Virtual Idols Gain Mainstream Recognition with Broadcasters and Major Entertainment Companies – Market Expected to Reach $3.8 Billion by 2030

The virtual idol market, which the K-POP industry views as a new source of growth, is emerging as a mainstream content format thanks to strong support from broadcasters and large entertainment companies. The global virtual idol market is projected to expand from $1.41638 billion in 2024 to $3.85242 billion by 2030, with average annual growth rates of 18.51% in North America, 19.01% in China, and 17.99% in Europe. LEVELS, a joint venture between UPBIT’s operator Dunaumu and HYBE, is entering the male virtual idol production space to find a way out of losses. LEVELS is currently hiring personnel responsible for creating virtual artists and character design illustrators, while also expanding its team of professionals involved in worldbuilding and performance production. The digital collectible service platform “Buddy,” launched last October, now features 67 virtual artist teams. LEVELS’ entry into the virtual idol industry stems from an urgent need to improve profitability. Having recorded losses for three consecutive years since its establishment, LEVELS incurred net losses of 10 billion won in 2022, 17.9 billion won in 2023, and 12.3 billion won in 2024. Its revenue also declined from 532.83 million won in 2023 to 386.67 million won in 2024. While the NFT service “Momentica,” aimed at idol fans, failed to achieve success due to market downturns and negative perceptions, virtual idols are seen as a potential new revenue stream. PLAVE and LE SSERAFIM, which currently lead the virtual idol market, are enhancing the industry’s credibility through the involvement of talents from traditional broadcasters. PLAVE is led by CEO Lee Seong-gu, who formerly headed MBC’s VFX team, and consists of key members from MBC. It reaches the public through activities on traditional broadcast networks such as “Show! Music Core” and “Idol Radio Concert.” In its first year in 2023, PLAVE’s parent company BLAST achieved sales of 11.4 billion won and operating profits of 1.9 billion won, demonstrating the potential of virtual idols. LE SSERAFIM debuted in 2021 under the initiative of YouTuber “Uwagut,” and after the addition of Kim Young-min, who previously worked at KBS, it expanded its activities to include offline stages such as the “Other World Festival.” Skins, which made their debut recently, performed on the “Inga Live Unicorn in Tokyo Dome Powered by SBS Inkigayo” stage at Tokyo Dome just after releasing their first digital single “YOUNG & LOUD” in April. They also participated in an SBS drama OST, highlighting the close collaboration between their agency Bridge Entertainment and SBS. SM Entertainment launched the virtual artist “NAVIS” through its subsidiary Studio Realize last September and is now actively promoting them within SM’s worldbuilding framework, “SMCU.” An industry insider said, “Early virtual idols focused solely on advancing CG and AI technologies, but now, with the input of broadcasting and idol industry experts, they are beginning to gain popularity and familiarity among the public. If this trend continues, virtual idols could evolve from a temporary fad into a distinct cultural genre.”