USD 424.75 billion
Animation Market Size, Share, and Growth Analysis
Animation Market By Product Type (2D Animation, 3D Animation), By Revenue Stream (OTT, Advertising), By Application (Film, Television), By End-User (Media & Entertainment, Education & Academics), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG50H2007 |
Region:
Global |
Published Date: February, 2025
Pages:
194
|Tables:
118
|Figures:
72
Format -
Animation Market Insights
Animation Market size was valued at USD 424.75 billion in 2023 and is poised to grow from USD 446.84 billion in 2024 to USD 670.31 billion by 2032, growing at a CAGR of 5.2% during the forecast period (2025-2032).
The animation market is witnessing immense growth in the last few years due to the growing demand for high-quality animated content. Such animated content is necessary in industries like gaming, entertainment and advertising, which is contributing to the animation market growth during the forecast period. Increased spending on animated films and series by major streaming platforms is driving new opportunities. The rapid development of animation technology, such as 3D animation and motion graphics, has significantly enhanced the quality and realism of animated content. This has led to increasing consumer demand for immersive and visually appealing experiences, particularly in entertainment and gaming. Furthermore, advancements in software tools and hardware capabilities have made it easier and more cost-effective for creators to produce high-quality animations, thus expanding the market's reach.
Developments in areas like real-time animation and photorealistic characters using deep learning are also opening new opportunities for animation studios. Furthermore, the application of animation in various sectors beyond entertainment is a significant growth driver. For instance, the education sector has increasingly adopted animated content for e-learning and instructional purposes, making complex concepts easier to understand. Similarly, the healthcare industry uses animation for medical training, patient education, and simulation purposes. The automotive industry also employs animation for design visualization and virtual prototyping. These diverse applications have broadened the market's scope and contributed to its expansion.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Software
Fastest Growth
Hardware
Growth Rate
5.2% CAGR
Global Animation Market ($ Bn)
Country Share for North America Region (%)
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Animation Market Segments Analysis
Global Animation Market is segmented by Product Type, Revenue Stream, Application, End-User and region. Based on Product Type, the market is segmented into 2D Animation, 3D Animation, Motion Graphics, Stop Motion and Other. Based on Revenue Stream, the market is segmented into OTT, Advertising, Sale of Tickets and Others. Based on Application, the market is segmented into Film, Television, Video Games, Online Education, Automotive and Others. Based on End-User, the market is segmented into Media & Entertainment, Education & Academics, Architecture, Healthcare and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Offering
Based on offering, the software segment is dominating with the largest animation market share. This increase could be attributable to the computer software's capacity to generate realistic and physical representations of visuals well as a fundamental drive for 3D animation in film and games. The offering segment consists of software development kits (SDKs), embedded software, and plug-ins. Furthermore, the availability of animated software across the gaming sector is increasing the growth in the category. Additionally, the use of simulation technology software by several software companies in the marketing and advertising industry for competitive reasons is predicted to fuel the demand for software in the forecast years.
The hardware segment is expected to witness significant demand growth during the forecast period. 3D animation combines the creation and editing of complex 2D and 3D images, putting many modern computers under pressure. This is increasing the requirement for hardware to increase advancement in 3D animation. Furthermore, the increased penetration of technology into the education and training industry is projected to boost the hardware segment. This is because this segment includes support and care, development and integration, consultation, certification, and product training services. The growing demand for professional game developers, animators, 3D models, and graphic designers is expected to further the segment's growth.
Analysis by Type
Based on type, the 3D modelling segment is dominating the animation market. 3D Modeling is the procedure of creating objects in 3D animation software. These objects are created based on previously designed or real-world visions and are used as 3D natural elements made. Animation is about movement, and expressing this movement will require a crippling of objects. The 3D modeling process creates a fully animated digital object, making it an essential function for animation and special 3D effects. With extra dimensions, 3D models can change viewers' views of content they are watching in seconds; also help designers and end-users see space requirements and improve drawing efficiency and accuracy.
As per animation market analysis, the virtual effects (VFX) segment is expected to be the fastest growing segment. The visual effect is a process in which images are created or manipulated outside the context of live shooting in film and video production. Integration of live-action video with other live images or CGI features to create realistic images with VFX. Special effects are also abbreviated as SPFX, SFX, F / X, or FX easily with deceptive or visual tricks used in theater, video game, drama, film, and television industries to mimic events imagined in the form of a story or the visual world. During the rendering process, already done with a 3D model, rendering, animation, blurring, text message, VFX, and lighting are integrated and rendered with 2D still images.
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Animation Market Regional Insights
North America is dominating with the largest animation market share. Major studios like Disney, Pixar, and DreamWorks Animation are headquartered in the U.S. and have produced some of the most successful animated films globally. The region also has a strong presence of VFX and animation firms like ILM, Digital Domain, and Rhythm & Hues which have worked on several big-budget Hollywood movies. With a thriving entertainment industry, skilled workforce, and supportive policies, North America provides filmmakers with all necessary resources to create high-quality animated content. Major sports leagues in the U.S. and Canada also hire animation studios for creating explainer and promotional videos. The presence of large media companies has continuously generated more animation projects in the region.
