Rising Gaming Industry Fuels Growth In The Generative AI In Animation Market: Transformative Forces Shaping the Generative AI In Animation Market Landscape in 2025

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Generative AI In Animation Market Size Growth Forecast: What to Expect by 2025?
The market size of generative ai in animation has experienced a significant increase lately. The market, which is projected to escalate from $1.75 billion in 2024 to $2.37 billion in 2025, had a compound annual growth rate (CAGR) of 35.7%. Factors such as the automation of animation functions, creation of lifelike animations from actual occurrences, exploration of various animation techniques, amplified artistic productivity, and broad endorsement and application have contributed to the growth in the historical period.

How Will the Generative AI In Animation Market Size Evolve and Grow by 2029?
In the forthcoming years, the generative ai in the animation market is predicted to undergo rapid expansion. The market's size is projected to reach $7.45 billion in 2029, with a compound annual growth rate (CAGR) of 33.1%. Factors like ethical considerations, improvements in efficiency, enhanced realism, increased accessibility, interactivity integration, and cross-platform compatibility are attributed to this anticipated growth. Noteworthy trends during this prediction period consist of procedural animation, style swapping in animation, bettered scene creation, AI-facilitated lip sync, and real-time character animation.

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What Drivers Are Propelling the Growth of Generative AI In Animation Market Forward?
The surge in the gaming industry is anticipated to boost the generative AI in animation market's expansion in the future. This industry involves the creation, production, distribution, and earning potential of video games on a variety of platforms, including consoles, PCs, and mobile devices. The ballooning gaming industry can be ascribed to heightened accessibility via mobile platforms and a global audience that is more and more fascinated by gaming as both a form of entertainment and a competitive pursuit. Generative AI is instigating a revolution in game animation by independently producing realistic characters and settings, which enhances engagement and reduces the time frame for development. Its capacity for procedural generation presents boundless potentialities, leading to evolving narratives and extensive virtual realities. For example, the Entertainment Software Association, a US-based video game industry trade organization, reported in January 2023 that U.S consumer expenditure on video game content, equipment, and paraphernalia reached $7.6 billion in December 2022. This represents a 2% increase from the same month in 2021, amounting to a total of $56.6 billion throughout the whole of 2022. Consequently, the escalating gaming industry is fuelling the growth of the generative AI in animation market.

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Which Emerging Trends Are Transforming the Generative AI In Animation Market in 2025?
Leading firms in the generative AI in animation market are concentrating on creating novel services, such as a browser-based generative AI service, in order to increase their market revenues. With the aid of advanced tools and techniques provided by a browser-based generative AI service, the animation industry undergoes a transformation, enabling animators to create appealing and visually striking animations more efficiently. For example, DeepMotion Inc., a US-based company specializing in cloud-based deep learning motion intelligence, unveiled a new browser-based generative AI service and creator platform called Saymotion in March 2024. This platform uses generative AI technology to translate text prompts into complex 3D animations in just a few minutes. The platform employs natural language processing (NLP) to change text prompts into 3D animations, and it can create animations in FBX (Filmbox), GLB (GL Binary), and BVH (Biovision Hierarchy) formats that can be used in DCC software and game engines. Users can produce detailed animations of human characters by providing text prompts that detail the character, the action they are performing, and the direction, orientation, or style of the animation.

What Are the Key Segments in the Generative AI In Animation Market?
The generative ai in animationmarket covered in this report is segmented -

1) By Type: Transformers, Generative Adversarial Networks, Variational Autoencoders, Other Types
2) By Components: Solutions, Services
3) By Application: Television And Over-The-Top, Films, Advertisements, Gaming, Other Applications

Subsegments:
1) By Transformers: Encoder-Decoder Transformers, Vision Transformers (Vit), Generative Transformers For Animation
2) By Generative Adversarial Networks (Gans): Conditional Gans, Cyclegans, Stylegans, Dcgans (Deep Convolutional Gans)
3) By Variational Autoencoders (Vaes): Conditional Vaes, Beta-VAE, Variational Recurrent Autoencoders
4) By Other Types: Recurrent Neural Networks (RNN), Generative Models For 3D Animation, Diffusion Models

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Who Are the Key Players Shaping the Generative AI In Animation Market's Competitive Landscape?
Major companies operating in the generative AI in animation market report are Alphabet Inc.; Microsoft Corporation; Meta Platforms Inc.; Amazon Web Services Inc.; Netflix Inc.; NVIDIA Corporation; Adobe Inc.; Autodesk Inc.; Epic Games Inc.; Pixar Inc.; Wētā FX; The Cinesite Group; Hugging Face Inc; MAXON Computer GmbH; Synthesia A S; Kinetix; Runway AI Inc; AI21 Labs; Descript Inc; Toon Boom Animation Inc.; Side Effects Software Inc.; Wibbitz Inc; Midjourney Inc; Lumen5 Technologies Ltd; RADiCAL Solutions Inc

What Geographic Markets Are Powering Growth in the Generative AI In Animation Market?
North America was the largest region in the generative AI in animation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in animation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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