AI In Media & Entertainment Market Size, Share & Trends Analysis Report By Solution (Hardware/Equipment, Services), By Application (Gaming, Personalization), And Segment Forecasts, 2022 - 2030

Report Overview

The global AI in media & entertainment market size was valued at USD 10.87 billion in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 26.9% from 2022 to 2030. Artificial intelligence (AI) uses in gameplay, fake story recognition, plagiarized detection, production planning and management, personalization, sales and marketing, talent finding, and other fields is propelling the rise of the global AI in the media and entertainment sector. The increasing popularity of virtual creation in the media and entertainment business, and its ability to create high-definition graphics and real-time virtual worlds, are the key factor driving the market.

Also, favorable government initiatives are expected to impact industry growth positively. AI systems are used to recognize objects and behaviors in sporting events. It can also use drone footage to provide broadcasts that include engaging material and in-depth sports analysis. For example, in a football match, AI-generated live footage may capture the adrenaline-fueled action and the players' and fans' responses after each score. Visuals used in the live broadcast of a match should contribute to the construction of an engaging story. Companies use AI to create more tailored services for users by endorsing personalized content following their tastes when users browse a video site and robustness for users with varying Internet speeds and bandwidths.

For instance, a prominent platform, Netflix has implemented AI technology aiming to create a superior personalized experience for its subscribed consumers. This AI-empowered system will automatically accomplish several machine learning pipelines that offer shows/movies/program recommendations. The media and entertainment business is witnessing unparalleled disruption. From rapid adoption of connected devices and sensitive expectations from customers to ongoing competition from internet video streaming providers and social media, several powerful forces are shapeshifting the media and entertainment industry landscape.

The integration of AI takes analytics to the next level by applying machine learning algorithms and natural language processing to make sense of vast quantities of data, over 80 percent of which is unstructured. They can help companies leverage building blocks, such as dialog capabilities, visual recognition, sentiment analysis, personality insights, and tone analysis, to help drive competitive benefits. The North America region is projected to dominate the market and offers significant opportunities for industry expansion as substantial investments are being made in AI projects and related R&D activities.

For instance, in June 2020, the developed version of Unreal Engine 4.25, a play station software by Epic Games, Inc., was upgraded and the advanced version was launched. An unreal engine is a VFX software implemented for designing, pre-visualizing, and visual editing effects in a real-time situation. In addition, increasing efforts made by film-making companies, for example, 20th century Fox used IBM’s AI system, Watson, to create a trailer for the horror movie “Morgan”.

Solution Insights

The service segment dominated the artificial intelligence in media & entertainment market in 2021 with a revenue share of 59.2%. The rising applications of computer-generated graphics and visual effects in commercial advertisements and movies are anticipated to influence market growth positively. Furthermore, continuing technological progressions in AI-based technologies enable the advancement of engaging content with the incorporation of advanced visual effect structures. The service segment is projected to witness the fastest growth on account of the lack of trained professionals in virtual production and VFX technology, film studios or moviemakers often hire qualified agencies and their services to implement VFX in their video productions.

The hardware segment is projected to expand with a prominent growth rate over the forecast period. This can be accredited to a significant increase in the requirement for real-time background visuals, essential for in-house shoots. The AI ecosystem has been increasing, targeted problems are getting more complicated, and AI-specific hardware components are being introduced to address the complex issues for various applications. The increasing use of AI-based virtual production technology in movie studios and TV shows is expected to boost the demand for motion capture workstations, virtual camera systems, simulation cameras, and other virtual production hardware in the near future.

Application Insights

The sales and marketing segment dominated the market in 2021 with a revenue share of 21.7%. The marketing sub-segment accounts for the leading share in global sales and market revenue. AI is used for trading or marketing aspects, including design, advertising, and promotions in the media and entertainment fields. Smart AI work-frames can develop creative marketing and advertising solutions. The personalization segment has been witnessing substantial growth over the past few years. Leading music and video streaming platforms, such as Spotify and Netflix, are also successful because they provide various user preferences and tastes for audiences from across the globe.

