Virtual Production

Key Takeaway:

In 2023, the Virtual Reality market is expected to grow 50% and generate $7 billion worldwide, with 90% of that revenue coming from headset kit sales. But the remainder 10% coming from the VR software market in games and enterprise applications is critical in the long run and goes hand in hand with the virtual production transformational moment that both film and cinema industries are living.

Trend Type: Technology

Sub-trends: VR Content Vs Headset

April, 2023 • Less than 2 min read

Applications that capitalize on virtual reality’s unique capabilities will be vital to enable VR to enjoy a significant growth rate. Deloitte Global predicts that the virtual reality (VR) market will generate US$7 billion in revenue globally in 2023, an impressive 50% increase over 2022’s US$4.7 billion. Ninety percent of that revenue will come from headset kit sales, of which 14 million units averaging US$450 each are expected to sell in 2023. It predicts that the installed base of actively used VR headsets will reach 22 million in 2023, almost 50% higher than mid-2022. As Tim Cook explained to the Dutch publication Bright: “Zoom out to the future and look back; you’ll wonder how you led your life without augmented reality. Just like today, we wonder: ‘How did people like me grew up without the internet? (…) AR is a profound technology that will affect everything.”
The much smaller software market will generate the remainder of 10%. It will consist mainly of VR content—especially games and some enterprise applications—which will see revenues of approximately US$0.7 billion. The VR content drives the transformational moment that film and cinema are living. Multiple forces are 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; and the ambitions of some top game engine providers to better serve the film and video production market. Current virtual production tools and techniques can increase flexibility, shorten production times, and bring real-time computer-generated imagery (CGI) and visual effects out of postproduction and onto real-life sets. In 2023, Deloitte Global predicts that the market for virtual production tools will grow to US$2.2 billion—up 20% from an estimated US$1.8 billion in 2022.

Use Cases

Nvidia Studio

Virtual Production: Nvidia Studio is a platform for creators that includes the most advanced graphics processor architecture, specialized drivers and software for over 200 creative applications. The platform also features Nvidia Omniverse, a single platform that connects independent 3D design worlds using Universal Scene Description to transform 3D workflows and enable collaboration across the globe. Nvidia is partnering with over 40 software vendors to transform 3D workflows and adding new features like Nucleus Cloud, Omniverse Machinima, and Audio to Face to make 3D content creation easier and more accessible.

Disney "The Volume"

Virtual Production: “The Volume” is a technique used in Disney+’s “The Mandalorian” to create immersive environments without green screens. It uses LED panels, physical set design, and 3D models to simulate the real world and respond to camera movements. This technique allows for more seamless integration of CGI and real-life elements and has the potential to revolutionize the filmmaking process. The video is sponsored by Verizon, which launched 5G nationwide in USA.

Lowe's

VR Content Vs Headset: Lowe’s is experimenting with digital twins and AI to improve store planning for retail associates. They are using a Universal Scene Description (originally developed by Pixar Animation Studios) to create digital twins by aggregating native CAD from different tools. These digital twins enable retail associates and planners to collaborate in real-time, identify anomalies and simulate customer traffic flow patterns. The use of Nvidia Omniverse microservices and Magic Leap 2 headsets in augmented reality is transforming how associates reconfigure shelves and aisles, enabling accurate object detection and identifying occluded products on hard-to-reach shelves.

Use Cases

Nvidia Studio

Virtual Production:

Disney "The Volume"

Virtual Production:

Lowe's

VR Content Vs Headset:

Sub-Trend Sources
Virtual Procution: Delloite TMT Predictions
VR Content Vs Headset: Delloite TMT Predictions