Frame School Insider discusses the growth of the visual effects market, which is driven by the increasing use of digital video streaming services. Visual effects software is used to create animation and special effects, as well as to add digital elements to films, TV shows, and advertisements. With the rising demand for digital video streaming services, the market for high-quality visual effects is expected to grow.
According to Netflix’s quarterly report in 2022, the company added 2.41 million subscribers globally to its video streaming service in Q3 2022, making a total of 223.09 million subscribers globally, and reached 4.50 million subscribers in Q4 and Q5 of 2022. This highlights the trend of more people consuming digital content, which in turn drives the visual effects market.
The global visual effects market size is expected to grow from $9.6 billion in 2022 to $10.6 billion in 2023, with a compound annual growth rate (CAGR) of more than 9%. However, the Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe.
The article also highlights the key trends in the visual effects market, which are technological advancements. Major companies operating in the visual effects market are focused on developing real-time collaborative software solutions to strengthen their position. For example, Glassbox Technologies launched BeeHive 1.0V1 in March 2020, which is a real-time virtual scene editor, virtual scene syncing, and review system for Maya and Unreal Engine. The software is expected to enable live modification of visuals and assets in 3D and deliver faster and automated virtual production workflows for moviemakers.
Major players in the visual effects market include Digital Domain, Rodeo FX, Hydraulx VFX, Sony Pictures Entertainment Inc., Technicolor, Digital Idea Corp, Deluxe Media Inc., Blackmagic Design Pty Ltd., Foundry Visionmongers Limited, ZOIC STUDIOS, Animal Logic, RE:Vision Effects Inc., Worldwide Fx, Video Copilot and Final Image Inc and Framestore.
The global visual effects market is segmented by type into matte painting, simulation FX, compositing, motion capture, character and creature animation, concept art, previs or pre-visualization, other types; by component into software, hardware, services; by application into movies, advertisements, TV shows, gaming.