Visual effects (abbreviated VFX) is the
process by which imagery is created or manipulated outside the context of a
live action shot in film making. Visual effects involve in the integration of
live-action footage (Modelling) and generated imagery (Matte Painting) to
create environments which look realistic, but would be dangerous, expensive,
impractical, and time consuming or impossible to capture on film. Visual
effects using computer-generated imagery (CGI) have recently become accessible
to the independent filmmaker with the introduction of affordable and
easy-to-use animation and compositing software. Visual effects are often
integral to a movie\'s story and appeal. Although most visual effects work is
completed during post-production it usually must be carefully planned and
choreographed in pre-production and production. Visual effects primarily
executed in post-production with the use of multiple tools and technologies
such as graphic design, modeling, animation and similar software, while
Modelling such as explosions and car chases are made on set. A visual effects
supervisor is usually involved with the production from an early stage to work
closely with production and the film\'s director design, guide and lead the
teams required to achieve the desired effects.
Visual effects primarily divide into two groups. Modelling covers any visual effects that take place in live action, e.g. on set explosions or stunt performances. Matte Painting covers the various processes by which imagery is created or manipulated with or from photographic assets. Matte Painting often involve the integration of still photography and computer-generated imagery (CGI) to create environments which look realistic but would be dangerous, costly, or impossible to capture in camera, allowing filmmakers to create the illusion of an environment that is not present at the filming location. Modeling and matte painting accounted for 44.36% and 29.55% of the market respectively. Visual effects are mainly applied in television, movies and video games. In 2020, the market shares of these three types of applications will be 30.03%, 40.12% and 16.93% respectively.
The Current Situation of Global Visual Effects Industry
North America was the largest revenue market with a market share of 39.84% in 2015 and 39.72% in 2019, a decrease of 0.12%. In 2019, the Asia Pacific market share was 31.92%, ranking second. Visual Effects (VFX) companies are mainly from North America; the industry concentrate rate is relatively low. The top three companies are Weta Digital, Sony Pictures Imageworks, Industrial Light and Magic with the revenue market share of 4.76%, 3.94% and 3.70% in 2019.
In the past few years, North America has a market position that cannot be ignored, and it is expected to maintain stable development in the future, especially in the United States. But recently the VFX market in the United States is dying. From the current point of view, there are basically no real VFX production companies in the United States except ILM. Most of the other studios are located in Canada. In addition to developed regions, consumers in many developing regions have an increasing demand for attractive high-definition visual experiences. The rapid growth of the film market in the Asia-Pacific region has driven the rapid growth of the VFX market in the Asia-Pacific region. Taking movie box office as a measure, China has become the world\'s second largest movie market after the United States. India\'s Bollywood company is also an important source of income for the VFX industry. Therefore, with the economic development of the Asia-Pacific region and the consumption upgrade of the cultural and entertainment industry by consumers in the region, sufficient conditions are provided for the rapid development of the VFX industry.
Get the complete sample, please click: https://www.globalmarketmonitor.com/reports/762742-visual-effects-(vfx)-market-report.html
In 2020, the market value of global visual effects industry is 9827 M USD, a year-on-year increase of 3.79%, and the growth rate has slowed down. The main reason is that the epidemic has caused the production of the crew to stop, the output of televisions and movies has decreased, and the demand for the visual effects industry has decreased.
The Forecast of Global Visual Effects Industry
According to our research, the Global Visual Effects (VFX) market has a total revenue of 6002 M USD back in 2015, and increased to 9469 M USD in 2019. We made a series of functional calculation and deduced the past 5 year’s data with scientific model. Finally, we made the prediction that the value of Visual Effects (VFX) markets can be 20258 M USD by 2026. The CAGR of Visual Effects (VFX) is 12.81% from 2020 to 2026.
VFX plays an increasingly important role in movies, because it not only enriches the story, but also helps actors to better shape their roles. Visual Modelling can help the director effectively realize the almost impossible part of the shooting, therefore, visual effects have become an indispensable part of the film industry. In addition, the current international film production cost structure is constantly being optimized, and the proportion of the budget for visual effects is constantly increasing, even exceeding the budget of the actors. VFX costs may account for 20% to 50% of the total budget. The importance of the media and entertainment industry to VFX and the trend of increasing retention fees for VFX are important driving factors for visual effects to influence the global market. Movie viewers demand high-quality works with fascinating visual effects and realistic animations. At the same time, consumers are spending more immersive across channels (such as ultra-high-definition TVs, tablets and smartphones, to headsets). Therefore, some filmmakers require high-quality works with fascinating visual effects, and many studios are required to include more VFX and animation shots in their films. In addition, the demand for VFX content that enhances immersive experiences (such as AR and VR) is also increasing. Moreover, the trend of cross-channel consumption has led to an increase in the popularity of digital video content platforms, which has increased the demand for various types of rich content and VFX.
According to our previous forecast, the global box office loss during the new crown pneumonia epidemic was about 1 billion US dollars. As the epidemic further spreads, in addition to the direct box office loss, it will inevitably have a huge impact on all aspects of upstream film production. , And VFX is an important part of the film production process. The stagnation of the downstream demand market will directly cause the entire VFX industry to stop developing within a period of time. The VFX industry is a labor-intensive industry that requires a large amount of liquidity. At the same time, the industry has a very high technical threshold, so it has high requirements for the strength of new entrants. At the same time, there are a large number of relatively mature companies in the industry. In contrast, it is difficult for new entrants to form a competitive advantage to gain market share.
The Modelling industry in developing regions started late, has a short development time, has not formed a mature industrial production process and standards, lacks a unified industry standard, and has confused market quotations. Producers and Modelling companies lack market measurement standards that can be referred to when communicating with them. In order to compete for customers, Modelling companies initiated vicious price wars, lowered prices with each other to win project cooperation, continuously compressed profit margins, affected production quality, and led to a vicious circle of development in the industry. On the other hand, the VFX production process in developing regions is not standardized, which makes it difficult to facilitate the free flow of talents, which is not conducive to alleviating the problem of lack of talents in the industry, and increases the cost burden of enterprises. In addition, talents have become a key gap in the Modelling industry in the developing regions. The industry is extremely scarce of high-level talents in film and television Modelling production who understand art and technology, and there is even a phenomenon of "employment shortage". In particular, the talent training system of several colleges and training institutions is not in good agreement with actual talent needs, and the students trained are out of touch with the actual industry production. The lack of talents directly causes the industry\'s low production level and insufficient innovation capabilities, which restricts the development of the industry.
Get the complete sample, please click: https://www.globalmarketmonitor.com/reports/762742-visual-effects-(vfx)-market-report.html
We provide more professional and intelligent market reports to complement your business decisions.
Chinese
