GVR Report cover Virtual Production Market Size, Share & Trends Report

Virtual Production Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Type (Pre-Production, Production, Post-production), By End-user, By Region, And Segment Forecasts, 2022 - 2030

  • Published Date: Apr 2022
  • Report ID: GVR-4-68039-317-3
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2021

Report Overview

The global virtual production market size was valued at USD 1.60 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 17.8% from 2022 to 2030. Virtual production enables filmmakers to interactively visualize and explore digital scenes such as realistic virtual characters, three-dimensional graphics, and a real-time virtual interactive background environment within the studio. Vast developments in the field of virtual production over the years have led to the introduction of solutions that allow filmmakers to transfer the motion-captured movement of an actor to virtual characters, which are then previewed in real-time, in combination with live-action footage and virtual set extension elements. Such solutions help filmmakers plan and communicate their creative ideas in new and more intuitive ways. The increasing demand for visual effects (VFX) in movie production studios worldwide and the rising application of virtual production in commercial ads are likely to boost the market growth over the forecast period. During the pandemic, in 2020, prominent Hollywood filmmakers, including NBC, MTV, and ABC, began adopting virtual production using cloudbusting, which involved using a robotic camera like the Solo Cinebot to shoot the actors remotely.

 Asia Pacific virtual production market size, by component, 2020 - 2030 (USD Million)

The increased adoption of the LED video wall technology is augmenting the implementation of virtual production across the media and entertainment sectors. LED video walls display computer-generated graphics in the background and enable filmmakers to capture visual effects in real-time. The LED video wall technology has substituted a green screen, making film production more accessible after the break of Covid-19. For instance, in April 2020, ABC's show SkyLine filmed all their real-life scenes in a 360-degree camera and displayed them on the LED screen instead of the green screen. LED video wall screens create a realistic background visual that replaces an actual shoot location while saving the entire crew time and money. For instance, The Mandalorian TV series has extensively used semicircular LED video walls for the in-house shoot and the virtual production technology for overall production, eliminating the need for on-location shoots. Disney used LED walls of dimensions 20-feet high, 75-feet wide, and 270-degree, which made it possible to present the movement of the 3D image concerning the camera's movement.

The rising popularity of web series containing visual effects and three-dimensional graphic environments encourages video-makers to implement virtual production technology in their video content. Popular web and television series such as Games of Thrones, The Last Kingdom, Black Mirror, and Outlander have extensively implemented visual graphics to create epic and historical scenes. VFX helps produce high-quality video content with realistic graphic characters and artificial scenes that enrich the viewing experience. Moreover, virtual production technology helps reduce video production costs by eliminating the need to shoot at expensive sites and bringing pre-visualization (a part pre-production process) on set. Pre-visualization creates a first three-dimensional representation of the final visual effects action sequence to help moviemakers plan out camera placement and other creative/technical requirements.

With the advent of advanced technologies in virtual production, filmmakers can create more advanced computer graphic characters using facial-capture training data to transform visuals into real-time characters. The most recent example of advanced visual effects is the transformation of actor Josh Brolin’s face into the lead villain Thanos in the latest Marvel Avengers Movies. Furthermore, artificial intelligence and machine learning features are expected to enhance the quality of visual effects further and simplify the design process of a three-dimensional model. Furthermore, the growing applications of artificial intelligence in content creation for action simulation, three-dimensional texturing, and post-process motion-capturing data are expected to lead to the development of advanced visual effect software functions in the near future. 

Component Insights

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 increased implementation of virtual production and the expansion of various products in the gaming industry will also positively impact market growth. Additionally, the ongoing technological advancements in virtual production software solutions allow the development of engaging content by incorporating advanced VFX features. Further, the growing inclusion of machine learning and deep learning in virtual production solutions is expected to drive the development of software with more value-added features, fueling the growth of the segment.

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 increasing use of virtual production technology in film studios and TV shows is expected to boost the demand for virtual production hardware such as motion capture workstations, virtual camera systems, and simulation cameras in the near future. The rising popularity of three-dimensional design and realistic virtual characters for movies and video games is expected to drive the demand for computer graphics cards.

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. Moreover, services are mainly required during the production and post-production of any video content. The rising number of new videos on various broadcasting platforms is fostering the growth of the service segment.

