Animation Market Size Report, Share, Analysis, Industry Growth, 2032

Animation Industry Prospective:

The global animation market size was worth around USD 371.21 billion in 2023 and is predicted to grow to around USD 580.82 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.1% between 2024 and 2032.          

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Animation Market: Overview

Animation is a filmmaking method that manipulates static pictures to produce moving visuals. Traditional animation involves hand-drawing or painting pictures on transparent celluloid sheets (cels), which are then shot and presented on film. Animation is acknowledged as a creative form, particularly in the entertainment business. Many animations use computer-generated images. Stop motion animation, particularly claymation, has endured alongside these other mediums.

Animation is compared with live-action movies, however, the two do not exist independently. Many filmmakers have created films that are a combination of both. As CGI approaches photographic images, directors may easily include 3D animations in their films instead of relying on practical effects for flashy visual effects (VFX).

Key Insights

• As per the analysis shared by our research analyst, the global Animation market is estimated to grow annually at a CAGR of around 5.1% over the forecast period (2024-2032).
• In terms of revenue, the global Animation market size was valued at around USD 371.21 billion in 2023 and is projected to reach USD 580.82 billion, by 2032.
• The rising investment by the key player is expected to drive market growth during the forecast period.
• Based on the deployment, the On-demand segment is expected to grow at the highest CAGR during the forecast period.
• Based on the type, the 3D animation segment is expected to hold a significant market share over the forecast period.
• Based on the Industry Vertical, the Media & Entertainment segment is expected to dominate the market over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market over the projected period.

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Animation Market: Growth Drivers

Increased use of visual effects in movies drives market growth

Visual effects technology is vital in movies since it enhances the storyline and characters. It helps a filmmaker complete the challenging and expensive section of the picture. Furthermore, it has become an important part of the cinema industry since animation helps both filmmakers and spectators. For instance, the 2014 picture Interstellar contains 850 visual effects shots with a 5600x4000 line resolution. 150 pictures were taken on camera using digital projectors, with another 700 added in post-production. The current international cinema business has likewise embraced devoting a higher budget for animation than for actors.

A movie's budget might range from USD 20 to 50% for animation, or USD 40 to more than USD 100 million. Furthermore, it has been reported that a single animation sequence might cost anywhere between USD 10,000 and USD 60,000. The increased demand for animation in the media and entertainment sectors, as well as the use of VFX methods to reduce financial experts' earnings, are important drivers of market growth. The animation market is rising as a result of the evolving norm of incorporating more visual effects in films.

Animation Market: Restraints

The presence of free and open-source animation impeding market growth

Free and open-source visual effects tools are expected to limit industry growth. Currently, there are various free 3D animation applications available, including Hitfilm Express, Fusion 8, and Blender. According to a study conducted by the Academy Software Foundation (ASWF) in the United States, about 84% of the animation and VFX industries, notably animation and visual effects, use open-source software. As a result, publicly available software poses a substantial danger to the global animation sector's development, as well as significant competition for premium services.

Animation Market: Opportunities

Growing adoption of cloud for animation offers a lucrative opportunity for market growth

The expanding use of cloud computing in 3D animation technologies is fueling the expansion of the animation industry. Cloud-based solutions provide scalable resources, allowing animation companies to scale up and down according to project needs. This flexibility avoids the need for large initial expenditures in hardware and infrastructure. Furthermore, cloud-based technologies make it easier for teams to collaborate from all over the world. Animators, artists, and other experts may collaborate on the same project, increasing efficiency and innovation.

Furthermore, cloud-based solutions reduce the need for significant capital investments in pricey hardware and software licensing. Animation companies might employ subscription models to pay for the most cost-effective requirements. As a result, all of these factors will drive the market expansion for animation technology throughout the forecast period.

