Volumetric Video Market

Market Overview

The global volumetric video market size was valued at USD 2.5 billion in 2023 and is projected to reach  USD 22.1 billion by 2032, registering a CAGR of 27.2% during the forecast period (2024-2032). One of the primary drivers of Volumetric Video Market growth is the rising adoption of AR/VR application devices worldwide.

Volumetric video is a cutting-edge video capture technique that records three-dimensional space, allowing viewers to explore and engage with material from all angles and perspectives. Unlike regular video, which is flat and limited to a single viewpoint, volumetric video collects depth information, resulting in a more realistic and dynamic watching experience.

Volumetric video technology is driven by the increased need for medical hologram development and increased utilization in AR/VR applications. However, the high cost of volumetric video technology and the lack of standardizations in 3D content generation are important restraints on global volumetric video market expansion. Furthermore, the rise in demand for sophisticated medical image-guided surgery and the increased use of volumetric video technology in innovative marketing for gaming and filmmaking presents attractive chances for the volumetric video market to grow globally. 

Highlights

• Hardware accounts for the largest share of the market by volumetric capture.
• Advertisements influenced the market growth by application.
• AR/VR Head Mounted Display (HMD) dominates the market by content.

Market Dynamics

Global Volumetric Video Market Drivers

Expansion of Augmented Reality (AR) and Virtual Reality (VR)

The increased adoption of augmented reality (AR) and virtual reality (VR) technology in various industries is boosting demand for volumetric video content. Volumetric video improves the immersive experience in AR and VR applications by offering consumers realistic and interactive 3D content to explore from all angles and perspectives.

Additionally, major technological companies, including Facebook (now Meta), Microsoft, Google, and Apple, are significantly investing in AR and VR technologies, demonstrating the growing importance of immersive experiences in the digital realm. Apple introduced the Vision Pro headset at the 2023 Worldwide Developers Conference (WWDC), and it is scheduled to be released later this year, possibly as early as summer. The headgear is believed to include multiple cameras allowing pass-through camera-enabled mixed reality and eye and hand tracking for interaction. Some industry insiders have described the headset as a "watershed moment" in the industry. 

Moreover, expanding the AR and VR marketplaces opens up enormous prospects for the volumetric video business. As the demand for immersive content grows, there will be a greater need for high-quality volumetric video content generation, delivery, and consumption. Volumetric video technology vendors, content creators, and platform developers can capitalize on this trend by creating new solutions that meet the different requirements of AR and VR applications across industries.

Global Volumetric Video Market Restraints

High Production Cost

Volumetric video creation necessitates specialized equipment such as depth-sensing cameras, capture stages, and substantial computational resources to process and render volumetric data. For example, Microsoft's Mixed Reality Capture Studios uses a volumetric capture stage with various high-resolution cameras and depth sensors to record actors and objects from numerous perspectives simultaneously. Furthermore, volumetric video production frequently requires sophisticated software tools for data processing, reconstruction, and rendering. These software solutions may involve license or subscription fees, increasing production costs. Software maintenance for volumetric video can cost up to two-thirds of the total software process cycle or more than half of the SDLC processes. Additionally, software maintenance costs might be as high as USD 5,000 per month or USD 60,000 annually. 

Similarly, the significant expenditure for volumetric video production equipment and software may inhibit smaller content providers and enterprises. For example, Volumetric video production services can range in price from USD 3,500 to USD 7,500 for a 5-minute video that includes all-day shooting. In addition to equipment costs, the complexity of volumetric video production workflows and the necessity for specialized personnel increase overall production costs. Businesses and content providers may face increased expenditures when training workers and employing specialized labor adept in volumetric video production techniques.

As a result, the high production costs associated with volumetric video creation may hinder market access and adoption, especially for smaller content providers and organizations with limited resources. 

