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AI in VFX market worth $714.2 million by 2030, at a CAGR of 25% – IndustryARC

Apr 23, 2024 7:00 PM ET

AI in VFX market worth $714.2 million by 2030, at a CAGR of 25% – IndustryARC

According to the latest Market research report on the AI in VFX Market, published by IndustryARC, the Artificial Intelligence segment is estimated to experience the fastest CAGR of 25% over the forecast period of 2023-2030. AI is transforming the film industry by speeding up VFX processes, opening up new creative possibilities, and redefining the role of human creativity in the age of smart VFX.’ Visual effects (VFX) have become an essential aspect of practically every film, although the process was once laborious.

The AI in VFX Market research report is segmented By Component (Software, Services, Hardware), By Technology (Artificial Intelligence, Augmented Reality), By Product (Simulation Fx, Animation, Modelling, Matte Painting, Compositing, Others), By Application (Movies, Television, Gaming, Advertisements, Others), and By Geography, which provides a comprehensive analysis of the global Market & industry forecast (2023 – 2030).

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North America Anticipated to Show the Fastest Growth in the Market:

The region has been a pioneer in the use of AI-powered virtual production technology. In North American studios, real-time rendering, virtual sets, and other AI-driven methods are becoming more and more common, which is fueling the expansion of the AI in VFX market.

In Canada, 3D animation is growing in popularity as a result of technological improvements. Ultimately, Canada’s 2D and 3D animation studios are an important component of the country’s animation sector, helping to produce visually appealing and captivating animations that engage and educate viewers of all ages. With the increase in the animation industry, there is also an increase in the technological developments that will drive the AI in VFX market.

AI in VFX Market 2023-2030: Scope of the Report

Report Metric


Base Year Considered


Forecast Period




Market Size in 2030

$714.2 million

Segments Covered

Component, Technology, Product, Application, and Region

Geographies Covered

North America (the US, Canada, and Mexico), South America (Brazil, Argentina, and the Rest of SA) Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium, Denmark, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Taiwan, and Rest of APAC).

Key Market Players

1.      Framestore

2.      Animal Logic

3.      Loom AI

4.      Rodeo FX

5.      Industrial Light & Magic

6.      Weta Digital

7.      Pixomondo

8.      Adobe

9.      Blackmagic Design

10.  RADiCAL


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AI in VFX Market Report – Key Takeaways:

  • Increased Efficiency

Artificial Intelligence (AI) has the potential to improve VFX businesses’ workflows, cut down on task completion times, and boost overall productivity. VFX artists’ workloads can be lowered and time saved by using AI-powered tools to automate processes like motion tracking, compositing, and rotoscoping.

  • Increasing demand for visually stunning and immersive television shows

One of the main factors driving this growth is the increasing demand for visually stunning and immersive television shows. Audiences now expect high-quality visual effects, and production companies are willing to invest in VFX to deliver visually captivating content. Moreover, advancements in VFX technology have made it more accessible and affordable for television productions.

  • The VFX (Visual Effects) market in movies is a rapidly growing

The VFX (Visual Effects) market in movies is a rapidly growing industry that plays a crucial role in enhancing the visual aspects of a film. VFX refers to the integration of computer-generated imagery (CGI) with live-action footage to create realistic and imaginary visual elements that are otherwise difficult or impossible to achieve through practical effects.

  • The rise of online advertising platforms and social media has contributed to the growth of the VFX market

The rise of online advertising platforms and social media has also contributed to the growth of the VFX market in advertising. Brands and advertisers are now looking for innovative ways to attract audiences and stand out from the competition. Utilizing VFX in advertisements allows them to create attention-grabbing visuals that can capture the viewer’s attention and effectively deliver their message.

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Key Opportunity Analysis:

  • AI set to revolutionize the VFX industry, resulting in more visually spectacular and immersive cinematic experiences

It is anticipated that AI will play an even bigger part in visual effects as the field develops. Even while AI has already been used in some amazing ways, the road is far from over. With artificial intelligence (AI) poised to transform the visual effects sector and produce more visually spectacular and immersive film experiences, the future is full of exciting possibilities. But rather than taking the place of artists in VFX, AI’s mission is to provide them with more advanced tools. In addition, AI will soon cause rendering to become faster and more effective. We must realize the staggering computing demands of technology as it develops and is increasingly incorporated into the film business.

Autonomous rotoscoping is a game-changer. For instance, Weta Digital‘s use of AI in rotoscoping for “The Mandalorian“ is a perfect example of this technology’s potential. Their unique AI-driven method successfully completed the difficult work of rotoscoping the entire movie in a fraction of the time—roughly 90%. Aside from rotoscoping, one of the key components of a film’s realism is the creation of realistic facial motions. With AI companies can generate highly accurate and lifelike animations for digital characters by analyzing human facial movements and expressions. For example, Disney used AI to create the facial animation of Sully in “Monsters University”. AI was able to analyze the movements and expressions of real-life actors and learn human facial expressions to make the character’s performance more realistic and emotionally engaging.

