Global Visual Effects Services (VFX) Market 2023-2030
Global Visual Effects Services (VFX) Market Size, Share & Trends Analysis Report by Type (Simulation FX, Animation, Modelling, Matte Painting, and Compositing), by Application (Movies, Television, Gaming, Advertisements, and Others), and by Technology (Artificial intelligence (AI), and Augmented reality (AR)) Forecast Period (2023-2030)
The global VFX market is anticipated to grow at a CAGR of 8.2% during the forecast period (2023-2030). The market’s growth is driven by the increasing demand for high-quality visual effects around the globe. The expansion of the entertainment industry and consumers’ desire for immersive and visually stunning content have both contributed to a significant rise in the demand for high-quality visual effects in recent years. Movies, television shows, and video games now heavily rely on visual effects to create appealing and realistic graphics, further fueling the demand for VFX services. For instance, in August 2022, Ingenuity Studios, a full-service visual effects company representing Loeb & Loeb, joined Streamland Media's global post-production services. This acquisition enables Ingenuity Studios to expand its range of services provided to content producers worldwide. The offerings now include specialized support from Picture Shop's picture division, Ghost VFX's visual effects division, Formosa Group's sound division, and Picture Head's marketing division. The collaboration between Ingenuity Studios and Streamland Media highlights the increasing importance of high-quality visual effects in the entertainment industry. As consumer demands continue to evolve, the demand for VFX services is expected to grow even further, driving the market's expansion in the years to come.
Segmental Outlook
The visual effects services (VFX) market is segmented based on type, application, and technology. Based on type, the market is sub-segmented into simulation FX, animation, modelling, matte painting, and compositing. Based on application, the market is sub-segmented into movies, television, gaming, advertisements, and others. Furthermore, based on technology, the market is sub-segmented into AI and AR. Among the applications, the television manufacturer sub-segment is expected to grow at a considerable CAGR over the forecast period. The segmental growth is attributed to the increasing demand for the usage of visual effects in TV shows, movies, and other media. Visual effects are sought after for action sequences, defense scenes, and cameo appearances by superheroes, which contribute to the growth of this segment.
The Animation Sub-Segment is Projected to Experience a Substantial Growth of the Global Visual Effects Services Market
Among the types, the animation sub-segment is anticipated to experience substantial growth. This growth is attributed to the increasing demand for advancements in technology around the globe. The VFX business has undergone a revolution due to technological developments, enabling the creation of more complex and realistic visual effects. VFX studios can noe produce awe-inspiring visuals owing to advancements in computer graphics, 3D modeling, rendering, and animation technoques.
In response to the demand for cloud-based applications, market players are introducing new products. For instance, in June 2021, Weta Digital, a visual effects studio, partnered with Autodesk, a 3D animation company, to launch the cloud-based application WetaM. This application combines Autodesk’s Maya 3D animation, modeling, rendering, and simulation software with Weta's exclusive special effects tools for artists. The collaboration aims to provide cutting-edge technology and tools to meet the increasing demands of the animation and VFX industry.
Regional Outlook
The visual effects services (VFX) market is analysed based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East and Africa, and Latin America). Among these, the Asia-Pacific region is projected to experience prominent growth over the forecast period. This growth is driven by the rise in demand, which can be attributed to businesses investing more in visual effects for content creation and brand enhancement.
Global Visual Effects Services (VFX) Market Growth by Region 2023-2030
Source: OMR Analysis
The North America region is Anticipated to Hold a Significant Share in the Visual Effects Services (VFX) Market
Among all the regions, the North America region is anticipated to hold a significant share of the VFX market during the forecast period. The regional market growth is attributed to the increasing demand for outsourcing and globalization across the region. The VFX sector has identified a tendency towards outsourcing and globalization, with numerous production companies and studios outsourcing their VFX work to specialised studios or independent contractors, often in regions with competitive labor markets. This outsourcing trend has contributed to the expansion of the global market for VFX services, VFX services accessible and affordable, including specialized assistance from various applications. For instance, in August 2022, Streamland announced the inclusion of the award-winning Ingenuity Studios in the company's global post-production services. With four locations in the US and Canada, Ingenuity Studios expands the range of services that Streamland Media can provide to content producers globally, including specialized assistance from Picture Head, Ghost VFX, Formosa Group, and Picture Shop, which specialises in visual effects, sound, and picture production.
The major companies serving the global visual effects services market include Animal Logic Group, Cafe FX, Cinesite VFX Ltd., Digital Domain 3.0, Inc., and DNEG PLC, among others. These market players are significantly contributing to market growth by adopting various strategies such as mergers and acquisitions, partnerships, collaborations, funding, and new product launches to stay competitive. provision of virtual production and visual effects services for Netflix's original shows and films.
Market Players Outlook
The major companies serving the global soy protein for animal feed market include Animal Logic Group, Cafe FX, Cinesite VFX Ltd., Digital Domain 3.0, Inc., and DNEG PLC, among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, and new product launches, to stay competitive in the market. For instance, in May 2022, DNEG announced the signing of a new, multiyear services agreement with Netflix. The non-exclusive deal involves DNEG.
The Report Covers
Market value data analysis of 2022 and forecast to 2030.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in the global visual effects services market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying ‘who-stands-where’ in the market.