Global Film and Episodic VFX Market - Outlook and Forecast 2023-2028


Market Overview

The global film and episodic VFX market reached a value of USD 5.15 billion in 2022 and is projected to reach USD 9.91 billion by 2028, with a CAGR of 11.54% during the forecast period. This growth is attributed to various factors, including mergers, acquisitions, and partnerships among industry vendors that enable them to expand their VFX offerings, access new markets, and increase their customer base. In 2022, the United States emerged as the leading country in the global film and episodic VFX market. This can be attributed to the continuous development of VFX technology, the increasing popularity of streaming content, and the rise of cinematic episodic fare that emphasizes high-quality VFX.

The demand for VFX artists is also on the rise due to the growing volume of film and episodic VFX content and the adoption of augmented reality (AR) and virtual reality (VR) technologies. Skilled artists and VFX studios are in high demand, spanning locations from Vancouver to London to Mumbai. Furthermore, financial incentives offered by various regions have contributed to the globalization of the VFX industry.

Product Type

Market Report

No. of Pages

208

Release Date

March 2023

Base Year

2022

Forecast Period

2023-2028

Market Size

USD 5.2 billion in 2021

Market Segments

Technology, Usage, and Geography

Region

Global

No. of Companies Mentioned

30


The popularity of Over-The-Top (OTT) platforms, which provide binge-watch content such as web series, films, and documentaries, has significantly influenced the demand for VFX content. These platforms are favored for their convenience, personalized approach, and affordability. The surge in online content consumption has fueled the demand for VFX, with around 70% of consumers subscribing to at least one OTT platform and more than 45% subscribing to multiple services.

The growing acceptance of VFX and animation, driven by the increased preference for adult animation and the emergence of new animation styles, has led to a greater demand for high-definition visual experiences. Studios are incorporating more animation and VFX shots into their productions to cater to the audience’s desire for realistic animation and engaging visual effects. The proliferation of multimedia devices, such as ultra-high-definition TVs, smartphones, tablets, and head-mounted devices, has further facilitated the consumption of immersive content. Streaming video has become the fastest-growing distribution channel for animation and VFX, fueled by the global rise in online video viewership.

The demand for skilled talent in the VFX industry has been steadily increasing and is expected to continue growing. However, there is a shortage of VFX artists, which poses challenges for the film and episodic VFX market. The scarcity of skilled personnel can lead to studios losing out on work opportunities or missing deadlines. Despite the competitiveness and demands of the VFX industry, it offers rewarding opportunities for artists to work on freelance and project-based assignments worldwide.


Market Segmentation

The market is segmented based on various factors, including technology, usage, and geography.

Segmentation by Technology
CGI (Computer Generated Imagery)
Compositing
Motion Capture

Segmentation by Usage
Film (Theatrical and Digital)
Digital Episodic
TV Episodic and Film

Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain
Asia-Pacific – China, Japan, India, South Korea, Australia
Latin America – Brazil, Mexico
Middle East & Africa – South Africa, GCC

The global film and episodic VFX market can be divided into three main technological segments: CGI (Computer Generated Imagery), Compositing, and Motion Capture. Among these, CGI has emerged as the dominant technology in the market, with its extensive use in various types of movies, ranging from dramas to blockbusters. CGI utilizes computer graphics to create 2D or 3D animations, renderings, and objects in art and media. It finds applications in television programs, films, simulations, video games, and even educational fields such as architecture and engineering. In films, CGI is utilized for creating 3D models of monsters, people, explosions, buildings, cars, and more, which are then integrated into live-action scenarios, such as car explosions or monster attacks.

The film usage segment, encompassing both theatrical and digital films, is projected to hold the largest share of the global film and episodic VFX market. This segment involves the use of VFX for designing digital and theatrical films, and it has witnessed significant innovation and progress over the past two decades. Visual effects play a crucial role in movie production, particularly in Hollywood blockbusters, as they enhance the overall experience and bring a sense of grandeur to the screen. The advancement and increasing popularity of CGI have revolutionized the creation of visual effects in films. Commonly utilized VFX techniques in movies include creature creations, fire, explosions, and object destruction. For instance, the film Avatar: The Way of the Water, released in 2022, showcased groundbreaking VFX, especially in the domain of underwater performance capture and rendering realistic above and below-water imagery.

