According to the new research report titled “Virtual Production Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 4,733.04 million by 2028, registering a CAGR of 15.9% from 2021 to 2028.
The virtual production market is experiencing significant growth opportunities due to the increasing number of production houses globally. However, the lack of awareness of virtual production solutions in developing countries is hampering the growth of the market. Meanwhile, increasing use of virtual production solutions due to the COVID-19 outbreak and rising adoption of the OTT platforms are expected to garner the growth virtual production market during the forecast period.
COVID-19 outbreak first began in Wuhan (China) during December 2019, and since then, it has spread across the globe. The media & entertainment industry has also been impacted negatively. Hence, the pandemic would act as a restraining factor for the growth of various markets related to this industry in the coming months. One of the highly impacted critical areas is on-site shooting and production. The industry is fighting back to recover the loss and come up with new business models. To monetize, the companies are coming up with shows on streaming devices. The crisis has accelerated the trend of media streaming with the increasing penetration of OTT devices. The streaming companies are getting a significant number of subscriptions and viewers since the start of this pandemic. This has significantly created a demand for virtual productions. The COVID-19 pandemic has positively impacted the growth of the overall virtual production market.
The COVID-19 outbreak has significantly hampered the entertainment industry, halted film & television production, and led to the shutdown of theatres. As a result, virtual production is gaining widespread traction in remote filmmaking. It enables to connect teams from remote locations, sync files and feedback, and provide seamless experience by creating a digital environment. Furthermore, the growing accessibility to state-of-the-art game engines and developments in VR and AR technologies are other factors projected to provide significant opportunities to market players during the forecast period.
Key Findings of Study:
The global virtual production market is fragmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). North America held the largest share of the virtual production market in 2020, followed by Asia Pacific and Europe. Further, Asia Pacific is projected to witness the highest growth rate during the forecast period. Nevertheless, significant strategic initiatives by several industry players are observed in the market; for instance, in January 2020, HumanEyes Technologies introduced New Cloud-Based Suite. HumanEyes Cloud-based Suite utilizes high-performance Edge computing resources to ease and streamline the Capture-Create-Share VR workflow. Moreover, in March 2020, AVATOUR employed virtual reality technology to transport users to a remote location in real time, providing a new and effective substitute for travel. The Insta360 builds the 360-degree cameras for AVATOUR.