Animation and VFX Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 176.08 Billion |
| Market Size (2029) | USD 310.97 Billion |
| CAGR (2024 - 2029) | 12.05 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Animation and VFX Market Analysis
The Animation And VFX Market size is estimated at USD 176.08 billion in 2024, and is expected to reach USD 310.97 billion by 2029, growing at a CAGR of 12.05% during the forecast period (2024-2029).
The animation and VFX market is experiencing significant growth, primarily driven by the growing demand for high-end visual effects and animated content across the gaming, TV, and film industries, rising technological advancements in the VFX and animation sectors, and changing consumer preferences regarding immersive and high-quality content. New developments are shaping the global animation and VFX market, with the increased use of augmented reality (AR), real-time rendering, and virtual production techniques.
- Further, specific end-user industries, especially the film sector, are witnessing increased production values and budgets. This surge is attributed mainly to the expanding international distribution, partly facilitated by digital theatres. There's a growing willingness among writers and directors to adopt scripts that demand VFX. Consequently, production companies are chasing ambitious projects, necessitating VFX and streamlined platforms for realization. They have also diversified the genres of content being produced. These dynamics have significantly fueled the expansion of the VFX and animation market.
- Hybrid devices, merging functionalities like stylus-supported tablets for digital animation and laptops with 3D capabilities, are experiencing notable growth. These devices offer animators and VFX professionals the flexibility to create and render intricate designs efficiently. Such demand is especially pronounced in entertainment, gaming, and advertising sectors, where real-time rendering and animation quality are most important.
- These hybrid devices simplify the design, development, and execution of animations, eliminating the reliance on standalone high-end systems. Their inherent mobility and cloud-based software foster global team collaboration, accelerating production cycles. Consequently, there is a surging demand for software solutions and services that facilitate 3D animation on these platforms, propelling growth in the overarching animation and VFX market.
- Visual effects (VFX) have become essential in the entertainment industry, especially in film, television, and gaming. Studios increasingly invest in VFX to craft stunning, realistic visuals that elevate storytelling. High-budget films and TV shows, especially in action, fantasy, and science fiction, lean heavily on VFX to satisfy audience demands for quality and immersion.
- Animation and VFX companies face direct revenue impacts due to piracy in software and media. The unauthorized distribution of films, games, and software results in substantial financial losses. Such losses ripple through the animation and VFX sectors; when studios and production companies see their revenues dip, they often cut back on spending for visual effects and animation services. As profits reduce, companies become wary of investing in expansive VFX productions or hiring specialized talent, hindering market growth.
- Beginning in May 2023, the writer's and the actor's strike in July 2023 significantly influenced the global VFX and animation market. The writer's strike marked the most significant disruption to US television and film production since the COVID-19 pandemic. As the longest and most expensive strike in Hollywood's history, it led to widespread delays and disruptions across numerous TV shows and films. The subsequent actor's strike in July 2023 continued this trend, negatively impacting the broad entertainment industry.
- The writers' and actors' strike postponed or canceled numerous film and TV projects, directly impacting VFX and animation studios. These studios depend on a consistent flow of content, and the strike disrupted their production pipelines, resulting in reduced demand for VFX and animation work, negatively impacting the growth of the market.
Animation and VFX Market Trends
Television and OTT Animation Platform Segment is Expected to Hold Significant Market Share
- The increase in demand for visually captivating and high-quality content on OTT platforms has resulted in a significant growth in the requirement for VFX and animation skills. Animation and VFX have become vital components of OTT content creation, from creating lifelike creatures in imaginary series to visual effects in action-packed cinemas. The advent of streaming in OTT media has made it more convenient and easier for the broadcaster to directly showcase their content to clients without the interference of a middleman. This aids in shaping a direct relationship with customers on the OTT platforms.
- The growing number of Netflix subscribers is expected to increase the spending on animation and VFX content. With a larger audience demanding high-quality visuals, production companies are expected to allocate more resources to meet this demand, increasing spending on animation and VFX worldwide. For instance, according to Netflix, the number of Netflix paid subscribers worldwide increased from 230.75 million in Q4 2022 to 277.65 million in Q2 2024.
- To gain a competitive edge, businesses are involved in various strategies, such as partnerships, agreements, and launches, which are expected to increase spending on VFX and animation work on television and OTT platforms.
- In November 2023, Dexter Studios, a firm specializing in content production and VFX, signed a new agreement to source VFX technology for the TV series 鈥淒鈥� with Climax Studio. The agreement, reportedly worth KRW 3.67 billion (KRW 3.51 billion for the main contract and KRW 160 million for pre-production), will run through June 17, 2024. Dexter Studios signed an agreement last November worth KRW 6 billion for the TV series 鈥淎鈥� with Climax Studio. The new agreement comes just ten months into the preceding deal. With this new agreement, both firms will work together on a project worth around KRW 10 billion by 2024.
- Thus, spending on animation and VFX in Television and OTT is increasing due to various factors, including the growing demand for high-quality content on streaming platforms. This has increased production budgets, driving investment in visually engaging experiences.
- Additionally, technological advancements have made animation and VFX more cost-effective and accessible, enabling the creation of complex visuals on smaller budgets. Furthermore, the expansion of streaming services worldwide has intensified competition, prompting businesses to differentiate themselves with captivating content, including animated films and series. Overall, these trends fuel the growth of spending on animation and VFX in the TV and OTT industry.
Asia Pacific Expected to Witness Significant Growth in the Market
- The writer鈥檚 and actor's strike has negatively impacted the growth of the North American animation and VFX market, resulting in a dip in spending in 2023. Several films and TV shows were delayed during the strike, significantly reducing the demand for VFX and animation work in the US and Canadian entertainment sectors.
- For instance, Paramount postponed Tom Cruise's latest venture, shifting the release of 'Mission: Impossible 鈥� Dead Reckoning Part Two' from June 28, 2024, to May 23, 2025.
- Post-strike, the demand for VFX and animation work surged in 2024 in the North American region. The increasing demand for complex VFX projects requires a larger workforce of highly skilled professionals, and the industry faces a shortage of qualified talent. However, the emergence of new visual effects studios in the region is poised to bolster market growth and navigate the complexities of the surge in VFX demand.
- For example, in July 2024, Jonah Hall (ECD) and Jason Cohon (EP) established Boma, a fully remote studio focusing on visual effects, design, and immersive experiences. Based in Los Angeles, Boma is adept at navigating the ever-evolving digital production landscape. Boma aims to deliver swift turnarounds on tight budgets without compromising creative quality. Their expertise spans visual effects, animation, editorial work, finishing, motion graphics, and creative direction. With a fully remote pipeline, Boma boasts global partnerships across three continents and leverages senior creative talent from the United States, enabling them to scale projects rapidly.
- North America is a pivotal market for Animation and VFX, fueled by its established entertainment industry, a thriving gaming sector, and continuous technological advancements. The United States hosts prominent animation studios and VFX firms, bolstering the region's global market leadership. The region is home to the biggest industry giants, such as Disney, Pixar, DreamWorks, and renowned VFX entities, such as Industrial Light and Magic (ILM).
- Moreover, North America is home to a booming gaming industry. As video games increasingly demand realistic and immersive graphics, the VFX industry is witnessing significant growth. With games evolving to be more intricate and lifelike, there's a heightened need for advanced 3D animations, motion graphics, and real-time rendering. This evolution has led gaming studios to forge deeper collaborations with VFX companies.
- For instance, in May 2024, Story Kitchen and DreamWorks Animation entered a strategic partnership, granting Story Kitchen the first-look rights for an animated film. Story Kitchen aims to secure thrilling and iconic video game intellectual properties (IP) for DreamWorks Animation, targeting adaptations for global animated audiences.
Animation and VFX Industry Overview
The animation and VFX market is fragmented, with several small and medium-sized vendors alongside several large established vendors. The market studied is evolving with continuous solution introductions, which gives a competitive advantage to vendors operating in the market and allows them to stay ahead. Also, continuous innovation in offerings and functionalities creates differentiating advantages for vendors.
Some of the major market players have differentiated solutions and services. The small firms in the market generally do not provide varied solutions. For small firms, exit is relatively easy compared to larger firms because of the lower investment costs incurred. Notable market players are 3D Matchmovers, Rocket Science VFX, Blue Bolt, Trixter GMBH, and FX3X, among others.
Overall, the intensity of the competitive rivalry is high in the market studied and is expected to be the same over the forecasted period.
Animation and VFX Market Leaders
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3D Matchmovers
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Rocket Science VFX
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Blue Bolt
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Trixter GMBH
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FX3X
*Disclaimer: Major Players sorted in no particular order
Animation and VFX Market News
- July 2024: Lostmarble LLC released its software update Moho 14.2, which includes many new features and fixes, 鈥楽mart boil鈥� for vector noise, animated Curve Profile, better support for PSD files, a big performance boost for projects with many layers, a new Display Quality option, and others.
- August 2024: Crafty Apes, a full-service visual effects firm with studios spanning New York, Atlanta, Los Angeles, Canada, London, and more, secured a strategic investment. This investment came from a consortium of institutional investors spearheaded by Morgan Stanley Investment Management and Camberline Capital Management.
- July 2024: DNEG Group, a global player in visual entertainment technology and services based in London, announced a strategic investment of USD 200 million from United Al Saqer Group (UASG). UASG's investment will propel The DNEG Group's strategy, transitioning it from solely providing visual effects services to becoming a versatile content producer and an AI-driven technology partner across various sectors, thereby cementing its leadership in technology and creativity.
Animation and VFXMarket Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products and Services
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshot
4.4 Assessment of the Impact of COVID-19 on the Market
4.5 2023 Writers Guild of America Strike and the Impact on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapid Growth in Hybrid and Animation Devices with 3D Enabled Technology
5.1.2 Rapid Growing Demand of Visual Effect Across the Multimedia Sector
5.2 Market Restraints
5.2.1 Growth in the Software and Media Piracy
6. MARKET SEGMENTATION
6.1 By Animation Platform
6.1.1 Television and OTT
6.1.2 Films
6.1.3 Advertisement
6.1.4 Gaming
6.1.5 Other Animation Platforms(Ed-tech, etc.)
6.2 By Geography***
6.2.1 North America
6.2.2 Europe
6.2.3 Asia
6.2.4 Australia and New Zealand
6.2.5 Latin America
6.2.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 3D Matchmovers
7.1.2 Rocket Science VFX
7.1.3 Blue Bolt
7.1.4 Trixter GMBH
7.1.5 FX3X
7.1.6 Atomic Arts
7.1.7 Phosphene LLC
7.1.8 Jellyfish Pictures
7.1.9 Base Media
7.1.10 Fuse FX
7.1.11 One of Us Ltd
7.1.12 Image Engine Design Inc.
7.1.13 Weta FX Limited
7.1.14 Industrial Light & Magic (The Walt Disney Company)
7.1.15 Framestore
7.1.16 Pixomondo (Sony Pictures Entertainment)
7.1.17 Outpost VFX Limited
7.1.18 Crafty Apes
7.1.19 DNEG Group
7.1.20 Vee Technologies
7.1.21 Pixune Studios
7.1.22 Pixerio Solutions Private Limited
7.1.23 Pritt Entertainment Group
7.1.24 SPIN VFX
7.1.25 VFXaddART
7.1.26 Adobe Inc.
7.1.27 Autodesk Inc.
7.1.28 Bondware Inc.
7.1.29 Planetside Software LLC
7.1.30 ACT-3D BV
7.1.31 Toon Boom Animation Inc. (TPG Inc.)
7.1.32 iPi聽Soft LLC聽
7.1.33 Lostmarble LLC
7.1.34 Animaker Inc.
7.1.35 Side Effects Software Inc. (SideFX)
7.1.36 Blender Foundation
7.1.37 The Foundry Visionmongers Ltd
7.1.38 Epic Games Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Animation and VFX Industry Segmentation
The animation and VFX market is defined based on the spending of various end users in the VFX and animation market. The said industry is treated as a subset of the broader creative industries. The animation and VFX industries encompass pre and post-production, technology, machine learning, outsourcing, software products, and sales. The study is structured to track the demand for animation, VFX, and post-production services rendered by various studios globally. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the market鈥檚 growth in terms of drivers and restraints.
The animation and VFX market is segmented by animation platforms (television and OTT, films, advertisement, gaming, and other animation platforms (Ed-tech, etc.)) and geography (North America, Europe, Asia Pacific, and the Rest of the World). The report offers market forecasts and size in value (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 | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Animation and VFXMarket Research FAQs
How big is the Animation And VFX Market?
The Animation And VFX Market size is expected to reach USD 176.08 billion in 2024 and grow at a CAGR of 12.05% to reach USD 310.97 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 176.08 billion.
Who are the key players in Animation And VFX Market?
3D Matchmovers, Rocket Science VFX, Blue Bolt, Trixter GMBH and FX3X are the major companies operating in the Animation And VFX Market.
Which is the fastest growing region in Animation And VFX Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Animation And VFX Market?
In 2024, the North America accounts for the largest market share in Animation And VFX Market.
What years does this Animation And VFX Market cover, and what was the market size in 2023?
In 2023, the Animation And VFX Market size was estimated at USD 154.86 billion. The report covers the Animation And VFX Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Animation And VFX Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the latest trends in the Animation and VFX Market?
Current trends in the Visual Effects (VFX) Market are a) Use of AI and machine learning b) Rise of independent animators through platforms like YouTube c) Increasing integration of VFX in live-action films
What role does AI play in the Animation and VFX Industry?
Artificial Intelligence (AI) is revolutionizing the Animation and VFX Industry by automating tasks, enhancing creativity, and improving the efficiency of animation and VFX production processes.
What are the latest trends in the Animation and VFX Market?
Current trends in the Visual Effects (VFX) Market are a) Use of AI and machine learning b) Rise of independent animators through platforms like YouTube c) Increasing integration of VFX in live-action films
Animation and VFXIndustry Report
The animation and VFX market is experiencing significant growth, largely driven by the increasing demand for immersive and high-quality content across various media platforms, including movies, television, gaming, and advertisements. The industry is segmented by type, encompassing 2D, 3D, motion graphics, and stop motion, and by end-user sectors such as media, entertainment, and gaming. Geographically, the market spans North America, Europe, Asia-Pacific, and the Rest of the World.
Innovations in artificial intelligence and augmented reality are revolutionizing production processes, making visual effects more lifelike and interactive. These technological advancements in both software and hardware are enabling creators to deliver detailed and dynamic visual effects efficiently. The proliferation of streaming platforms and digital media further supports the surge in the adoption of VFX, as these platforms demand visually enriched content to attract and retain subscribers.
The market size is expanding, and the industry growth is set to continue its upward trajectory, fueled by evolving consumer preferences and technological innovations. Detailed industry statistics and market research indicate that the animation and VFX market is poised for substantial growth. The industry overview highlights key trends and the market segmentation, providing insights into the market share and the industry's outlook.
For those interested in a comprehensive analysis, 糖心vlog传媒鈩� Industry Reports offer a free report PDF download, which includes a market forecast and historical overview. This report serves as a valuable resource for understanding the market value, industry size, and the growth rate of the animation and VFX market. Additionally, the report provides an in-depth industry analysis, market data, and market predictions, helping stakeholders make informed decisions.
Overall, the animation and VFX market's growth is underpinned by a combination of technological advancements, consumer demand for immersive content, and the rise of digital media platforms. The industry's future looks promising, with continued advancements and an expanding market forecast.
