Unlocking Opportunities in the Animation Market: 2025-2034 Forecast Report

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What Will the Animation Industry Market Size Be by 2025?
Recent years have witnessed a robust surge in the size of the animation market. A projected rise from $379.83 billion in 2024 to $407.03 billion in 2025, translating to a compound annual growth rate (CAGR) of 7.2%, signifies this. Factors such as a marked preference for visual storytelling, a wider application in film and television productions, its growing inclusion in video games, prevalent usage in advertising and marketing initiatives, as well as its increased application in the educational and training sectors have contributed to the growth observed during the historic period.

What's the Long-Term Growth Forecast for the Animation Market Size Through 2029?
In the upcoming years, the animation market size is predicted to experience robust growth, escalating to $531.31 billion by 2029 with a compound annual growth rate (CAGR) of 6.9%. This increase during the forecast period is due to factors such as the rising need for animated content, the increasing preference for streaming services, the expanding gaming industry, and the escalating demand for both stop-motion and 3D animation. Key trends projected in this period encompass advancements in the animation industry, including the adoption of virtual reality (VR) and augmented reality (AR), developments in computer-generated imagery (CGI), enhancements in motion capture technology, and progressions in real-time animation tools.

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What Are the Key Growth Drivers Fueling the Animation Market Expansion?
The animation market is set to expand, driven by the burgeoning demand for media and entertainment. The media and entertainment sector, characterized by a wide-ranging industry focused on creating, distributing and consuming content designed to inform, entertain and captivate audiences, has experienced a substantial uptick in demand. This surge is attributable to several primary factors including changes in consumer behavior, content variety, the influence of social media, and the advent of creative content delivery methods. Animation plays a pivotal role in enhancing the media and entertainment sectors through its capacity to deliver innovative solutions, captivate audiences, and push storytelling and visual expression to new frontiers. As an example, statistics from the Digital Entertainment and Retail Association (ERA), an industry organization based in the UK, reveal that spending on music streaming subscriptions, vinyl, and CDs in the UK grew by 9.6% in 2023, nearly doubling the growth rate of 2022 at 5%. In addition, the UK entertainment market saw a growth of 7% during 2023. Consequently, the expanding demand for media and entertainment serves as the driving force behind the animation market.

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What Are the Key Trends Driving Animation Market Growth?
Prominent entities in the animation market are pioneering the development of text-to-3D animation via generative AI technology, which simplifies the creative process. Generative AI facilitates the fabrication of bespoke animations, accelerating production, making it more affordable and accessible, and broadening the scope for creators and narrators. For example, in November 2023, MotionGPT, a revolutionary AI-driven platform, was launched by DeepMotion, a renowned US-based animation firm. This state-of-the-art solution exploits extensive language models and deep learning to transform the production of 3D content. With MotionGPT which utilises the latest strides in natural language processing and generative AI, text descriptions can be converted into intricate 3D character animations. Users just need to input a text prompt, and the platform will spontaneously generate a corresponding 3D animation equipped with lifelike movements, facial gestures, and body language.

How Is the Animation Market Segmented?
The animation market covered in this report is segmented -

1) By Offering: Software, Services
2) By Type: Two Dimensional (2D) Animation, Motion Graphics, Three Dimensional (3D) Animation, Stop Motion, Other Types
3) By Revenue Stream: Over-The-Top (OTT), Advertising, Sale Of Tickets, Other Revenue Streams
4) By Deployment: On-Premise, On-Demand
5) By Application: Media And Entertainment, Automotive, Online Education, Other Applications

Subsegments:
1) By Software: 2d Animation Software, 3d Animation Software, Motion Graphics Software, Stop Motion Animation Software, Game Development Animation Software, Virtual Reality (Vr) Animation Software, Augmented Reality (Ar) Animation Software
2) By Services: Animation Production Services, Outsourcing And Contract Animation Services, Pre-production Services (Storyboarding, Character Design), Post-production Services (Editing, Vfx, Compositing), Animation For Advertising And Branding, Animated Content For Movies, Tv Shows, And Web Series, Custom Animation Services (Corporate, Educational, Marketing), Interactive Animation Services (Games, Apps, Virtual Worlds)

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Which Companies Are Leading the Charge in Animation Market Innovation?
Major companies operating in the animation market are Sony Corporation, NVIDIA Corporation, Adobe Systems Inc., Autodesk Inc., Trimble Inc., DreamWorks Animation LLC, Walt Disney Animation Studios, Corel, Newtek Inc., MAXON Computer GmbH, Zco Corporation, Image Metrics Inc., Smith Micro Software Inc., Video Caddy, Animaker Inc., SideFX, Aardman Animations Ltd., Triggerfish Studios, Animation Sharks, Bondware Inc., EIAS3D LLC, Blue Sky Studios, Grafton Animation Studios, Pixologic Inc., Exocortex Technologies Inc.

Which Regions Are Leading the Global Animation Market in Revenue?
North America was the largest region in the animation market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the animation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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