by The animation and VFX market is estimated to witness high growth owing to rising popularity of digital content. Animation and VFX involves creating visual imagery for films, TV, video games, and commercials using 2D/3D computer graphics orTraditional animation techniques. The animation and VFX products helps in creating lifelike digital characters and environments for films, television programs, video games and commercials. Animation and VFX products allows filmmakers and creators to bring their visions to life with photo-realistic digital characters, creatures, backgrounds and visual effects.
The Global animation and VFX Market is estimated to be valued at US$ 250.06 Mn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the animation and VFX 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. The key players are focusing on partnerships and acquisitions to enhance their animation and VFX product offerings.
Some key opportunities in the animation and Animation And VFX Market Growth are the growing demand for high-quality animation and VFX from OTT platforms and movie production houses. The increasing number of animation studios worldwide is another growth opportunity.
The global animation and VFX market is expected to witness high growth due to increasing penetration of digital media worldwide. North America dominates the animation and VFX market currently due to presence of large media and entertainment companies. But Asia Pacific region is expected to grow at fastest pace due to rising digital entertainment consumption and growing number of animation studios in countries like India and China.
Market Drivers
The increasing popularity of digital content such as web series, films , video games is one of the key drivers. Digitally animated and visual effects enriched contents are in high demand. Rising investments from media companies and studios in creating animated and high quality visual effects content is also boosting the market growth.
PEST Analysis:
Political: The animation and VFX market is impacted by government policies and regulations pertaining to intellectual property rights and content piracy. Changes to copyright laws can influence business models and revenue streams.
Economic: Economic growth, disposable incomes and consumer spending on entertainment determines the demand for animation and VFX services. Downturns negatively impact production budgets and market size.
Social: Preferences for animation genres and content influence demand. Changing demographics, social values and trends shape viewer tastes impacting studios.
Technological: Advancements in visual computing and rendering techniques enhance production capabilities. Virtual production technologies merge physical and digital workflows improving efficiency. Adoption of VR/AR and cloud computing expands immersive experiences and distribution avenues.
The animation and VFX market in the North American region represents the largest share in terms of value. This can be attributed to high production budgets and presence of major industry players in the US and Canada.
The Asia Pacific region is projected to demonstrate the fastest growth during the forecast period. This can be credited to rising wages, expanding middle class and growth of domestic entertainment industries in countries like India, China and South Korea. Growing infrastructure, tax incentives and availability of skilled talent are supporting regional development.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
