Visual Effects (VFX) Market Size To Increase $ 5.56 Billion | Growing demand for high quality content to drive market growth


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Key market dynamics:

The growing demand for high quality content is driving the growth of the visual effects market in particular. Digital video content platforms such as Amazon Prime Video, Netflix, and Hulu have created the need for rich content and visual effects of all kinds have grown in popularity in recent years. Streaming service providers are also embracing the latest technologies such as virtual reality and 360-degree and light-field capture, which make use of visual effects. Additionally, movie studios are trying to incorporate more animation shots and visual effects into their movies and TV series. Studios are investing in visual effects to develop high-quality feature-rich content and compete with other digital video streaming service providers, which in turn is expected to drive the growth of the global visual effects market (VFX ). Besides, other factors including the increase in real-time rendering in the production of visual effects and the growing number of acquisitions and partnerships will further fuel the market positively during the forecast period.

Storage issues for VFX rendering will be one of the key factors that may challenge the growth of the market. Managing the volume of information used to generate a photorealistic image as a single photorealistic image contains hundreds to thousands of digital assets is one of the main challenges. As more visual effects studios move to 4K imaging and higher resolution, it will be necessary to add additional storage capacities, which may lack interconnection between individual storage capacities. Lack of information about specific VFX modules in the rendering process further creates overall inefficiency and increases the length of the rendering process. In addition, high investments, low profit margins and a shortage of qualified personnel will further limit market growth in the long term.

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Analysis of key segments

The Visual Effects Market report is segmented by Application (Movies, Television, Games, and Ads) and Geography (North America, APAC, Europe, MEA and South America). The films segment dominated the largest market share in 2020 and will continue to maintain its dominance in the market during the forecast period. The film segment is driven by the growing demand for realistic movie experiences by audiences and the growing popularity of visual effects based films. Visual effects are a technology used in the digital film making process to enhance the representation of imaginary places and altered characters. The use of VFX in the movie making process has led to new entertainment experiences with VR and 3D movies.

In terms of geography, North America was the highest revenue generating segment of the visual effects market in 2020. The region will remain the largest revenue contributor while capturing 39% of the market growth during the forecast period. The United States and Canada are the key markets for visual effects in North America. Market growth in this region will be faster than market growth in Europe, MEA and South America.

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Supplier landscape

The visual effects market is fragmented and vendors are deploying growth strategies such as focusing on mergers and acquisitions and entering into partnerships with other players to compete in the market. Market sellers should focus more on the growth prospects of fast growing segments, while maintaining their positions in slow growing segments. The market offers significant growth opportunities and competition between suppliers will intensify with the arrival of new suppliers, technological innovations and the launch of advanced products. Established industry participants focus on mergers and acquisitions and partner with other players to expand their product portfolio, enter emerging markets and increase market share. For example, in February 2019, Walt disney announced plans to launch Disney Plus digital video streaming services in November 2019.

Some companies mentioned

    • Luxury Entertainment Services Group Inc.
    • Digital Domain Holdings Ltd.
    • Digital Idea Corp.
    • Eastman Kodak Co.
    • Framestore Ltd.
    • Hydraulx VFX Ltd.
    • Rodeo FX Inc.
    • Sony Corp.
    • Technicolor SA
    • The Walt Disney Company
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Associated reports:

Online Streaming Services Market by Type and Geography – Forecast and Analysis 2021-2025

Music Stock Market by Licensing Model and Geography – Forecast and Analysis 2021-2025

Scope of the visual effects market (VFX)

Cover of the report

Details

Page number

120

Year of reference

2020

Forecast period

2021-2025

Growth dynamics and CAGR

Accelerate to a CAGR of nearly 12.20%

Market growth 2021-2025

$ 5.56 billion

Market structure

Fragmented

Annual growth (%)

9.92

Regional analysis

North America, APAC, Europe, MEA and South America

Efficient contribution to the market

North America at 39%

Main consumer countries

United States, India, Canada, China and United Kingdom

Competitive landscape

Leading companies, competitive strategies, reach of consumer engagement

Profiled companies

Deluxe Entertainment Services Group Inc., Digital Domain Holdings Ltd., Digital Idea Corp., Eastman Kodak Co., Framestore Ltd., Hydraulx VFX Ltd., Rodeo FX Inc., Sony Corp., Technicolor SA and The Walt Disney Co.

Market dynamics

Parent Market Analysis, Market Growth Drivers and Obstacles, Analysis of Fast Growing and Slow Growing Segments, Impact of COVID-19 and Future Consumer Dynamics, Analysis of Market Conditions for the Forecast Period.

Customization

If our report didn’t include the data you’re looking for, you can reach out to our analysts and customize the segments.

Main topics covered:

  • Summary
  • Market landscape
  • Market sizing
  • Five forces analysis
  • Market segmentation
  • Customer landscape
  • Geographic landscape
  • Supplier landscape
  • Supplier analysis
  • appendix

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SOURCE Technavio

About Monty S. Maynard

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