Industry Insights | China and Global CG and Cloud Rendering Industry Series: CG Industry Research (I)

Computer Graphics ('CG') is the Chinese term for computer graphics, referring to the graphics created using computers as the main tool. More specifically, it refers to the use of specialized software and hardware on computers to represent and control image data. The development of computer graphics has made it easier for users to interact with computers and better understand and interpret various types of data. The development of computer graphics has had a profound impact on multiple media and has completely transformed industries such as animation, film, and video games.

Currently, the global CG industry is mainly distributed in North America, Western Europe, and Japan and South Korea. With its developed information technology industry, high-quality talent construction and reserve, as well as highly developed cultural and entertainment consumption, the CG industry as a whole exhibits characteristics of high technical level, high added value, and high industrialization. It is particularly leading globally in the fields of film and television animation, gaming, and architectural visualization.

China's CG industry started relatively late, but has made certain technological breakthroughs and achieved a high level of industrialization in the field of architectural visualization. In recent years, the industrialization process of China's film and animation industry has accelerated. At the same time, emerging industries such as digital twins and virtual reality also have broad development prospects. In the future, China's CG industry has good development opportunities both in terms of technology and demand.

Source: Public information, compiled by Frost & Sullivan

The application of CG in film and television animation is mainly divided into two types. One type involves interspersing virtual scenes and special effects of varying scales with real-world settings and live-action filming. The common practice is to apply CG technology in traditional films to add virtual scenes, characters, elements, etc., as close to reality as possible to enhance visual effects. The other type consists entirely of computer-generated CG animation or images, commonly seen in 3D animated films and cartoons.

The application of CG in the field of architecture mainly involves architectural visualization, such as architectural renderings or promotional films. 3D visualization is the latest trend in architectural visualization, which uses computer software to create three-dimensional models of structures that can be observed from any angle. It also allows for the addition of elements such as furniture lighting and the observation of their effects. Architectural visualization can achieve diverse functions, such as helping designers convey design concepts and result examples during the design phase; serving as an important means of product display in marketing, thereby helping customers save a significant amount of time on-site visits and improve marketing efficiency.

With the continuous improvement of urbanization levels in China, the real estate and construction industries are expected to continue to have significant development space in China, which will generate stable demand for CG technology.

Game CG refers to the cutscenes, opening animations, promotional animations, etc., within a game. It includes the creation of animations or images related to game scenes, characters, or plot under the support of CG technology. CG technology holds an extremely important position in the fields of game production and operation. Game CG is generally used for game marketing and promotion, as well as for connecting and advancing the game plot.

Against the backdrop of a highly developed and competitive gaming market, game CG is extremely important for promoting a unique world view of the game, enhancing players' experience and recognition of the game, and has become an indispensable part of the gaming industry.

The application scenario of CG in education is virtual simulation teaching. That is, by digitally constructing laboratories of various subject types through 3D virtual technology, such as digital media virtual simulation experiment platforms and digital creative simulation experiment platforms, personalized, intelligent, and diversified experimental teaching models are provided. Real-time interactive virtual simulation teaching and experiments are also offered.

CG also has a wide range of important applications in the medical field. Against the backdrop of greater emphasis on independent innovation and rapid development of the pharmaceutical industry in China's healthcare sector, the industry's demand for medical CG is growing day by day. Medicine can use 3D CG to visually display medical products and surgeries in the medical field, more realistically presenting product and service details, and providing visual tools for pharmaceutical companies' promotion, hospital teaching, and remote training. The content of medical CG covers a wide range, including medical animation demonstrations, mechanisms of action (MOAs) of drugs, medical device surgeries, corporate promotional videos, medical brochures, VI design, medical VR, etc.

Cloud exhibition, also known as online exhibition, refers to a new type of exhibition method that displays exhibits on the internet based on internet information technology and CG production technology. CG production is the core component of cloud exhibitions, which uses CG technology to create three-dimensional representations of offline exhibition halls and exhibits, highly reproducing real scenes and exhibits in a virtual world.

Cloud exhibitions have broken the limitations of traditional offline exhibitions in terms of time and space, allowing visitors to view exhibitions online at any time and place using the internet and terminal devices. At the same time, they have significantly reduced the costs for exhibitors to set up offline displays. The COVID-19 pandemic has greatly promoted the popularization of cloud exhibitions, with industry exhibitions, product launches, museums, and other venues launching online exhibitions or digital museums. This is of great significance for economic and trade cultural exchanges, corporate marketing and promotion, cultural dissemination and construction, etc.

Digital twin is a virtual entity created digitally using CG technology to represent physical entities. It utilizes historical data, real-time data, and algorithm models to simulate, verify, predict, and control the entire lifecycle process of physical entities.

Digital twins make full use of physical models, sensor data, history, and other data, integrating simulation processes involving multiple disciplines, physical quantities, scales, and probabilities. They complete mapping in virtual space, thereby reflecting the entire lifecycle process of corresponding physical equipment.

Digital twins can replicate products and production systems in digital space, enabling both sides to promptly grasp each other's dynamics and respond in real time.

Digital twins have a wide range of applications in manufacturing, urban planning, urban governance, healthcare, and other fields. Currently, less than 1% of digital twin use cases have been developed, and the technology, applications, and market for digital twins are still in their early stages. However, in emerging application scenarios such as industrial Internet of Things, smart cities, autonomous driving, and metaverse, digital twins depict a beautiful future with great development prospects.

The vast majority of jobs in the design industry involve the creation and production of graphic images, which are inseparably linked to computer graphics (CG). Specific sub-fields include architectural design, industrial design, home decoration design, advertising and media design, etc. Currently, the global designer workforce is about 90 million, with about 18 million in China, indicating that there is enormous potential for CG applications in the design industry.

Digital humans are one of the representative applications of the integration of CG and AI. They create digital images that are infinitely close to real human images through CG image modeling, voice modeling, and machine learning methods, and endow them with specific character identities and personality traits to achieve more realistic emotional interactions with humans.

The creation of digital humans begins with the use of 3D modeling/CG technology to produce virtual individuals whose appearance, expression, and movements are infinitely close to those of real people. At the same time, AI deep learning is integrated to drive the voice expression, facial expressions, and movements of virtual digital humans.

Mature application scenarios of digital humans include virtual idols, virtual anchors, e-commerce sales, brand endorsements, etc. They are one of the cornerstones of the future metaverse and also one of the fields that have been implemented earlier.

The application of CG in the field of enterprise digital marketing overlaps with that in the cloud exhibition hall domain. Digital marketing includes online virtual press conferences, online product and service displays, etc. It mainly relies on CG technology to create online 3D virtual exhibition halls, digital humans, products, etc., breaking through time and space limitations and maximizing access to a wide range of marketing audiences.

In the era of digital economy, the digital transformation of enterprise marketing has become an inevitable trend. By leveraging internet information technology, it can help enterprises carry out marketing campaigns efficiently, accurately, and in various forms. With the advent of the metaverse era, the importance of digital marketing for enterprises is even more prominent, and both the demand and quality requirements for CG will significantly increase.