Animation Market: Challenges

Cost and time intensiveness pose a major challenge to market expansion

Creating high-quality animation can be costly and time-consuming, especially for feature films and complicated projects. Managing production costs while retaining creative integrity and fulfilling tight schedules is a major problem for animation companies. Thus, the cost and time intensiveness pose a major challenge for the animation market.

Animation Market: Segmentation

The global Animation industry is segmented based on Offering, Deployment, Type, Industry Vertical and region.

Based on the offering, the global Animation market is bifurcated into Software and Services.

Based on the deployment, the global animation industry is segmented into On-premise and On-demand. The On-demand segment is expected to grow at the highest CAGR during the forecast period. On-demand streaming services provide a variety of revenue models for animated content, including subscription-based, ad-supported, and transactional video-on-demand (TVOD). These platforms allow content producers to monetise their work through licensing agreements, revenue-sharing arrangements, or direct distribution partnerships.

Based on the type, the global Animation market is bifurcated into 2D Animation, Motion Graphics, 3D Animation, Stop Motion and Others. The 3D animation segment is expected to hold a significant market share over the forecast period owing to the growing product launch. For instance, in September 2022, Autodesk Inc. introduced Maya Creative for flexible and economical artist workflows, lowering the entrance barrier for artists working in smaller facilities and increasing content development accessibility. It provides powerful modeling, animation, rigging, and rendering capabilities for the production of films, television shows, and video games.

Based on the Industry Vertical, the global Animation industry is divided into Education & Academics, Media & Entertainment, Government & Defense, Healthcare & Life Sciences, Architecture & Construction, Manufacturing and Others. The Media & Entertainment segment is expected to dominate the market over the forecast period. Moviegoers want high-quality movies with interesting visual effects, realistic animation, and companies that use more animation and VFX film shoots. In addition, people are consuming increasingly immersive content across several channels, including ultra-high-definition TVs, tablets, smartphones, and head-mounted devices. Animation, visual effects, and gaming material are being completed for OTT streaming platforms such as Netflix, Amazon Prime, YouTube, Twitter, and Facebook. Thereby, driving the segment growth.

Animation Market: Report Scope

Regional Analysis

The Asia Pacific is expected to dominate the market over the projected period

The Asia Pacific is expected to dominate the market over the projected period. Formalizing professional services in VFX and animation is a top priority in the Asia-Pacific area to serve the rapidly expanding media and entertainment sector. Singapore and New Zealand became major centres for VFX artists. These nations have an ecosystem of VFX and animation institutions that provide advanced training in a range of fields.

The need for animation and visual effects (VFX) will also be driven by the rise in the consumption of more immersive content across a variety of platforms, including head-mounted devices, tablets, smartphones, and ultra-high-definition TVs. This trend will be particularly strong in China during the forecast period. On the other hand, North America hold a significant market share during the forecast period owing to the growing demand from the media and entertainment industry.

Animation Market: Competitive Analysis

The global Animation market is dominated by players like:

• Sony Pictures Digital Productions Inc.
• Warner Bros. Discovery Inc.
• DREAMWORKS ANIMATION
• TOEI ANIMATION CO. LTD.
• Disney
• Paramount
• NETFLIX
• AARDMAN ANIMATIONS LTD
• OLM Inc.
• Madman Entertainment Pty. Ltd.
• Kyoto Animation Co. Ltd.
• Pierrot Co. Ltd.
• BluBlu Studios
• NIPPON ANIMATION CO. LTD.
• SUNRISE
• Pixeldust Framestore
• Illumination Mac Guff and LAIKA LLC
• MPC Film

The Global Animation market is segmented as follows:

By Offering

• Software
• Services

By Deployment

• On-premise
• On-demand

By Type

• 2D Animation
• Motion Graphics
• 3D Animation
• Stop Motion
• Others

By Industry Vertical

• Education & Academics
• Media & Entertainment
• Government & Defense
• Healthcare & Life Sciences
• Architecture & Construction
• Manufacturing
• Others

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