Animation And Vfx Market Is Estimated To Witness High Growth Owing...

Animation And Vfx Market Is Estimated To Witness High Growth Owing To Increasing Demand From Media and Entertainment Industry

Posted 2023-12-04 13:02:45

116

Market Overview:
Animation refers to techniques in which figures are moved to depict actions electronically, optically, or manually for entertainment, education, and communicative purposes. VFX or visual effects refer to altering of images or added image elements with computer-generated imagery (CGI) for films, television programs, and other visual media. The animation and VFX market products include software and services for film, television, video game development, web design, and other applications. They help create animations and visual effects for movies, games, advertisements, and more. Increase in demand for high-quality animated films and VFX from entertainment industry is the key factor boosting growth of global animation and VFX market.

Market Dynamics:
The animation and VFX market is driven by increasing demand from media and entertainment industry and growing popularity of high-quality animated and VFX-rich movies and shows. According to Motion Picture Association, in 2021 global box office revenue reached US$21.4 billion, reflecting strong consumer demand for theatrical experiences as markets recover from pandemic impacts. Streaming platforms such as Netflix, Amazon Prime, Disney+, and Hulu are heavily investing in animated movies, series, and shows to attract subscribers which is significantly boosting demand for animation and VFX services. For instance, in 2021 Netflix animated series and movies accounted for over 25% of minutes streamed globally as per Parrot Analytics. Another driver is increasing adoption of animation & VFX technology by ad agencies and marketers for TV commercials, online advertisements, product packaging and labels, digital signs, and architectural visualizations. Animation & VFX tools allow creators to bring concepts to life digitally and have become mainstream production method.

The global Animation And VFX Market Demand is estimated to be valued at US$ 217.06 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

SWOT Analysis

Strengths:

- The animation and VFX market has strong demand from the gaming, movie, and advertising industries. These sectors continuously require high-quality animated and visual content.

- Advanced animation and VFX tools are making it easier for creators to generate stunning visual effects and animations. Tools such as 3D modeling and rendering software simplify the production process.

- There is a large talent pool of highly skilled and trained animators and VFX artists globally. This ensures adequate supply of creative resources.

Weaknesses:

- Animation and VFX production requires massive resources in terms of time, budget, and manpower. Especially for movies and series, the production cycle can stretch over many months or years.

- Piracy is a major challenge as visual content, once created, can be easily copied and distributed illegally over the internet. This impacts the revenues of studios.

Opportunities:

- Emergence of Over-The-Top (OTT) platforms and online streaming services have increased the demand for exclusive animated web series and shows. This is driving new opportunities.

- Advances in virtual reality (VR) and augmented reality (AR) will open newer immersive experiences that leverage animation and VFX. This can potentially be a big growth area.

Threats:

- Low-cost animation outsourcing to Asian countries impacts jobs and economies in Western markets. This international competition poses threats.

- Technological changes and new kinds of media may disrupt existing animation and VFX business models over the long run. Companies need to keep evolving constantly.

Key Takeaways

The global animation and VFX market is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing demand for animated and visual content across industries like gaming, entertainment and advertising.

Regional analysis:

The Asia Pacific region dominated the animation and VFX market in 2023, with a share of around 35%, owing to presence of major countries like China, India and Japan which are hub of large animation studios and outsourcing companies. North America is the second largest market, favored by strong demand from the entertainment industry in the US.

Key players:

Key players operating in the animation and VFX market are Bondware Inc., Adobe Inc., Planetside Software LLC, Autodesk Inc., Epic Games Inc., IPI Soft LLC, Act-3D B.V., Exocortex Technologies Inc., Toon Boom Animation Inc., Lost Marble LLC, The Foundry Vision Mongers Ltd., Animaker Inc., Blender Foundation, and DWANGO Co. Ltd.

Please log in to like, share and comment!