growing implementation of virtual production in the gaming industry is also working well for the market. Factors such as leveraging a three-dimensional environment increased the focus of companies on developing compact and comfortable virtual gaming devices, and constant technological innovation on virtual production platforms, such as 3D audio, untethered virtual reality headsets, and cloud scalability, are expected to drive market growth across gaming application. Furthermore, the introduction of immersive experience allows for 360° views of graphic content and a new level of gaming interaction, enabling players to control and modify the gaming environment through their senses. Hence the increased application of virtual production technology in games is expected to propel the growth of the market.

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Virtual Production Market Report Highlights

• In terms of end-user, the movie segment is expected to contribute a significant amount of revenue to the market over the forecast period. The growth can be attributed to the rising demand for visual effects and a three-dimensional model in movies

• In terms of component, the software segment is expected to grow at a significant CAGR owing to the inclusion of artificial intelligence. The inclusion is expected to improve the performance of animation and graphics quality

• The key players in the market are 360Rize; Adobe; Arashi Vision Inc. (Insta 360); Autodesk Inc.; BORIS FX, INC; Epic Games, Inc.; HumanEyes Technologies; Mo-Sys Engineering Ltd.; NVIDIA Corporation.;; Pixar (The Walt Disney Company); Side Effects Software Inc (SideFX); Technicolor; and Vicon Motion Systems Ltd

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Virtual Production Market Segmentation

Grand View Research has segmented the global virtual production market based on component, type, end-user, and region:          

Virtual Production Component Outlook (Revenue, USD Million, 2018 – 2028)      

    • Hardware                                            

    • Software

    • Services

Virtual Production Type Outlook (Revenue, USD Million, 2018 – 2028)               

    • Pre-production

    • Production

    • Post-production

Virtual Production End-user Outlook (Revenue, USD Million, 2018 – 2028)

    • Movie

    • TV Series

    • Commercial Ads

    • Online Videos

    • Others

Virtual Production Regional Outlook (Revenue, USD Million, 2018 – 2028)          

    • North America       

        • U.S.

        • Mexico

        • Canada

    • Europe

        • Germany

        • U.K.

        • Spain

        • France

    • Asia Pacific

        • China

        • India

        • Japan

    • South America

        • Brazil

    • Middle East & Africa

List of Key Players of the Virtual Production Market                                                 

    • 360Rize

    • Adobe

    • Arashi Vision Inc. ( Insta 360)

    • Autodesk Inc.


    • Epic Games, Inc.

    • HTC Corporation (VivePort)

    • HumanEyes Technologies

    • Mo-Sys Engineering Ltd.

    • NVIDIA Corporation.

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Browse More Related Report:

3D Animation Market Size, Share & Trends Analysis Report By Technique (3D Modeling, Visual Effects), By Component, By Deployment (On-premise, On-demand), By End Use, And Segment Forecasts, 2021 – 2028

About Grand View Research

Grand View Research is a market research and consulting company registered in the State of California having its headquarters in San Francisco. The company offers syndicated research reports, customized research reports, and consulting services. With Grand View Research, you get an opportunity to understand market trends, insights, and business statistics from a strategic standpoint. With a deep-seated understanding of many business environments, Grand View Research offers business and market intelligence studies and accomplishes more than 300 multi-country market studies.

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