Visual Effects (VFX) Market to grow at a CAGR of 12.20% by 2025 | Increasing Demand for High-quality Content to Boost Growth |17000+ Technavio Reports

NEW YORK, March 11, 2022 /PRNewswire/ — The VFX market is fragmented and the vendors are focusing on M&A and entering into partnerships with other players to compete in the market. Hydraulx VFX Ltd., Rodeo FX Inc., Sony Corp., Technicolor SA, Digital Idea Corp., Deluxe Entertainment Services Group Inc., Digital Domain Holdings Ltd., Eastman Kodak Co., Framestore Ltd., and The Walt Disney Co. are some of the major market participants The visual effects (VFX) market is set to grow by USD 5.56 billion from 2020 to 2025, progressing at a CAGR of 12.20% according to the latest market report by Technavio.

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Visual Effects (VFX) Market 2021-2025: Scope

 Our visual effects (VFX) market report covers the following areas:

Visual Effects (VFX) Market 2021-2025: Drivers & Challenges

The key factor driving growth in the visual effects market is the increasing demand for high-quality content. The increasing adoption of digital video content platforms such as Amazon Prime Video, Netflix, and Hulu has created the need for rich content and VFX of all kinds. Streaming service providers are also adopting the latest technologies such as VR and 360-degree and light-field capture, which use VFX. The increase in the production of films is also driving the production studios to adopt VFX in their films and television series. Movie studios are trying to incorporate more animation and VFX- based shots into their films and television series.

However, the storage issues associated with VFX rendering will be a major challenge for the visual effects market during the forecast period. A major challenge in the entire process is managing the volume of information used in generating a photorealistic image as a single photorealistic image contains hundreds to thousands of digital assets. VFX studios that are completely dependent on a file storage system are vulnerable to performance, scalability, adaptability, and visibility issues in the rendering process. Since most VFX studios are moving to 4K and higher resolution imagery, the size of the computer-generated imagery (output) is large, which is leading to performance and efficiency issues in the rendering process.

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Visual Effects (VFX) Market 2021-2025: Segmentation Analysis

  • Application
    • Movies
    • Television
    • Gaming
    • Advertisements
  • Geography
    • North America
    • APAC
    • Europe
    • MEA
    • South America

Visual Effects (VFX) Market 2021-2025: Revenue Generating Segment & Regional Analysis

  • The visual effects market share growth by the movies segment will be significant for revenue generation. The movies segment is driven by the rising demand for realistic movie experiences by audiences and the growing popularity of VFX-based films. The use of VFX in the filmmaking process has led to new entertainment experiences with VR and 3D films. Film production studios use real-time rendering VFX for making VR films and presenting fictional stories, storytelling, and depicting content-rich visuals. 
  • 39% of the market’s growth will originate from North America during the forecast period. The US and Canada are the key markets for visual effects in North America. Market growth in this region will be faster than the growth of the market in Europe, MEA, and South America. The overall increase in the consumption of high-quality content and the launch of film production studios will facilitate the visual effects market growth in North America over the forecast period. 

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Visual Effects (VFX) Market 2021-2025: Key Highlights

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will assist visual effects (VFX) market growth during the next five years
  • Estimation of the visual effects (VFX) market size and its contribution to the parent market
  • Predictions on upcoming trends and changes in consumer behavior
  • The growth of the visual effects (VFX) market
  • Analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of visual effects (VFX) market vendors

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Visual Effects (VFX) Market Scope

Report Coverage


Page number


Base year


Forecast period


Growth momentum & CAGR

Accelerate at a CAGR of 12.20%

Market growth 2021-2025

USD 5.56 billion

Market structure


YoY growth (%)


Performing market contribution

North America at 39%

Competitive landscape

Leading companies, competitive strategies, consumer engagement scope

Companies profiled

Hydraulx VFX Ltd., Rodeo FX Inc., Sony Corp., Technicolor SA, Digital Idea Corp., Deluxe Entertainment Services Group Inc., Digital Domain Holdings Ltd., Eastman Kodak Co., Framestore Ltd., and The Walt Disney Co.

Market Dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, market condition analysis for the forecast period,

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Table Of Contents :

Executive Summary

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2020
  • Market outlook: Forecast for 2020 – 2025

Five Forces Analysis

  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

Market Segmentation by Application

  • Market segments
  • Comparison by Application
  • Movies – Market size and forecast 2020-2025
  • Television – Market size and forecast 2020-2025
  • Gaming – Market size and forecast 2020-2025
  • Advertisements – Market size and forecast 2020-2025
  • Market opportunity by Application

Customer landscape

  • Overview

Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • North America – Market size and forecast 2020-2025
  • APAC – Market size and forecast 2020-2025
  • Europe – Market size and forecast 2020-2025
  • MEA – Market size and forecast 2020-2025
  • South America – Market size and forecast 2020-2025
  • Key leading countries
  • Market opportunity by geography
  • Market drivers
  • Market challenges
  • Market trends

Vendor Landscape

  • Overview
  • Vendor landscape
  • Landscape disruption

Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • Deluxe Entertainment Services Group Inc.
  • Digital Domain Holdings Ltd.
  • Digital Idea Corp.
  • Eastman Kodak Co.
  • Framestore Ltd.
  • Hydraulx VFX Ltd.
  • Rodeo FX Inc.
  • Sony Corp.
  • Technicolor SA
  • The Walt Disney Co.


  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.


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