Global Animation Market is Segmented By Offering (Software, Services), By Product Type (2D Animation, 3DAnimation, Motion Graphics, Stop Motion, Other), By Industry (Direct, Education, Media and Entertainment, Aerospace and Defense, Automotive, Healthcare, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024 - 2031
Animation Market Size
The Global Animation Market size was worth US$ YY million in 2022 and is estimated to reach US$ YY million by 2030, growing at a high CAGR during the forecast period (2024-2031).
Animation involves the manipulation of figures to make them appear moving. Although hand-drawn celluloid sheets were initially utilized to create animation, the entire animation industry switched to it with the evolution of computer-generated imagery (CGI). Though movies are the most common medium in which animations are used, they find applications in education, commercials, and propaganda.
Today, animated movies are widely popular and generate millions of dollars at the box office. For instance, the worldwide gross of Disney's Frozen II alone was US$ 1,445.18 million, followed by Frozen and Incredibles 2 with gross worldwide box office collections of US$ 1,265.77 million and US$ 1,242.81 million. These figures depictanimations' vast revenue generation potential in modernity and give insight into the animation industry's growth.
Market Scope
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Offering, By Product Type, By Industry, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
The increasing integration of animations in movies and the commercial success of fully-fledged animation movies propagates the market uphill. However, the growth of the global animation market is subdued by the colossal production expense and lack of adequate funding in the market.
Growing adoption of animations in movies
Movies could be considered one of the biggest sources of entertainment in modernity and as the industry's success is booming exponentially, the need to include advanced technologies to entertain viewers also increases. The inclusion of animations in movies could be related solely to offering a sense of exhilaration and excitement to the viewers. Since reality is limited and restricted by numerous social and economic parameters, the need for alternative technological options to overcome these adversities is a primary need for the film industry as films need to communicate to their audiences without losing the essence of the depicted scene.
Animation is one such power-packed tool of modernity that the modern film industry could utilize to overcome social and financial constraints and convey ideas and ideologies that could unite people irrespective of beliefs and interests. As many of the creators understand the potential animation has for people, the adoption of animation to create films grew exponentially. One of the commercial successes of a movie featuring animated content is the recent success of the animated movie Demon Slayer, released in 2020. The respective movie earned the title of the largest weekend opener in the globe by earning US$ 44 million, with around 3.4 million people watching it on the first day. Further, the respective movie became the tenth most-grossed movie at the Japanese box office.
Since the growing success and adoption of animation would encourage more productions utilizing animations and encourage manufacturers of animations tools to produce better tools, the large-scale adoption of animations in movies witnessed in modernity could be conclusively considered a major market driver for the respective market.
High production expense
The production cost in the animation industry comes primarily from the cost of animation tools and the remuneration provided to the content creators in the industry. As per statistics, the production budget per movie for most Disney movies is around US$ 200+ million. Further, the U.S. Bureau Of Labor Statistics points towards the fact that an annual wage of an animator or multimedia artist is around US$75,270.
Though animations are an elegant tool for the creation of mind-capturing and reality-shattering productions, may it be a movie or advertisement, the high production expense is a major drawback that constricts the growth of the global animation market since the high production expense involved in the creation process restricts new market players from entering in the market. Furthermore, the respective reason could also limit current production studios from making a higher number of movie productions and restrict end-user industries from utilizing animation services at will.
As the high production cost would diminish the overall demand and sales in the global animation market, the respective parameter could be considered a major market restraint.
COVID-19 Impact on Market
Though the pandemic COVID-19 hit many industries hard, the impact of the epidemic and associated global lockdown is positive or rather reassuring to the global animation market. As the production processes associated with movies and advertisement industries became impossible due to the pandemic protocols and needed social distancing, the need for alternative ways to carry out these tasks became the crux of the discussion in these industries. Since animation could carry out the respective job eloquently, the rate of adoption into these industries drastically rose, thereby improving various market prospects of the animation industry. For instance, WME's literary packing group could only sell one animated project in 2019 selling around 12 animated projects and two animated series since the wake of the pandemic.
Further, the popularity of streaming services such as Netflix and Amazon Prime, among others, grew extensively during the pandemic period. As per BBC, during the pandemic, the subscription to streaming services doubled along with a rise in average viewing time, which went up by 31%, reaching 6 hours and 25 minutes. As the subscriptions and viewing times are peaking, the need for newer content grew within these platforms. As a result, many of these streaming platforms buy quality animated movies and series such as Rick and Morty, and Demon slayer, among others, to offer their customers new content. This paradigm shift in the streaming industry also helped the global animation market to expand during the pandemic.
Market Segmentation Analysis
The global animations are segmented based on offering, product type, industry, and region.
The subtlety of 2D animations and their application in various industrial verticals helps the respective segment to dominate the product type market segment
The global animation market is segmented into 2D animation, 3D animation, motion graphics, stop motion, and others based on product type. The 2D segment dominates the market due to its offering subtle and catchy content for various industries at comparatively cheaper price points. Further, the ability to personalize and experiment help the 2D segment to be popular and applied in numerous advertisements, and app explainer videos.
For instance, Chintamani from ICICI bank advertisement gained widespread recognition and popularity among customers and positively influenced building a better customer rapport, which ultimately helped the bank build a customer base.
Market Geographical Share
North America holds the largest market share global Animation Market.
The ever-increasing audience for animation in movies, particularly Hollywood movies, significantly helps the uprisal of the North American animation market. Further, the demand for animations in various end-user segments with a wide presence in North America, such as education, healthcare, media, and entertainment, helps the respective industry witness significant growth in the region. Further, the presence of prominent animation studios such as Pixar also positively impacts the region's animation market growth.
Further, with the rising demand for animation in emerging nations, the Asia-Pacificanimation industry is expected to rise rapidly. The heavy investments by organizations operating in the market to gain a small advantage in the Asia-Pacific animation market also help the region to grow swiftly in the global animation market.
Companies and Competitive Landscape
The animation market is moderately competitive with the presence of several local as well as global companies. Some of the key players contributing to the market's growth include Adobe, Autodesk Inc, Videocaddy, SideFX Animation, Sharks, Corel Corporation, Triggerfish Studios, Smith Micro Software Inc., EIAS3D, and GRAFTON, among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the global growth of the animation market.
For instance, on March 25, 2020, Autodesk Inc. released 3ds Max, the company's latest 3D modeling, animation, and rendering software. The new software offers simple installation, python 3 support, among several other exclusive features. The company intends to improve its product portfolio with the release of its new product.
Adobe:
Overview: Adobe is one the pioneers as well as the fortune 100 best companies that work in developing innovative pieces of software that are utilized in creative works such as animation, picture, and video editing, among others. Adobe was founded in California, U.S. The company generated around US$12.9 million and employed around 24,000 people in 2021.
Product Portfolio: The company has a product portfolio related to the animation market that includes:
Horizontal Flowpak
- Animate: Animate is an animation software designed and developed by adobe that is normally employed to create interactive animation utilized in various web, tv shows, and advertisements. The respective tool is easy to operate and available on various platforms.
Key Development: On March 27, 2018, Adobe rolled out certain new editing tools on Adobe After Effects and Premiere Pro that can offer a 360-degree editing experience to animators and filmmakers with adequate photoshop and illustrator experience. The company intends to increase its user base with these updates.
