Market Overview
Global visual effects (VFX) software market reached USD 1.3 billion in 2022 and is expected to reach USD 3.6 billion by 2030, growing with a CAGR of 13.5% during the forecast period 2023-2030. The primary factors contributing to of the growth of the global VFX software market are the increase in the use of visual effects in movies and the rise in consumer demand for high quality content.
The market is also expanding as cloud computing for VFX software becomes more widely used. Furthermore, it is anticipated that the incorporation of the latest innovations into VFX software, such as virtual reality and artificial intelligence, would present profitable growth prospects for the market's expansion.
Manufacturers are focusing for their penetration in the untapped emerging economies and other international markets. Therefore, they are launching their products in the unexplored market such as emerging economies.
For instance, A VFX company is introducing a new product line designed to meet the demands and working styles of emerging international markets. ReDefine is a new service from VFX company DNEG that will concentrate on providing visual effects and animation services to rising international markets like China and India. Therefore, Asia-Pacific as whole region holds the significant market shares and is exoected to grow at a highest CAGR during the forecasted period.
Market Scope
|
Metrics |
Details |
|
CAGR |
13.5% |
|
Size Available for Years |
2021-2030 |
|
Forecast Period |
2023-2030 |
|
Data Availability |
Value (US$) |
|
Segments Covered |
Component, Deployment, Application and Region |
|
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
|
Fastest Growing Region |
Asia-Pacific |
|
Largest Region |
North America |
|
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Component Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
Market Dynamics
Increasing Use of Digital Video Streaming Platforms
In recent years, OTT platforms like Netflix, Amzzon Prime Video and tec are gaining popularity owing to the availability of different entertaining contents. To engage with the viewers, these platforms provides the top-notch visual effects to generate the excellent storytelling experiences. Furthermore, the vaialability of new contents on a regular manner also generates the higher demand for these softwares and VFX softwares plays a crucial role in the betterment of the visual appearences of OTT and web series.
For instance, According to SAMENA Telecommunications Council, the global OTT TV episode and movie revenues are anticipated to reach USD 235 billion in 2028. This will increase from last year's USD 154 billion by USD 81 billion, according to the most recent forecast from Digital TV Research, with an additional USD 17 billion expected in 2023 alone. This in turn will boost the demand for the VFX in the movies and web series.
Growing Demand for High Quality Content
A number of filmmakers prefer high-quality movies with captivating visual effects and lifelike animations in response to the expectations of worldwide customers for enticing high definition visual experiences. As requested by the filmmakers, several studios are currently integrating more VFX and animation shots in films. A rise in VFX content need is another factor driving the demand for immersive experiences like AR and VR.
In addition to multiplex theatres, consumers are watching more video content on a variety of platforms, such as big 4K or ultra-high-definition (UHD) TVs, tablets and smartphones. The growing use of digital video content platforms has increased the demand for rich material and many types of VFX, necessitating the use of VFX software. Leading suppliers of video streaming services have also been prompted by this to adopt innovative visual effects-using technologies like virtual reality, 360-degree and light-field capture.
Presence of Free Softwares
The market will likely be impacted from the availability of free and open source visual effects software. The VFX market currently offers a variety of software that is available for free, including Blender, Fusion 8, Hitfilm Express and others.
According to a survey by the Academy Software Foundation (ASWF), nearly 84% of the sector, particularly in animation and visual effects, employs open source software. Therefore, the expansion of the global market is endangered by such freely available software. Therefore, it is anticipated that the availability of free and open-source VFX software will restrain the market's expansion.
Segment Analysis
The global visual effects (VFX) software market is segmented based on component, deployment, application and region.
Integration and Customization Leads the Segmental Growth
On-premise deployment segment provides the more prospect for the integration anf customization with workflows and infrastructure. On-premise solutions can be catered any demand of the clients. The on-premise segment has the largest market share for VFX software. This is addressed by security issues related to produced video contents' privacy. However, the cloud segment is anticipated to grow rapidly over the course of the projection year due to benefits like its pay as you go model, which does away with the requirement for capital expenditures (CAPEX) and quick access to limitless processing and storage capacity.
Geographical Penetration
Transforming VFX Workflows with Cloud-Based Rendering and Simulation Services Drives U.S. Market
VFX studios have access to enormous processing capacity because to the cloud-based rendering and simulation services provided by U.S. cloud software vendors. The Arch platform reduces the legacy expenses and inefficiencies of on-premises machine rooms by transferring VFX to the cloud. The platform gives VFX teams the ability to easily scale up and down from anywhere in the globe, as well as to develop and manage capacity using cloud-based workstations, render farms, storage and workflow management – all in an extremely secure setting.
In May 2020, A cloud-based visual effects platform for live-action film and television has been launched by Arch Platform Technologies to help the entertainment sector scale without limitations. Therefore, U.S. is contributing to more than 3/4th of the regional market share.
Major Key Players
The major global players include Maxon Computer, Foundry, Chaos Software, Adobe Inc., PIXAR, Sitni Sati, SideFX, Corel Corporation and Blackmagic Design Pty Ltd. Autodesk Inc.
COVID-19 Impact Analysis
COVID-19 has led to the disruptions in the engtertainment industry globally. Many film projects were put on hold and got delayed, resulting in a lowering demand for VFX software during the initial half of the pandemic, which has negatively impacted the revenue generation by VFX software suppliers.
With the lockdown being imposed in many parts of the world, many VFX studios and their artists had shifted to their homes for their remote setups. At the same time, people were at their homes, which generated the demand for the streaming contents, which further aid to the growth of the global VFX software market. Due to this consumer shift, manufacturers had to adapt with the demand shift to cater the need of the consumers.
Scope
By Component
- Software
- Services
By Deployment
- On-Premise
- Cloud
By Application
- Movies
- Gaming
- Advertising
- Television
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- On January 19, 2023, By ensuring the open source beta version of xSTUDIO accessible via the Academy Software Foundation (ASWF) GitHub repository, DNEG, a leading visual effects (VFX) and animation studio for the creation of feature film, television and multiplatform content, has announced its continued focus on developing industry-leading technology.
- In June 2021, The visual effects studio of Peter Jackson, Weta Digital, which won Oscars for its work on The Lord of the Rings and Avatar, has partnered with modelling software developer Autodesk to make some of its proprietary VFX tools available to the public.
- On May 14, 2020, Cloud-Based Visual Effects Platform for Live-Action Film and Television, launched by Arch Platform Technologies, is designed to let the entertainment industry scale without limitations.
Why Purchase the Report?
- To visualize the global visual effects (VFX) software market segmentation based on component, deployment, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of visual effects (VFX) software market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global visual effects (VFX) software market report would provide approximately 61 tables, 56 figures and 181 Pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
