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Virtual production market to grow to $2.2 billion in 2023


In 2023 the virtual production and in-camera visual effects industry is set to grow by another 20% to $2.2 billion, says Deloitte Global.

The forces driving this growth

  • audiences demanding film and television genres that rely heavily on digital capabilities
  • streaming video services embracing these genres to fill production slates and reduce costs
  • greater reliance on digital tools as workforces become more remote and distributed
  • the ambitions of some top game engine providers to better serve the film and video production market

At the moment, qualified virtual production talent is currently scarce and expensive, creating a high barrier to entry for aspiring virtual production service providers and clients. The consultancy firm also warns that a shortage of suitably trained professionals to run operations could hamper that growth. Virtual production requires a lot of investment, not just in tech, but in pre-production, pre-visualisation, preparation, planning … and people who requires lots and lots of training.

Deloitte Global’s report also highlights fragmentation within the market, with some companies choosing to build vast studios to feed with regular projects, while others are hedging and partnering with specialist third-parties to reduce risk. This is creating an imbalance in the talent pool. There’s also an unevenness to the technical side too, in terms of standards, set-up and camera tracking and subtleties around blending physical and virtual environments.

As more work is done in pre-production, for example creating digital assets, colour matching, hardware and software set-up, production planning and financing are more expensive, which can be off-putting for investors.

As the market matures and best practices established, things will stabilise, of course, and costs will slowly be driven down, especially as the development of content for games, movies, TV and the web converges around medium-spanning “universes”.

Where Mondatum fits into all this

We help companies to get the most out of content creation using technologies such as virtual sets, in-camera visual effects, facial animation and performance capture through the use of mathematical optimisation and machine learning-based automation.

If you would like to find out how we can help you with your next production or further streamline your processes and workflows, get in touch – contact@mondatum.com.

Source: AV Magazine

Main image: NFTS



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