Global Volumetric Video Market Opportunity

Revolutionizing Gaming and Esports

In the gaming industry, volumetric video technology has the potential to transform character animation, world construction, and player immersion. In 2023, women will account for 40% of Southeast Asian gamers, more than double the number of new male players. This suggests that the Asian female gaming community may soon become the world's largest. For example, game makers can employ volumetric video to capture real-life actor performances and incorporate them into gaming environments as lifelike creatures with realistic motions and reactions. This improves the gaming experience by offering players more engaging and immersive interactions. For instance, Arcturus, a volumetric video company, has released an upgrade to its HoloSuite toolset, which includes a new way to deliver lightweight, scalable volumetric video to game engines with real-time rendering and playback. Thanks to a first-of-its-kind high-performance codec, anyone from virtual production teams to game developers can now populate their digital environments with more volumetric figures than ever before. 

Furthermore, the worldwide esports audience is predicted to exceed 500 million viewers by 2024, representing a 73% increase over 2020. Esports spectators have grown dramatically, from approximately 435 million in 2020 to more than 540 million in 2024. The worldwide esports audience is estimated to exceed 640 million by 2025. Volumetric video technology has the potential to improve esports broadcasts by offering spectators immersive and dynamic views of gameplay. Esports events can use volumetric video to provide viewers with novel viewing angles and interactive features that increase audience interest and engagement.

Thus, incorporating volumetric video technology into gaming and esports gives up new avenues for innovation and creativity in game development, content creation, and spectator engagement. Game developers can use volumetric video to build more realistic and immersive gaming settings that entice gamers with visually appealing images and lifelike characters.

Regional Analysis

North America Dominates the Global Market

The global volumetric video market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global volumetric video market shareholder and is estimated to grow at a CAGR of 26.8% over the forecast period. The growing demand for volumetric video in the region is driven by sports TV broadcasters looking for innovative ways to spice up live programming. Volumetric video uses digitalized 3D spatial information displayed by computer systems to create a digital space from which videos can be generated from all angles. The technology has inspired widespread interest in the region's sports scene and is gaining popularity in the entertainment industry. TV broadcasters try innovative ways to liven up live programming, including some strange sports coverage. These factors drive regional demand and are projected to dominate the market over the forecast year.

Furthermore, the demand for online virtual conferences and events has hastened the holographic video market trend in the United States. The gaming and entertainment industries' continual progress toward producing lifelike characters and environments. According to an ESA report from 2023, over 227 million gamers played video games in the United States last year, with 76% of American youngsters under the age of 18 being gamers. 74% of American households include at least one online gamer. 63% of Americans play mobile or console games regularly, with 42% playing for at least 20 years. Gen Z has the most significant percentage of regular gamers, with 66%. These expanding gamers are projected to fuel market expansion over the forecast period.

Asia-Pacific is anticipated to exhibit a CAGR of 27.4% over the forecast period. The Asia-Pacific area is seeing significant growth in adopting and using volumetric video technology, significantly benefiting various businesses. With its large population and quickly rising economies, this region has become a hotbed for technical innovation, and volumetric video is no exception. Countries in the Asia Pacific region use innovative technologies to improve their signs and advertising sectors. The entertainment industry's increased demand for 4D and 360° content is driving market growth.

Moreover, VR and AR are in higher demand for workforce simulations and training programs in industry, healthcare, and the military. However, In the third quarter of 2023, VR headset sales fell by about 30%, with the market bringing in only 100,000 units, a 35.5% decline from the second. This is due to market leader Pico cutting back on marketing efforts to ensure a healthy operation when China's economy recovers.

Europe holds a moderate share of the market. Medical professionals in the United Kingdom use volumetric video to observe bodily components more clearly. Furthermore, according to a 2023 study, influencers account for 10.5 million of Europe's 252.1 million Instagram users or 1.6% of the population. In 2023, the influencer marketing environment has shifted towards more authentic, diversified, and ethical connections, with a continuous emphasis on engaging content forms and collaborative projects. The rising support for 360-degree video on social media platforms has spurred influencers and content creators to create engaging and viral content.

Segmental Analysis

The global volumetric video market is segmented based on volumetric capture, application, and content.

The market is further segmented by volumetric capture into Hardware, Software, and Services.

