AI Tools for Animation Market Growth, Size, Share, Trends, and Forecast 2032

AI Tools for Animation Industry Prospective:

The global AI tools for animation market size was worth around USD 372.84 million in 2023 and is predicted to grow to around USD 1,311.60 million by 2032 with a compound annual growth rate (CAGR) of roughly 15.00% between 2024 and 2032.

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AI Tools for Animation Market: Overview

AI tools for animation refer to programs and applications powered by Artificial Intelligence (AI) and used for designing and developing cartoons. Animation is a type of filmmaking technique that does not include showing real humans on screen. They are replaced by still images that are designed or manipulated to create mobile images thus allowing animators to design longer interactions between characters and the environment involved in an animated series, film, or any other form of celluloid-based projections. Animated series and films have become widely popular in modern times and AI is allowing animators to broaden their creativity. One of the most common applications of AI in animation includes automating repetitive tasks such as lip-synching, character rigging, or in-betweening. This allows animators to use their valuable time for more creative and quality work. Moreover, modern AI tools can also be used for other purposes such as drafting scripts or acting as character vocals. Currently, several AI animation tools exist in the market with each product offering novel solutions. However, high-performance AI animation tools can be expensive to develop in-house which acts as a growth inhibiting factor.

Key Insights:

• As per the analysis shared by our research analyst, the global AI tools for animation market is estimated to grow annually at a CAGR of around 15.00% over the forecast period (2024-2032)
• In terms of revenue, the global AI tools for animation market size was valued at around USD 372.84 million in 2023 and is projected to reach USD 1,311.60 million, by 2032.
• The market is projected to grow at a significant rate due to the rising popularity of animated films and series
• Based on the application, the video games segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the type, the language tool segment is anticipated to command the largest market share
• Based on region, North America is projected to dominate the global market during the forecast period

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AI Tools for Animation Market: Growth Drivers

Rising popularity of animated films and series will drive the market demand

The global AI tools for animation market is expected to witness high growth due to the increasing popularity of animated movies and series globally. Although cartoon-based entertainment programs were initially targeted toward children and younger audiences, animated movies have now found consumers in the older generation as well, especially since filmmakers have started building stories that connect with viewers across generation groups. Additionally, the growing efforts by entertainment program developers and producers toward improving the overall quality of animated programs including scripts, performance, and rewatch value has further helped the animation entertainment industry grow. In addition to this, one of the most essential selling points of modern animated programs is their depiction of photo-realistic situations and conversations that deal with high levels of accuracy and detailing in the animated program. For instance, more than 10% of the Japanese population views anime every day. Additionally, animated movies, especially franchise models, have gained attention on a global scale. In 2019, Frozen II, belonging to the Frozen franchise, became the second-highest-grossing animated film of all time. It generated a revenue of over USD 1.4 billion upon its release.

Increasing efforts toward developing superior-performance AI tools for animation will help the industry register substantial growth

Since the demand for AI animation tools is increasing, program developers are actively working on leveraging the rising investments in AI technology to develop more effective tools with better delivery rates. For instance, Apple, the leading technology giant, developed a new AI tool that can animate images using text commands or descriptions. The program is called Keyframer and it is a prototype generative AI animation tool with the ability to add motion to 2-dimensional images after being textually told what to do. Similarly, in a recent event Epic Games announced the launch of Unreal Engine 5.4. The tool is equipped with new modifications aiming to benefit game developers and other creators working across industries. The tool is home to some of the features that are used internally by Epic Games, a leading provider of highly popular games such as Rocket Racing, Fortnite Chapter 5, LEGO Fortnite, and Fortnite Festival. Such announcements are likely to drive the demand for global AI tools for the animation market during the forecast period.

AI Tools for Animation Market: Restraints

High cost of advanced AI animation tools will restrict the market adoption rate

The global industry for AI tools for animation is projected to be restricted due to the high cost of superior-performance AI tools developed for animation. Companies that regularly deal with creating or drafting animated images tend to use internally developed applications since their programs can be tailored to meet the exact requirements of the animation organization or an animator. However, AI-powered tools can be expensive to curate or use on subscription-based models.

