Visual Effects Market Report 2025

The visual effects market size has grown strongly in recent years. It will grow from $11.55 billion in 2024 to $12.58 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to user experience expectations, budgets and investments, digital streaming platforms, talent and skill development, film and entertainment industry growth.

The visual effects market size is expected to see rapid growth in the next few years. It will grow to $19.74 billion in 2029 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to evolution of content consumption, growth of streaming platforms, augmented and virtual reality, globalization of media content, demand for realistic visuals. Major trends in the forecast period include blending practical and digital effects, sustainable production practices, personalization and customization, remote collaboration tools, user-generated VFX content, environmental and climate focus.

The visual effects market is anticipated to experience significant growth due to the increasing utilization of digital video streaming services. These platforms, delivering video content over the internet, necessitate high-quality visual effects for TV shows and movies. The surge in demand for such services is exemplified by Netflix's quarterly report in 2022, which indicated an addition of 2.41 million subscribers in Q3, totaling 223.09 million globally by Q4 and Q5. As digital video streaming continues to expand, it drives the need for enhanced visual effects, contributing to the growth of this market segment.

Another contributing factor to the projected growth of the visual effects market is the escalating demand within the gaming industry. Visual effects play a pivotal role in creating engaging and immersive gaming experiences, adding visual allure and authenticity. The burgeoning demand within this sector is evident from a survey conducted by Uswitch Limited in May 2023, revealing that 76% of respondents participated in online video gaming in 2022. As the gaming industry continues to expand, the need for sophisticated visual effects technologies grows, fueling the development of this market segment.

Technological advancements are emerging as key trends gaining traction in the visual effects market. Leading companies in this sector are concentrating on developing AI-powered solutions to enhance their competitive edge. For example, in July 2023, Netflix Inc., a U.S.-based subscription streaming service, introduced an AI-powered green screen. This AI-driven technology aims to improve visual effects, making them more accurate and lifelike in real-time, and achieving better results than traditional green screens in a fraction of the time needed to edit a scene. With the introduction of the magenta green screen, which provides a faster and more precise method for creating visual effects, artificial intelligence has significantly advanced within the film and television industries.

Major companies in the visual effects market are concentrating on innovative products, such as AI tools, to boost their revenues. AI-based visual effects tools include various software and technologies that utilize artificial intelligence to enhance and streamline different aspects of VFX production. For example, in March 2023, Wonder Dynamics, a U.S.-based AI film company, launched Wonder Studio. With just a few simple button clicks, filmmakers can create videos featuring computer-generated imagery. An artist only needs a camera, eliminating the need for expensive production equipment or complex 3D software. The company aims to make CGI-heavy films more accessible and enable more individuals to create visually stunning movies at a lower cost. By leveraging artificial intelligence, Wonder Studio can automatically track characters and identify cuts in scenes, significantly reducing the time typically required for labor-intensive frame-by-frame visual effects.

In October 2022, Sony Pictures Entertainment Inc., a U.S.-based mass media and entertainment studio, acquired Pixomondo Global for an undisclosed amount. This acquisition aims to enhance Sony Pictures Entertainment's capabilities in virtual production and visual effects, allowing the company to deliver innovative and high-quality content to audiences worldwide. By acquiring Pixomondo Global, Sony Pictures Entertainment will be better equipped to meet the increasing demand for top-tier visual material in the entertainment industry and expand its offerings in the rapidly evolving virtual production and visual effects landscape. Pixomondo Global is a U.S.-based company specializing in visual effects.

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.

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. The countries covered in the visual effects market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Visual effects involve a post-production process that utilizes computer technology for creating or enhancing film and video content. This technique is applied to blend live-action footage with improved imagery to generate environments or characters.

Primary categories of visual effects encompass matte painting, simulation FX, compositing, motion capture, character and creature animation, concept art, previs or pre-visualization, and other specialized types. Concept art represents the visual depiction of the initial idea for a movie project. The components involved in visual effects include software, hardware, and services. These applications find use across various industries, including movies, advertisements, TV shows, and gaming.

The visual effects market research report is one of a series of new reports that provides visual effects market statistics, including visual effects industry global market size, regional shares, competitors with a visual effects market share, detailed visual effects market segments, market trends and opportunities, and any further data you may need to thrive in the visual effects industry. This visual effects market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The visual effects market includes revenues earned by providing professional services, system integration, support, and maintenance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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