North America Visual Effects (VFX) Market Report and Forecast 2024-2032

North America Visual Effects Market Outlook

The North America visual effects (VFX) market size was approximately USD 15.80 billion in 2023. The market is estimated to grow at a CAGR of 12.7% during 2024-2032 to reach a value of USD 46.16 billion by 2032.

News and Development in the Market

• In September 2022, Disney filed a patent for its new innovation based on augmented reality technology. Designed for the park theme rides, it would allow people visiting the park to experience AR without wearing specific AR glasses. The company is pursuing several innovative technologies that involve augmented reality.

• In July 2022, Company 3 brand Stereo D rebranded itself as SDFX studios completely changing into a business of visual effects. With its new name it will partner with VFX companies to create visual effects for feature films, commercials, and other platforms. It has partnered with brands such as Marvel Studios and ILM.

• In June 2022, DNEG, a company leading in technology-enabled visual effects (VFX) and animation, and Sports Venture Acquisition Corporation (NASDAQ: AKIC) a publicly traded special purpose acquisition company decided to terminate their longstanding business agreement immediately. This was primarily attributed to unfavourable SPAC and equity market conditions.

• In May 2022, DNEG, a leading visual effects and animation studio, officially started a new studio named Toronto Visual Effects and Animation in the King West district of Toronto with around 150 hired employees.  It continues to hire employees for this new studio and is considering expanding the studio further, based on demand from the clients for its premium animation and visual effect services, and has a strong position in the North America visual effects (VFX) market.

• In January 2022, a visual effect powerhouse having seven production facilities across North America, Crafty Apes, announced that it acquired Molecule VFX, a developed visuals effect company based in New York and Los Angeles. These two companies together specialise in creative VFX supervision and production management.

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Key Trends in the Market

Visual effects, also known as VFX is a method of combining a self-created image or any moving media that does not exist in real life with live action footage. The manipulated imagery is used to create environments that are either too dangerous to shoot in real-life or do not physically exist. There are three types of visual effects commonly used in the North America visual effects (VFX) market including CGI, compositing, and motion capture. The VFX companies provide with various design to the customers thus helping the film industry to create unrealistic movements.

• Increase in demand for high quality video in filmmaking has surged the growth of the visual effect market. Directors are aiming at including innovative shots which are impossible to shoot in real life because of risk factors. This attracts audiences and thus helps in the surge of the North America visual effects market. Filmmakers are adopting VFX to tell their stories vividly and creatively.

• Adoption of advanced technologies by creators is another key trend that is helping in the surge of the North America visual effects market. The use of cloud services to create content has helped in the production of high-quality scripted media thereby increasing the visual effects and animation requirements. These tools help creators to be quick, efficient, and productive to create more captivating effects than before.

• The pandemic encouraged consumers to view shows through OTT platforms as a trending entertainment platform which helped in the growth of the viewership especially for animations for children. Accordingly, the animation industry increased the launch of new shows ultimately helping in the advancement of the VFX industry. The popularity of OTT is a major trend and helping in the upsurge of the North America visual effects market and animation market.

• Improvements in VFX technology are making it difficult for the employees to keep up. The skillset required needs to be updated and courses in the market do not update their content time to time, creating a shortage of skilled individuals with relevant qualifications and requirements as the technology advances day to day. Challenges in keeping up with technology are affecting the North America visual effects market negatively.

Market Analysis

The North America visual effects market is segmented into hardware, software and services, based on component. Based on technology the market is divided into AI (artificial intelligence) and AR (augmented reality). On the basis of product, the market is divided into compositing, modelling, animation, matte paintings and others. Based on application it is divided into movies, television, gaming, advertisements, and others. By country the market is segmented into United States and Canada.

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The comprehensive EMR report provides an in-depth assessment of the North America visual effects (VFX) market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the North America visual effects market, covering their competitive landscape and latest developments.

• Animal Logic Group

• Montreal International

• Disney Enterprises Inc.

• Framestore Limited

• Sony Pictures Entertainment Inc.

• Industrial Light & Magic 

• Others

Market Share by Production Method

Artificial Intelligence is used for modelling and improvement in the animation of any character. This means, instead of creating a 3D model followed by animating the character’s face and then creating materials manually, it will study thousands of images of the actor that are real and the character the actor needs to be. Then the actor is transformed by mapping the features and providing the model. AI is capturing the imagination of filmmakers and VFX experts.

Market Share by Application

Based on application, movies have the largest share in the North America visual effects market followed by television. However, applications of VFX in advertisements are expected to grow in the forecast period. In movies, VFX is used to create objects, environments, and creatures that were not possible to shoot live or seemed impractical.

VFX in games is used to give a more enjoyable and surprising gaming experience and make the game look more professional, attracting more people to play. These games often have a story built-in that keeps the players engaged and gives them a realistic feeling. The gaming industry is continuously evolving, and regular updates are required. Advertisements videos that use a lot of animation or visual effect boost the marketing and help companies reach the target audience.

Therefore, VFX has a significant impact on audience management which helps in the upsurge of the North America visual effects market.

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Competitive Landscape

• Animal Logic Group founded in 1987 has its headquarters in Sydney, Australia. It has been world’s leading and award-winning visual effect and animation studio for over 30 years now. Its latest work including ALab and Unhinged, Peter Rabbit 2, The Lego Movie 2, Captain Marvel, and many others. It helps tell great stories, give breath-taking visuals, and memorable performances, implementing a perfect use of next level technology.

• Disney Enterprises Inc. founded in 1996 is a division of the famous The Walt Disney Company, a multinational entertainment animation company widely known for the creation of its first animated popular character Mickey Mouse. Disney Enterprises Inc. focuses on television shows and movies aired on the Disney networks and those made by Disney. They also own all the trademarks and copyrights of the various Disney brands.

• Sony Pictures Entertainment Inc. founded in 1987 is a multinational mass media and entertainment studio. They produce motion pictures and television programs through various platforms. They aim at providing entertainment and engaging billion of people in their content, helping the creators and the audience connect. They use their creativity and technology to fill the world with various emotions.

Other market players include Montreal International, Framestore Limited, Industrial Light and Magic, and others.

Key Highlights of the Report

North America Visual Effects Market Report Snapshots

North America Visual Effects Market Size

North America Visual Effects Market Share

North America Visual Effects Market Analysis

North America Visual Effects Companies