Global visual effects market to grow by $ 8.9 billion from 2022 to 2027, report
The global visual effects (VFX) market size is expected to grow by $8.89 billion from 2022 to 2027. This is according to a report by Technavio.
In addition, the growth momentum of the market will progress at a compound annual growth rate of almost 13.71% during the forecast period, according to Technavio.
Increasing demand for high-quality content is notably driving the visual effects (VFX) market. However, factors such as Storage issues associated with VFX rendering may impede market growth.
The market is segmented by Application (Movies, Television, Gaming, and Advertisements), Component (Software, Services, and Hardware), and Geography (North America, APAC, Europe, Middle East and Africa, and South America). We provide a detailed analysis of 20 companies operating in the visual effects (VFX) market including Animal Logic Pty Ltd., Deluxe Media Inc., Digital Domain Holdings Ltd., Digital Idea Corp., Double Negative Ltd., Flatworld Solutions Pvt. Ltd., Framestore Ltd, Hydraulx VFX Ltd, Ingenuity Studios Inc., Makuta Effects Pvt. Ltd., Rodeo FX Inc., Scanline VFX, Sony Group Corp., Spin VFX, Technicolor SA, The Walt Disney Co., Tippett Studio Inc., and Weta Digital Ltd.
The market share growth of the movies segment will be significant during the forecast period. Factors such as the rising demand for realistic movie experiences by audiences and the growing popularity of VFX-based films are significantly contributing to the growth of this segment.
There is an increasing adoption of VFX technology for the digital filmmaking process to enhance the representation of imaginary locations and altered characters. As a result, it has led to new entertainment experiences in the VR and 3D film market.
Additionally, there is an increasing demand for VFX across film studios for making VR films and presenting fictional stories, storytelling, and depicting content-rich visuals.
North America is estimated to contribute 39% to the growth of the global market during the forecast period. One of the main factors that is significantly contributing to the growth of the visual effects (VFX) market in North America due to the high use of visual effects software and visual effects services in the media and entertainment industry.
One of the leading revenue generators of the market is the US. There is an increasing application of visual effects in movies and documentaries. Additionally, there is a heavy investment in the production of high-budget films which is positively impacting the market.
The main advantage of the extensive use of VFX is that it enhances the viewing experience. Hence, such factors are expected to drive the market growth in the region during the forecast period.
