ANIMATION AND VFX MARKET ANALYSIS

Animation And Vfx Market Size and Trends

The global animation and VFX market is estimated to be valued at US$ 182.13 Bn in 2024 and is expected to reach US$ 348.24 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.7% from 2024 to 2031.

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The animation and VFX market has seen tremendous growth over the past few years. With growing demand for high-quality animated and VFX content across industries like gaming, entertainment and advertising, the market is expected to witness even stronger growth during the forecast period. Increased spending on animated films and series by major streaming platforms is driving new opportunities. Additionally, rapid growth in international markets like China and India will further boost demand. Expanding application of virtual reality and 3D technology is another factor expected to accelerate the market growth in the coming years. Developments in areas like real-time animation and photorealistic characters using Deep learning are likely to open new avenues for animation studios.

Rapid growth of digital animation, visual effects and gaming industry

The global animation and VFX market is increasingly being driven by the rapid growth of digital animation, visual effects, and the gaming industry. Over the past decade, the digital gaming industry has witnessed exponential growth in terms of revenue as well as user base. Mobile gaming in particular has emerged as one of the biggest drivers propelling the global gaming industry revenues. As games become more realistic with each passing year, the demand for high-quality animated characters, visual effects, interactive environments and scenes has surged tremendously. Leading game developers are heavily investing in building own animation studios as well as outsourcing work to top animation and VFX studios to support their creative needs. This rising emphasis on visually immersive experiences among gamers as well as developers is fueling significant demand for animation and VFX services worldwide.

At the same time, animation and VFX have become mainstream in digital entertainment beyond gaming as well. Streaming services are investing billions in producing animated web series, movies as well as live-action titles with VFX elements to engage audiences. Popular franchises like The Simpsons, Family Guy, Frozen, Avatar, Marvel movies, etc. have demonstrated how animation and visual spectacles can engage global fanbase for decades. This encourages more studios and producers to leverage animation, VFX for storytelling. Rising popularity of VR/AR technologies is also opening new interactive avenues for animation studios to explore. All these industry trends point towards continued growth in demand for high-quality CGI animated films/shows, VFX-enabled movies and so on. As digital technologies progress further, the applications of animation and VFX will also diversify across industries, ensuring steady expansion of this market.

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Emergence of Southeast Asian countries as hub for outsourcing

Another major driver for the global animation and VFX market is the emergence of Southeast Asian countries like India, Philippines, Indonesia, Vietnam, etc. as preferred outsourcing destinations for animation and VFX services. Over the past decade, these countries have substantially scaled up their animation and VFX capabilities to cater to worldwide demand at competitive costs. Countries like India in particular have produced top-tier VFX and animation studios on par with international standards.