PUBLISHER: The Business Research Company | PRODUCT CODE: 1888514
PUBLISHER: The Business Research Company | PRODUCT CODE: 1888514
Video background replacement artificial intelligence (AI) is a technology that uses AI algorithms to automatically detect and separate subjects from their surroundings in video content. It allows the original background to be replaced with a new image, video, or digital environment in real time or during post-production. This technology improves video production efficiency by removing the need for physical green screens and manual editing.
The main components of video background replacement artificial intelligence (AI) are software, hardware, and services. Software includes programs and applications that instruct a computer or device on how to perform specific tasks. Deployment modes include cloud and on-premises. The technology is applied in media and entertainment, education, corporate, advertising, social media, and other sectors, serving end users such as individuals, enterprises, educational institutions, broadcasters, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the media sector, particularly in content production, broadcasting, and digital distribution. Higher duties on imported audiovisual equipment, editing software, and broadcast technology have increased production and operational costs for media companies. Film and television studios face added expenses for sourcing foreign-made cameras, lighting systems, and post-production tools, while news and broadcasting agencies are contending with inflated costs for transmission equipment and satellite services. Moreover, retaliatory tariffs in international markets are restricting the export of U.S.-produced media content, limiting global revenue potential. In response, media organizations are turning to domestic suppliers, expanding digital platforms, and investing in AI-driven content creation to streamline operations and preserve competitiveness in a volatile global trade environment.
The video background replacement artificial intelligence (AI) market research report is one of a series of new reports from The Business Research Company that provides video background replacement artificial intelligence (AI) market statistics, including the video background replacement artificial intelligence (AI) industry global market size, regional shares, competitors with the video background replacement artificial intelligence (AI) market share, detailed video background replacement artificial intelligence (AI) market segments, market trends, and opportunities, and any further data you may need to thrive in the video background replacement artificial intelligence (AI) industry. This video background replacement artificial intelligence (AI) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The video background replacement artificial intelligence (AI) market size has grown exponentially in recent years. It will grow from $1.46 billion in 2024 to $1.77 billion in 2025 at a compound annual growth rate (CAGR) of 21.8%. The growth in the historic period can be attributed to rising demand for remote video conferencing, growing adoption of virtual production in media, increasing use of e-learning platforms, expansion of live streaming for gaming and entertainment, and rising need for professional video editing.
The video background replacement artificial intelligence (AI) market size is expected to see exponential growth in the next few years. It will grow to $3.85 billion in 2029 at a compound annual growth rate (CAGR) of 21.4%. The growth in the forecast period can be attributed to increasing adoption of AI-powered video tools, rising demand for virtual backgrounds in hybrid work environments, expansion of social media content creation, growing use of AI in post-production and film editing, and increasing integration of AI with cloud video platforms. Key trends in the forecast period include advancements in real-time video processing, innovations in AI-based segmentation algorithms, developments in deep learning for background replacement, research in virtual studio and production environments, and integration with augmented reality and mixed reality applications.
The growth in video content creation is expected to drive the growth of the video background replacement artificial intelligence (AI) market going forward. Video content creation refers to producing visual media, including recording, editing, and publishing videos, to convey information, tell stories, or engage audiences across digital platforms. The rise in video content creation is driven by increasing demand for engaging and easily consumable digital media, as more individuals and businesses use videos to communicate messages effectively and enhance online visibility. Video background replacement artificial intelligence (AI) supports video content creation by enabling creators to change or remove backgrounds seamlessly, streamline editing, and produce professional-quality videos without complex studio setups. For instance, in December 2023, according to the Australian Communications and Media Authority (ACMA), 83% of Australian adults had watched an online video service in the previous seven days, up from 82% in 2022. Therefore, the rising demand for video content creation is fueling the growth of the video background replacement artificial intelligence (AI) market.
Key companies operating in the video background replacement artificial intelligence (AI) market are focusing on real-time multi-talent extraction to enhance live production workflows, enable smooth integration of virtual graphics, and improve broadcast and streaming quality. Real-time multi-talent extraction is an AI-driven process that isolates multiple on-screen subjects simultaneously in live video streams, enabling seamless integration with virtual graphics and environments. For instance, in November 2024, Pixotope Technologies AS, a Norway-based software company, launched Pixotope Reveal, an AI-powered background segmentation tool that enables real-time extraction of on-screen talent without using green screens. This innovation allows broadcasters to integrate two-dimensional (2D) and three-dimensional (3D) graphics into live productions, enhancing broadcast augmented reality (AR) experiences and enabling natural interaction between presenters and virtual graphics. The launch represents a key advancement in AI-driven virtual studio technology, offering faster workflows and higher-quality visual output for live news and sports broadcasting.
In June 2023, Banuba Limited, a UAE-based augmented reality (AR) company, partnered with Agora Inc. to integrate AI background replacement into its video platform. Through this partnership, Banuba and Agora aim to combine Banuba's AR and AI-powered virtual background features with Agora's real-time video communication platform for iOS, Android, and Web, streamlining implementation for customers. Agora Inc. is a US-based real-time engagement platform-as-a-service company.
Major players in the video background replacement artificial intelligence (ai) market are Amazon Web Services Inc., Apple Inc., Google LLC, Microsoft Corporation, Samsung Electronics Co. Ltd., Meta Platforms Inc., NVIDIA Corporation, Adobe Inc., Zoom Video Communications Inc., Synthesia Ltd., CyberLink Corp., Perfect Corp., Lemonlight, VEED Ltd, Descript Inc., Runway AI Inc., Banuba Limited, Reincubate Ltd, Lumen5 Technologies Ltd., InVideo, and Pictory Corp.
North America was the largest region in the video background replacement artificial intelligence (AI) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in video background replacement artificial intelligence (AI) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the video background replacement artificial intelligence (AI) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The video background replacement artificial intelligence (AI) market consists of revenues earned by entities by providing services such as artificial intelligence (AI)-based background detection, real-time visual editing, virtual background generation, and integration of background effects. The market value includes the value of related goods sold by the service provider or included within the service offering. The video background replacement artificial intelligence (AI) market also includes sales of edge AI devices, cameras, video capture cards, and webcams. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Video Background Replacement Artificial Intelligence (AI) Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on video background replacement artificial intelligence (ai) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for video background replacement artificial intelligence (ai) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The video background replacement artificial intelligence (ai) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.