Animation Market Comprehensive Analysis of Trends, Growth Drivers, and Forecast

Animation Market Size and Forecast 2025 to 2034

he global animation market size is calculated at USD 436.24 billion in 2024 and is anticipated to reach around USD 895.71 billion by 2034, expanding at a CAGR of 7.46% over the forecast period from 2025 to 2034.

Animation Market Key Takeaways

• The global animation market was valued at USD 436.24 billion in 2024.
• It is projected to reach USD 895.71 billion by 2034.
• The market is expected to grow at a CAGR of 7.46% from 2025 to 2034.
• North America led the global market with the highest market share of 33.97% in 2024.
• By Product Type, the 3D animation segment accounted for the biggest market share of 44.16% in 2024.
• By Industry, the media and entertainment segment generated more than 29.75% of revenue share in 2024.
• By Industry, the manufacturing segment is estimated to expand at the fastest CAGR over the projected period.

U.S. Animation Market Size and Growth 2025 to 2034

The U.S. animation market size accounted for USD 59.27 billion in 2024 and is projected to be worth around USD 131.16 billion by 2034, poised to grow at a CAGR of 8.3% from 2025 to 2034.

North America is Likely to be the Largest Market for Animation

The study report contracts with the business predictions of animation products around are as counting Europe, Latin America, Asia-Pacific, North America, Middle East and Africa. Animation market is occupied by North America due to augmented intake of the animation in various end use applications, coupled with presence of major companies in the North America and business plans that are executed by the chief players in the nations. Asia Pacific is probable to list the remarkable CAGR, on account of growing in the demand for the animation in evolving economies owing to increased preferences form automotive industry. Likewise, utmost of the companies functioning in the market are advancing heavily in order to get the modest edge in the animation market in Asia Pacific. Further, the Latin America as well as Middle East and Africa regions will likely to register moderate growth in the coming.

Europe Animation Market Trends

Europe is a vibrant center for animation, with key spots in France, the United Kingdom, and Germany. France stands out due to its rich history of animated cinema and esteemed educational establishments such as Gobelins. The European market consists of co-productions, in which they combine their resources to collaborate on specific projects.

• For instance, the EU had developed a strategy to allocate over €4 million over three years in November 2024 for creating a comprehensive report on the nation's animation sector - challenges this industry encounters, evaluating the conditions, and strategizing its growth. The study will provide insights for policymakers and stakeholders to enhance the competitiveness of the EU animation sector on the global stage. This area also features lovely festivals like Annecy that foster creativity and global acknowledgment. Digital distribution truly extends further and broader across Europe.

The animation market in the Asia-Pacific region has experienced significant growth lately. It revolves around creating motion visuals with a collection of static images. This type of animation is prominent in entertainment, advertising, gaming, and education. Countries such as China, Japan, India, South Korea, and Australia are at the forefront of producing and enjoying animated content. The Asia-Pacific animation industry is thriving due to increased demand for animated content, advancements in technology, and a growing audience. Featuring numerous excellent studios, skilled artists, and innovative thinkers, this sector is poised for continued growth in the years ahead.

With advancements in technology and an increasing global demand for varied content, the Middle East & Africa animation industry started to see a transition towards greater locally created productions, addressing regional preferences and cultural stories. Nations such as the United Arab Emirates, Egypt, and South Africa have become key players in the animation arena, bolstered by the creation of animation studios, festivals, and the growing access to cutting-edge technology.

Dubai, specifically, evolved into a significant center for animation, supported by projects like Dubai Media City and Dubai Studio City, which draw in global animation studios and provide opportunities for local talent. Additionally, Egypt, known for its extensive history in filmmaking, experienced a rise in animated film projects targeting both domestic and international audiences. The participation of global entities has been a key element in the growth of the Middle East & Africa  animation market.

Market Overview

Technological advancements in the communications as well as technology sectors across the globe are major factors driving the growth of the target industry. The emergence of virtual reality and artificial intelligence technologies across the globe is expected to generate new opportunities for market players operating in the global market. Various existing XR (Extended Reality) technologies such as Virtual Reality and Artificial Intelligence Technologies are becoming more advanced in terms of creative use and application in the animation industry. AI will have a massive and profound effect on industrial growth and have a transformative effect on the animation industry which is offering potential opportunities for the key players in the market. The rising adoption of visual effects technology in movies is another factor that is expected to boost the growth of the target industry during the forecast years 2025 to 2034.

