The global virtual production market is anticipated to grow at a significant CAGR of around 13.9% during the forecast period. Virtual production refers to a method of merging live-action footage and computer graphics in real-time. It depends on computer-generated imagery (CGI), virtual reality (VR), augmented reality (AR), and game-engine technologies. The growing virtual production in the gaming industry is positively surging the growth of the market. The rising adoption of browser and mobile games which provide free-to-play business models, along with a shift from physical to online games are creating a positive outlook for the market. Moreover, leveraging a three-dimensional environment increased the focus of companies on developing compact and comfortable virtual gaming devices, and constant technological innovation on virtual production platforms, such as 3D audio, untethered virtual reality headsets, and cloud scalability, are expected to drive market growth across gaming application. 

For instance, in March 2019, Oculus VR launched Oculus Rift S. A new VR headset that combines the convenience of built-in Oculus Insight tracking technology with the full power of PC. Rift S works with the Rift platform, giving customer access to the top-selling and most immersive VR titles on Day 1—and even more groundbreaking games like Asgard’s Wrath, Defector, and Stormland on the horizon. 

Impact of COVID-19 Pandemic on Global Virtual Production Market

The COVID-19 pandemic brought opportunities and threats as well. Virtual production provided a way to address production in a way that could lower risk and profiles for bringing tons of people together. While live-action film production during the pandemic was significantly helped by advances in virtual production, COVID-19 and the accompanying rise of virtual production have impacted animation also. Moreover, there was indeed a big explosion in virtual productions of film and TV shows, especially in visual effects (VFX) space.

Segmental Outlook 

The global virtual production market is segmented based on the component and end-user. Based on the component, the market is augmented into hardware, software, and services. The software segment holds significant shares in the virtual production market during the forecast of 2022-2028. The ongoing technological advancements in virtual production through the incorporation of advanced VFX features to fuel the growth of the market.Based on the end-user, the market is sub-segmented into movies, tv-series, commercial ads, and online videos., 

Global Virtual Production Market Share by End-User, 2021 (%)

The Movie Segment is Expected to Hold the Prominent Share in the Global Virtual Production Market.

Based on end-user, the movie segment is likely to hold a prominent share in the virtual production market during the forecast. The increase in movies production budgets and high usage of VFX in movie studios is likely to propel the growth of the market. To reach the maximum audience, OTT platforms are being adopted over theatres and multiplexes, which will contribute to the growth of the market.

Regional Outlooks

The global virtual production market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  North America is expected to hold a considerable share in the market due to the presence  of major key players for film studios in the region. The high application of virtual production in major film studios in the region, including NBC Universal, Viacom CBS, Warner Media, and Walt Disney Studios is another prominent factor for the market gorwth. 

Global Virtual Production  Market Growth, by Region 2022-2028

The Asia-Pacific is the fastest growing region in the Global Virtual Production Market.

The Asia-Pacific is expected to hold a significant share along with fastest growing position in the virtual production market during the forecast. The faster implementation of film-making technology in studios across the region is likely to surge the demand for the virtual production market. Moreover, increasing online videos content is positively impacting the market growth. Major economies such as China, Australia, India, Japan, and South Korea are driving the demand for virtual production solutions. The growing demand for online video streaming and the increasing popularity of on-demand video content across the region are also positively impacting the market growth.

Market Players Outlook

The major companies serving the global virtual production market include 360Rize, Adobe Inc., Autodesk Inc., Epic Games Inc., HTC Corp., NVIDIA Corp., Mo-Sys Engineering Ltd., Panocam3d.com, SideFX, Vicon Motion Systems Ltd., Walt Disney Co., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in November 2020, the Hyprsense real-time animation company announced that it's been acquired by Epic Games. Hyprsense collaborated with Epic's development teams, as well as 3Lateral and Cubic Motion, to build "new and better tools and systems for developers and players. The acquisition also allows for better integration of Hyprsense's tech with Unreal Engine and further Epic's work "to make content production more accessible. 

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global virtual production market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.