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The post production market size is estimated to increase by USD 12.67 billion and grow at a CAGR of 13.02% between 2022 and 2027. Market expansion hinges on various elements, such as the prosperity of films and television series, attributed to widespread animation usage, the digitization of post-production workflows, and the availability of external expertise, which leads to cost savings. However, impediments like the steep expenses associated with post-production technologies, constraints regarding content availability, and issues surrounding licensing and legal intricacies pose challenges to this growth trajectory. Despite these hurdles, the industry remains resilient, continually innovating to overcome obstacles and meet the evolving demands of consumers. The pursuit of efficiency through digital transformation and the cultivation of partnerships with skilled professionals are key strategies employed to navigate the complexities of the market landscape. Thus, while challenges persist, proactive approaches and strategic initiatives propel the market forward amidst a dynamic and competitive environment.
Industry Overview
This market report extensively covers market segmentation by technique (VFX, audio processing, 2D-3D conversion, editing, and others), application (movies, television, commercials, and online videos), and geography (North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.Market Size and Growth
Figure 1: Production Markets Share
The post-production market refers to the industry involved in editing and enhancing audiovisual content after it has been filmed or recorded. The market includes various services such as video editing, sound design, color grading, visual effects, and motion graphics. The post-production market is a crucial part of the filmmaking and television industry, as it adds the final touches to the content before its release. Approximately 95% of television shows undergo color grading in the post production stage. Technology advancements have greatly impacted the post-production market, allowing for faster and more sophisticated editing techniques. The global post-production market is expected to grow significantly due to the increasing demand for high-quality content across various platforms like radio, movies, TV shows, streaming services, and online videos. Moreover, video streaming services benefit from high-definition displays. Desktop post-production and cloud post-production are essential for creating and delivering high-quality content.
The market is experiencing rapid growth, driven by the increasing demand for high-quality audio and visual content across various mediums such as motion pictures, television, commercials, online videos, and video games. Post-production editing plays a crucial role in refining raw footage into polished final products, encompassing techniques like color correction, sound design, and visual effects (VFX). With advancements in technology, post-production workflows have evolved from traditional desktop editing to cloud-based and on-premise post-production, enabling seamless collaboration and efficient audio processing. Post-production studios and media production companies are leveraging techniques like 2D-to-3D conversion and digital editing to enhance the quality of movies, television shows, and animation. This market thrives on innovation and creativity, catering to the ever-growing demands of the entertainment industry.
The success of movies and TV shows due to high use of animation is the key driver boosting the market growth. Movies and series like James Bond, Star Wars, and Harry Potter owe their popularity to captivating animation and special effects. Blockbusters such as Frozen and Star Wars generated USD100 billion in sales, while TV shows like Game of Thrones used animations extensively.
This trend has fueled a demand for advanced animation post-production facilities techniques, with methods like stop motion, traditional hand-drawn, 2D, and 3D animation being utilized. 2D and 3D animations are dominant now, thanks to software like Adobe After Effects and Flash. Animation is also employed for educational purposes, simplifying complex topics for students. 3D models serve various industries like architecture, medicine, aerospace, and more. Organizations like NASA leverage 3D visualization for teaching. Animation's growth in film and education persists due to continuous technique enhancements.
Growth in digital marketing is a key trend shaping the market. Digital marketing drives media and entertainment growth, fueling the global post-processing market. The surge in digital content consumers and marketing expenditure is impactful. Marketers use videos to boost engagement, brand awareness, and outreach. Social media's visual focus elevates engagement rates, making video ads more relevant.
Advancements in camera technology improve video shooting techniques. Customized content resonates with audiences, driving the demand. Brands leverage social computing tools for video advertising driven by sentiment analysis. OTT consumption steers brands to mobile ads, fostering these needs. In this landscape, digital marketing remains a catalyst for media and entertainment, underpinning the market expansion.
The high cost of technologies used in post-production processes is a key challenge hindering the growth of the market. High capital expenditure in post production poses a major hurdle to the global market's expansion. Large content producers opt for in-house equipment, but smaller entities, like local channels, shy away due to costs. SMEs struggle with scalability due to budget constraints. Formats proliferate, demanding conversion between them, consuming time and resources.
