Japan Visual Effects Market

Japan Visual Effects Market Overview:

The Japan visual effects market size reached USD 632.8 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,111.6 Million by 2033, exhibiting a growth rate (CAGR) of 6.5% during 2025-2033. Increasing demand for high-quality CGI in anime and films, advancements in AI-driven visual effects, rising international collaborations, growing streaming platforms, expansion of gaming and virtual production, government support for creative industries, and changing audience expectations are expanding the Japan visual effects market share.

Japan Visual Effects Market Trends:

Rising Demand for High-Quality Visual Effects in Anime and Gaming 

Japan visual effects (VFX) market growth is primarily driven by the growing global demand for high-quality anime and immersive gaming experiences. For instance, as of August 20, 2024, generative artificial intelligence (AI) is being incorporated more and more into Japan's animation industry in an effort to improve production efficiency and alleviate severe manpower shortages. AI technology can now be used for activities like creating backdrop art, which used to take a week, in just five minutes. In response to the industry's growth, this adoption seeks to maintain high production standards and enhance working conditions. The market is expected to be worth ¥2.9 Trillion (about USD 19.7 Billion) in 2022, a 7% rise from the previous year. The country’s animation industry, which has long been a global leader, is now integrating advanced CGI and VFX technologies to enhance storytelling, realism, and visual appeal. Streaming platforms such as Netflix and Amazon Prime are investing heavily in Japanese animated content, thus driving the need for sophisticated VFX solutions. Moreover, the gaming industry is incorporating cutting-edge VFX to create hyper-realistic environments, particularly in open-world and role-playing games (RPGs). The adoption of AI-driven animation, motion capture technology, and real-time rendering is further streamlining production workflows. As international collaborations increase, Japan's VFX studios are expanding their technological capabilities to meet the rising expectations of global audiences, making the industry a crucial player in both entertainment and digital content production. 

Expanding Applications of VFX in Advertising and Virtual Production 

Beyond traditional film and animation, Japan's visual effects market is expanding into advertising and virtual production, fueled by advancements in augmented reality (AR) and extended reality (XR) technologies. Major brands and advertisers are leveraging VFX to create immersive commercials and interactive campaigns, enhancing consumer engagement, which is positively influencing the Japan visual effects market outlook. Virtual production techniques, such as LED volume stages and real-time VFX rendering, are becoming increasingly popular for film and commercial shoots, reducing production costs and increasing efficiency. The rise of virtual influencers and AI-generated brand ambassadors is also driving demand for high-end VFX capabilities. Additionally, Japan's growing metaverse initiatives are fueling the development of hyper-realistic digital environments, offering new opportunities for VFX professionals. With continuous investments in digital content innovation and the integration of emerging technologies, the Japanese VFX market is poised for sustained growth across multiple industries beyond entertainment. For instance, on September 19, 2024, Dentsu Group Inc. announced an investment in Japanese startup stu inc., specializing in cutting-edge technologies such as 5G, XR, and the metaverse. This strategic partnership aims to enhance marketing support and content development capabilities, leveraging stu's innovative approaches like the Writers Room and Pre-Vis workflows. The collaboration reflects Dentsu's commitment to advancing entertainment experiences through technological innovation.

Japan Visual Effects Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, product, technology, and application.

Component Insights:

• Software
• Services
• Hardware

The report has provided a detailed breakup and analysis of the market based on the component. This includes software, services, and hardware.

Product Insights:

• Simulation FX
• Animation
• Modelling
• Matte Painting
• Compositing

The report has provided a detailed breakup and analysis of the market based on the product. This includes simulation FX, animation, modelling, matte painting, and compositing.

Technology Insights:

• AI (Artificial Intelligence)
• AR (Augmented Reality)

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes AI (Artificial Intelligence) and AR (Augmented Reality).

Application Insights:

• Movies
• Television
• Gaming
• Advertisements
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes movies, television, gaming, advertisements, and others.

Regional Insights:

• Kanto Region
• Kansai/Kinki Region
• Central/Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Japan Visual Effects Market News:

• On March 25, 2024, TBS Holdings announced a large capital investment in Tokyo-based Megalis, a visual effects (VFX) production company known for its advanced technology and global expertise. Co-directed by CEOs Jeffrey Dillinger and Christophe Rodo, Megalis was founded in 2017 and has received praise for its outstanding visual effects work in dramas and motion pictures, such as the Emmy Award-winning Netflix series "ONI: Thunder God’s Tale." 

Japan Visual Effects Market Report Coverage:

Key Questions Answered in This Report:

• How has the Japan visual effects market performed so far and how will it perform in the coming years?
• What is the breakup of the Japan visual effects market on the basis of component?
• What is the breakup of the Japan visual effects market on the basis of product?
• What is the breakup of the Japan visual effects market on the basis of technology?
• What is the breakup of the Japan visual effects market on the basis of application?
• What is the breakup of the Japan visual effects market on the basis of region?
• What are the various stages in the value chain of the Japan visual effects market? 
• What are the key driving factors and challenges in the Japan visual effects market?
• What is the structure of the Japan visual effects market and who are the key players?
• What is the degree of competition in the Japan visual effects market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan visual effects market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Japan visual effects market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan visual effects industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.