  • AI-powered textures and solutions for VFX workflow innovations

Visual realism is being elevated and workflows redefined by AI-driven breakthroughs. For example, labor-intensive operations in character animation, lighting, and compositing inside live-action scenarios are automated by Wonder Dynamics’ innovative AI solutions. On the other hand, Withpoly pushes the limits of visual appeal with its AI-generated textures, giving 3D models more depth and richness while integrating them seamlessly into the production pipeline. These developments provide remarkable visual quality, streamline processes, and shorten manufacturing times. Studios will steer the industry into a new era by integrating AI in VFX and producing remarkable graphics and fascinating experiences with relative ease when compared to previous approaches. The major shows will be using these tactics more quickly as AI develops. Businesses are actively investigating these AI-driven developments and utilizing their potential to drive VFX innovation in the future, presenting numerous chances for the AI in VFX market, which is expected to rise at a CAGR of 25% between 2023 and 2030.

  • Growing need for task automation tools driven by AI

Artificial intelligence-powered tools are automating operations like rotoscoping and match-moving, allowing artists to focus on more creative activities. Furthermore, AI is assisting VFX artists in accurately replicating real-world physical phenomena such as smoke, fire, and water. AI’s position in VFX is continuously evolving, and its potential is enormous. AI is assisting VFX artists in pushing the boundaries of their creativity and delivering more immersive visual experiences to audiences by automating tiresome jobs, producing more lifelike people and landscapes, and optimizing rendering processes. The production of lifelike characters and monsters is one of the most interesting applications of AI in VFX. AI can learn from enormous volumes of data using machine learning techniques to build very realistic 3D representations. This technology can also be utilized to animate the models, providing them with more realistic motions and facial expressions. Another area in which AI is transforming VFX is the development of digital worlds. VFX artists can use AI-powered technologies to swiftly generate photorealistic landscapes, buildings, and other assets, decreasing the time and effort necessary for set design. Artificial intelligence is also being utilized to increase the accuracy and efficiency of VFX rendering. VFX artists may optimize rendering processes by employing AI-powered algorithms, saving time and resources.

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The Report also Covers the Following Areas:

  • AI in VFX Market Size and Forecast
  • AI in VFX Market Trends
  • AI in VFX Market Analysis by Type

AI in VFX Market 2023-2030: Key Highlights

  • CAGR of the Market over the forecast period 2024-2030
  • Value Chain analysis of key stakeholders
  • Detailed analysis of Market drivers and opportunities over the forecast period
  • AI in VFX Market size estimation and forecast
  • Analysis and predictions on end users’ behavior and upcoming trends
  • Competitive landscape and Vendor Market analysis including offerings, developments, and financials
  • Comprehensive analysis of challenges and constraints in the AI in VFX Market

Covid and Ukrainian Crisis Impact:

  • The COVID-19 pandemic has caused significant disruptions in global supply chains which has impacted the availability and cost of raw materials as well as the transportation of finished products. This has resulted in increased lead times, reduced production, and higher costs. Additionally, the pandemic has caused delays in investment in new capacity and infrastructure which could impact the long-term supply and demand dynamics in the Market.
  • The Ukraine and Russia conflict led to an increase in prices and a reduction in production which further led to a shortage of AI in VFX-related essential components. Many companies have shut business in Russia; temporarily shutting down their plants in Ukraine. Additionally, the crisis in Ukraine has also led to a reduction in investments in the AI in VFX market as companies are hesitant to invest in a region that is facing political and economic instability. This could impact the long-term supply and demand dynamics of the market

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List of Top Companies in the AI in VFX Market:

The Global AI in VFX Market is highly concentrated as the majority share is held by the leading AI in VFX providers. The key companies profiled are listed below:

  • Framestore
  • Animal Logic
  • Loom AI
  • Rodeo FX
  • Industrial Light & Magic
  • Weta Digital
  • Pixomondo
  • Adobe
  • Blackmagic Design
  • DeepMotion
  • Midjourney
  • Wonder Dynamics.
  • Synthetik

Related Reports:

3D Animation Market – 3D Animation market is projected to grow at a CAGR of 14% by 2030. The market is driven by the growing usage of visual effects in films and the significant rise in the use of smart devices for advanced 3D-compatible mobile games and applications that provide businesses with an improved user experience.

Animation Market – The animation market is projected to grow at an estimated CAGR of 13% by 2030. There is an enormous need for animated material due to the growth of streaming services, internet platforms, and digital content consumption. Particularly streaming services are making significant investments in original animated movies and television shows in an effort to draw in a wide range of viewers and keep members.

Animation Software Market– The Animation Software market is projected to grow at a CAGR of 12% by 2030. The animation software market is expected to grow during the specified forecast period due to the increasing acceptance of animation software across the various industry verticals for cartoons, movies, and gaming.

Mobile, PC & Console Gaming & Animation Market – The Mobile, PC & Console Gaming & Animation market is projected to grow at a CAGR of 8.4% by 2030. Technological developments, evolving consumer behavior, and growing industry integration are all contributing factors to the expansion of the mobile, PC, & console gaming, & animation market.


About IndustryARC™:

IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the Market The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of the Market. 

IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format that assists an intelligent and informed decision-making process.


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Mr. Venkat Reddy IndustryARC Email: [email protected] USA: (+1) 518 282 4727


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