Market Size of Animation And VFX Industry
![Animation And VFX Market Summary](https://s3.mordorintelligence.com/animation-and-vfx-market/1700457267213_animation-and-vfx-market_Market_Summary.webp)
Study Period | 2019 - 2029 |
Market Size (2024) | USD 179.78 Billion |
Market Size (2029) | USD 311.46 Billion |
CAGR (2024 - 2029) | 9.43 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Animation And VFX Market Analysis
The Animation And VFX Market size is estimated at USD 179.78 billion in 2024, and is expected to reach USD 311.46 billion by 2029, growing at a CAGR of 9.43% during the forecast period (2024-2029).
- Two trends are primarily driving the adoption of animation and VFX solutions. For some end-user industries, particularly films, there is an upward trend in production value or budgets. This is primarily due to broader international distribution due to digital theatres. Secondly, writers and directors are more open to embracing scripts requiring VFX. Therefore, production companies are increasingly pursuing more ambitious projects that can only be fulfilled using VFX and streamlined platforms. They have also broadened the genres of content being published.
- There is a surge in 3D-UHD animated movies in theatres through the application of animation and VFX in TV, advertising, and gaming. There is also a growth in the outsourcing of the VFX processes due to its cost-effectiveness. Thus, the focus on the “kids” genre and the growing popularity of video streaming are anticipated to fuel market demand across emerging economies.
- The creativity levels possessed by modern-day artists require more tools and software to produce awesome animated content that mesmerizes the viewers. One such trend is Virtual Reality (VR), which recently gained popularity. More animation studies are bringing virtual reality to 3D animation. It has moved 3D animation to the next level. Playing 3D games has become possible in a virtual environment—all credits to virtual reality mixed with 3D animation.
- Integrating new OTT services across the existing subscription-based streaming devices among emerging economies is expected to drive the applications of the animation and VFX sectors. The companies are continuously involved in introducing new services for animation and VFX dedicated to OTT content. For instance, London-based DNEG launched its new service offering called Redefine. The service aims to fill the gap between the East and the West for creative services for film and Over The Top (OTT) content for streaming.
- The demand for animation and VFX expanded with the increase in the emergence of the media sector, gearing up significantly in the sphere of the multimedia ecosystem. Companies such as DNEG are looking for strategic investment partnerships to survive the turbulence. In 2022, major DNEG signed a new multiyear agreement to expand its provision of visual effects and virtual production services for Netflix series and feature programming through 2025. As part of the agreement, DNEG will build work for Netflix and significantly expand premium VFX services for the streamer across domestic and international markets.
- The COVID-19 pandemic caused disruptions to the production stage, resulting in a partial loss of market share and a toll on the post-production activities of industry participants. The global animation and VFX market had a wide range of effects post-COVID-19, affecting several facets of production, distribution, technology adoption, and audience engagement. Despite the challenges brought on by the disruptions, the industry was positioned for continuing expansion, the exploration of new formats, and the adoption of advanced technology in the changing environment of entertainment and media due to its resilience, adaptability, and inventive solutions.
Animation And VFX Industry Segmentation
VFX or Visual Effects are a way of mixing real film shooting with false or animated images. Almost every single movie these days uses VFX. Recent advancements in 3D animation technology fueled the growth of High-Definition (HD) videos and extensive usage of 3D animated videos across multiple end-user sectors to create a graphic illustration of the working of individual components that are expected to be the key factors propelling the market growth. Demand for animation and VFX content powered immersive experiences, with exponential growth in augmented reality and virtual reality technology that shaped animation and VFX as a fast-growing sector in the global media and entertainment market.
The animation and VFX market is segmented by animation platforms (television and OTT, films, advertisement, and gaming) and geography (North America, Europe, Asia-Pacific, and the Rest of the World).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
By Animation Platform | |
Television and OTT | |
Films | |
Advertisement | |
Gaming | |
Other Animation Platforms(Ed-tech, etc.) |
By Geography | |
North America | |
Europe | |
Asia-Pacific | |
Rest of the World |
Animation And VFX Market Size Summary
The Animation and VFX Market is experiencing significant growth, driven by increasing demand from end-user industries, particularly film. This surge is due to broader international distribution facilitated by digital theatres and a growing openness from writers and directors to scripts requiring VFX. As a result, production companies are pursuing more ambitious projects that require the use of VFX and streamlined platforms. The market is also seeing a rise in 3D-UHD animated movies and an increase in the outsourcing of VFX processes due to cost-effectiveness. The growing popularity of video streaming and focus on children's content is expected to fuel market demand across emerging economies. The industry is also seeing a shift towards new technologies such as virtual reality (VR), which is being increasingly incorporated into 3D animation. This has taken 3D animation to the next level, enabling 3D games to be played in a virtual environment. The integration of new OTT services across existing subscription-based streaming devices is expected to drive the application of animation and VFX sectors. Companies are continuously introducing new services dedicated to animation and VFX for OTT content. Despite disruptions caused by the COVID-19 pandemic, the industry has shown resilience and adaptability, with a focus on exploring new formats and adopting advanced technology in the changing entertainment and media environment.
Explore MoreAnimation And VFX Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Technology Snapshot
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1.4 Assessment of the Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Animation Platform
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2.1.1 Television and OTT
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2.1.2 Films
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2.1.3 Advertisement
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2.1.4 Gaming
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2.1.5 Other Animation Platforms(Ed-tech, etc.)
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2.2 By Geography
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2.2.1 North America
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2.2.2 Europe
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2.2.3 Asia-Pacific
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2.2.4 Rest of the World
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Animation And VFX Market Size FAQs
How big is the Animation And VFX Market?
The Animation And VFX Market size is expected to reach USD 179.78 billion in 2024 and grow at a CAGR of 9.43% to reach USD 311.46 billion by 2029.
What is the current Animation And VFX Market size?
In 2024, the Animation And VFX Market size is expected to reach USD 179.78 billion.