by Market Overview:
Animation and VFX services are essential for the production and development of films, TV shows, commercials and video games which enhance visual experience and brings stories to life. Traditional 2D and 3D animation techniques along with motion capture and visual effect technologies are used to create animated characters and scenes for children’s entertainment, movies and video games. Key applications areas include movies, television, advertisements, online videos and mobile games.
Market Dynamics:
Rising demand for animated content from OTT platforms and video streaming services is a major factor driving the growth of animation and VFX market. Proliferation of video streaming platforms such as Netflix, Amazon Prime Video, Disney+ and Hulu is fueling the demand for high quality animation and visual effect content. For instance, Netflix is increasingly investing in original animated films and series to attract more subscribers. Second major factor is increasing demand from gaming industry. Growing popularity of mobile and console games with realistic graphics is driving the need for advanced animation and VFX services from gaming developers and studios. This is expected to support market growth over the forecast period.
The global Animation And VFX Market Demand is estimated to be valued at US$ 217.06 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The global animation and VFX market is dominated by the TV/film production segment. This segment accounts for over 40% of the market share mainly due to the extensive use of animation and VFX in movies, TV shows, OTT platforms, and other entertainment content. Animation and VFX effects have become integral to the storytelling process and producers are increasingly utilizing these techniques to enhance the viewing experience.
PEST Analysis
Political: Governments in many countries provide tax incentives and funding to promote local animation industries which is driving more production and job creation. Economic: The booming entertainment industry coupled with rising disposable incomes is increasing the demand for high-quality animated and VFX content. Social: Animation and VFX have become very popular globally with people across age groups viewing animated movies and shows. Technological: Advancements in technology such as real-time rendering, virtual production, and metaverse are allowing creators to bring more complex visual effects and virtual worlds to life.
Key Takeaways
The global animation and VFX market is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing demand for animated content across media platforms.
The North America region currently dominates the market, accounting for over 40% share due to strong presence of industry leaders in the US and Canada. however, Asia Pacific is emerging as the fastest growing market, led by China, India, and Japan. Increasing local production and government support is aiding regional market growth.
Key players operating in the animation and VFX market are Bondware Inc., Adobe Inc., Planetside Software LLC, Autodesk Inc., Epic Games Inc., IPI Soft LLC, Act-3D B.V., Exocortex Technologies Inc., Toon Boom Animation Inc., Lost Marble LLC, The Foundry Vision Mongers Ltd., Animaker Inc., Blender Foundation, and DWANGO Co. Ltd. Major players are focusing on expanding their product/service offerings and strengthening global distribution networks to tap growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
