Global 3D Animation Market Extends at a Healthy CAGR of 11.1% by 2031

Introduction

3D animation makes digital objects appear to move in three dimensions, bringing them to life. Despite being presented in two dimensions, these computer-generated things are created to mimic the features of a three-dimensional world. They enable a 360-degree vision from all directions and give the appearance of moving, twisting, and rotating like a real object.

3D animation is creating animated three-dimensional images in a computer environment. These pictures were created with the aid of 3D software, which lets animators create digital objects that seem three-dimensional even though they are just on a two-dimensional surface. From a figure from a video game to a vehicle in advertising, animation pros can make anything appear moving in three dimensions. Visual effects and precise timing are used to accomplish this. Initially, 3D animation was largely used in creating video games, television shows, and movies. Pixar's "Toy Story" is a legendary example of 3D animation. 3D animation is used in a much larger variety of digital environments today. Marketing materials for medical imaging can all benefit from using 3D animation.

Market Dynamics

Increased Customer Demand for High-Quality Content Drives the Global Market

Due to the rise in demand for captivating high-definition visual experiences from consumers worldwide, film producers are demanding high-quality movies with realistic animations and visual effects. Across several entertainment studios, there are currently more animation shots in movies. To support immersive experiences like AR and VR, the demand for animation and visual effects content has also considerably expanded. More people are enjoying video content on different platforms, such as large-screen 4K or ultra-high-definition (UHD) TVs, tablets, and smartphones, outside multiplex theaters.

The demand for rich content and all forms of animation has expanded due to the increasing popularity of digital video content platforms, necessitating its use. This has motivated top providers of video streaming services to incorporate cutting-edge visual effects using technologies like virtual reality, 360-degree, and light-field capture. The rise in content creation by video streaming services has prompted production companies to use animation in their motion pictures and television programs. The digital video streaming services market has expanded more quickly because of the popularity of smartphones, laptops, tablets, and smart TVs. These factors greatly fuel the growth of the global 3D animation market.

Integration of Virtual Reality (VR) Technology for Visual Effects Creates Tremendous Opportunities

Animation is gradually utilizing VR technology as a crucial tool. Significant money is being provided for this technology's advertising, gaming, and home entertainment usage. Animators are using VR technology to create effects like this 3D animation market vendors are noticing a rise in demand due to the expanding work on more complex creatures and developing more appealing virtual environments. Visual effects and virtual reality are primarily concerned with creating an unfamiliar experience that can stun viewers. Studios are enhancing their virtual production capabilities, which are also useful for virtual reality, employing various techniques, including real-time graphics, motion capture, facial capture, and camera tracking. Most visual effects teams are slowly shifting their attention to virtual reality.

Regional Analysis

North America is the most significant global 3D animation market shareholder and is estimated to exhibit a CAGR of 10% over the forecast period. The area is expected to dominate the 3D animation market due to the multiple uses of visual effects and animation in Hollywood movies and the presence of important animation providers. Visual effects are the most creative method used in theaters to increase the realism of scenes. Demand for visual effects is increasing as more movies use live-action. The region's 3D animation market is expanding due to changes in the entertainment business, rising demand for creating hypothetical and imaginary content, a need for high-quality content, and the popularity of animated films, TV series, and video games.

Additionally, the use of visual effects by numerous studios in North America is a significant factor fueling the expansion of the local market. Additionally, the booming animation businesses in Vancouver, the US, and Montreal and significant government financing for Canadian film production services are projected to spur industry growth. Additionally, various film and advertising organizations' early use of cutting-edge technologies like AI and machine learning in 3D animation films to give customers superior visual effects is anticipated to fuel market growth.

Asia-Pacific is anticipated to exhibit a CAGR of 12.6% over the forecast period. This sector is driven by consumer demand for 3D animation capabilities like the augmentation and customization of live action. The frequency of collaborations between Chinese companies and overseas VFX companies is also predicted to increase, driving the market in this area. The Chinese 3D animation industry is constantly growing due to changing governmental restrictions and ongoing market conditions. Animation studios targeting the Chinese market want to locate offices there to work on Chinese movies and stay current with market trends. The budget for animation in China is currently, however, not particularly large. The Chinese market, however, is rapidly growing.

Furthermore, the Indian VFX industry has shifted from conventional outsourcing techniques to strategies emphasizing co-productions and intellectual property ownership, boosting the demand for 3D animation. Animation software like 3D Max, Maya, After Effects, and Nuke is employed in this field. India's visual effects market expanded quickly, flourishing and making money thanks to a strong ecosystem. Additionally, animation programming on India's Over-The-Top (OTT) platforms is fueling the industry's growth.

Key Highlights

• The global 3D animation market size was valued at USD 21,462.93 million in 2022. It is estimated to reach USD 55,349.72 million by 2031, growing at a CAGR of 11.1% during the forecast period (2023–2031).
• The global 3D animation market is bifurcated into component, deployment mode, technology, and industry vertical.
• Based on the component, the global 3D animation market is bifurcated into solutions and services. The solution segment dominates the global market and is projected to exhibit a CAGR of 10.8% over the forecast period.
• Based on deployment mode, the global 3D animation market is segmented into on-premises and cloud. The on-premises dominates the global market and is predicted to exhibit a CAGR of 10.5% during the forecast period.
• Based on technology, the global 3D animation market is bifurcated into 3D modeling, motion graphics, 3D rendering, visual effects, and others. The 3D modeling segment owns the highest market share and is predicted to exhibit a CAGR of 9.3% over the forecast period.
• Based on industry verticals, the global 3D animation market is divided into education, media and entertainment, healthcare, construction and manufacturing, retail, and others. The media and entertainment segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 9.8% over the forecast period.
• North America is the most significant global 3D animation market shareholder and is estimated to exhibit a CAGR of 10% over the forecast period.

Competitive Players

Competitive Players

The key players in the global 3D animation market are Corel Corporation, Autodesk Inc., Adobe Systems Incorporated, NVIDIA Corporation, Zco Corporation, The Foundry VisionMongers Ltd., Maxon Computer, Newtek Inc., Pixologic Inc., and Sidefx Software.

Recent Developments

Market News

• In May 2023, Vizrt Group announced the sale of the 3D computer graphics tool LightWave 3D to a team led by Andrew Bishop in the United Kingdom. Bishop and his team, who have over 30 years of experience in the animation and VFX industries, have now stepped forward to build the LightWave 3D program.
• In November 2022, Beyond Sports, a business that specializes in producing 3D animation using real-world data, was acquired by Sony. With this acquisition, the company can now reportedly provide a comprehensive metaverse experience for sports competitions, replete with technology from other companies currently in its portfolio.

Segmentation

Global 3D Animation Market: Segmentation

By Components

• Solution
• Service

By Deployment Mode

• On-Premises
• Cloud

By Technology

• 3D Modelling
• Motion Graphics
• 3D Rendering
• Visual Effects
• Others

By Industry Vertical

• Education
• Media and Entertainment
• Healthcare
• Construction and Manufacturing
• Retail
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa