Virtual Production Market Size, Share, Trends, Growth, Production, Consumption, Revenue, Company Analysis and Forecast 2021-2028

Published Date : Jan 2020 | No. of Pages : 250 Pages | Category : ICT

The global Virtual Production market size is expected to be worth around US$ 3.98 billion by 2028, according to a new report by Vision Research Reports.

The global Virtual Production market size was valued at US$ 1,280.5 million  in 2020 and is anticipated to grow at a CAGR of 15.10% during forecast period 2021 to 2028.

Growth Factors

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 to live-action footage. This allows for a significant reduction in video production costs. Furthermore, technological advancement in virtual production helps 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.

Report Highlights

The software segment accounted for the largest market share of nearly 42% in 2020 and is expected to retain its dominance over the forecast period. The rising applications of visual effects and computer-generated graphics in movies and commercial advertisements are expected to positively influence market growth. Also, ongoing technological advancements in virtual production software solutions are allowing the development of engaging content through the incorporation of advanced VFX features. Further, the growing inclusion of machine learning and 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 is projected to expand at a significant pace and is expected to hold the second position in terms of market revenue over the forecast period. This can be attributed to the considerable rise in the number of 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 service segment is anticipated to emerge as the fastest-growing segment 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. The segment is anticipated to register the highest CAGR of 17.10% during the forecast period.

The post-production segment dominated the market in 2020 and accounted for 52.11% of the market. 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 as well, thanks to the constant rise in new video production projects on various video platforms globally. A rising number of video broadcasters across the internet is leading to promising growth prospects for the segment.  

The production segment is anticipated to register a promising CAGR of 17.8% 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. Performance capture through a virtual camera enables video-makers to portray an imagery character’s action by simulating a real actor’s movements. 

The movies segment accounted for the largest market share of nearly 30.5% in 2020. A substantial increase in movie production budgets and the high usage of VFX in Hollywood and other regional movie studios are fueling the growth of the movie segment. The rising trend of shifting movies broadcast from cinema halls and multiplexes to over the top (OTT) platforms is allowing filmmakers to reach a larger audience which is expected to subsequently drive the growth of the segment over the forecast period.

The television segment is expected to register the fastest CAGR of 17.10% 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. 

North America dominated the market in 2020 and accounted for nearly 38.5% of the market. 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 of companies in the region in R & D activities to develop advanced virtual production software solutions also support the development of the regional market.

The Asia Pacific regional market is anticipated to gain significant traction in the global market and expand at a CAGR of 17.8% over the forecast year. The regional market is witnessing one of the highest implementing rates of virtual production technology in film studios; China, Australia, India, Japan, and South Korea are the key countries for driving the demand for virtual production solutions. 

Key Players

  • 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

Market Segmentation

  • Component Outlook 

    • Hardware

    • Software

    • Services

  • Type Outlook 

    • Pre-production

    • Production

    • Post-production

  • End-user Outlook 

    • Movies

    • TV Series

    • Commercial Ads

    • Online Videos

    • Others

  • Regional Outlook 

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East and Africa (MEA)

The Virtual Production market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Virtual Production market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Virtual Production market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Virtual Production market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Virtual Production market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Virtual Production capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Virtual Production by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Virtual Production market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2028. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Virtual Production market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Virtual Production market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Virtual Production industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

The Virtual Production market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Virtual Production market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Virtual Production market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Virtual Production market. These factors have benefited the growth of the global market for Virtual Production. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Virtual Production. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Virtual Production are as follows:

  • Historic Year: 2017-2020
  • Base Year: 2020
  • Forecast Year 2021 to 2028

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2028);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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