Volumetric Video Market Analysis

Volumetric Video Market (Global, 2024)

Introduction

The market for volumetric videos is a new market, which is destined to revolutionize the way we capture, share and experience images. This market is based on the application of advanced technology to create an immersive and interactivity. As the need for a high-quality, three-dimensional representation of real-world environments and subjects grows, industries from entertainment and gaming to education and medicine are increasingly adopting volumetric video solutions. This new approach not only improves the storytelling and the experience of the audience, but also opens up new possibilities for virtual and augmented reality. With the development of artificial intelligence, machine learning and real-time rendering, the landscape of volumetric video is changing rapidly. This creates both challenges and opportunities for all market participants. The ability to understand the dynamics of this new market will be the key to capturing its full potential and driving future innovation.

PESTLE Analysis

Political

In 2024, the regulatory framework of the volumetric market will be dominated by government policies promoting digital innovation. For example, the European Union has allocated $ 1,500,000,000 to the development of immersive technology, including volumetrics, in its Digital Europe program. This investment aims to increase the competitiveness of the Union in the technological field and to encourage public-private collaboration. Also, the implementation of the data security and privacy policies of various countries will have a direct impact on the creation and distribution of volumetric content.

Economic

The economic situation for the 3D video market in 2024 is characterized by increased investment in digital content production. In the United States alone, the entertainment and media sector is projected to reach $877 billion in revenue by 2024, with a significant portion of this earmarked for newer technologies such as volumetric 3D. The worldwide spending on augmented and virtual reality is expected to reach $200 billion, further increasing the demand for the immersive content that volumetric 3D can offer. This is expected to drive further development and adoption of volumetric 3D across a wide range of industries.

Social

In 2024, the public’s desire for a more immersive experience is growing. According to the survey, 72% of those questioned are interested in using volumetric video for entertainment and education. This interest is mainly due to the increased penetration of high-speed Internet and the proliferation of devices capable of playing such content. Moreover, the proliferation of social media platforms with a bias towards video is encouraging content creators to explore the use of volumetric images to enhance audience engagement. As a result, we anticipate a significant increase in the demand for high-quality volumetric content from both consumers and content creators.

Technological

In 2024, technological development will be the main driver of the volumetric video market. The development of high-resolution cameras and complex software for capturing and processing volumetric content has already received significant investment from the industry. Microsoft and Intel have already invested more than $500 million in R & D. In addition, the integration of artificial intelligence into the processing of volumetric content will make the quality and speed of production even higher. Also, the emergence of 5G technology will enable faster transmission of volumetric content, which is important for gaming and virtual reality applications.

Legal

In 2024, the legal framework surrounding the volumetric film market is becoming increasingly complex, especially in the area of intellectual property rights and ownership of the content. The United States is a prime example of this. The Copyright Office has reported a 15 per cent increase in copyright registrations for digital content, including volumetric film, which underlines the need for a clearer legal framework. In addition, a number of countries are introducing stricter data protection legislation, such as the European General Data Protection Regulation (GDPR), which requires that companies that handle personal data comply with stricter privacy standards. These developments mean that companies operating in the volumetric film market must be constantly alert and ready to adapt to avoid any potential legal traps.

Environmental

In 2024, the market for volumetric film was attracting increasing attention, especially with regard to energy consumption and its effect on the environment. In order to produce and distribute high-quality volumetric film, large amounts of computational power were required, which could lead to increased carbon emissions. The consumption of electricity in the data centers alone, which streamed the videos, was estimated to be 200 terawatt-hours annually, which increased the world’s energy consumption. In response, the companies were looking for greener solutions. By 2025, 30 per cent of the data centers of the large tech companies would be powered by renewable energy sources. This shift towards a more sustainable business model was becoming a major factor for companies operating in the volumetric film industry.

Porter's Five Forces

Threat of New Entrants

The market for three-dimensional film is characterized by high technical barriers to entry and high capital requirements, which can deter new entrants. However, technological progress and a decrease in the cost of equipment can encourage some new entrants to enter the market, resulting in a moderate threat.

Bargaining Power of Suppliers

Suppliers to the market for volumetric video are relatively varied. They include hardware manufacturers, software producers, and content creators. These different types of suppliers weaken the bargaining power of any one of them, because companies can change suppliers or develop their own solutions, resulting in a low threat level.

Bargaining Power of Buyers

The buyers in the volumetric video market, both companies and content producers, are in a strong position to bargain due to the availability of alternative solutions and technology. The growing market enables the buyers to demand better terms and conditions, which gives them a high degree of bargaining power.

Threat of Substitutes

“Medium”—While volumetric film offers many advantages, there are several other media such as ordinary film, 360° film, and augmented reality which can be used in similar ways. These substitutes may be chosen by consumers if they are more cost-effective or convenient to use.

Competitive Rivalry

The market for volumetric video is becoming more and more competitive. There are many established companies and new entrants to the field. The speed of technological development and innovation makes competition more intense, and there is a high degree of rivalry between companies.

SWOT Analysis

Strengths

• High-quality immersive experiences that enhance user engagement.
• Growing adoption in entertainment, gaming, and virtual reality sectors.
• Technological advancements improving capture and playback capabilities.

Weaknesses

• High production costs and technical complexity.
• Limited consumer awareness and understanding of volumetric video.
• Dependence on advanced hardware and software for optimal viewing.

Opportunities

• Expansion into new industries such as education, healthcare, and real estate.
• Potential for partnerships with tech companies to enhance distribution.
• Increasing demand for remote experiences post-pandemic.

Threats

• Rapid technological changes leading to potential obsolescence.
• Intense competition from traditional video formats and emerging technologies.
• Regulatory challenges related to data privacy and content rights.

Summary

The global volumetric video market in 2024 will be a unique blend of strengths and opportunities, especially in terms of enhancing the user experience across various industries. Despite this, high production costs and limited consumer awareness will be a hindrance to growth. Competition from established and new players will be keen, while regulatory and competition risks must be closely monitored.