Enjoy complimentary customisation on priority with our Enterprise License!
The visual effects (VFX) market size is estimated to grow by USD 10.50 billion at a CAGR of 14.2% between 2023 and 2028. In today's rapidly evolving entertainment and media industry, the market growth is driven by strategic acquisitions and partnerships among studios and production houses. These collaborations aim to capitalize on the growing demand for high-quality digital content, particularly in the animation and visual effects film shots segment. With a focus on cost-effectiveness and creativity levels, companies are outsourcing various aspects of production, leveraging professional services to enhance visual effects and animation. The education sector also benefits from these advancements, as institutions integrate simulation software and cloud computing into their curricula to train the next generation of writers and directors.
_market_size_abstract_2024_v1.jpg.webp?v4.1.20)
The movies segment is estimated to witness significant growth during the forecast period. The movies segment is driven by the rising demand for realistic movie experiences by audiences and the growing popularity of VFX-based films. Technological advances have revolutionized the filmmaking process, and such advances have led to the transition from the analog to the digital filmmaking process.
_market_segments_abstract_2024_v2.jpg.webp?v4.1.20)
Get a glance at the market contribution of various segments View the PDF Sample
The movies segment was the largest and was valued at USD 3.77 billion in 2018. VFX is one such technology used in the digital filmmaking process to enhance the representation of imaginary locations and altered characters. VR and 3D movie experiences have become more entertaining as a result of the usage of visual effectiveness in filmmaking. Real-time rendering visual effects is used by film production companies to create virtual reality films, convey tales, and display visually rich content. Twentieth Century Fox Film Corp. (Twentieth Century Fox Film), Paramount Pictures Corp. (Paramount Pictures), The Walt Disney, Sony Pictures Entertainment Inc. (Sony Pictures Entertainment), and Warner Bros. Entertainment Inc. (Warner Bros. Entertainment) are some film production studios that produce high-quality visual effects-based movies. The increased use of this in movie production will drive the growth of the global market in the movies segment during the forecast period.
Based on the component, the market has been segmented into software, services and hardware. The software segment will account for the largest share of this segment. The software segment of the market is growing globally owing to the increasing addition of deep learning and machine learning in virtual production resolution. visual effects-software enables filmmakers to customize their sets fully and even create environments that do not exist in the imagination. One notable example is Adobe, with software such as Adobe After Effects and Adobe Premiere Pro. After Effects, in particular, is renowned for its powerful compositing and motion graphics capabilities, making it a staple in the post-production workflow of many professionals. Thus, the growing use of software will continue to drive the growth of the software segment of the market in focus during the forecast period.
_market_regions_abstract_2023_geo_v2.jpg.webp?v4.1.20)
For more insights on the market research report share of various regions Download PDF Sample now!
North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is the largest region in the market due to the high use of software and services in the media and entertainment industry. The US is the major revenue contributor to the market in this region. Hollywood is the largest film market in the world, which is home to several prominent film and animation studios. visual effects services have many applications in movies and documentaries. Film companies such as Paramount Pictures Corp., The Walt Disney Company, Cartoon Network Studios, Sony Pictures Entertainment Inc., and Warner Bros Entertainment Inc. use visual effects services.
Moreover, increasing investments in the production of high-budget films are driving the demand for visual effects. For instance, the production budget for Avengers: Endgame was around USD 356 million. Further, digital video streaming service providers are launching television shows and films with visual effects to showcase vintage-, action-, adventure-, and science fiction-based video content. The overall increase in the consumption of high speed internet content and the launch of film production studios in the region is expected to have a positive impact on the growth of the regional market. Such factors are expected to drive market growth during the forecast period.
The market is flourishing with advancements in CGI, digital simulations, and immersive technologies like virtual reality (VR) and augmented reality (AR). Primarily serving the film and entertainment industries, VFX enhances storytelling on streaming platforms and smart TVs with realistic digital simulations and stunning visual effects. Content creators leverage motion capture and facial recognition for lifelike animations, while deep learning algorithms drive simulation FX and modelling processes through simulation technologies. Virtual production techniques, including the use of LED walls, revolutionize filmmaking, reducing technological complexity and production costs. With demand surging for VFX in TV series and advertising, the market thrives on continuous technological developments and innovation, positioning itself as an indispensable component of modern ads and entertainment landscapes.
