Press release
Virtual Production Market to Reach USD 24.8 Billion by 2035, Driven by Rapid Demand for Real-Time CGI & LED Stage Technologies
Virtual Production Market to Reach USD 24.8 Billion by 2035
For example, in July 2025, Epic Games released a new update to its Unreal Engine with AI-enhanced scene optimization and real-time ray tracing to help studios produce photorealistic environments more quickly and at a lower computing cost. Similarly, in May 2025, NVIDIA Corporation publicly deployed a GPU-accelerated cloud rendering technology that allows teams to work together remotely and more effectively on multifaceted virtual sets, boosting production efficiency and visual fluidity.
Get the Detailed Industry Analysis (including the Table of Contents, List of Figures, and List of Tables) - from the Virtual Production Market Research Report: https://marketgenics.co/press-releases/virtual-production-market-18802
Key Driver, Restraint, and Growth Opportunity Shaping the Global Virtual Production Market
The growing need for virtual production solutions is fueled by the need for instantaneous, high-fidelity content production across disciplines, including film, gaming, and advertising, supported by high-powered cloud and edge computing. Companies are accelerating their digital workflows and prioritizing AI-powered, end-to-end production systems that optimize rendering, reduce latency, and bolster collaboration/communications. For example, in February 2025, Epic Games published an update for Unreal Engine with AI-powered scene optimization, which allows studios to create photorealistic renderings in real-time while reducing their production time.
This growth, however, has not come without challenges associated with both new platform integration with legacy production workflows, soaring deployment costs, and issues with cross-platform functionality. For example, in March 2025, NVIDIA indicated that delays in launching GPU-accelerated cloud rendering solutions were caused by challenges with existing studio workflows and multi-vendor software solutions.
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Regional Analysis of Global Virtual Production Market
North America is at the forefront of the global virtual production market, facilitated by superior digital infrastructure and AI-led content creation mechanisms, coupled with strong enterprise investment. In August 2025, Epic Games partnered with NVIDIA to incorporate real-time ray tracing and AI-assisted scene optimization into Unreal Engine, allowing studios to produce photorealistic virtual sets with speed and efficiency. Strong research and development (R&D) and favorable regulations reaffirm the region's leadership.
The Asia Pacific region is exhibiting strong growth in use of virtual production due to the need for immersive content for film, gaming, and advertising, along with increasing cloud and 5G capabilities. Sony announced that it had deployed cloud-based virtual production pipelines for its Tokyo studios in July 2025, as well as real-time collaborative rendering of massive volumes of data. Government initiatives and partnerships are contributing to accelerating adoption.
Europe is gradually increasing share, facilitated by digital transformation investments, regulatory alignment, and innovation hubs for media.
Prominent players operating in the global virtual production market include prominent companies such as Adobe Inc., Autodesk Inc., DNEG (Double Negative), Epic Games, Inc., HTC Corporation, Industrial Light & Magic (ILM), Mo-Sys Engineering Ltd., NEP Group, Inc., Netflix, Inc., Nikon Corporation, NVIDIA Corporation, PRG (Production Resource Group), ROE Visual Co., Ltd., Side Effects Software Inc., Sony Group Corporation, Technicolor Creative Studios SA, The Walt Disney Company, Unity Technologies Inc., Vicon Motion Systems Ltd., Weta Digital Ltd., along with several other key players.
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Recent Development and Strategic Overview:
In May 2025, Epic Games revealed Unreal Engine 6 AI-Assisted Rendering Suite, which employed deep learning to improve real-time scene rendering. Dynamic resource allocation enabled frame rendering to occur faster without degrading visual quality-and testing in cinematic productions demonstrated the ability to improve rendering efficiency by 25% while reducing production timelines by approximately 30%. The project timeline was delivered faster, with high quality.
In August 2025, NVIDIA launched Omniverse Cloud AI for Virtual Production, integrating IoT motion capture data with AI-driven predictive simulation. Dynamic auto-scaling of resources in real time allowed studios to work continuously. Initial tests demonstrated a 22% increase in animation accuracy while decreasing GPU consumption by 35%; both improvements produced an increased efficiency and reduced production costs.
Get a preview of our Virtual Production Market Playbook - your guide to GTM strategy, competitive intelligence, supplier dynamics, and Consumer Behavior Analysis: https://marketgenics.co/playbook/virtual-production-market-18802
Key Trend: Integration of AI, IoT, and Real-Time Collaboration in Virtual Production
The virtual production market is experiencing the combination of AI, IoT, and cloud-based collaborative tools for real-time scene adjustments, predictive lighting, and remote collaboration of creative talent, among other features.
For example, in September 2025, Epic Games announced a new dimension of Unreal Engine that will be AI-enabled for scene rendering and advanced IoT-connected camera tracking, allowing teams to modify lighting and visual effects in real-time from multiple locations, maximizing workflow and costs and avoiding some post-production issues.
The connected, smart, and collaborative facility and production system is becoming public, and driving faster even for studios to adopt and configure studios for the demands for even higher and higher quality content at better and better costs.
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MarketGenics is a global market research and management consulting company empowering decision makers across healthcare, technology, and policy domains. Our mission is to deliver granular market intelligence combined with strategic foresight to accelerate sustainable growth.
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