AI Tools for Animation Market: Opportunities

Rising investments and the popularity of the esports industry generate high-growth opportunities

The global AI tools for the animation market will generate high growth opportunities due to the increasing popularity of the esports industry. It deals with highly organized forms of multiplayer video gaming competitions held on a global scale. Moreover, the rising number of professional and amateur video gamers worldwide is encouraging higher competition in the esports industry. As per the Academy of Animated Arts, more than 3.2 billion play video games regularly. The adoption of video games in education facilities for training students in improving cognitive and decision-making skills will further promote the popularity of video games drawing more demand for AI tools for animation.

Applications of animation-oriented AI tools in other industries may prove beneficial for the industry players

Artificial Intelligence (AI) tools that are designed for animation do not have to be used only for developing animated series, movies, or other entertainment programs. They can be used across industries such as construction, healthcare, and education for developing animated programs specific to the industry. For instance, the tools can be used for developing surgical animation solutions helping medical professionals better understand the ways to conduct surgical interventions. They may also be used for educating the patient about the medical intervention and its expected outcomes. In addition to this, there is a high scope for global AI tools for the animation market if the programs can be seamlessly integrated with existing non-AI-powered animation tools or software.

AI Tools for Animation Market: Challenges

Achieving higher attention to detail using AI tools can be challenging

Animators may find difficulty in achieving animation accuracy and attention to detail using AI tools, especially in cases where realism and quality cannot be compromised. Moreover, there are intensifying debates about the ethical use of AI in the creative field since factors such as privacy and copyright infringement doubts remain unanswered.

 AI Tools for Animation Market: Segmentation

The global AI tools for animation market is segmented based on application, type, and region.

Based on application, the global market segments are video games, movies, series, and others. In 2023, the highest growth was witnessed in the video games segment due to the growing use of artificial intelligence in developing new video games. The rapid expansion of new-age video games globally and the launch of new games along with rising revenue in the esports sector are further impacting the market growth rate. In 2023, the global esports market was valued at over USD 1 billion and has tremendous growth potential as more people are becoming aware of gaming competitions.

Based on type, the global market divisions are language tools, action tools, and image tools. In 2023, the highest revenue was registered in the language tool segment since the programs can be used for processes such as voice acting, script analysis, and language translation. These three are some of the important requirements of animated images and videos. One minute of normal 2-dimensional animated video can cost between USD 8,000 to USD 50,000.

AI Tools for Animation Market: Report Scope

AI Tools for Animation Market: Regional Analysis

North America to register the highest demand during the forecast period

The global AI tools for animation are expected to be led by North America during the projection period. The US will dominate the largest part of the regional revenue. The country is home to a large number of production houses that own several animated movie franchises with viewers and a fan base across the globe. These production houses are actively seeking new technologies to help deliver better-animated solutions. Additionally, AI technology has witnessed massive growth in the US as more technology companies continue to invest in further improving AI systems and learning more ways to apply Artificial Intelligence across industries including animation. The growing use of AI tools for animation in other industries especially healthcare and education will fuel the regional market demand. Asia-Pacific is projected to deliver exceptional results. Countries such as China, Japan, and India will lead the regional revenue. Japan, for instance, is one of the most influential markets for animated films and entertainment programs. The growing regional fanbase for Japanese anime across Asian countries will help with the further adoption of AI for animation. The regional esports industry is flourishing rapidly as more players continue to participate in video game competitions on a global platform.

AI Tools for Animation Market: Competitive Analysis

The global AI tools for animation market is led by players like:

• NVIDIA
• Rokoko
• Cubic Motion
• Artomatix
• Toon Boom Animation
• Autodesk
• Deepfake Studios
• Anima Technologies
• Unity Technologies
• ArtEngine
• DeepMotion
• Reallusion
• Faceware Technologies
• Adobe
• IKinema.

The global AI tools for animation market is segmented as follows:

By Application

• Video Games
• Movies
• Series

By Type

• Language Tool
• Action Tool
• Image Tool

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa