Virtual Production Market Size, By Component (Hardware, Software, Services), By Type (Pre-production, Production, Post-production), By End-use (Movies, TV Series, Commercial Ads, Online Videos), Forecast 2023 - 2032

 Industry Analysis

Virtual Production Market size was valued at over USD 2 billion in 2022 and is anticipated to grow at a CAGR of over 15% between 2023 and 2032. The growing popularity of virtual production in the media & entertainment sector and its ability to produce high-definition images & real-time virtual settings are the primary industry drivers.
 

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Filmmakers can reduce the need for on-set production teams and crew employees by incorporating virtual background settings into a live-action video. This reduces the cost of excess production. The growing acceptance of LED video wall technology is driving virtual production in the media & entertainment industry. Computer-generated graphics are displayed on LED video walls in the background, allowing filmmakers to record visual effects in real time.
 

Virtual production allows filmmakers to interactively visualize and explore digital scenes within the studio such as realistic virtual characters, three-dimensional graphics & a real-time virtual interactive background environment. Over the years, significant advancements in the field of virtual production have resulted in the introduction of solutions that allow filmmakers to transfer an actor's motion-captured movement to virtual characters, which are then previewed in real-time in conjunction with live-action footage and virtual set extension elements.

Virtual production can be costly, particularly for large-scale projects. VFXs and other virtual productions can be expensive depending on the type & product requirements. The cost of maintenance & repair can make virtual production a significant investment for businesses and organizations. However, the high cost of virtual production is a significant impediment to market growth as businesses and organizations may hesitate to invest in these systems due to financial constraints. Furthermore, the cost of virtual production may be prohibitively expensive for small businesses and organizations lacking the financial resources to invest in these solutions.
 

COVID-19 Impact

The COVID-19 pandemic has disrupted the growth of various markets related to the media & entertainment industry. The most severely impacted areas is on-site shooting and production. The industry is fighting back to recoup its losses and create new business models. To monetize, companies are creating shows for streaming devices. The crisis has accelerated the trend of media streaming due to the increasing penetration of OTT devices. Streaming companies have witnessed a significant increase in subscriptions and viewers since the outbreak. This has significantly increased the demand for virtual production.
 

Virtual Production Market Trends

With the advancements in virtual production technologies, filmmakers can create more advanced computer graphic characters by transforming visuals into real-time characters using facial-capture training data. Furthermore, artificial intelligence and machine learning capabilities are expected to improve the quality of visual effects while simplifying the design process of a three-dimensional model. The growing AI applications 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.
 

Virtual Production End-use Segmentation

Based on end-use, virtual production market is segmented into movies, commercial ads, TV series, online videos, and others. The TV series segment is anticipated to grow with over 18% CAGR from 2023-32. This is due to the increased penetration of internet and increase in TV series production around the world. Furthermore, as smart television sets with advanced technological features including integrated internet & interactive web become more popular, users will be able to access the internet, view web pages, watch videos, and view photo slideshows on these devices.
 

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Virtual Production Component Segmentation

Based on component, virtual production market is segmented into hardware, software, and services. The software type segment held a market share of over 45% in 2022 and is expected to grow at a lucrative pace by 2032. Rising visual effects and computer-generated graphics in movies & commercial advertisements are expected to have positive impacts on market growth. The increased use of virtual production and the expansion of various products in the gaming industry will also benefit market growth. Furthermore, ongoing technological advancements in virtual production software solutions enable the creation of engaging content through the incorporation of advanced VFX features. Also, the increasing incorporation of machine learning and deep learning into virtual production solutions is expected to drive the development of software with more value-added features.
 

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Virtual Production Type Segmentation

Based on type, the virtual production market is segmented into pre-production, production, and post-production. The production is anticipated to grow with significant growth rate of over 16% during forecast period 2023-32. The combination of high-quality visual graphics and a motion-captured imagery character in a three-dimensional environment has recently gained popularity. It takes the place of a green screen and physically films different scenes. Performance capture with a virtual camera allows filmmakers to depict an imaginary character's action by simulating a real actor's movements. The scene can be projected in a realistic environment generated by the computer or a live LED wall in the background at the same time. The collaboration of visual graphics and imagery characters via motion capture is gaining traction and is likely to have a positive impact on the virtual production market.
 

Virtual Production Regional Analysis

North America is the dominant region in the global virtual production industry with over 35% share in 2022. The growing use of virtual production in U.S. film studios, such as NBC Universal, Viacom CBS, Warner Media, and Walt Disney Studios, is expected to drive the segment during the forecast period. Furthermore, businesses in this region are heavily investing in R&D to develop advanced virtual production software solutions. The increasing use of visual effects in sporting events and commercial advertisements specially in U.S. is expected to drive the virtual production market. Growing consumer preference for online video streaming and on-demand video content across the region is expected to boost market growth.
 

Virtual Production Industry Leaders

Some of the major players operating in the virtual production market are Adobe, Insta 360, Autodesk Inc., BORIS FX, INC, Epic Games, Inc., HTC Corporation, HumanEyes Technologies, Mo-Sys Engineering Ltd., and NVIDIA Corporation. These players focus on strategic partnerships and new product launches & commercial advertisements for market expansion. Furthermore, these players heavily invest in research, allowing them to introduce innovative products and garner maximum revenue in the market.
 

Virtual Production Industry News:

• In May 2022, Mo-Sys Engineering Ltd., a media production company based in London, collaborated with GMS International, a software development firm based in the U.S., to bring virtual production and augmented reality to South Korean broadcasters & cinematographers.
   
• In April 2022, HTC VIVE released VIVE Mars CamTrack, a virtual production technology. By combining the entire camera tracking workflow into a small plug-and-play module with professional-grade functionality, it accelerates, simplifies & reduces the cost of virtual production software. In many cases, using VIVE Mars Cam Track eliminates the need to shoot on-location and allows filmmakers to fully express their creative vision by allowing performers to instantly jump into any number of virtual backdrops while shooting a scene.
   

The virtual production market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Component

• Hardware
• Software
• Services

By Type

• Pre-production
• Production
• Post-production

By End-use

• Movies
• TV Series
• Commercial Ads
• Online Videos
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE