Global virtual production market is estimated to be valued at USD 2.84 billion in 2024 and is expected to reach USD 8.37 billion by 2031, growing at a compound annual growth rate (CAGR) of 16.7% from 2024 to 2031.
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Key factors such as increasing demand for content from TV and OTT platforms and advancement of technologies such as LED walls, 5G, and cloud computing are expected to boost demand for virtual production solutions. Adoption of virtual production makes the content creation process more cost-effective and time-efficient compared to traditional filming techniques. It also offers flexibility to film scenes virtually without requiring physical filming at expensive locations. As the entertainment industry is constantly evolving and the demand for enhanced viewing experience increases, virtual production is emerging as a highly effective production technique.
Expansion of visual effects and animation industry
Rising demand for high-quality visual effects and computer-generated animations from the film, television, and video game industries has been a key driver of growth of virtual production market. Studios have increasingly turned to computer-generated graphics and virtual sets to bring immersive stories and imaginative worlds to life. However, traditional production techniques can be costly and time-consuming for visual effects-heavy projects. Virtual production technologies allow studios to overlay digital elements onto real-time camera feeds during live-action shooting, enabling directors to achieve their visions more efficiently. This allows storyboards and concepts to be visualized and tweaked in real-time on set, streamlining the post-production process. As the expectations of audiences continue rising in terms of visual spectacle and immersion, production studios are under greater pressure to incorporate cutting-edge techniques. Virtual production presents an appealing solution as it brings together live-action filming with virtual cinematography in a more seamless manner.
For instance, the Animation, Visual Effects, Gaming, and Comic (AVGC) sector in India holds significant potential to push the growth of "Create in India" and "Brand India" initiatives. With the aim of capturing around 5% (approximately US$ 40 billion) of the global market share by 2025 and achieving an annual growth rate of 25-30%, it is estimated that over 160,000 new jobs will be created annually. To further boost the growth of the AVGC sector, the Union Budget 2022-23 announced the establishment of an Animation, Visual Effects, Gaming, and Comics (AVGC) Promotion Task Force. This task force will focus on recommending strategies to enhance domestic capacity to cater to both domestic and global demands. In line with this announcement, the Ministry of Information and Broadcasting has set up the AVGC Promotion Task Force to promote and support the growth of the AVGC sector in India.
Gradual adoption of virtual production technologies beyond the traditional creative domains of film, television, and games is expected to drive the market growth. Architects and designers are increasingly experimenting with virtual production tools to convey spatial concepts and photorealistic renderings during the planning and prototyping stages of construction projects, retail spaces, and more. Advertisers also see potential for more immersive and engaging branded content through virtual production methods. Even the automotive and manufacturing industries are exploring applications to improve product development cycles. New sectors embracing virtual production techniques will be critical for ongoing expansion. The cross-industry appeal stems from the ability to accurately visualize, iterate, and test digital prototypes without constraints of physical building or production. This makes virtual production an attractive creative collaborative technology for diverse organizations.
For instance, in March 2022, Adobe announced collaborations with Epic Games, The Coca-Cola Company, NVIDIA, NASCAR, and others to position brands for success in the metaverse through breakthroughs in 3D content creation and immersive experiences.
Global Virtual Production Market Report Snapshots
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