The desire for high-caliber films and advancements in VFX technology is anticipated to fuel the movie theater market in the upcoming years. Additionally, the market is anticipated to grow in the upcoming years due to the proliferation of 3D movie theaters and the digitization of films. Furthermore, increased consumer entertainment spending and rising per capita income are likely to drive the market throughout the projected decade. Some limitations and difficulties may prevent the market from expanding. One of the main things that could prevent the business from expanding is movie piracy. Customers can purchase pirated versions of the film for a very low cost rather than buying movie tickets by purchasing them on DVDs or online.
Most movie theaters, cinema halls, and multiplexes are shut down due to the COVID-19 pandemic as preventive steps to stop the virus's spread, which negatively influences movie theaters. For instance, one of the major movie exhibitors, Cineplex Inc., indicated that it would close all 165 of its theaters in 2020, resulting in a loss of revenue during the COVID-19 pandemic. Due to the pandemic, some 70,000 movie theaters in China have been closed, and several blockbuster releases have been postponed. Nearly 50.0% of the cinema screens in Italy have been closed due to the rising COVID-19 cases in that country, which has further impacted the market.
Increasing VFX Movie Popularity will Spur Market Expansion
There is a rising demand for high-caliber movies with superior visual effects on a global scale. To improve the viewing experience for viewers, visual effects (VFX) photography and tools like depth sensors and HD video cameras are being used more frequently. This is one of the best drivers of the movie theater market's expansion. Additionally, increasing consumer expenditure on leisure activities and increasing the urban population are fueling global demand for drive-in cinemas. The market is anticipated to grow in the near future due to consumer awareness developing in unexplored markets and technological advancements.
Increased OTT Use Will Limit Market Expansion
OTT, or the internet platform for streaming movies and television shows, has gained traction and poses a serious threat to the movie theater industry. People are now moving towards OTT platforms because they can provide you with several movies for a while for the cost of a movie ticket. One of the obstacles and one of the largest issues facing the movie theater market is this.
By Product Type
Based on product type, the movie theater market is segmented into 3D screens and 2D screens. The 3D screens category dominated the market in 2022. The number of 3D televisions and movie theaters increases along with the demand for 3D films. Movies like 2009's Avatar, directed by James Cameron, have a lasting effect on the cinema business. Following the success of Avatar, 3D movie theaters have increased all over the globe. Vendors are concentrating on technological developments in response to the rising demand for 3D movies. The demand for 2D displays is also declining because movies with outstanding VFX can't be enjoyed in 2D to the same extent.
Based on application, the movie theater market is segmented into drive-in theater, IMAX theater, independent theater and multiplexes. The multiplexes category dominated the market in 2022 because commercial malls and recreation centers have multiplexes. One key factor in this dominance is the availability of multiplexes in recreation centers and shopping centers. Multiplexes are particularly well-liked in developing nations like China and India. However, IMAX has a sizable market share due to its superior quality and popularity among moviegoers in both developed and developing nations. This is because their screens and services are of the highest caliber.
North America is projected to hold the largest share of the movie theater market over the forecast period due to the increased per capita income, rising consumer expenditure, and many theaters in this area. Hollywood, the most established film industry in the world, is why this is the case. Additionally, the region's higher revenue share is influenced by the presence of the most screens. For instance, the National Association of Theater Owners predicted that in 2020 there would be 40,998 movie screens in the United States. On the other hand, the Asia Pacific movie theater market is anticipated to grow significantly over the forecast period due to developing economies in nations like India, China, Japan, and Korea; more people are willing to watch movies in a theater. Additionally, the local film industry is growing quickly and is creating more and better films than ever. The increase in consumer spending on entertainment and leisure is another important factor contributing to the development. Additionally, the expansion of the market in the area is being driven by key players' shifting attention to underdeveloped countries like India.
LIST OF KEY COMPANIES PROFILED:
- Reel Cinemas
- INOX Leisure
- Cinemark Theaters
- Beta Cineplex ThÃ¡i NguyÃªn
- Galaxy Cinemas
- Omniplex Cinemas
- Regal Entertainment Group
- BandB Theaters
- Harkins Theaters
- SF Bio
- Wave Cinemas
- Landmark Cinemas
- Megaplex Theaters
- National Amusements
- PVR Cinemas
- AMC Theaters
- Cineplex Entertainment
- CGV Cinemas
- Golden Screen Cinemas
- WE Cinemas
- Mega GS
- Lotte Cinema
- March 2019: The largest and most prestigious film exhibition firm in India, PVR Cinemas, announced the launching of nine new screens in Northern and Eastern India and the debut of 10 new multiplexes in the southern region.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Product Type, By Application, and By Geography|
|By Product Type||