End-user Insights

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 rising trend of shifting movies broadcast from cinema halls and multiplexes to over the top (OTT) platforms allows filmmakers to reach a larger audience, which is expected to fuel the growth of the segment over the forecast period.  

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. Moreover, the increased uptake of smart television sets with advanced technological features, such as integrated internet and interactive web, allows users to access the internet, view web pages, watch videos, and view photo slideshows on these devices. The television segment is anticipated to outshine the movies segment in terms of revenue and hold the largest revenue share by the end of the forecast period.

Type Insights

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 segment is expected to witness promising growth opportunities over the forecast period, thanks to the constant rise in new video production projects on various video platforms globally and filmmakers adapting the virtual production methods due to the limitation caused by the Covid-19 outbreak. For instance, in 2021, The TODAY Show segment that premiered during the Super Bowl Weekend was filmed in just a week using virtual production. A rising number of video broadcasters across the internet is leading to promising growth prospects for the segment.   

 Global virtual production market share, by type, 2021 (%)

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. It replaces the concept of a green screen and goes physically to film different scenes. Performance capture through a virtual camera enables video-makers to portray an imagery character’s action by simulating a real actor’s movements. The scene can be simultaneously projected in a realistic graphics environment generated through the computer or a live LED wall in the background. The collaboration of visual graphics and imagery characters through motion capture is gaining traction and is likely to positively influence market growth in the near future.

Regional Insights

North America dominated the market in 2021 and accounted for over 35.0% share. This can be attributed to the high application of virtual production in major film studios in the region, including NBC Universal, Viacom CBS, Warner Media, and Walt Disney Studios. Moreover, substantial investments by companies in the region in R&D activities to develop advanced virtual production software solutions support the growth of the regional market. For instance, in June 2020, Epic Games, Inc. upgraded its PlayStation software, Unreal Engine 4.25, and introduced an advanced version of Unreal Engine 5. An Unreal Engine is a VFX software is used for pre-visualizing, designing, and visual editing effects in a real-time environment. Furthermore, the rising implementation of visual effects in commercial ads and sporting events is driving the regional market.

The Asia Pacific market is anticipated to expand at a lucrative CAGR of 19.8% over the forecast period. The regional market is witnessing one of the highest virtual production technology implementation rates in film studios. China, Australia, India, Japan, and South Korea are the key countries driving the demand for virtual production solutions. The growing demand for online video streaming and the increasing popularity of on-demand video content across the region positively impact the growth of the market. Moreover, the filmmaking industries in the region are among the first to implement technologically advanced filmmaking solutions.

Key Companies & Market Share Insights

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:

  • 360Rize

  • Adobe

  • Arashi Vision Inc. (Insta 360)

  • Autodesk Inc.

  • BORIS FX, INC.

  • Epic Games, Inc.

  • HTC Corporation (VivePort)

  • HumanEyes Technologies

  • Mo-Sys Engineering Ltd.

  • NVIDIA Corporation

  • Panocam3d.com

  • Pixar (The Walt Disney Company)

  • Side Effects Software Inc. (SideFX)

  • Technicolor

  • Vicon Motion Systems Ltd.

Virtual Production Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 1.83 billion

Revenue forecast in 2030

USD 6.79 billion

Growth rate

CAGR of 17.8% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segment Scope

Component, type, end-user, region

Region scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; Japan; India; Brazil

Key companies profiled

360Rize; Adobe; Arashi Vision Inc. (Insta 360); Autodesk Inc.; BORIS FX, INC.; Epic Games, Inc.; HTC Corporation (VivePort); HumanEyes Technologies; Mo-Sys Engineering Ltd.; NVIDIA Corporation; Panocam3d.com; Pixar (The Walt Disney Company); Side Effects Software Inc.  (SideFX); Technicolor; Vicon Motion Systems Ltd.

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Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global virtual production market report based on component, type, end-user, and region:

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

    • Hardware

    • Software

    • Services

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

    • Pre-production

    • Production

    • Post-production

  • End-user Outlook (Revenue, USD Million, 2017 - 2030)

    • Movies

    • TV Series

    • Commercial Ads

    • Online Videos

    • Others

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

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East and Africa (MEA)

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