by The animation and visual effects (VFX) market provides creative solutions and realistic computer-generated imagery to various industries including films, television programs, video games, and advertisements. Advancements in 3D animation technology, motion graphics, and rendering software have enabled the production of hyper-realistic digital characters, scenes, visualizations, and simulations. Products such as animated shorts, titles, 2D/3D animations, and VFX services are helping storytellers effectively communicate ideas through moving images.
The global animation and VFX market is estimated to be valued at US$ 250.06 million in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period from 2024 to 2031.
Key players operating in the animation and VFX market are BASF SE, Bayer Group, AkzoNobel N.V., The Dow Chemical Company, LyondellBasell Industries Holdings B.V., E.I. DuPont de Nemours and Company, Mitsui Chemicals, Braskem SA, PPG Industries, and Eastman Chemical Company.
Key Takeaways
Key players: Key players in the animation and VFX market include industry leaders like Pixar Animation Studios, Disney, DreamWorks Animation, and Industrial Light & Magic, which are known for producing highly realistic CGI content for feature films. These studios have skilled technical teams and invest heavily in R&D to push the boundaries of computer graphics.
Growing demand: There is growing demand for Animation And VFX Market Demand and animation content across various industries like OTT platforms, television, and video gaming. Increasing internet penetration and evolving consumer preferences for digital entertainment are contributing to the rising need for animated and visual content.
Global expansion: Leading animation and VFX studios are expanding globally by opening new production facilities, acquiring local studios, and collaborating with regional production houses. This helps them leverage skilled talent pools, produce localized content at lower costs, and gain footholds in emerging international animation hubs.
Market Key Trends
One of the major trends in the animation and VFX industry is the drive towards photorealism. Films and series with visuals indistinguishable from reality are being created using tools like motion capture, complex physics simulation, and ray tracing rendering. The production of movies like The Lion King and The Jungle Book with 100% CGI animals exemplifies this trend. It is raising audience expectations and pushing technical boundaries as studios compete to make virtual worlds and characters as real as the physical world. This trend is expected to further evolve the animation and VFX market.
Porter’s Analysis
Threat of new entrants: New entenders find it difficult to enter the market due to high initial investment required. Bargaining power of buyers: Buyers have moderate bargaining power as there are substitutes available but switching costs are high. Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many suppliers available in the market. Threat of new substitutes: Technological advancements can lead to development of new substitutes. Competitive rivalry: Intense competition exists among existing players.
The Animation and VFX market in North America is currently the largest and with over 35% share. Within North America, the US accounts for the largest share. The presence of major players and availability of funding & capital in the region makes it an ideal location.
The Asia Pacific region is expected to grow at the fastest pace during the forecast period. Countries like India, China, South Korea, and others are emerging as popular destinations for animation and VFX projects due to availability of low-cost and skilled workforce. Government support for entertainment sector in these countries will further aid the market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
