Animation and VFX Market

Global Animation and VFX Market Size (2024 to 2029)

The Global Animation and VFX Market is predicted to reach USD 196.73 billion in 2024 and USD 308.72 billion by 2029, growing at a CAGR of 9.43% during the forecast period.

Animation is the technique of applying illusions on the painting/ sketches/ drawings of puppets or individual pictures so that they'll move and act as we see within the cartoon series. It uses the present frame or footage and applies animation or imagery using computer software to form a natural scene. It is often done by sketching by hand or through a computer or a mixture of sketching and computer-generated images. It takes longer to supply a picture, but the present cells or frames are often re-used during this technique to save lots of time. VFX is applied to natural things, groups of people, and scenes/ frames/ footage. VFX is the combination of natural things and computer graphics implemented to live to the importance of the reel.

The demand for VFX, Animation, and video gaming is growing with the rise in targeted broadcasting hours by cable and satellite television, accessibility of low-priced internet access, penetration of mobile devices together, and the rising popularity of streaming video. The demand for Animation and VFX content to power immersive experiences like Augmented Reality and computer games is increasing exponentially.

Current Scenario of the Global Animation and VFX Market

The advances in technology have made animation, VFX & games have brought them close to ordinary people, and it is among the fastest-growing segments in the media and entertainment industry. Production work is becoming global, with countries also as regions providing tax incentives, subsidies, support, regional low labor costs, etc., and corporations are reducing costs by fixing facilities in such regions. Two trends are driving the adoption of animation and VFX solutions.  There's a general upward trend in production value or budgets for the end-user industries, especially films. This is often primarily because of broader international distribution, partially to digital theatres. Secondly, writers and directors are now more hospitable, embracing scripts requiring VFX. Production companies, hence gradually pursuing more ambitious products, which will only be fulfilled with VFX and streamlined platforms, have also broadened the genres of published content.

MARKET DRIVERS

The surge in 3D-UHD animated movies in theatres through the appliance of animation and VFX in TV, advertising, and gaming alongside the expansion within the outsourcing of VFX process thanks to cost-effectiveness thereby specialize in the kids-genre and, therefore, the growing popularity of streaming video are expected to fuel the market demand across the emerging economies. The integration of the latest OTT services across the prevailing subscription-based streaming devices among emerging economies is predicted to drive the applications of the animation & VFX sectors. The businesses are endlessly involved in announcing new services for animation and VFX dedicated to OTT content. For example, in May 2019, London-based DNEG launched Redefine's new service offering. The service aims to fill the gap between the East and, therefore, the West for creative services for film and Over-the-top (OTT) content for streaming.

Nowadays, consumers are attracted to high-definition visual experiences. Movie fans expect high-quality productions with appealing visual effects and realistic animation and studios that integrate more animation and VFX shots into films. Similarly, consumers consume more immersive content across channels like ultra-high-definition TVs, tablets, and smartphones to head-mounted devices. OTT streaming services like Netflix, Amazon Prime, YouTube, Twitter, and Facebook use animation, VFX, and game content. With the growing internet diffusion and access to multimedia devices, customers are spending longer streaming digital content, thanks to which streaming video has become the fastest-growing segment within the network for animation, thereby witnessing a high growth that is predicted to continue.

Impact of COVID-19 on the Global Animation and VFX Market

With the continued outbreak of coronavirus globally, companies within the industry are taking a toll on post-production activities because the pandemic has disrupted the assembly stage by halting it. Companies like Base FX are searching for strategic partnerships for investments to survive in times of turbulence. In January 2020, chief Chinese SunacCulture declared a strategic investment in Base FX by taking a majority stake. Base FX has mentioned that the assembly is down by over 70% compared to the previous year in China, and there will be no films starting in China for a minimum of six months.

REPORT COVERAGE

REGIONAL ANALYSIS

The APAC region highly emphasizes validating professional services across animation and VFX to provision the ever-growing media and entertainment industry. Countries like New Zealand and Singapore have emerged as hubs for VFX artists, as these countries have an animation and VFX school network that provides advanced instruction in various streams.

The growth in the consumption of deeply engaging content across multiple channels, from ultra-high-definition TVs, tablets, and smartphones to head-mounted devices, is additionally propelling the demand for the animation and VFX market, particularly across the China region, throughout the forecast period.
Though China dominates the gaming sector, Japan is the third-largest market, consistent with game revenue, generating over USD 14 million annually. The gaming companies within the country are some of the many adopters of animation and VFX solutions worldwide.

KEY PARTICIPANTS IN THE GLOBAL ANIMATION AND VFX MARKET

The major companies operating in the global Animation and VFX market include Adobe Inc., Autodesk Inc., iPi Soft LLC, Clara.io, Smith Micro Software Inc., 3D Imaging, and Acume.

RECENT HAPPENINGS IN THE GLOBAL ANIMATION AND VFX MARKET

• In April 2020 - Autodesk introduced the 3Ds Max 2021 version. The latest version from the corporation focuses on rendering and textures by leveraging performance improvements. The version also further supports Python 3, scriptable baking, more specialization in CAD-related workflows, and interoperability with Autodesk’s CAD tools like AutoCAD and Revit.

• In December 2019, Autodesk announced the release of Maya 2020. The remake features original animation, rendering, effects, modeling, and rigging improvements to empower artists throughout the assembly pipeline.

DETAILED SEGMENTATION OF THE GLOBAL ANIMATION AND VFX MARKET INCLUDED IN THIS REPORT

This research report on the global animation and VFX market has been segmented and sub-segmented based on the type, end-user industry, and region.

By Type

• 2D (Vector-Based)

• 3D (CGI)

• Motion Graphics (Typography)

• Stop Motion (Photographing)

• Other Types

By End User Industry

• Media & Entrainment

• Gaming

• Others

By Region

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus