Virtual Production Market Size - By Component (Hardware, Software, Services), By End-Use (Movies, TV Series, Commercial Ads, Online Videos), By Type & Forecast, 2024 - 2032

Virtual Production Market Size

Virtual Production Market size was valued at USD 2.3 billion in 2023 and is anticipated to grow at a CAGR of over 15% between 2024 and 2032. LED volume stages are becoming increasingly popular, offering filmmakers the ability to shoot in controlled environments that can mimic any location in the world with remarkable realism.
 

For instance, in May 2023, Annapurna Studios and Qube Cinema launched the ANR Virtual Production Stage in Hyderabad, India. The studio has a 60-foot-wide by 20-foot-deep, 2.3 mm dot-pitch, high-brightness, curved LED wall with a wide color gamut and ultra-high refresh rate. Real-time rendering of intricate & photorealistic virtual environments is made possible by powerful & custom-built rendering systems running Unreal Engine, Aoto LED displays, and camera tracking with stYpe's RedSpy. This trend is reducing the need for on-location shoots, thereby minimizing travel costs and environmental impacts.
 

Real-time game engines, such as Unreal Engine and Unity, are increasingly being integrated into virtual production workflows. These engines enable the instant visualization of CGI environments and characters, facilitating creative decision-making on set and significantly reducing post-production time. Moreover, Motion capture (MoCap) technology is becoming more sophisticated, with advancements that allow for more detailed & nuanced capture of performances. This includes facial expressions and subtle body movements, enhancing the realism and emotional depth of digital characters. The integration of MoCap into the virtual production is pushing the boundaries of character animation.
 

The market for virtual production is severely challenged by high implementation costs. It takes significant financial investments to implement complete traceability systems using cutting edge technology such as blockchain, IoT devices, and data management software. Businesses also need to set aside funds for employee training, infrastructure upgrades, and system maintenance. These expenses could be too high for smaller businesses, making it more difficult for them to implement the essential traceability procedures.
 

The financial load is further increased by recurring costs for cybersecurity, system updates, and regulatory compliance. The general efficacy and integration of traceability in the food supply chain may be impacted by these exorbitant costs, which may prevent traceability solutions from being widely adopted.
 

Virtual Production Market Trends

The rising applications of virtual production in commercial ads are significantly fostering the virtual production industry growth. Virtual production enables the creation of visually appealing and imaginative commercial ads that stand out. By using real-time rendering and immersive environments, advertisers can craft unique visual narratives that are more likely to capture and retain audience attention, increasing the ad's effectiveness.
 

Established players are adopting virtual production for creating advertisements for their products, contributing to market growth. For instance, in October 2022, Samsung used a video campaign to promote its gaming monitor shot at a virtual production studio equipped with a 1.5mm pixel pitch LED volume. Traditional ad production, especially with exotic locations or elaborate sets, can be prohibitively expensive.
 

The growing implementation of LED wall technology is significantly contributing to the growth of the virtual production market. LED walls, also known as LED volumes, have revolutionized the way filmmakers and content creators approach the integration of live-action footage with CGI. LED walls allow for the display of photorealistic environments and visual effects in real time, directly on set. This enables directors and cinematographers to capture complex VFX shots in camera, reducing the need for green-screen compositing and extensive post-production work. Major players are collaborating to implement LED walls in for virtual production studios.
 

Virtual Production Market Analysis

Based on components, the market is categorized into hardware, software, and services. The software segment dominates the market and is expected to reach over USD 4 billion by 2032.
 

• The virtual production software sector is at the forefront of technology thanks to continuous advancements and improvements. Virtual production approaches are becoming more and more popular as software changes to satisfy the needs of content creators and filmmakers.
   
• For instance, in April 2023, Epic Games and NVIDIA joined forces to improve virtual production workflows, launched the latest Unreal Engine combined with the NVIDIA Rivermax software development kit. This partnership established new standards, allowing studios to maximize flexibility and performance in virtual productions. Rivermax's IP-based technology enables synchronized video streaming across the internet, which improves hardware resource management. The integration of Unreal Engine and Rivermax expands the possibilities for providing high-quality, synchronized content across numerous displays, changing the virtual production environment.
   
• Streamlined workflows are facilitated by software platforms that enable collaboration across many departments in the production process. These platforms facilitate real-time cooperation and communication, which cuts down on production time and boosts overall effectiveness.
   

