The global virtual production market was valued at approximately US$ 1,463.46 million in 2020 and is anticipated to grow to around US$ 4,733.04 million by 2028. This growth represents a compound annual growth rate (CAGR) of 15.9% from 2021 to 2028.
Virtual production is a cutting-edge technology that employs a variety of software tools to seamlessly blend computer-generated graphics with live-action footage in real-time. This innovative approach allows filmmakers and their teams, regardless of their physical locations, to provide feedback in both digital and physical environments where the cast is actively working on set. Such solutions empower filmmakers to articulate and share their creative visions in more intuitive and enhanced manners. These advancements are expected to significantly contribute to the global expansion of the virtual production market.
In the early years of the 21st century, the global exchange of knowledge was significantly enhanced as internet adoption surged at both individual and household levels. Initially, this knowledge transfer primarily occurred through static mediums, such as text. However, with the rapid advancements in internet and telecommunications infrastructure, particularly with the rollout of 3G and 4G networks, along with the decreasing costs of media devices like smartphones, tablets, laptops, and televisions, the transfer of knowledge began to shift towards dynamic mediums, including video and animated graphics.
Moreover, the affordability of internet access, combined with rapid advancements in camera technology, has led to a notable increase in content creation at the individual level. Content creators worldwide are leveraging various editing and graphic tools to enhance the quality of their video productions, aiming to attract larger audiences. Consequently, the growing number of content creators, along with the rising adoption of sophisticated editing tools, is expected to drive substantial growth in the virtual production market during the forecast period.
The outbreak of COVID-19, which originated in Wuhan, China, in December 2019, has had a profound negative impact on the media and entertainment industry. As a result, the pandemic is likely to act as a restraining factor for the growth of various markets within this sector in the near future. One of the most severely affected areas has been on-site shooting and production. The industry is actively seeking ways to recover from these losses and is exploring new business models. To generate revenue, companies are increasingly producing shows for streaming platforms. The crisis has accelerated the trend towards media streaming, with a notable increase in the adoption of OTT devices. Streaming services have seen a significant rise in subscriptions and viewership since the onset of the pandemic, which has, in turn, created a heightened demand for virtual productions. Thus, the COVID-19 pandemic has inadvertently fostered growth in the overall virtual production market.
The overall size of the virtual production market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the virtual production market across all segments and regions. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights into the subject matter. The participants in this research included industry professionals such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the virtual production sector.
Key market players identified during this study include 360Rize, INSTA 360, Boris FX, Epic Games, Inc, Humaneyes Technologies, Adobe Inc., Autodesk, Inc., NVIDIA Corporation, HTC Corporation, and MO-SYS Engineering Ltd. These companies are at the forefront of the virtual production market, contributing to its growth and innovation.