Increasing number of acquisitions and partnerships is notably driving the market growth. The growth of the market is increasing, owing to the increasing post-production budget and the increasing allocation of the movie budget to VFX. Movie, advertisement, and gaming production studios are adopting technologies in their production. Media streaming studios are using effects in their content to gain a competitive edge over their competitors.
However, the strategic move was aimed at expanding Cinesite's capabilities by incorporating mocap and unreal technologies from Squeeze, thereby strengthening its capacity to cater to the production needs of both video games and films. Thus, the increasing number of acquisitions and partnerships will continue to drive the growth of the market during the forecast period.
Increasing use of AR in VFX services is an emerging trend shaping the market growth. An increase in the demand for high-quality digital content drives innovations in VFX for new experiences such as AR. AR is the integration of a user's real-world environment with digital imagfes. VFX-companies are using AR in their VFX services to improve production and increase efficiency. The market is experiencing a rise in the consumption of digital content, which has increased the use of VFX-shots in films and increased the speed of the production process. Film production departments are integrating AR into on-set camera monitors for live shooting, overcoming issues in VFX-shots, distribution and speeding up the post-production process.
Moreover, the high growth potential of AR in the media and entertainment sector is driving the adoption of AR among VFX providers. VFX companies are partnering with AR-based companies to explore opportunities for developing product visualizations and services in real-time. Thus, the incorporation of AR in VFX services is expected to drive market growth and trends during the forecast period.
Shortage of skilled personnel in the VFX industry is a significant challenge hindering the market growth. The market is currently facing an acute shortage of skilled VFX artists such as supervisors, FX artists, creature artists, and animators. Companies are facing challenges in acquiring and retaining employees in the post-production process. A lack of technical skills and creative abilities is reducing the number of potential candidates for filling up vacant positions. The recruitment process is mostly dependent on online platforms. Job vacancies are either published on their own company websites or on an associated career website. VFX companies focus on recruiting artists from foreign countries to fill these vacancies.
For instance, the UK Migration Advisory Committee recommended the UK government organization to add several gaming industry designations to its official list of compiling careers with a shortage of skilled workforce. The number of VFX-related job vacancies is increasing, while VFX companies are struggling to break even if the films are blockbusters. Thus, VFX companies are unable to cater to the growing demands from film studios, which can hamper the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Animal Logic Pty Ltd, Cinesite VFX Ltd., Comcast Corp., Deluxe Media Inc., Digital Domain Holdings Ltd., Digital Idea Corp., Double Negative Ltd., Eastman Kodak Co., Flatworld Solutions Pvt. Ltd., Framestore Ltd., Hydraulx VFX Ltd, Ingenuity Studios Inc., Makuta Effects Pvt. Ltd., Milk VFX, Rodeo FX Inc., Scanline VFX, Sony Group Corp., Spin VFX, kids genre, Technicolor SA, The Walt Disney Co., Tippett Studio Inc., and Weta Digital Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Our market forecasting report includes data that is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
You may also interested in below market reports:
The market is evolving rapidly with the integration of cutting-edge technologies like AI (artificial intelligence) and ML (machine learning). From matte painting to AR (augmented reality), VFX enhances advertisements and content on digital platforms, offering immersive experiences for audiences. AI-driven upscaling and real-time VFX solutions elevate visual storytelling, while cloud-based workflows streamline production processes. With advanced rendering capabilities, VFX artists recreate real-world scenarios, ensuring user experience and audience engagement. Despite production timelines and time restrictions, the market continues to innovate, addressing intellectual property issues and security concerns while delivering realistic effects. As demand grows for immersive experiences and captivating content, the VFX market remains at the forefront of technological innovation, shaping the future of visual storytelling and entertainment.
|
Industry Scope |
|
|
Report Coverage |
Details |
|
Page number |
173 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 14.2% |
|
Market growth 2024-2028 |
USD 10.50 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
13.21 |
|
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 38% |
|
Key countries |
US, Canada, India, China, and UK |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Animal Logic Pty Ltd, Cinesite VFX Ltd., Comcast Corp., Deluxe Media Inc., Digital Domain Holdings Ltd., Digital Idea Corp., Double Negative Ltd., Eastman Kodak Co., Flatworld Solutions Pvt. Ltd., Framestore Ltd., Hydraulx VFX Ltd, Ingenuity Studios Inc., Makuta Effects Pvt. Ltd., Milk VFX, Rodeo FX Inc., Scanline VFX, Sony Group Corp., Spin VFX, Technicolor SA, The Walt Disney Co., Tippett Studio Inc., and Weta Digital Ltd. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research and growth report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