Based on end-use, the virtual production market is categorized into Movies, TV Series, Commercial Ads, Online Videos, and Others. The TV series segment is the fastest-growing segment with a CAGR of over 19% between 2024 and 2032.
 

• Government investments in virtual production demonstrate recognition of the industry's significance and inspire trust among players. Such investments establish virtual production as a key sector in the media and entertainment landscape. For instance, in December 2023, Singapore established a USD 22.4 million (SGD 30 million) co-production fund for television shows to encourage international partnerships among Singapore-based enterprises.
   
• Adopting real-time rendering, in-camera motion tracking, and Unreal Engine shows a commitment to state-of-the-art virtual production technologies. This dedication not only makes sophisticated production methods possible but also encourages the industry to use cutting-edge equipment and procedures.
   

North America dominated the global virtual production market with a share of over 35% in 2023. U.S. is home to many of the leading technology companies and innovation hubs in the world. This environment fosters the development and early adoption of cutting-edge technologies, including those central to virtual production, such as real-time rendering engines, motion capture systems, and LED wall technologies.
 

Hollywood has been an early adopter of virtual production techniques with high-profile productions showcasing the potential of these technologies to the world. Success stories from the film industry serve as powerful endorsements, encouraging wider adoption across various media production sectors.
 

Virtual production-focused educational programs and training efforts are gaining traction throughout the UK. This contributes to the development of a workforce with the necessary skills to use virtual manufacturing tools efficiently, in turn, fueling virtual production market expansion. For instance, in May 2022, Mo-Sys Academy, a manufacturer of virtual production solutions in the UK, launched a new virtual production course. This course intends to close the skills gap in the virtual production sector, which is experiencing a surge in demand for trained technicians.
 

Virtual production technologies are being used in filmmaking owing to the growth of China's film industry and the rise in both domestic & international alliances. Virtual production techniques are becoming popular among filmmakers as they allow for visually appealing and immersive worlds that improve the overall quality of movies.
 

Japan is renowned for its technological breakthroughs and has a track record of implementing cutting-edge innovations across a range of sectors. Virtual manufacturing is in line with Japan's tech-forward strategy as it makes use of cutting-edge technologies, such as Augmented Reality and Virtual Reality (VR).
 

South Korean entertainment companies regularly work with companies throughout the world, implementing the latest VR and AR production technologies. For instance, in May 2022, Mo-Sys Engineering partnered with South Korean dealer, GMS International, expanding access to cutting-edge AR and virtual production solutions for cinematographers & broadcasters in Korea.
 

Virtual Production Market Share

Adobe Inc and Sony Corporation accounted for over 20% market share in virtual production industry. Adobe maintains a competitive edge by offering a holistic, user-friendly suite of applications that support a wide range of creative tasks. The company is engaged in ongoing efforts to expand its product portfolio and integrate cutting-edge technologies to ensure that it remains at the forefront of the virtual production market, catering to the evolving needs of content creators and filmmakers seeking to push the boundaries of digital storytelling.
 

Sony Corporation leverages its extensive experience in electronics, entertainment, and digital technology. Sony's foray into virtual production is marked by its comprehensive offerings that include advanced cameras such as VENICE and BURANO cinema cameras, VFX software, and cutting-edge imaging & display technologies. These products and services are integrated to support the creation of immersive content in film, television, and live events, showcasing Sony's commitment to innovations in content creation.
 

Virtual Production Market Companies

Major players operating in the virtual production industry are:

• AdobeInc.
• Sony Corporation
• NVIDIA Corporation.
• Autodesk Inc.
• ARRI AG
• Epic Games Inc.
• FuseFX
   

Virtual production Industry News

• In September 2023, Sony Corporation launched four new Crystal LED displays under the VERONA series for virtual production applications. They can produce deeper black-level expressions while significantly reducing contrast loss brought on by light from nearby LED panels and studio lighting equipment owing to their Deep Black and Anti-Reflection Surface Technology.
   

• In September 2022, Adobe Inc., launched a cloud-based collaboration solution for shooting content on virtual sets. Filmmakers can see their visual effects scenes come to life in Frame.io while they are being shot on set, owing to the integration between Adobe Camera to Cloud powered by Frame.io and Mo-Sys.
   

The virtual production market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Component

• Hardware
• Software
• Services

Market, By Type

• Visualization
  • Pitchvis
  • Previs
  • Virtual scouting
  • Techvis
  • Stuntvis
  • Postvis
• Performance capture
• Hybrid Green Screen Live
• Full Live LED Wall

Market, 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
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA