3D Animation Global Market Report 2024

The 3D animation market size has grown rapidly in recent years. It will grow from $22.5 billion in 2023 to $24.89 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The expansion observed during the historical period can be credited to an increased demand within the entertainment sector, the broader utilization of applications in healthcare and education, the globalization of animation studios, cost-effective production methods, and the diversification of application areas.

The 3D animation market size is expected to see rapid growth in the next few years. It will grow to $38.69 billion in 2028 at a compound annual growth rate (CAGR) of 11.7%. The anticipated growth in the forecast period can be linked to the rise of real-time 3D animation, the broadening range of use cases in simulation and training, and the increasing adoption in e-learning and virtual events. Key trends expected in the forecast period encompass the integration of immersive technologies, advancements in real-time rendering, the provision of cloud-based animation services, and the incorporation of AI and machine learning.

The expanding utilization of visual effects (VFX) technology within the film, media, and entertainment industries globally is significantly contributing to the market's progression. VFX and 3D animation techniques in filmmaking involve the creation or manipulation of on-screen elements that lack physical existence in reality. These techniques enable filmmakers to fabricate settings, objects, creatures, and even individuals that would pose challenges or be unfeasible to capture in a live-action scenario. According to Invest India, the Indian Media and Entertainment industry is projected to reach $55-70 billion by 2030, growing at a 10-12% CAGR. This growth trajectory is led by segments such as OTT, Gaming, Animation, and VFX, showcasing the potential for heightened adoption of visual effects technology in the film sector.

The burgeoning gaming sector is anticipated to be a key driver propelling the advancement of the 3D animation market in the foreseeable future. This industry encompasses the creation, production, distribution, and consumption of interactive digital entertainment across diverse platforms and technologies. 3D animation plays a pivotal role in crafting immersive and visually captivating gaming experiences that deeply engage players. For example, as per the Department of Foreign Affairs and Trade's report in February 2022, the Australian gaming industry recorded substantial growth in 2021, contributing $226.5 million in revenue, marking a 22% surge from the preceding year. Remarkably, 83% of this revenue is derived from international markets, underscoring the global impact and potential of the expanding gaming industry.

The advancement of the animation market is being significantly driven by the increasing adoption of cloud technology among content creators in this field. Cloud services offer animation industry professionals access to scalable and on-demand computing resources. Leveraging cloud-based animation services is both uncomplicated and efficient, providing substantial computational power. An illustrative example of this is ESDIP Animation Studio's choice of SimpleCloud for its virtual desktop solution, facilitating remote collaboration on projects that necessitate robust parallel processing. This platform also enables artists from diverse geographical locations to collaborate seamlessly on animation projects, such as the creation of the film Blue & Malone Impossible Cases.

Prominent players within the 3D animation market are placing considerable emphasis on innovative solutions, particularly harnessing AI technology, to cater to the escalating demand for animation experiences that are not only more efficient but also highly realistic. AI technology encompasses systems or machines designed to replicate human intelligence processes, encompassing learning, reasoning, and problem-solving capabilities. A case in point occurred in June 2021 when Adobe, a renowned US-based software company, introduced Substance 3D tools that capitalize on AI technology to enhance immersive content creation. These tools are specifically geared towards elevating the realism of special effects, gaming, and entertainment visuals. Substance 3D's introduction of cutting-edge technology not only addresses the needs of seasoned 3D artists but also serves to democratize the medium, making it more accessible to burgeoning 3D enthusiasts.

In December 2021, Maxon Computer GmbH, a German software development company, disclosed an official acquisition deal with Pixologic. The strategic acquisition aims to provide comprehensive solutions in 3D animation, motion graphics, and digital sculpting tailored for 3D artists. Pixologic Inc., the parent company of ZBrush, a widely-used 3D sculpting tool, is now under the ownership of Maxon Computer GmbH, enabling an enhanced offering within the industry.

Major companies operating in the 3D animation market report are NVIDIA Corporation, Adobe Inc., Autodesk Inc., Trimble Inc., Unity Technologies SF, Lucasfilm Ltd. LLC, DNEG Ltd., Animal Logic Pty Ltd., Method Studios LLC, Blue Sky Studios LLC, Weta Digital Limited, Corel Corporation, Laika LLC, Sony Corporation, Chaos Group, Smith Micro Software Inc., NewTek Inc., MAGI Corporation, SideFX Software Inc., Reallusion Inc., Toon Boom Animation Inc., Maxon Computer Inc., Zco Corporation, Pixologic Inc., The Foundry Visionmongers Limited, Electric Image Inc., Corastar Inc., Foundry Nuke Limited, Moving Picture Company Limited, Framestore Limited, Epic Games Inc., Crystal CG International Limited.

North America was the largest region by market share in the 3D animation market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the 3D animation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 3D animation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of 3D animation include 3D modeling, motion graphics, 3D rendering, and visual effects. 3D modeling involves the utilization of specialized software to construct a mathematical, coordinate-based representation of an object's surfaces in three dimensions. This is achieved by manipulating edges, vertices, and polygons within a simulated three-dimensional environment. The deployment of 3D animation can occur either on-premise or in the cloud, offering a range of services such as consulting, support and maintenance, integration and deployment, as well as education and training. These services cater to various industries, including media and entertainment, architecture and construction, education and academics, manufacturing, healthcare and life sciences, government and defense, among others.

The 3D animation market research report is one of a series of new reports that provides 3D animation market statistics, including 3D animation industry global market size, regional shares, competitors with a 3D animation market share, detailed 3D animation market segments, market trends and opportunities, and any further data you may need to thrive in the 3D animation industry. This 3D animation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The 3D animation market includes revenues earned by entities by providing 3D video and film, interactive 3D, virtual reality 3D, inverse kinematics, fluid simulation, 3D skeletal animation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.