Virtual Production Market Grows as Average Stage Size Contracts
The virtual production industry could top $8 billion by 2030, but the sector is also changing, with factors ranging from the size and use of volumes to the impact of AI. These are two of the findings in a new report compiled by virtual production tech company Vū Technologies that features data from multiple sources, including 360iResearch.
Released on Wednesday, the report suggested the market topped $1 billion in 2018 and steadily grew each year since, with the exception of a dip in 2023, when the SAG-AFTRA and WGA strikes led to a sharp production downturn.
IATSE and AMPTP are currently negotiating their next Basic Agreement, which has the potential to impact the market if they are unable to make a deal before the July 31 expiration of the current contract.
If there isn’t a strike, the Vū forecast suggests the virtual production market could soar to $3 billion in 2024 and continue to grow in the coming years. The report projects that 41% of the category revenue this year will come from hardware, followed by software with 31% of the revenue and services with 28%.
As for trends, the forecast suggests the average size of virtual production volumes — the virtual production stage setups with an LED wall — is getting smaller, with the size of new volumes dropping 29% from 2021 to 2023, at least in part due to a wider range of uses.
Virtual production took off due to interest from Hollywood, but it’s expanding in areas such as commercials, education and corporate. “You don't need it to be as large in order to fulfill corporate video demands,” says Vū chief marketing officer Brad Meriwether. “Also, I think people just realize that the majority of what you can accomplish in a stage does not require it to be 150 feet wide and 270 degrees, fully immersive.”
Vū outlines places where gen AI might help to address things such as complexity and speed. “While the process of shooting virtual production is [in] real time, the time required to make the 3D environments could take weeks, if not months, making it challenging for tight production schedules,” the report says, noting this has slowed adoption in areas such as those for mid-market commercials and advertising.
According to the forecast, “new advancements in technology like Generative AI, NERFs (neural radiance fields), 3D Gaussian Splatting, Markerless Tracking and Hybrid 2.5 Workflows have helped exponentially increase the speed to create content and reduce these barriers to entry.”
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