The global virtual production market size is estimated to be USD 2.6 billion in 2022 and is projected to reach USD 5.1 billion by 2027, at a CAGR of 14.5% during the forecast period.
The market has a promising growth potential due to several factors, surging adoption of OTT, increasing implementation of LED Wall technology, and rising demand due to pandemics.
Virtual production is the process of creating the digital world, beginning with the inception of the movie and ending with the final VFX, centered around real-time interaction on the set.
Virtual production has the ability to mix live footage and computer graphics at the same time, enable real-time feedback, and make decisions on the set about the VFX and animation.
Software: The fastest-growing segment of the virtual production market, by offering
In 2021, the software segment accounted for the largest share of the virtual production market. The advent of technology and the amalgamation of various other next-generation technologies such as machine learning (ML), artificial intelligence (AI), augmented reality (AR), virtual reality (VR), extended reality (XR), deep learning, virtual production has bolstered growth. Continuous organic and inorganic growth strategies adopted by virtual production ecosystem players have enhanced the growth of the market. For instance, In February 2022, Mo-Sys Engineering Ltd. announced that its precision camera tracking system, StarTracker, is fully supported by Assimilate’s Live FX software.
Post-production: The largest end-user segment of the virtual production market
In 2021, the post-production segment accounted for the largest share of the global virtual production market. As of the present, virtual production is at a nascent stage and very few films are produced entirely through virtual production. In hybrid production models, a few shots are shot through virtual production, and wherein some are completely dependent upon VFX, post-production plays a crucial role
North America: The largest region in the virtual production market
North America led the virtual production market in 2021. The key factors driving the growth of the North American virtual production market include the rising demand for visual effects in movie production and the increasing adoption of studio-based production owing to the restrictions caused by the pandemic. Further, most of the players in the ecosystem account for large market shares in the North American region when compared to those in other regions. PR Newswire