The main factors propelling the market growth are the rise of the media and entertainment sector, the expansion of the communications and technology industries, and the increasing use of the internet globally. The industry's abundance of tools is encouraging their adoption by various end-user sectors, which supports those industries' market growth. New, creative advertising techniques are being adopted as a result of increased industry competitiveness. In order to provide consumers with high-quality films and animations, the quickly expanding media and entertainment industry is also increasingly embracing cutting-edge animation technologies by industry companies, fueling the expansion of this market. The proliferation of 3D and 4D technologies as well as ongoing technological advancements, can offer the animation market tremendous potential prospects. The Animation Market, meanwhile, is being held back by problems like piracy and the switch from renting to free online streaming.
The recession will significantly impact the world market for animation. A rise in interest rates will probably result in a significant economic growth slow even though price inflation is predicted to reduce in 2023. The IMF forecasts worldwide inflation to drop from 8.8% in 2022 to 6.5% in 2019. The inflation rate is only expected to decline to 8.1% in 2023, which will provide less relief for developing economies. For a while, raw material and energy costs will remain high. Additionally, the partial reversal of globalization, labor shortages in many Western nations that increase the cost of manufacturing, and the shift to a shared economy in reaction to the biggest threat to our species all contribute to inflation.
Growing Entertainment Industry to Promote Market Growth
The pandemic has aided individuals in discovering new forms of entertainment, and as a result, OTT platforms have become a popular platform for entertainment. With a boost in viewers, particularly for children's entertainment, the rise of OTT has favorably impacted the animation industry. OTT is now a significant player in the entertainment sector and has advanced VFX and animation technologies. As a result, the global animation industry is expanding daily, which fosters the expansion of the global animation market and serves as a catalyst for that growth. Furthermore, the demand for children's daily soaps is expanding significantly, which has led to an increase in the production of new daily soaps, and the growth of animated content is driving broadcasters to become more interested in introducing animated shows. As a result, the worldwide animation market is expanding as a result of the growing popularity of animated movies and TV shows.
High Cost of Animation Production to Limit Market Growth
The cost of animation tools and the compensation given to the industry's content providers account for the majority of the production costs in the animation sector. According to statistics, most Disney films have production costs of $200 million or more per film. Additionally, the U.S. Bureau of Labor Statistics indicates that an animator or multimedia artist makes an annual salary of about US$75,270. The high production cost is a major drawback that restrains the growth of the global animation market because it prevents new market players from entering the market. Animations are an elegant tool for creating mind-capturing and reality-shattering productions, whether a movie or advertisement.
Based on offerings, the animation market is segmented into software and services. The software category dominated the market in 2022 because of its expanding popularity in developed and leading nations. Additionally, it is projected that the services sector will expand at a notable rate and boost market revenue.
By Product Type
Based on product type, the animation market is segmented into 2D animation, 3D animation, motion graphics, stop motion and other. The 2D animation category dominated the market in 2022. Its increasing use in many industry verticals worldwide is credited with the rise. Along with this, the market for products of this type related to motion graphics will expand quickly and support future expansion of the animation sector. Additionally, the 2D segment's popularity and widespread application in countless advertising and app explainer films can be attributed to its flexibility and freedom to experiment. For instance, Chintamani from an ICICI Bank advertising became widely known and popular among consumers and benefited from improving customer relations, which ultimately assisted the bank in growing its customer base.
Based on industry, the animation market is segmented into direct, education, media and entertainment, aerospace and defense, automotive, healthcare and others. The media and entertainment category dominated the market in 2022. The media and entertainment sector include radio, television, print, and film. These segments cover television programs, films, news, publications, radio programs, magazines, music, and books. The media and entertainment sector is changing from the old and the new coexist. Additionally, it is projected that the automotive industry will continue to expand at a significant rate, increasing market revenue.
North America is projected to hold the largest share of the animation market over the forecast period due to the increased use of animation in a variety of end-use applications, the presence of large corporations in North America, and business plans being carried out by the leading players in the countries. Additionally, the increased animated game production and the establishment of big animation studios in the west indicate that the North American region will experience tremendous growth. Furthermore, the use of animation in the healthcare sector to assist medical practitioners and students in receiving medical training is fueling market expansion. On the other hand, the Asia Pacific animation market is anticipated to grow significantly. Growing demand for animation in developing economies as a result of rising preferences from the automotive sector. Similar to this, most businesses operating in the industry are making significant advancements to gain a slight advantage in the Asia Pacific animation market.
LIST OF KEY COMPANIES PROFILED:
- Broadcast2World, Inc
- Smith Micro Software, Inc.
- Animation Sharks
- Triggerfish Studios
- NewTek, Inc
- Corel Corporation
- Autodesk Inc.
- Maxon Computer
- In September 2021, Toon Boom Animation published Toon Boom Harmony 21, the most recent software edition, which boosts paperless animation by introducing 2D animations with feature quality for video games. Users can adjust their stylus' speed, pressure, and tilt position by adjusting the size and bitmap of the brushes.
|Market Size in 2022
|USD 394.6 Billion
|Market Forecast in 2030
|USD 528.8 Billion
|Compound Annual Growth Rate
|Revenue (USD Million) and Volume (Kilo Tons)
|By Offerings, By Product Type, By Industry and By Geography
|By Product Type