Growing Media And Entertainment Demand Fuels Expansion Of The Animation Market: A Key Catalyst Accelerating Animation Market Growth in 2025

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Animation Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In recent times, the animation industry has seen robust growth. Its market size, valued at $379.83 billion in 2024, is projected to increase to $405.44 billion in 2025 with a compound annual growth rate (CAGR) of 6.7%. The historical growth of this market is linked to a greater inclination towards visual storytelling, heightened usage in film and television productions, expanded utilization in video games, more application in promotional and marketing campaigns, and its increased role in education and teaching.

Animation Market Size Forecast: What's the Projected Valuation by 2029?
Predictions indicate a significant expansion in the animation market size over the upcoming years, with a forecast of $521.39 billion by 2029, fueled by a compound annual growth rate (CAGR) of 6.5%. This projected rise in the upcoming years can be linked to the growing desire for animated content, the rising popularity of online streaming platforms, the expanding gaming industry, increased interest in stop-motion animation, and a burgeoning demand for 3D animation. The forthcoming period is also expected to observe significant trends such as advancements in animation techniques, the implementation of virtual reality (VR) and augmented reality (AR), progress in computer-generated imagery (CGI), improvements in motion capture technology, and developments in real-time animation tools.

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What Are the Drivers Transforming the Animation Market?
The growth of the animation market is anticipated to be driven by an increasing demand for media and entertainment. This sector broadly includes various activities related to the creation, distribution, and consumption of content to inform, entertain, and engage audiences. Several key factors, such as changing consumer habits, diversity in content, the influence of social media, and innovation in content delivery, have contributed to a substantial growth in media and entertainment demand. Animation plays a crucial role in enhancing the media and entertainment sector by providing creative solutions, captivating audiences, and pushing the limits of storytelling and visual representation. For instance, the Digital Entertainment and Retail Association (ERA), a UK-based industry body, stated in January 2024, that the UK's expenditure on music streaming subscriptions, vinyl, and CDs shot up by 9.6% in 2023, almost double the growth rate in 2022 (+5%). Moreover, the UK saw a market growth of 7% in entertainment in 2023. Given these factors, the burgeoning demand for media and entertainment underscores the growth trajectory of the animation market.

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What Are the Key Trends Driving Animation Market Growth?
Significant companies in the animation industry are incorporating text-to-3D animation through the use of generative AI technology, making the creative process more efficient. The use of generative AI allows for the creation of customized animations, thus making the animation process quicker, more affordable, and increasing creative options for animators and storytellers. For example, in November 2023, DeepMotion, an American animation company, released MotionGPT, an innovative AI-powered platform that can produce 3D animations from text inputs. Utilizing large language models and deep learning, this cutting-edge solution is changing the framework of 3D content creation. MotionGPT employs the latest progress in natural language processing and generative AI to convert textual descriptions into advanced 3D character animations. Simply entering a text prompt enables users to generate a corresponding 3D animation, replete with life-like movements, facial expressions, and body language.

Which Segments in the Animation Market Offer the Most Profit Potential?
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 Firms Dominate the Animation Market by Market Share and Revenue in 2025?
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 Offer the Highest Growth Potential in the Animation Market?
North America was the largest region in the animation market in 2024. 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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