Asia Pacific region is anticipated to witness the highest growth during the animation market forecast period. Asia Pacific is emerging as the fastest-growing market for animation in recent years, especially countries like India, China, and South Korea. Lower production costs have lured many international studios to outsource work to the region. Countries like India offer tax incentives for visual effects work, supporting the growth of local studios. To cater to the rising domestic demand, many Asian production houses are investing in original animated content for films and TV. China's expanding movie industry has seen the release of several Chinese animated films that were huge commercial successes both locally and internationally. The cultural influence of South Korea through K-pop and K-dramas has boosted the growth of its animation studios.
Global Animation Market By Geography
- Largest
- Fastest
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Animation Market Dynamics
Animation Market Drivers
Increasing Accessibility to Internet
- As more people gain access to high-speed internet and digital platforms, the demand for animated content has surged. Streaming services, online platforms, and social media have become major distribution channels, driving content creators and studios to produce a diverse range of animated content to cater to the growing audience. This surge in demand, fueled by widespread internet availability, has expanded the reach of animated content and contributed significantly to the growth and dynamism of the global animation market.
Increasing Technological Innovation
- Technological advancements, such as 3D animation, virtual reality, and augmented reality, are driving the global animation market. These innovations not only enhance the quality and visual appeal of animated content but also open up new possibilities for storytelling and user engagement. The adoption of cutting-edge animation techniques enables studios to create more immersive and realistic experiences, attracting a wider audience and contributing to the continuous growth of the global animation industry.
Animation Market Restraints
High Expense of Production Expense to Restrict Smaller Studios
- The high production costs associated with creating high-quality animated content restraint the global animation market. The development of sophisticated animation, especially in 3D and CGI, demands substantial financial investments in technology, skilled talent, and software licenses. This cost factor can limit the entry of smaller studios and independent animators, leading to a concentration of production among established players and potentially hindering diversity in the industry.
Time Consuming Process
- Creating compelling animated content, particularly feature-length films or complex series, involves meticulous planning, scripting, storyboarding, and animation rendering. This prolonged production timeline can lead to delays in content delivery and may pose challenges in responding quickly to changing market demands. As a result, the industry faces limitations in terms of agility and adaptability compared to faster-paced content production sectors.
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Animation Market Competitive Landscape
The animation market is very competitive with both small and big competitors. The market seems to be moderately concentrated, and the big players mostly use product innovation and mergers & acquisitions to increase their market share and keep one step ahead of the competition. Leading companies are also heavily investing in R&D activities to introduce new technologies and develop simulating solutions with distinct features in order to gain a competitive advantage.
Top Player’s Company Profile
- The Walt Disney Company (USA)
- DreamWorks Animation (USA)
- Warner Bros. Animation (USA)
- Sony Pictures Animation (USA)
- Blue Sky Studios (USA)
- Illumination Entertainment (USA)
- Studio Ghibli (Japan)
- Toei Animation (Japan)
- Nickelodeon Animation Studio (USA)
- Cartoon Network Studios (USA)
- Aardman Animations (UK)
- Sunrise Inc. (Japan)
- Madhouse Inc. (Japan)
- Framestore (UK)
- Animal Logic (Australia)
- Weta Digital (New Zealand)
- Double Negative (UK)
Recent Developments
- In November 2023, DeepMotion launched MotionGPT, an innovative tool leveraging Generative AI to convert text prompts into detailed 3D animations. MotionGPT streamlines animation creation, making 3D animation accessible to a broader range of creators and industries.
- In December 2023, Spaceblock introduced an innovative series of 3D animation packs based on motion capture technology, on the Unreal Engine Marketplace. This collection is poised to transform virtual gaming and live performances by delivering unmatched realism and creativity to users.
- In September 2023, Adobe launched AI and 3D features in both Adobe Premiere Pro and Adobe After Effects, accompanied by enhanced storage capacities within Frame.io. These AI-driven features automate laborious tasks, enabling video editors and motion designers to realize their creative vision swiftly.
Animation Key Market Trends
- Catering to Diverse Audience Preferences: Diverse audience preferences within the global animation market create a significant opportunity for studios to expand into specialized niche markets. As viewers increasingly seek content tailored to their unique tastes and interests, animation studios can capitalize on this demand by producing niche-specific content. Whether it is catering to unique genres, cultural themes, or specific demographics such as educational content for children or animated content addressing health and wellness, the industry has the potential to thrive by delivering more personalized and targeted experiences.
- Increasing Adoption of Cloud in Animation: The expanding use of cloud computing in 3D animation technologies is fueling the expansion of the animation industry. Cloud-based solutions provide scalable resources, allowing animation companies to scale up and down according to project needs. This flexibility avoids the need for large initial expenditures in hardware and infrastructure. Furthermore, cloud-based technologies make it easier for teams to collaborate from all over the world. Animators, artists, and other experts may collaborate on the same project, increasing efficiency and innovation.
Animation Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global animation industry is a rapidly growing as it involves creating and distributing animated content for various platforms, including television, film, video games, and online streaming services. The animation market has experienced notable growth in recent years due to the increasing demand for high-quality content by people worldwide. The major drivers of the market include the widespread adoption of visual effects (VFX) in movies and television shows, the increasing popularity of video games, and a growing demand for animated education content among the younger demographics. Additionally, technological advancements such as augmented reality (AR) and virtual reality (VR) are enriching the user experience, making animated content more engaging. The industry is also witnessing trends like the rise of streaming platforms which provide a vast stage for animated content, promoting more creative storytelling and diverse content.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 424.75 billion |
| Market size value in 2032 | USD 670.31 billion |
| Growth Rate | 5.2% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Animation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Animation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Animation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Animation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Animation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Animation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Animation Market Report Snapshots
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