Artificial intelligence is also gaining prominence in automated sports productions with improved precision and efficiency for live streaming, broadcasting, and analytical services. With the implementation of sophisticated sports automatic production technology, the creation of footage can be completed faster. The gaming segment also accounts for a prominent revenue share. AI is generally used in games for controlling Non-player Characters (NPCs). AI analyzes players’ actions to forecast their next movements, and AI models also determine changes in a gamer’s behavior in specific scenarios.

The video production segment led the market in 2021. The major reason for the growth is that AI offers a platform for automating tasks, including script breakdown, storyboarding, shot-lists generation, scheduling, and budget management. AI-based software can also automatically group and synchronize recorded clips. With further advancements, AI will be able to create content autonomously. Using AI, predictive analytics can perform marketing procedures faster. Marketing software driven by AI helps create promotional approaches, address audience goals, and make effective customer solutions.

With the initiation of advanced technologies, such as AI, virtual production technology is witnessing substantial enhancements in its computer-generated graphics. Designing and visualizing all complex scenes in a three-dimensional model has become convenient. Furthermore, AI offers pre-production assistance, which accelerates video creation. Artificial intelligence can create perceptions from large data sets gathered from several platforms for understanding the proposed content’s interest and acceptance. For instance, Netflix creates video material based on exact, customized suggestions and observations of its users’ behavior, such as browsing history, interest, and data actions, such as pausing or rewinding videos.

Regional Insights

On the basis of geographies, the global artificial intelligence in media & entertainment market has been further categorized into North America, Asia Pacific, Middle East & Africa, Europe, and South America. The North America region dominated the market in 2021 and accounted for the maximum share of more than 38.00% of the overall revenue. This growth was mainly attributed to the significant investments by the companies in research & development for creating AI-based virtual production software solutions. Voice & speech recognition using AI is one of the most significant trends witnessed in the region.

For instance, Sonos Inc. received the dialect and accent audio collection from Globalme Localization, Inc., a U.S.-based AI startup. Sonos Inc. collected accents and voice data from three nations to integrate intelligent home assistants with its wireless speakers. This integration enabled the organization to fine-tune its voice recognition engines, leading to a better voice experience. South America is expected to witness a prominent growth rate over the forecast period. Companies in the region are capitalizing on initiatives to implement AI technologies in the future. For instance, Inamika Interactive, a company located in Mendoza city in Argentina, has already implemented AI and Virtual Reality (VR). It has developed a VR tour of the Museum of Mendoza’s dinosaur exhibit.

Key Companies & Market Share Insights

The market is categorized by intense competition, with only a few major worldwide firms controlling a significant portion of the market. Key players focus on new product developments and alliances as options for higher profitability through improved client interactions. For instance, in 2021, Microsoft announced acquisitions of ZeniMax Media for a transaction valued at around USD 7.5 billion. This acquisition is expected to enhance Microsoft’s Xbox games studios to a total count of 23. Some of the prominent players in the global AI in media & entertainment market include:

• Amazon Web Services, Inc.

• EMG

• Gearhouse South Africa Pty. Ltd.

• Gravity Media

• GrayMeta

• International Business Machines Corp.

• LMG, LLC

• Matchroom Sport Ltd.

• Production Resource Group, L.L.C.

• Synthesia Ltd.

• TAIT

• Valossa Labs Ltd.

• Veritone, Inc.

• Pixellot

• PlaySight Interactive Ltd.

• AISportsWatch GmbH

• Spiideo

• Sportway AB

• EVS Broadcast Equipment S.A.

• Hudl

• Move.ai

• AutomaticTV

AI In Media & EntertainmentMarketReport Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global AI in media & entertainment market report on the basis of solution, application, and region:

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware/Equipment

  • Services

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Gaming

  • Fake Story Detection

  • Plagiarism Detection

  • Personalization

  • Production Planning & Management

  • Sales & Marketing

  • Talent Identification

  • Content Capture

  • Sports Automatic Productions

    • Video Production

    • Broadcasting & Live Streaming

    • Analytics

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Norway

    • Sweden

    • Finland

    • Denmark

    • The Netherlands

    • Spain

    • Ireland

    • Italy

    • Switzerland

    • Belgium

  • Asia Pacific

    • China

    • Japan

    • India

    • Singapore

    • Australia & New Zealand

  • South America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • Qatar