Global Visual Effects (VFX) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Visual Effects (VFX) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Visual effects (VFX) is the process through which imagery is altered, created, or enhanced for live-action media that could not be captured during live-action filming due to it being costly, dangerous, impractical, or impossible to shoot. Visual effects allow for the integration of live-action footage and VFX to create realistic objects, characters and environments. Visual Effects (VFX) Software refers to the software used in this process. Visual Effects (VFX) Software is widely used to produce movies, commercials, games, and television shows.

Market Overview:

The latest research study on the global Visual Effects (VFX) market finds that the global Visual Effects (VFX) market reached a value of USD 9864.35 million in 2022. It’s expected that the market will achieve USD 17937.5 million by 2028, exhibiting a CAGR of 10.48% during the forecast period.

The impact of the Russia-Ukraine war on the Visual Effects (VFX) Software Market

War is slowing economic recovery

Before the war, the world economy was recovering from the blow brought by COVID-19. Supply chain disruptions exacerbated by the conflict in Ukraine and shutdowns in China due to a zero-coronavirus policy have dealt a severe blow to the economic recovery. Growth in almost all economies will be significantly weaker than expected. Many of the worst-hit countries are in Europe, which is vulnerable to war due to energy imports and refugee flows. Countries around the world are being hit by rising commodity prices, which have added to inflationary pressures, dampening real income and spending, further dampening the economic recovery.

Inflationary pressure intensifies

The war has had a huge global impact on inflation, which has hit its highest level in 40 years in Germany, the UK and the US, new forecasts from the OECD show. A gradual easing of supply chain and commodity price pressures and the impact of higher interest rates should begin to materialize by 2023, but core inflation in many major economies is expected to remain at or above central bank targets by year-end.

Cost of living crisis will create hardship and risk famine

Russia and Ukraine are important suppliers to many commodity markets. Together, they account for 30 percent of global wheat exports, 20 percent of corn, mineral fertilizers and natural gas, and 11 percent of oil. After the war broke out, the prices of these commodities rose sharply. Without action, the risk of a food crisis is high. Supply disruptions are intensifying, threatening especially low-income countries that are highly dependent on Russia and Ukraine for basic staples. With public budgets stretched for two years by the COVID-19 pandemic, these countries may struggle to provide their people with food and energy at affordable prices, risking famine and social unrest.

Therefore, the Russo-Ukraine war exacerbated the turbulence of the global economy and inhibited the growth of the downstream market of the Visual Effects (VFX) Software industry.

Visual Effects (VFX) Software Market Drivers Analysis

Entertainment and media as an economic sector encompasses a wide variety of products and services, including film, television, games, and more. Entertainment and media has grown into an industry with increasing income and leisure time. According to data released by Statista, the entertainment and media market will reach US$2.34 trillion in 2021, an increase of 10.4% over 2020, and is expected to reach US$2.93 trillion by the end of 2026. The entertainment and media industry is the main downstream application market for Visual Effects (VFX) Software. Therefore, the growth of the entertainment and media market size will bring greater market demand for the Visual Effects (VFX) Software industry.

Due to the global consumers' demands for appealing high definition visual experiences, several filmmakers demand high-quality productions with engaging visual effects and realistic animations. Currently, many studios are including more VFX and animation shots into movies as per the filmmakers' requests. In addition, there is an increase in the demand for VFX content to power immersive experiences such as AR & VR.

Apart from the multiplex cinemas, people are consuming more video content on different platforms as well including large, 4K, or ultra-high-definition (UHD) TVs, tablets, and smartphones. The rise in popularity of digital video content platforms augments the demand for rich content and VFX of all types, creating the need for using VFX software. This has also stimulated leading video streaming service providers to implement the latest technologies such as virtual reality, 360-degree and light-field capture, that use visual effects. The increase in the production of content by video streaming service providers has compelled production studios to adopt VFX in their films and television series. The increase in adoption of digital video content platforms such as Netflix, Amazon Prime Video, and Hulu fosters the need for high-quality content and VFX. Moreover, increase in adoption rates of smart TVs, which support 4K content in turn fosters the need for VFX. The rise in adoption of smartphones, laptops, tablets, and smart TVs further fuel the growth of the digital video streaming services industry. Thus, these factors drive the growth of the global VFX software market.

Region Overview:

United States had the highest growth rate of all regions.

Company Overview:

Autodesk is one of the major players operating in the Visual Effects (VFX) market, holding a share of 20.41% in 2022.

Autodesk, Inc. provides 3D design, engineering, and entertainment software and services worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BIM 360, a construction management cloud-based software; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry.

Adobe Inc., formerly Adobe Systems Incorporated, is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, measuring, optimizing and engaging with compelling content and experiences.

Segmentation Overview:

Among different product types, On-premise segment is anticipated to contribute the largest market share in 2027.

Application Overview:

By application, the Movies segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Visual Effects (VFX) market covered in Chapter 3:

DNEG Matte
Pixomondo
Sony Pictures Imageworks
The Mill
Moving Picture Company (MPC)
Industrial Light and Magic
Tippett Studio
Scanline VFX
Digital Domain
Rodeo FX
Cinesite
Animal Logic
Wētā FX (Weta Digital)
Framestore
BUF

In Chapter 4 and Chapter 14.2, on the basis of types, the Visual Effects (VFX) market from 2018 to 2029 is primarily split into:

Simulation FX
Animation
Modelling
Matte Painting
Compositing

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Visual Effects (VFX) market from 2018 to 2029 covers:

Television
Film
Video Game
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)