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Leading Growth Driver in the Visual Effects Market in 2025: Digital Video Streaming Services Fueling The Visual Effects Market Driver's Influence

02-27-2025 06:05 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Visual Effects Market Size

Visual Effects Market Size

What industry-specific factors are fueling the growth of the visual effects market?
The escalating utilization of digital video streaming services is projected to drive the growth of the visual effects market. Defined as an online platform that transmits video file data to a distant user over the internet, digital video streaming services are becoming more popular. Visual effects software, used mainly to generate animations, special effects, and to enrich films with digital components, will be needed more as demand for these streaming services grows. More high-quality visual effects will be needed for TV shows and movies, ultimately leading to growth in the visual effects market. For example, in 2022, Netflix, a subscription-based video streaming service from the U.S., reported the addition of 2.41 million global subscribers to its video streaming service in Q3 2022. This brings the global total to 223.09 million subscribers, and an additional 4.50 million subscribers were registered in Q4 and Q5 of 2022. Hence, the surge in digital video streaming services consumption is fuelling the visual effects market's expansion.

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What Is the projected market size and growth rate for the visual effects market?
The visual effects industry has seen a robust expansion in its size over the past few years. It's projected to move upwards from a market value of $11.55 billion in 2024 to $12.58 billion in 2025, witnessing an annual growth rate (CAGR) of 8.9%. The past growth trend in this sector is linked to factors such as user experience expectations, budget allocations and investments, the rise of digital streaming platforms, skills and talent development, and the overall growth of the film and entertainment industry.

Expectations are high for swift expansion in the visual effects market size in the upcoming years. The market is predicted to climb to $19.74 billion in 2029, with a compound annual growth rate (CAGR) of 11.9%. The anticipated growth during this forecast period can be credited to the advancement in content consumption, the rise of streaming platforms, augmented and virtual reality, globalization of media content, and the demand for more life-like visuals. Key trends to watch out for over this forecast period consist of integrating practical and digital effects, sustainable production methods, a high degree of personalization and customization, the use of remote collaboration tools, user-generated VFX content, and a growing emphasis on environmental and climate issues.

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What new trends are reshaping the visual effects market and its opportunities?
Technological progress is a significant trend emerging in the visual effects industry. Major enterprises in this sector are concentrating on the creation of AI-enabled solutions to reinforce their presence. Illustratively, in July 2023, Netflix Inc, a US-based subscription streaming service provider, introduced an AI-sustained green screen. This AI-powered technology aims to enhance visual effects, making them more realistic and detailed in real-time, achieving superior results than conventional green screens in just a quarter of the time needed to edit a scene. The introduction of the magenta green screen, which provides a faster and more accurate approach to creating visual effects, has shown the remarkable progress of artificial intelligence in the film and television sectors.

What major market segments define the scope and growth of the visual effects market?
The visual effects market covered in this report is segmented -

1) By Type: Matte Painting, Simulation FX, Compositing, Motion Capture, Character And Creature Animation, Concept Art, Previs Or Pre-visualization, Other Types
2) By Component: Software, Hardware, Services
3) By Application: Movies, Advertisements, TV Shows, Gaming

Subsegments:
1) By Matte Painting: Digital Matte Painting, Traditional Matte Painting, Photo-Based Matte Painting
2) By Simulation FX: Fluid Simulation, Particle Effects, Rigid Body Dynamics
3) By Compositing: 2D Compositing, 3D Compositing, Color Correction And Grading
4) By Motion Capture: Optical Motion Capture, Inertial Motion Capture, Performance Capture
5) By Character And Creature Animation: 2D Animation, 3D Animation, Rigging And Skinning
6) By Concept Art: Character Design, Environment Design, Prop Design
7) By Previs Or Pre-Visualization: Storyboarding, 3D Previs, Animatics
8) By Other Types: Special Effects Makeup, Visual Effects For Live Events, Augmented Reality Effects

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Which region dominates the visual effects market?
North America was the largest region in the visual effect market in 2024. The regions covered in the visual effects market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Which key market leaders are driving the visual effects industry growth?
Major companies operating in the visual effects market are Digital Domain Holdings Limited, Rodeo FX Inc., Hydraulx Visual Effects Inc., Sony Pictures Entertainment Inc., Technicolor SA, Deluxe Media Inc., Blackmagic Design Pty. Ltd., Foundry Visionmongers Limited, Zoic Studios LLC, Animal Logic Pty Ltd., RE:Vision Effects Inc., Video Copilot and Final Image Inc., Framestore Group Limited, Deluxe Entertainment Services Group Inc., Lucasfilm Ltd., BUF Compagnie, The Moving Picture Company Limited, Cinesite Visual Effects Studio Limited, ImageWorks Inc., Double Negative Visual Effects Limited, Scanline VFX Inc., Animal Logic, Weta Digital Limited, The Mill Film, MPC Limited, Method Studios Inc., Pixomondo GmbH

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What Is Covered In The Visual Effects Global Market Report?

• Market Size Forecast: Examine the visual effects market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the visual effects market for a structured understanding.
• Key Players Overview: Analyze major players in the visual effects market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the visual effects market.
• Segment Contributions: Evaluate how different segments drive overall growth in the visual effects market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the visual effects market.
• Industry Challenges: Identify potential risks and obstacles affecting the visual effects market.
• Competitive Landscape: Review strategic developments in the visual effects market, including expansions, agreements, and new product launches.

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