Animation refers to techniques for generating illusions of motion by means of rapidly displayed static images or by simulating the movement, shape, and form of elements. Visual effects (VFX) refers to techniques that create imagery for films, video games, television commercials, and other visual media that cannot be achieved through real-world cameras or locations. The animation and VFX market has gained significant traction over the years owing to increasing demand from various end-use industries such as television productions, video game development, transportation design, and product design.
Market key trends:
One of the key trends in the animation and VFX market is the rising adoption of virtual production. Virtual production allows producers to render and visualize environments before filming begins. It enables immersive augmented reality and virtual reality experiences. It also helps filmmakers to plan shots, block scenes, and experiment with lighting conditions on virtual sets before shooting on actual filming. Virtual production allows filmmakers to iterate quickly and reduces risks associated with poor lighting or environmental conditions. This is expected to fuel the growth of the animation and VFX market during the forecast period.
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. =
Strength: The animation and VFX market has high growth potential due to increasing demand for animated and visual effects content from the media and entertainment industry. It allows creating realistic virtual worlds and characters that can depict stories in an engaging manner.
Weakness: Creating high-quality animation and visual effects content requires huge investment of time and money in advanced tools and hiring of skilled workforce. It is also challenging to create photo-realistic animated characters and effects.
Opportunity: Increasing demand for animation and VFX content from rapidly growing OTT platforms and gaming industry. Advances in technologies such as virtual reality and augmented reality offer new opportunities.
Threats: Availability of pirated and free animation content online affects revenues of studios. Intense competition among industry players for talent and clients poses threats.
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 content from the media and entertainment industry.
Regional analysis – North America dominated the global market in 2022 and is expected to continue its dominance over the forecast period. However, Asia Pacific is expected to exhibit the highest CAGR during the forecast period, driven by rapid growth of media and entertainment industry in countries such as China and India.
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. These players are focusing on developing advanced creative tools and solutions to produce high-quality animated and visual effects content.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it