The computer graphics market was valued at US$216.686 billion in 2020 and is expected to grow at a CAGR of 6.67% to reach a market size of US$340.475 billion in 2027.
Graphics refers to anything that can be represented visually or graphically. GPU designs, user interface design, 3D modelling, and computer vision are all aspects of computer graphics. Often, rather than using images, visuals are misconstrued using sounds and phrases that also include letters and numbers. Images that are displayed on screens as well as graphics that are created and altered by computers are the main components of computer graphics. They are either two-dimensional (2D) or three-dimensional (3D). Before, computers could only produce a limited number of 2-dimensional images, but now the computer graphics market is being driven by advances and developments in technology. A personal computer or desktop is the primary requirement for accomplishing this, and in addition, new, specialised software, some hardware, and other elements are required for these visuals.
The substantial rise in smartphone adoption worldwide and the rapid expansion of the IT sector are credited with the surge. In addition, more and more industries are demonstrating a preference for the implementation of automation technologies, largely to increase production and efficiency. As a result, more computer systems will be needed to run automated solutions like robotics, machines, and analytical tools, among others. This is one of the main drivers fueling the expansion of the computer graphics market. Additionally, the worldwide increase in gamers and the development of 3D and 4D technologies are some other elements that will support the demand for computer graphics solutions in the years to come. Furthermore, a significant factor that is anticipated to fuel market expansion is the rising need for computer graphics in the entertainment sector.
The adoption of computer graphics in the gaming and entertainment industries will fuel market expansion
The entertainment and media sectors’ increasing use of image processing and 3D animation techniques is boosting the market for computer graphics. The nature of computer graphics has changed significantly in recent years, and these new developments have swiftly altered the market. Computer graphics are being used in filmmaking for a wide range of purposes, including character creation, the inclusion of special effects, etc. Another major factor that is predicted to increase demand for computer graphics in the entertainment industry for the construction of fully functional imagery models is advancements in computer technology.
Online gaming has become more accessible and popular as smartphones and tablets have become more common. With the rise of this trend came an enormous number of free video games, creating a brand-new market for individuals in the computer graphics sector. The market for computer graphics games is becoming more and more popular because of the development of VFX technology as well as the growing need for live experiences of places and events. Additionally, in order to increase the variety of games offered on the market, independent game makers are teaming up with bigger entertainment companies. For instance, in May 2022, three new Radeon RX 6000 Series graphics cards from AMD were launched, along with the first games that would support AMD FidelityFX Super Resolution 2.0. In comparison to previous-generation products, these three revised versions offered faster game clocks, faster GDDR6 memory, and improved software and firmware. They also provided remarkable performance-per-watt based on AMD RDNATM 2 technology. Thus, due to the growing use of computer graphics in the entertainment sector, the market for computer graphics is anticipated to expand.
Key market developments
New partnerships and collaborations, innovative product offerings, research and development, and market investments will thereby increase the demand for computer graphics. For instance,
- February 2022: The technology firm Speech Graphics, which has its headquarters in Edinburgh, has raised $7 million in a new round of funding to further the development of its audio-driven facial animation technology. The round, which was led by Sands Capital, will be used to expand the company’s product and service offerings to address a variety of enterprise needs, from sales to service, healthcare, retail, banking, and travel, as well as its work in the global games market.
- March 2022: To provide gamers and designers with high-performance visual computing experiences, Intel developed Intel Arc graphics. The AI-accelerated media capabilities, AI-enhanced XeSS upscaling, Intel Deep Link technology, and other features are part of the Intel Arc graphics, which are aimed at gaming and video creation. The series was created to provide the best streaming, creative, and gaming experiences. There are Arc graphics cards for every type of gaming experience, from enhanced mainstream gaming on the Intel Arc 3 to high-performance AAA gaming on the Intel Arc 7.
- May 2022: Autodesk announced its investment in RADiCAL, the New York-based maker of a 3D motion capture solution driven by AI and born in the cloud. RADiCAL democratises 3D motion capture, human virtualisation, and analysis on a large scale with its collaborative real-time platform. Modern deep learning techniques, human biomechanics, and computer graphics are all combined by RADiCAL’s proprietary AI to estimate, track, and replicate skeletal joint rotations in 3D from a single traditional video feed. This information can be used to automate the animation of 3D avatars and characters in both videos and metaverses.
- August 2022: In order to improve its computer graphics creation capabilities for Metaverse applications, Nvidia revealed a number of technology initiatives. The new NeuralVBD library, the follow-up to the OpenVBD open-source library for sparse volume data, is one of the initiatives. Nvidia, Kaolin WISP, and NeuralVDB unveiled two new software development kits (SDKs) at SIGGRAPH 2022 that use the capabilities of neural graphics to create and display animation and 3D objects.
The North America region is expected to hold a significant share of the market in the coming years
North America is predicted to be the most lucrative region in terms of market share. A number of companies, including Autodesk Inc., Adobe Systems Inc., Siemens PLM Software, Microsoft Corporation, and others, are major suppliers of computer graphics hardware components and application software in the area. This is because there are several visual effects (VFX) businesses in the area, including some of the best ones, such as Walt Disney Animation Studios, DreamWorks Animation, Warner Bros. Animation, and Industrial Light & Magic. Due to ongoing developments in the fields of movies, streaming material, television and advertising, broadcasting, music, radio and audio recordings, video games, book publishing, and others, the media and entertainment business is expanding significantly across the United States. These factors are likely to increase the demand for Computer graphics in the region.