Animation And VFX Market Growth Is Accelerated By Growth In Streaming Content

Animation is a technique in which each frame of a movie or video is produced individually, and then joined together to create the illusion of movement. Effects or visual effects (VFX) refer to the process by which imagery is created or manipulated outside the context of a live action shot in film making. The global animation industry uses a wide range of visual effects and animation techniques such as stop motion, 3D animation, rotoscoping, CGI animation, and many more. Animation and VFX finds applications in movies, television shows, commercials, video games, and simulations among others.

The global Animation And VFX Market is estimated to be valued at US$ 217.06 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The "Animation And VFX Market is Estimated to Witness High Growth Owing to Increasing Demand for Animated Movies and Series" as stated in the heading. Increasing demand for animated movies and series from regions such as North America and Asia Pacific is one of the major drivers of the Animation And VFX Market. According to a report by Statistica, in 2022, the revenue generated from animated movies worldwide amounted to over US$27.7 billion and is expected showcase substantial growth over the coming years owing to rising popularity of animated content among audiences of all age groups. Additionally, availability of cost-effective animation production methods such as 2D digital animation and motion capture which minimizes production cost for animation studios and broadcasters is also expected to boost the growth of animation and VFX market over the forecast period.

SWOT Analysis

Strength: The animation and VFX market has grown exponentially over the past decade due to advances in rendering technology and the increasing demand for animated content. Animation studios can leverage their technical expertise and experience to deliver high quality projects faster. Cloud computing allows distributed teams to collaborate effectively and reduce production time.

Weakness: Developing animated and visual content requires heavy investment in hardware, software and hiring talented designers/animators. Smaller studios have limited resources which can hamper their ability to take on large projects. Security of cloud data and confidentiality of intellectual property are also concerns.

Opportunity: Emerging technologies like virtual reality, augmented reality and game engines allow for new immersive experiences. Animation is increasingly used in movies, games, metaverse and other media which opens up new revenue streams. Developing countries offer lower production costs and tax incentives to attract studios.

Threats: Economic slowdowns can negatively impact the budgets for entertainment projects. Low-cost offshore animation hubs increase competition on pricing. Piracy of creative work remains a challenge infringing on copyright. Changes in government policies and regulations regarding the industry.

Key Takeaways

The Global Animation And VFX Market Size is expected to witness high growth over the forecast period driven by increasing demand for animated content across media. The global Animation And VFX Market is estimated to be valued at US$ 217.06 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030.

North America and Europe currently dominate the industry due to early adoption, experienced workforce and supportive infrastructure. The Asia Pacific region is emerging as a fast growing hub led by countries such as India, China, Philippines and Thailand, known for lower costs and highly skilled talent pool.

Key players operating in the animation and VFX market are Amgen Inc., Abbvie Inc., GlaxoSmithKline PLC, Pfizer Inc., Novo Nordisk AS, Novartis AG, Johnson & Johnson, Eli Lilly and Company, Bristol-Myers Squibb Company, and F. Hoffmann-La Roche Ltd., among others. The market is highly consolidated with top players accounting for a major share. However new independent studios are entering the market and partnering with production houses on projects.

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