The hardware category led the market, accounting for almost 45%. Hardware is the actual equipment utilized in volumetric capture setups. This comprises depth-detecting cameras, multi-camera arrays, depth sensors, and other specialized capture equipment. These hardware components simultaneously record numerous perspectives of a subject to collect volumetric data. High-quality hardware is required for accurate and comprehensive volumetric captures, guaranteeing that the 3D models produced are realistic and accurate to life. Hardware makers constantly innovate to improve volumetric capture devices' resolution, accuracy, and usability, making them more available to content creators and enterprises. The hardware segment has expanded due to the large number of cameras used in volumetric capture studios, which ranges from two to one hundred.

Software is critical for processing, recreating, and rendering volumetric data collected by hardware devices. Volumetric video software solutions use sophisticated algorithms and computational approaches to transform raw sensor data into fully formed 3D models of people or environments. This comprises depth estimation, point cloud processing, mesh reconstruction, texture mapping, and real-time rendering capabilities. Volumetric video software allows content creators to manipulate and enhance volumetric data, change lighting and textures, and incorporate volumetric materials into virtual environments or apps.

The market can be bifurcated by application into Sports, Events, Entertainment, Medical, Advertisement, and Education.

Volumetric capture technology allows advertisers and marketers to develop immersive and engaging advertising campaigns. Brands can use volumetric video to display products, explain features, and create captivating tales that connect with their customers. Thanks to interactive volumetric marketing, consumers may examine things from various perspectives, customize options, and engage with content meaningfully. Volumetric advertising campaigns can run on multiple platforms, including digital signage, social media, and augmented reality (AR) experiences.

Additionally, volumetric video stands out as a new technology that is altering the signs and advertising industries. This breakthrough technology enables advertisers to combine engaging and interactive images seamlessly into various signs and advertising channels. Volumetric video allows brands to present their products and services more engagingly and dynamically, attracting the attention of potential customers.

The entertainment industry can use volumetric capture technology to create intriguing and immersive material in various formats, including cinema, television, gaming, and virtual reality (VR). Filmmakers and content developers can employ volumetric video to capture actors and scenes in 3D, increasing the realism and interactivity of storytelling. Volumetric video assets can be incorporated into VR experiences, video games, and interactive narratives, allowing viewers to explore virtual worlds and interact with volumetric actors in real-time. 

Based on content, the market is fragmented into Projectors, AR/VR head-mounted Displays (HMD), Smartphones, and Volumetric Displays.

The AR/VR/HMDs sector had the most significant market share in 2023. AR/VR Head Mounted Displays (HMDs) are wearable gadgets that offer users immersive virtual reality (VR) or augmented reality (AR) experiences. These gadgets have built-in displays, sensors, and tracking systems that overlay volumetric content on the user's field of view. Volumetric video content seen with AR/VR HMDs appears to exist in the physical environment around the user, resulting in highly immersive and engaging experiences. AR/VR HMDs are utilized in various applications, including gaming, training, simulation, education, and entertainment.

Furthermore, the increasing popularity of AR/VR headsets can be traced to their critical role in offering immersive and interactive volumetric video experiences. These gadgets let users interact with volumetric content in a highly realistic and immersive way. As AR and VR technology evolves, more people are adopting AR/VR head-mounted displays (HMDs) because of their increased sophistication, portability, and accessibility.

Smartphones are widespread consumer gadgets with high-resolution displays, cameras, and processing power. Volumetric video material can be accessed on smartphones via dedicated apps or web browsers, allowing consumers to enjoy immersive 3D videos and animations on their mobile devices. Smartphones provide on-the-go access to volumetric content, allowing users to explore virtual settings, interact with 3D objects, and participate in immersive storytelling experiences. Volumetric video apps and platforms designed for smartphones serve a wide range of users interested in immersive media and entertainment.

Recent Developments

• March 2024- Meta launched a redesigned video player on Facebook that combines Reels, longer movies, and Live content into a single widescreen, entertaining experience. The redesigned video player will first be available on iOS and Android in the United States and Canada, followed by a global release in the following months.
• March 2024- Foundry introduced Modo 17.0 with a significant performance update and up to 50 times quicker rendering.
• April 2024- OTOY, Roddenberry Entertainment, and Paramount Game Studios announced a major expansion of the archive for Apple Vision Pro.