Global Animation and VFX Market is Estimated to Witness High Growth Owing to Increasing Entertainment Consumption and Development of Immersive Technology
The global Animation And VFX Market are estimated to be valued at US$ 182.13 Bn in 2024, exhibiting a CAGR of 9.7% over the forecast period (2024-2031). The animation and VFX market is witnessing tremendous growth driven by increasing consumption of animation and visual effects in entertainment, advertising, and other media. Furthermore, the development of immersive technology such AR/VR is driving new opportunities in the market.
Market Dynamics:
The growth of the global animation and VFX market is majorly driven by two factors - increasing entertainment consumption worldwide and advancement of technologies.
Widening applications of animation and VFX across various sectors such as movies, television, video games, web content, and mobile apps is fueling the entertainment consumption. Growing disposable income and digitalization are enabling easy access to entertainment content which is driving the market growth. Advancements in immersive technologies, such as augmented reality and virtual reality, opens up new applications of animation and VFX. Applications of animation and VFX are growing in the education, healthcare, defense, and other industries with the advancement of immersive technologies which is creating new market opportunities.
Market Drivers
Increasing demand for animated and VFX content from the entertainment Industry
The entertainment industry is undergoing rapid transformation driven by technological advancements and evolving consumer preferences. There has been an increasing demand for high quality animated content and visual effects from various segments like movies, television shows, video games, and advertisements. Major media and entertainment companies are heavily investing in developing animated content as it helps them engage audiences of all age groups. The blockbuster success of movies with heavy VFX and animation sequences like Marvel films and Disney/Pixar films indicate strong audience appeal for such content. This growing demand from the entertainment industry acts as a major market driver for animation and VFX market.
Use of animation and VFX in different industries
Animation and visual effects technologies are finding diverse applications beyond the entertainment industry. Industries like healthcare, manufacturing, and architecture are leveraging animation and VFX for simulations, prototyping, product demonstrations and visualizing complex processes or products. Automotive and aerospace industries use VFX and animation for design validations. Educational institutions are increasingly adopting virtual reality and augmented reality enabled by animation and VFX to enhance learning experiences. Even sectors like retail, marketing, and advertising are deploying animation and VFX for their branding and campaigns. This widespread adoption across different verticals presents significant growth opportunities for the animation and VFX market.
Market Restraints
Shortage of skilled workforce
Complex animation and VFX projects require an experienced talent pool of editors, animators, graphic designers, programmers and technical directors who are proficient in latest software tools and technologies. However, there has been shortage of skilled workforce globally due to lack of proper training programs and lower attractiveness of animation careers compared to other industries like technology. This skills gap acts as a hindrance for animation studios and VFX companies in taking up new projects and meeting tight deadlines, which can negatively impact their growth. Governments need to promote animation education and training to address this critical constraint.
High production costs
Creating animated movies, TV shows or complex VFX sequences requires huge investments due to deployment of latest hardware infrastructure, licensing of advanced software, hiring top talents, production timelines stretching to several months or years. Even small mistakes or changes often mean redoing entire animation scenes. This makes animation and VFX production an expensive venture. Though technology is continuously helping reduce costs, the budget requirements still pose significant challenge, especially for independent studios and startups to undertake risky or unconventional projects.
Market Opportunities
Growth of OTT platforms and online streaming
The robust growth of over-the-top (OTT) media services and online video streaming platforms like Netflix, Amazon Prime, Hulu, and Disney+ is presenting massive opportunities for the animation and VFX market. These platforms are fueling demand for numerous high-quality web series, movies and online shows which require animation and VFX components. Many prominent studios are partnering with streaming giants to produce exclusive animated content. This ongoing revolution of digital entertainment provides avenues to tap into large global audience bases for animation creators.
Advancements in virtual production technologies
Emerging technologies in the virtual production domain like virtual sets, extended reality (XR) and volumetric video are enhancing creative possibilities for animation and VFX. Filmmakers are leveraging these innovations to bring live-action filmmaking on par with animation production. Recent blockbusters demonstrated immersive mixes of live-action with virtual environments and characters. Wider adoption of these new methodologies paves way for animation studios to offer diversified services to different industries. It also reshapes how animated movies are conceptualized, filmed, and released in future with much richer visual experiences.
Link - https://www.coherentmarketinsights.com/market-insight/animation-and-vfx-market-5343
Key Developments:
- In July 2021, Adobe announced a partnership with Blender to support the open-source 3D creation suite. Through this collaboration, Adobe aims to contribute to the Blender Development Fund and launch new plugins, such as Substance 3D in Blender and the Mixamo Auto-Control Rig Plugin for Blender. The goal is to make Adobe's 3D tools and products, including Substance 3D and Mixamo, more accessible and available to the broader 3D creator community.
- In August 2021, Epic Games launched Unreal Engine 4.27, introducing powerful new features for creators and developers working in various domains, including game development, film and television, architecture, and automotive. The release aimed to enhance workflows and capabilities across these industries.
- In October 2020, Toon Boom released a new version of its production management software called Producer 20. The updated Producer 20 is designed to help animation studios meet the growing global demand for original animated content and adapt to the evolving production landscape, which includes remote work and distributed production sites. Producer 20 provides studios with enhanced capabilities for production development, asset management, and increased operational efficiency.
Key Players:
Adobe Inc., Animal Logic, Digital Domain, Framestore, Industrial Light & Magic (ILM), Luma Pictures, Method Studios, MPC (Moving Picture Company), Pixar Animation Studios, Rhythm & Hues, Sony Pictures Imageworks, Technicolor Creative Studios, The Mill, Weta Digital, and Worldwide FX