Regulatory Framework and Challenges
VFX post production generates substantial data daily, prompting on-site backups, risking security. Data transfer complexities compound these issues. The intricate process demands skilled professionals, rigorous testing, and significant time and investment. The need to fulfill evolving user requirements with cost-effective, compatible, and secure facilities adds to challenges, impeding market growth in the forecast period.
The VFX segment is estimated to witness significant growth during the forecast period. VFX market is a technique used to create or edit recorded visual images for motion pictures. Most of the films that are produced around the world fall into two genres such as action, and adventure. Both rely heavily on VFX to enhance the viewing experience. Almost all movies use advanced VFX techniques to add special effects. Because VFX is not limited to science fiction and fantasy films, it can be used in any film genre.
Figure 2: Production Industry by Technique (2017-2027)
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The VFX segment was the largest segment and was valued at USD 4.08 billion in 2017. Visual effects eliminate the need to shoot in physical locations, reducing the cost and time of movie production. This made VFX more popular among digital content creators. With the popularity of virtual reality (VR) and augmented reality (AR) content, content creators are turning to various VFX tools to provide a more engaging experience for their users. With the rising demand for VR and AR content, the demand for VFX services will increase during the forecast period.
Based on the application, movies segment holds the largest market share. The global production market holds a pivotal role in the film industry, providing essential services for movie completion. Post industry involves digital editing captured footage, adding audio mixing, and integrating visual effects, shaping raw material into a polished film ready for distribution.
Notable films within this market include 'Avengers: Endgame,' a Marvel Studios production, showcasing extensive post production efforts to realize its action-packed narrative. 'Inception,' directed by Christopher Nolan, thrives on visual effects for its mind-bending sequences. 'Gravity,' directed by Alfonso Cuaron, utilizes CGI and editing for its space thriller plot. The market spans genres like drama, comedy, and animation, each presenting unique challenges that require skilled expertise.
Figure 3: Market by Region
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America, known for early technology adoption, presents an enticing market for pre-production services. The industry's film, entertainment, telecom, and education sectors are poised to fuel regional market growth. The mature entertainment sector generates popular web series, movies, and animations. Key vendors like Netflix thrive in the region, driven by increased domestic streaming revenue. Hollywood's presence boosts the industry, and the US alone raked in USD 4.48 billion in film revenue in 2021.
Types of Services
These companies' players include Disney, Lions Gate Entertainment, and Viacom. High-budget movies prompt substantial investments in VFX and technologies, while advanced telecom infrastructure and OTT services further augment the market. Enhanced broadband penetration and speed enhance online streaming, contributing to North America's market expansion.
Post-production companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Netflix Inc. - The company offers post-production services such as NP3 audio localization services.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Amazon.com Inc., AT and T Inc., Comcast Corp., Deluxe Media Inc., Eros Media World plc, Framestore Ltd, Lantern Entertainment, Lions Gate Entertainment Corp., Netflix Inc., Paramount Global, Prime Focus Ltd., Red Chillies Entertainments Pvt. Ltd., Sony Group Corp., Storyteller Distribution Co. LLC, Streamland Media Inc., The Walt Disney Co., Weta Digital Ltd., Pixel Digital Studios, and STUDIO GHIBLI Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, post production industry, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing rapid growth driven by technological advancements and the increasing demand for high-quality digital content across various sectors. From film and television to advertising and video games, there's a rising need for skilled personnel and advanced tools in areas like recording, color correction, and computer graphics. Post-production studios and media production companies are leveraging cutting-edge technology to deliver immersive experiences and realistic visual effects (VFX). With the rise of online streaming services and digital delivery platforms, there's a surge in demand for services like 4K video streaming and virtual production capabilities. Moreover, the market is embracing cloud-based solutions like Software-as-a-Service (SaaS) for remote post-production and efficient content streaming, driving innovation in the media industry.
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Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.02% |
Market growth 2023-2027 |
USD 12.67 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.42 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, India, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., AT and T Inc., Comcast Corp., Deluxe Media Inc., Eros Media World plc, Framestore Ltd, Lantern Entertainment, Lions Gate Entertainment Corp., Netflix Inc., Paramount Global, Prime Focus Ltd., Red Chillies Entertainments Pvt. Ltd., Sony Group Corp., Storyteller Distribution Co. LLC, Streamland Media Inc., The Walt Disney Co., Weta Digital Ltd., Pixel Digital Studios, and STUDIO GHIBLI Inc. |
Market dynamics |
Parent market analysis, market growth and trends, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technique
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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