In 2022, North America held the largest share of the global film and episodic VFX market. The demand for film and episodic VFX remains consistently high in the United States and Canada. Additionally, the widespread adoption of Android and iOS devices in the region, coupled with robust connectivity infrastructure, contributes to its dominant position in the global market. The introduction of 5G connectivity with high bandwidth has further fueled the popularity of film and series consumption across North America.

The European film and episodic VFX market was valued at USD 1.4 billion in 2022, following North America. Leading countries in this market include the United Kingdom, Germany, France, Italy, and Spain. The European industry is witnessing growing demand for film and episodic VFX, driven by advancements in technology and innovative offerings. The emergence of new media technologies has also brought intense competition to the news space, forcing traditional agencies to diversify their content production in the realm of VFX films and series as a means to strengthen the media and entertainment industry.

Within the APAC region, China, Japan, India, South Korea, and Australia have experienced a surge in demand for film and episodic VFX. China, in particular, holds a substantial share of 38.12% in the APAC market. The availability of affordable data packs has contributed to an increased number of viewers, thereby expanding the film and episodic VFX market in the region. India stands out in APAC due to its low mobile data costs, presenting significant growth opportunities for film and episodic VFX players.


Competitive Landscape

DNEG, Weta FX, Framestore, Technicolor Creative Studios, and Industrial Light & Magic are the prominent companies operating in the global film and episodic VFX market. The market is characterized by a substantial number of players, indicating its competitive nature. In order to survive in the industry, various vendors face increasing pressure to continuously innovate their offerings and provide unique value propositions. To stay ahead, companies must make significant investments in research and development to introduce new technologies and enhance their services. While established players currently dominate the industry, there are ample growth opportunities for new entrants to establish their presence. As portfolios expand and innovations continue, market competition is expected to intensify. The VFX market offers considerable growth prospects, encouraging more players to expand their operations within domestic markets.

With competition in the market growing at a rapid pace, the demand for high-quality VFX in film and episodic content is expected to gain traction during the forecast period. Consequently, vendors with strong research and development capabilities are likely to have an advantage in developing exceptional VFX films and episodic content. This advantage will enable VFX developers to maintain a competitive edge over others in the industry.

Key companies profiled in this report include DNEG, Weta FX, Framestore, Technicolor Creative Studios, Industrial Light & Magic, Rodeo FX, Scanline VFX, Sony Pictures Imageworks, Digital Domain, Cinesite, Zoic Studios, Animal Logic, FuseFX, Pixomondo, Outpost, The Third Floor, Method Studios, REALTIME, VFX Legion, Milk, CoSA VFX, Whiskytree, Worldwide FX, Blackmagic Design Pty. Ltd., Absolute Post, Luma Pictures, Lola Visual Effects, Freefolk, Glassworks, Streamland Media.


Key Questions Answered

What is the current market size of the film and episodic VFX industry?

The global film and episodic VFX market was valued at USD 5.15 billion in 2022 and is projected to reach USD 9.91 billion by 2028.

What is the expected growth rate of the film and episodic VFX market?

The film and episodic VFX market is anticipated to grow at a compound annual growth rate (CAGR) of 11.54% from 2022 to 2028.

Who are the major players in the global film and episodic VFX market?

The key players in the global film and episodic VFX market include DNEG, Weta FX, Framestore, Technicolor Creative Studios, and Industrial Light & Magic.

What are the primary drivers contributing to the growth of the film and episodic VFX market?

The significant factors driving the film and episodic VFX market include the increasing penetration of OTT platforms, the growth of 5G networks, and the adoption of augmented reality (AR) and virtual reality (VR) technologies.

Which region has the highest market share in the global film and episodic VFX market?

North America currently dominates the global film and episodic VFX market, accounting for 35.45% of the market share in 2022.

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