What is Virtual Studio Technology?

Virtual Studio Technology (VST), a groundbreaking innovation introduced by Steinberg in 1996, has revolutionized the music industry. With the release of Cubase 3.02, Steinberg unveiled VST, a protocol that allows Digital Audio Workstations to utilize software emulations of studio hardware, enabling the creation of a complete studio within a software environment.

This digital transformation, once unimaginable in the gear-dependent industry of the late 1990s, has profoundly impacted music production. Remarkably, 26 years after its introduction, the VST market stood at US$ 1054 million in 2022 and is projected to experience substantial growth, reaching US$ 2840 million by 2029 with a staggering Compound Annual Growth Rate (CAGR) of 15.20%.

What was the first VST Instrument ever?

Steinberg pioneered the VST revolution with the release of NEON, the first available VST Instrument, in July 1999 alongside Cubase 3.7. Although not the inaugural software synthesizer, NEON holds the distinction of being the first synthesizer developed adhering to Steinberg’s VST standards. This polyphonic synth boasted features such as two oscillators, ADSR envelopes, an LFO, and a resonant filter. While NEON paved the way for VST Instruments, Steinberg’s initial VST format offerings were effect plugins, including Espacial (a reverb), Choirus (a chorus effect), Stereo Echo, and Auto-Panner.

Notably, NEON is now available as a free download, a testament to its historical significance in the evolution of virtual studio technology.

Current scenario

Virtual Studio Technology has undergone significant evolution since its inception, culminating in the release of VST 3.5 in 2011. This latest version is designed to efficiently utilize CPU resources during audio processing. Notably, VST 3.5 introduced Note Expression, allowing individual notes within a polyphonic arrangement to contain extensive articulation information. Additionally, VST plugins now seamlessly process audio in 64-bit, enabling multiple MIDI inputs and outputs.

Since the introduction of VST, numerous third-party developers have leveraged this technology to create software effects and synthesizers. According to a report by ProducerSources, some of the most prominent players currently dominating the Virtual Studio Technology space are:

12. Soundtoys

Founded: 1996

Headquarters: Burlington, VT, USA

Employees: 15

Annual Revenue: $12 million

11. Brainworx

Founded: 1999

Headquarters: Leverkusen, Germany

Employees: 21

Annual Revenue: $4 million

10. FabFilter

Founded: Early 2000s

Headquarters: Amsterdam, Netherlands

Employees: 24

Annual Revenue: $4 million

9. Slate Digital

Founded: 2008

Headquarters: Los Angeles, CA, USA

Employees: 33

Annual Revenue: $6 million

8. Voxengo

Founded: 2002

Headquarters: Syktyvkar, Russia

Employees: 34

Annual Revenue: $6 million

7. Softube

Founded: 2003

Headquarters: Linköping, Sweden

Employees: 40

Annual Revenue: $7 million

6. Eventide

Founded: 1971

Headquarters: Little Ferry, NJ, USA

Employees: 160

Annual Revenue: $19 million

5. Waves Audio

Founded: 1992

Headquarters: Listed in Knoxville, TN, USA, but main office is in Tel Aviv, Israel

Employees: 110

Annual Revenue: $21 million

4. iZotope

Founded: 2001

Headquarters: Cambridge, MA, USA

Employees: 173

Annual Revenue: $25

3. Universal Audio

Founded: 1958

Headquarters: Scotts Valley, CA, USA

Employees: 266

Annual Revenue: $26 million

2. Arturia

Founded: 1999

Headquarters: Montbonnot-Saint-Martin, France

Employees: 74

Annual Revenue: $35 million

1. Native Instruments

Founded: 1999

Headquarters: Berlin, Germany

Employees: 400

Annual Revenue: $78 million

In a significant development, a merger between Native Instruments, iZotope, Brainworx, and Plugin Alliance formed Soundwide, potentially surpassing all other Virtual Studio Technology developers in terms of revenue. This consolidation of leading companies in the field has created a formidable force in the VST market. However, established names like Roland and Yamaha, primarily known for their gear manufacturing, also actively develop plugins, further diversifying the landscape. While these hardware giants have a strong presence in the VST arena, the formation of Soundwide represents a strategic move to consolidate resources and expertise, potentially redefining the dynamics of the virtual studio technology industry.

Most Popular VST plugins

While there is no official data available as to which plugins have been downloaded the most, a recent survey conducted by Strawpoll indicates Xfer Serum is the most popular VST, followed by Massive by Native Instruments and Sylenth1 by Lennar Digital.

Similar Technologies

While Virtual Studio Technology (VST) has become the industry standard for music software development, there are other prominent technologies that offer similar infrastructure. Two notable alternatives include Audio Units (AU) format and Avid Audio extension.

Audio Units (AU), developed by Core Audio for Apple’s macOS and iOS operating systems, provides a plugin architecture tailored specifically for these platforms. This technology allows developers to create audio processing tools and instruments that seamlessly integrate with Apple’s ecosystem.

Another contender in the field is Avid Audio extension, introduced by Avid Technology, known for their widely-used Digital Audio Workstation, Pro Tools. This proprietary format enables the development of plugins and virtual instruments specifically designed for Avid’s software suite, catering to the preferences and requirements of their user base. Notable competitors to Virtual Studio Technology:

• Apple‘s Audio Units
• Digidesign‘s Real Time AudioSuite
• LADSPA, DSSI for Linux
• LV2, a cross-platform, open source, liberally licensed audio plugin standard
• Microsoft‘s DirectX plugin
• Mark of the Unicorn‘s Motu Audio System
• JACK Audio Connection Kit, an open-source sound server allowing flexible audio routing between apps
• CLever Audio Plug-in (CLAP), a MIT-licensed alternative to VST3

Tags: Virtual Studio Technology, What is VST, Who made Virtual Studio Technology/VST, What is AU, First VST Instrument, First VST effect plugin.