Animation Market Growth Factors

• Advancements and developments across the communications and technology sectors
• Growing media and entertainment industry
• Increased internet penetration across different regions

Market Scope

Industry Insights

The gaming segment is presently undergoing substantial growth during forecast period. Growth is fueled by various crucial elements. The rising demand for engaging and immersive experiences in gaming has driven developers to create new innovations, leading to a boom in premium animated content. The extensive use of smartphones and gaming consoles has increased the accessibility of animation games, further driving consumer interest. Furthermore, the growth of eSports and streaming services has fostered a dynamic environment, prompting younger audiences to interact with animated gaming media. The focus on user-created content is also rising, enabling players to creatively contribute to the gaming environment.

• For instance, in March 2025, Nex Playground, the interactive motion gaming platform transforming family-friendly entertainment, announced its Spring of Fun 2025, showcasing exciting new games and cherished franchises. This season's launches provide a variety of options for all, featuring a soaring DreamWorks Animation’s How to Train Your Dragon quest, a colorful Care Bears journey, and the boxing-themed BoxFlow Fitness, alongside intense fitness challenges and character-focused gameplay.

Product Type Insights

3D Animation Product Type Segment Testified Leading Market Stake in the Year 2024

Based on Product type, the 3D animation segment dominated the market during the forecast period. The growth of this segment is driven by the growing demand for animated content and the rising adoption of visual effects technology. There has been a rise in digital platforms including streaming services, social media, and virtual advertising which has shown significant demand for high-quality animated content. This demand has been fulfilled by the 3D animators by their skills and ability to design visually extraordinary animations.

3D animation has become prevalent in various industries, such as film, television, video games, advertising, and architecture, among others. Therefore, 3D animators are in high demand as they play a crucial role in meeting the growing demand for animated content. Moreover, the advancement in technology has opened opportunities for 3D animators to create high-quality animations for a range of markets, including film, television, video games, and advertising.

Animation Market, By Product Type, 2022-2024 (USD Billion)

Industry Insights

Media and Entertainment Industry Segment Reported Foremost Market Stake in 2024

Media and entertainment industry segment is expected to account for the major share of the target market. Film, radio, television, and print make up the media and entertainment industry. TV shows, Movies, news, newspapers, radio shows, magazines, music, and books are included in these segments. As both the old and modern continue to coexist, the media & entertainment industry is in a transition process. Along with this the automotive segment is anticipated to grow at the important growth rate and will expand the market revenue.

Animation Market, By Industry, 2022-2024 (USD Billion)

Recent Developements

• In May 2025, Sony Pictures Animation and Sony Pictures Imageworks collaborated with the educational platform Yellowbrick to launch “This Is Animation,” a brand-new, freely accessible online course aimed at introducing learners of all ages to the craft and business of animated filmmaking. 
  In June 2025, seasoned professionals from the UK animation sector, Andrew Pearce and Paula Bird, established Zaratan, a production company in Glasgow focused on creating animation for adult viewers. The co-founders were former long-serving executives at Axis Studios, known for producing shows like Eyes of Wakanda, Love Death & Robots, and Secret Level. 
  
• In January 2025, industry experts Lynn Chadwick and Steve Cooke revealed the establishment of That Animation Company, a fresh production studio located in Halifax, Nova Scotia. The new initiative merges years of experience in the animation sector with an emphasis on proactive approaches, customer contentment, and top-notch animated material. That Animation Company seeks to meet the changing demands of clients in various industries, such as television, streaming, education, sports, marketing, and others.
  

Animation Market Companies

• SideFX
• Adobe
• Broadcast2World, Inc
• Smith Micro Software, Inc.
• Animation Sharks
• IdeaRocket
• Triggerfish Studios
• EIAS3D
• NewTek, Inc
• BRAFTON
• Corel Corporation
• Autodesk Inc.
• Videocaddy
• Maxon Computer
• WinBizSolutionsIndia

Recent Developments

• In February 2020, Smith Micro Software acquired Circle Media, it is a software that allows families to manage all of the home’s connected devices.
• In July 2016, Smith Micro Software acquired iMobileMagic, it is a mobile customer products supplier that caters to clienteles attentive in mobile advancements services.
• In December 2019, Maxon Computer acquired Red Giant Software, it is a developer of special effects and motion graphics software for the entertainment industry.
• In April 2019, Maxon Computer acquired Redshift Rendering Technologies, it develops the award-winning Redshift, the fastest production-quality of the world, final-frame GPU renderer.

Segments Covered in the Report

By Product Type

• 2D Animation
  • Software
  • hardware
  • Services
• 3D Animation
  • Software
  • hardware
  • Services
• Stop Motion
  • Software
  • hardware
  • Services
• Other
  • Software
  • hardware
  • Services

By Industry

• Direct
• Education
• Media and Entertainment
• Aerospace and Defense
• Manufacturing
• Automotive
• Healthcare
• Others

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa (MEA)
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa