Published Date : 28 Dec 2023
The global animation market size reached USD 392.54 billion in 2022 and is projected to hit over USD 779.73 billion by 2032, poised to grow at a CAGR of 6.8% from 2023 to 2032.
The term animation market refers to the economic sector and industry that involves the creation, production, distribution, and consumption of animated content. Animation is a versatile form of visual storytelling that can be used in various media, including film, television, video games, advertisements, and online platforms. The animation market encompasses a wide range of styles and techniques, from traditional hand-drawn animation to computer-generated imagery (CGI) and stop-motion animation.
Technological progress in the global communication and technology sectors is a significant driver of growth in the animation industry. The emergence of virtual reality and artificial Intelligence worldwide presents new opportunities for market players. Extended Reality (XR) technologies like Virtual Reality and Artificial Intelligence are advancing creatively within the animation sector. Artificial Intelligence is set to profoundly impact industrial growth and transform the animation industry, creating potential opportunities for key players. The increasing adoption of visual effects technology in movies is also expected to contribute to the industry's growth during the forecast period.
Animation and visual effects (VFX) are expected to grow in emerging economies as new over-the-top (OTT) services are integrated with existing subscription-based streaming devices. Companies consistently introduce new services dedicated to animation and VFX for OTT content. For instance, the London-based company DNEG has launched Redefine, which aims to bridge the creative services gap between the East and the West for film and streaming content.
Growing demand for technology across different industries, driven by the increased use of simulation in designing industrial tools by OEMs, facilitates the global adoption of 3D animation solutions. The rising use of simulation software and solutions in various sectors, like Healthcare, education, defense, entertainment, media, manufacturing, construction, and architecture, contribute to the overall expansion of the industry.
Cloud computing is crucial in creating characters and models for animations, offering more effectiveness and efficiency in rendering animation films. Cloud-based rendering is faster and more cost-effective than traditional methods, contributing to the market's growth in the forecast period. For instance, Rodeo FX, which, in May 2022, used the flexibility and scalability of Microsoft Azure HPC + AI, a hybrid platform, to stay versatile and agile in undertaking new and exciting projects.
North America dominates the animation market, owing to the increased usage in various applications and the presence of major companies with strategic business plans. Asia Pacific is expected to experience significant growth, with a notable compound annual growth rate (CAGR), due to rising demand for animation in developing economies, mainly driven by preferences in the automotive industry.
The education and academic industry is anticipated to experience significant growth in the region due to the creation of various training programs, software, and e-learning platforms that incorporate simulated information and videos into the region's curriculum. Numerous educational institutions plan to integrate simulation technology into their educational systems, offering students a more advanced and interactive learning environment.
|Market Revenue in 2023
|USD 412.96 Billion
|Projected Forecast Revenue by 2032
|USD 779.73 Billion
|Growth Rate from 2023 to 2032
|CAGR of 7.30%
|2023 to 2032
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa33
Rising popularity of OTT platforms
The global animation market is thriving due to the growing popularity of animated content, leading broadcasters to launch more animated shows and daily soaps for children. This trend is a crucial driver for market growth. Additionally, the pandemic has increased interest in entertainment through OTT platforms, positively impacting the animation industry, especially children's content. The rise of OTT is playing a significant role in advancing VFX and animation technologies, contributing to the ongoing growth of the global animation market.
As computer popularity rises, the 3D animation market plays a crucial role in entertainment by enhancing storytelling and expressing emotions and ideas more effectively. Companies widely use 3D animations to present ideas and product models, reaping benefits such as improved sharing, credibility, and enhanced engagement. The increasing number of smartphone users globally, particularly in China, India, and the U.S., is driving market growth as people adopt animated content through smartphones and internet services, especially during the current pandemic. This trend serves as a significant driver for market expansion.
Shortage of skilled professionals
The animation industry relies on a pool of skilled professionals to drive its growth. A shortage of skilled talent may hinder the expansion of the industry, limiting its potential market size. A scarcity of skilled animators may lead to increased competition for the available talent, potentially driving up labor costs. This can impact the profitability of animation projects and the overall economics of the animation market. The animation industry is often at the forefront of technological advancements. A lack of skilled professionals may slow down the adoption of new technologies, hindering the industry's ability to stay at the cutting edge.
The popularity of cartoons and the emergence of AI and VR
Animated films primarily target children, avid viewers watching cartoons consistently throughout the day. The rising popularity of children's cartoons featuring clashes between protagonists and antagonists lies in their ability to bring fantasy to life. This appeal has spanned generations, making cartoon films popular for children, teenagers, adults, and seniors. The widespread acceptance of cartoon scenarios as ordinary observations contributes significantly to the success of the animated film market, driven by high popularity and advertising efforts.
The global 3D animation market is observed to see a significant boost with the introduction of AI, VR, and AR. In this realm, 3D animators utilize artificial Intelligence (AI) and natural language processing, employing a cognitive modelling approach to enhance and virtualize the animation process. This includes controlling simulations and improving user experiences, particularly in 3D games. The widespread growth of content streaming globally has provided creators with opportunities to elevate content quality.
Major Market Segments Covered:
By Product Type
Buy this Research Report@ https://www.precedenceresearch.com/checkout/1234
You can place an order or ask any questions, please feel free to contact at firstname.lastname@example.org | +1 9197 992 3