 Market Size.webp)
Visual Effects (VFX) Market size was over USD 10.9 billion in 2023 and is expected to reach USD 22.5 billion by the end of 2036, witnessing around 7.1% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of VFX is evaluated at USD 11.8 billion.
New digital technologies including VFX, blend virtual camera systems, 3D assets, and advanced motion capture and performance, with real-time render display technology, are facilitating filmmakers to create interactive digital scenes and breakthrough workflows. VFX has taken center stage in the production of feature films and game cinematics. Virtual production leverages computer graphics (CG) upstream and downstream technologies that allow stakeholders to guide technology to produce the desired creative outcome. Autodesk MotionBuilder is an example of a recently launched character animation tool with Pixar’s Universal Scene Description (USD) plugins.
Cloud-based storage of media is more popular than on-premise systems, owing to the robust security architecture offered by cloud-native platforms. Furthermore, such platforms eliminate the need to store assets on vendor sites, move or duplicate files between different vendors, and facilitate users to maintain sovereignty over assets. In 2022, Sony launched Ci Workflow, which gave production companies total control and visibility of their assets.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
7.1% |
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Base Year Market Size (2023) |
USD 10.9 billion |
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Forecast Year Market Size (2036) |
USD 22.5 billion |
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Regional Scope |
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Technology (Artificial Intelligence (AI), Augmented Reality (AR))
Artificial intelligence (AI) segment is poised to dominate around 75.2% visual effects (VFX) market share by the end of 2036. The segment growth can be attributed to the growing adoption of AI, which is providing artists with tools to push the envelope of efficiency and creativity. For instance, in 2023, over 77% of multinational corporations implemented AI to enhance their business processes. The integration of AI technology has led to a rapid evolution of visual effects (VFX) and animation industries.
AI is re-evaluating the role of humans in the film business, speeding up VFX processes, boosting character modeling and animation, and is being used to create intricate and realistic environments and special effects such as fire and explosions. AI in visual effects can help with rendering, and character animation, raising the VFX's quality and reducing post-production turnaround times. Artificial intelligence enables a more accurate representation of VFX elements, such as lighting, textures, and simulations in films, TV shows, and video games.
Product (Simulation FX, Animation, Modelling, Matte Painting, Compositing)
Throughout the projected timeframe, the simulation FX segment in the VFX market is expected to grow at the fastest rate on account of the application of simulation learning in the expanding field of education. Globally, the education market is expected to expand by over 9% between 2022 and 2027, reaching a market size of around USD 10 billion by that year. Several universities are implementing simulation-based curricula to improve the academic performance of students. Applications for teaching, training, and testing have seen a great deal of success and benefit from the adoption of simulation VFX.
Application (Movies, Television, Gaming, Advertisements)
The movies segment in the visual effects (VFX) market is assessed to generate significant revenue share by the end of 2036. The growth of the segment is set to be encouraged by surging film production across the globe. The global film production and distribution sector generated over USD 75 billion in income annually in 2022. The explosion of visual effects in nearly every film and television show in recent years has contributed to the VFX industry's expansion, which is also being aided by the general public's growing inclination toward watching these media. The movie industry has continuously relied on some form of visual effects, which are major revenue generators in the global visual effects (VFX) market. Animation and visual effects are becoming increasingly important as they are fundamentally redefining the cinematic landscape through the unrelenting explosion of visual effects.
Our in-depth analysis of the VFX market includes the following segments:
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Component |
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Product |
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Technology |
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Application |
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North America Market Statistics
Visual effects (VFX) market in North America, is foreseen to hold the largest share of 45.1% by the end of 2036. The market growth in the region is also projected owing to the presence of the largest film industry in the world. For instance, Hollywood one of the world's most lucrative and successful sectors, is more of a notion or a moniker for the American film business as a whole has an average of 400 films produced annually and more than 2 billion viewers globally. Major studios hire Hollywood Visual Effects to produce VFX fit for feature films, that allow filmmakers to enrich a narrative by bringing plausible settings, people, and stunts to life.
In addition, the U.S. and Canada VFX market is expanding due to the introduction of new technologies including 3D printing for its versatility and many uses in the creation of different parts. In the film industry, 3D printing is becoming increasingly common. It allows for the quick creation of props, and to produce a variety of objects, including equipment, weaponry, food, statues, and sculptures.
Europe Market Analysis
The Europe visual effects (VFX) market is projected to register notable revenue by the end of 2036. This rise is poised to be propelled by the increasing number of VFX studios, leading to a higher demand for VFX, and animation. For instance, every year, Europe produces over 35 animated films. Moreover, the region has developed into a global leader in VFX led by the rapid growth of the animation industry and the expanding number of European-produced films that have drawn attention from around the world.
Germany VFX market is expanding and developing significantly since the country has the second-largest VR/AR ecosystem in Europe. This has impelled by the widespread adoption of these technologies across numerous industries and the creation of more sophisticated and reasonably priced devices. The Germany market for AR and VR is predicted to have around 50 million users by 2029.
 Market Share.webp)
The players are collaborating to aggressively introduce AI and deep learning-based tools and mark their presence in the competitive market. In January 2024, VAST Data and Lola Visual Effects (VFX) entered into a partnership to leverage the VAST Data Platform and launch VFX tools for data-intensive feature films. It is aimed at streamlining administration and reducing the data ratio for efficient project completion, allowing artists to access media assets with minimal latency, irrespective of their geographic location. Some of the prominent players in the visual effects (VFX) market include:
Author Credits: Abhishek Verma
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