VFX Market to Reach Valuation of USD 48.9 Billion by 2028 – Superior Quality Content among Consumers Drives the Market

Vantage Market Research

Aug 16, 2022

In terms of revenue, the Global VFX Market is expected to reach USD 48.9 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 10.80% from 2022 to 2028.

The VFX is entirely done in post-production, and in some cases during the film era, the elements are created in the camera itself. VFX includes the addition of live-action footage that might contain in-camera special effects and generated imagery (animals or creatures, digital or optics) that look realistic but can be dangerous and impractical, expensive, time-consuming, or not possible to capture on film. Recently, VFX through computer-generated imagery (CGI) is becoming easier to get to the independent filmmaker with the launch of inexpensive and quite accessible animation and compositing software. Also, nowadays, VFX is widely utilized in almost all movies, television series, and web series.

Key Highlights from Report:

In terms of segment Application, the Movie sub-segment contributes to the largest market, whereas the television sub-segment is the second-largest market with a significant market share. The advertisements sub-segment will likely expand during the forecast period. In movies, the VFX plays a vital part in adding live-action footage with CGI. The VFX has a powerful impact on audience control. There are more VFX shots on television, where many shots are incredibly complex and can involve the digital humans & creatures in the digital background, which needs a significant effects simulation.

The Simulation FX sub-segment of the Product segment has registered the most prominent market growth, and the animation sub-segment is the second-highest market with a significant market share. Simulation FX integrates high-quality performance and physically realistic simulation devices and is used in creating visual tricks and illusions effects to offer the industries like film, video games, television, and theatre, and simulator industries in creating the virtual world in realism. Animation is the technique or a type of product where the images are manipulated to come out as moving images.

Among regions, North America is dominating the global VFX Market with the highest market revenue and will continue its dominance in the overall market during the analysis period. This is mainly due to increasing investments in creating high-budget films that require VFX. In North America, the major contributors of VFX Market are Canada and the US regions.

Market Dynamics:

There is growth in the use of VFX worldwide owing to high demand for superior quality video content in filmmaking and also a rise in expenses on VFX by the film industry. Moreover, the increase in requirement for 3D-UHD animated movies in theatres and the escalating utilization of digital video content outlets worldwide such as Amazon Prime, Hulu, Netflix, etc., is producing high demand for rich content and VFX of all types. This, in turn, will drive the VFX industry at the global level. Furthermore, streaming service suppliers are implementing the most recent technologies like VR, light-field capture, and other technologies that use VFX. Besides, movie studios are trying to add more VFX-based shots and animations into their films & television series, stimulating market expansion.

North America is dominating the Global VFX Market and is likely to continue the same trend during the forecast period. Hollywood is the dominant film industry in the world, with various film and animation studios. As a result, VFX services are highly used in multiple ways in series, films, and documentaries. Additionally, the ever-increasing consumption of high-quality content, the increase in smart televisions that creates possible 4K content, and the high investments in producing high-budget films will fuel the regional market expansion during the forecast period.

The Global VFX Market is Segmented as follows:

  • Component
    • Software
    • Services
    • Hardware
  • Technology
    • Artificial Intelligence (AI)
    • Augmented Reality (AR)
  • Application
    • Movies
    • Television
    • Gaming
    • Advertisements
    • Other Applications
  • Region
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

List of the Key Players of the Global VFX Market is:

Adobe Inc., Animal Logic, Cinesite (Eastman Kodak Company), Digital Domain Holdings Limited, Framestore, Pixomondo, Rodeo FX, Scanline VFX, Sony Pictures Entertainment Inc. (Sony Group Corporation), Technicolor SA, The Foundry Visionmongers Limited, The Walt Disney Company

VFX Market Size, Share & Trends Analysis Report by Component (Software, Services, Hardware), by Technology (Artificial Intelligence (AI), Augmented Reality (AR)), by Application (Movies, Television, Gaming, Advertisements), by Region (North America, Europe, Asia Pacific, Latin America) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)