Global Virtual Production Market Size, Share, and COVID-19 Impact Analysis, By Component (Software, Hardware, and Services), By Production Type (Production, Pre-production, and Post-production), By End-user (Movies, Commercial Ads, TV Series, Online Videos, and Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The global Virtual Production Market is projected to grow from USD 1.6 billion in 2021 to USD 5.2 billion by 2030 at a CAGR of 17.8% during the forecast period.

Virtual Production is a technique that flawlessly blends real-life live-action film with computer-generated graphics. The concept of virtual production has emerged as a result of the increasing innovation in production technologies. Unlike traditional filmmaking, virtual production allows filmmakers to stretch their creative boundaries, explore new territories, and provide the best possible experience for viewers.

The Virtual Production approach makes use of the LED volume to create three-dimensional virtual worlds, making it simple for producers to capture real-world objects and footage in such a way that it's difficult to tell the difference between the virtual and real-world sets.

The increasing utilization of virtual production in advertisements, and the growing demand for visual effects in film production studios throughout the world, and, are expected to drive market growth during the forecast period.

COVID-19 ANALYSIS       

The COVID-19 pandemic has impacted negatively on industries and businesses all around the world. The media and entertainment industries have also been harmed. As a result, in the following months, the pandemic will operate as a stifling factor for the expansion of many markets associated with this industry. Production and on-location shooting are one of the most severely impacted vital areas. The sector is battling back, attempting to recoup its losses and develop new business models.

Companies are creating shows for streaming devices to monetize. With the increasing proliferation of over-the-top (OTT) devices, the crisis has hastened the trend of media streaming. Since the outbreak, streaming firms have seen a large increase in subscriptions and views. As a result, there has been a considerable increase in demand for virtual productions. The COVID-19 epidemic has had a favorable impact on the virtual production market.     

LATEST TREND   

Technological Innovation in Virtual Production Boosts Market Growth  

Companies' attention to developing compact and comfortable virtual gaming devices, as well as ongoing technological innovation in virtual production platforms such as audio, has intensified as a result of factors such as functioning in a three-dimensional world. Gaming applications are likely to fuel market expansion thanks to 3D, disconnected VR headsets, and cloud scalability.

Furthermore, the addition of an immersive experience allows for 360-degree views of graphical elements as well as a new level of game involvement, allowing players to control and modify the game environment using their senses. As a result, market growth is expected to be fueled by the rising use of virtual production technologies in games.   

DRIVING FACTORS

Increasing Popularity of Virtualization in Media and Entertainment Industry  

The growing popularity of virtual production in the media and entertainment business, as well as its ability to create high-definition images and virtual environments in real-time, is propelling the market forward. By combining synthetic background landscapes with live-action videos, filmmakers can lessen the demand for production staff and crew members on site. This allows for a huge cost decrease in video production. Furthermore, developments in virtual production technology enable broadcasters to increase their operational efficiency by reducing the physical presence of technicians in the broadcast room.

RESTRAINTS              

Virtual production light-emitting diode panels and walls, which are frequently employed in the virtual production process by filmmakers, will pose a challenge to the market. For example, the ghosting effect and the cross pattern created by a display's failure of a light-emitting diode might be an impediment. These challenges have the potential to limit the market's expansion.  

SEGMENTATION      

The Global Virtual Production Market is segmented by Component, Production Type, End-user, and Region. Based on the Component, the market is categorized into Software, Hardware, and Services. Based on Production Type, the market is categorized into Production, Pre-production, and Post-production. Based on End-user, the market is categorized into Movies, Commercial Ads, TV Series, Online Videos, and Others. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.         

REGIONAL INSIGHTS   

North America dominated the virtual production market in 2021 due to the widespread use of virtual production in the region's major film studios, such as NBC Universal, Warner Media, Walt Disney Studios, and Viacom CBS. Furthermore, significant expenditures in R&D efforts by area enterprises to develop innovative virtual production software solutions help the regional market's growth.

Epic Games, Inc. upgraded their PlayStation software, Unreal Engine 4.25, and released an advanced version of Unreal Engine 5 in June 2020. Unreal Engine is VFX software that allows you to pre-visualize, design, and edit visual effects in real-time.           

The Asia Pacific virtual production market is expected to grow at the highest CAGR during the forecast period. The regional market has one of the highest rates of virtual production technology adoption in film studios. The primary countries pushing demand for virtual production solutions are China, Australia, India, Japan, and South Korea. The market's growth is aided by rising demand for online video streaming and the rising popularity of on-demand video content across the area. Furthermore, the region's filmmaking sectors are among the first to adopt technologically innovative filmmaking solutions.     

KEY INDUSTRY PLAYERS    

The virtual production industry players are focusing on broadening their service offerings. Service providers are experimenting with new placement techniques using mixed reality VFX and other cutting-edge real-time visual effects technology. Players have been able to strengthen their positions in important virtual production markets as a result of this strategy. Various players are concentrating their efforts on providing products that are simple to integrate into clients' workflows. Some production companies are competing for specific parts of the virtual production industry by employing proprietary technologies. Some of the key players in the market are Vicon Motion Systems Ltd, NVIDIA Corporation, HumanEyes Technologies Ltd., Epic Games, Inc., Autodesk Inc., HTC Corporation, and AVATOUR.     

 KEY INDUSTRY DEVELOPMENTS:    

• In 2020- AVATOUR used virtual reality technology to transfer customers to a remote place in real time, giving a new and effective mode of transportation. The 360-degree cameras for AVATOUR are built by Insta360.
• In 2020- HumanEyes Technologies launched its New Cloud-Based Suite. The HumanEyes Cloud-based Suite makes use of high-performance Edge computing capabilities to make the Capture-Create-Share VR workflow easier and more efficient.
• In 2020- HTC Hosted the First Virtual "VIVE Ecosystem Conference" (V2EC). It was the first time a big physical industry event has been completely supplanted by a virtual reality digital doppelganger.

LIST OF KEY COMPANIES PROFILED:

• Vicon Motion Systems Ltd
• NVIDIA Corporation
• HumanEyes Technologies Ltd.
• Epic Games, Inc.
• Autodesk Inc.
• HTC Corporation
• AVATOUR
• Mo-Sys Engineering Ltd.
• Panocam3d.com
• SideFX

SEGMENTATION

By Component

• Software
• Hardware
• Services

By Production Type

• Production
• Pre-production
• Post-production

By End-user

• Movies
• Commercial Ads
• TV Series
• Online Videos
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa