Virtual Production Market Analysis

Virtual Production Market Analysis

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.

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.
 

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.
 

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.