The global 3D animation software market is estimated to grow at a CAGR of 11.0% during the forecast period, owing to the rising demand for animation in the gaming and entertainment industry in tandem with accelerated technological advancements. 3D animation software is predominantly employed in entertainment and gaming fields; however, nowadays its application is extended to architecture, life science, and healthcare sectors. Studying human and animal anatomy becomes easy through animated images and video tutorials. The technology act as an excellent medium of communication for manufacturing industries, as it enables the user to portray the concept illustratively. It is snowballing at a rapid pace due to the ability to produce fantastic, realistic, and innovative images. Civil engineers and architects extensively use 3D technology to scrutinize the plans and building models.
The integration of artificial intelligence (AI) and virtual reality (VR) in 3D animation software is engendering substantial opportunities in the market. It has a broad spectrum of applications in several verticals such as computer gaming, advertising and marketing, fashion and textile, automotive, and geology and science. The technology has the potential to create large blueprint layouts, providing meticulous detail of every component. In the automotive industry, 3D animation renders better visualization and simulation tools for enhanced understanding. The modeling tools provided by 3D animation software helps the automobile manufacturing companies to build highly efficient machines.
Outsourcing of 3D modeling service is gaining traction lately, as 3D animation software licensing is highly expensive and requires expert and trained staff. Also, for 3D modeling, CAD software and systems are mandatory. This has urged architectural and automotive companies to outsource 3D modeling for car designs and buildings. Outsourcing allows automotive designers and structural engineers to enhance productivity and reduce expenses.
Thriving development in high definition (HD) video technology in conjunction with the growing utilization of 3D animated videos in the manufacturing industry to generate a graphic model of the working elements of heavy machines is estimated to accelerate the 3D animation market growth. According to a research study by European Audiovisual Observatory, close to 50 animated films are made in Europe every year. Implementation of virtual reality and visual effects for movie production, rising demand for mapping technologies for navigation and GPS, and escalating demand for 3D mobile applications, are collectively stimulating market progression. Furthermore, the 3D animation technique is exploited by laboratories, hospitals, and health research centers to develop medicines, improvise treatment, and to assist surgical procedures.
Hybrid technology is significantly bolstering the development pace of 3D animation software. In this technology, 2D and 3D animations are blended to offer a realistic visual experience. This is anticipated to increase the revenue for the global 3D animation software industry. Toon shading and photo-realistic tools have further augmented the scope of hybrid animation. This technology markedly enhanced the picture quality and visual effects in the overall entertainment sector.
In contrast, unimpeded access to open-source 3D software and piracy issues are negatively affecting the 3D animation software market growth. Piracy leads to adverse revenue loss for the animation sector; thus, inhibiting the market growth. The rising interest among people toward 3D animated movies, alongside the integration of artificial intelligence and virtual reality in 3D technology, is foreseen to fuel the market growth. However, lack of government support and low proficiency level is estimated to obstruct the market growth during the forecast period.
The 3D modeling segment, among other technique segments, holds the largest market share due to the factors such as scenario visualization, increased speed, precision and control, and reduced lead times. 3D modeling is employed broadly in entertainment, movies, advertisement, and engineering fields. The emergence of 3D acquisition devices, improvement in 3D content, and wider availability of 3D display devices are the determinants encouraging the segment’s growth. On the other hand, the visual effects segment is projected to be the fastest-growing segment with a CAGR of 12% during the forecast period, 2019–2025.
The software segment, among other component segments, dominates the market and is forecasted to emerge with the highest CAGR of 12% during the forecast period, 2019–2026. The segment encompasses software development kits (SDK), packaged software solutions, and plug-ins. The overriding factors aiding the software segment growth are advancements in stereoscopic imaging technology and the software’s ability to generate motion graphics and special effects for video games, feature films, and animated gifs.
The on-demand segment, among other deployment segments, holds significant market share, It is the fastest-growing segment with a CAGR of 12% during the forecast period, 2019–2026. The segment helps reduce infrastructure costs and time by hosting the animation software on the vendor’s server, accessed via a web browser. 3D animation software service providers offer on-demand deployment of software for commercial customers on account of the increasing preferences for cloud-based deployments.
The media and entertainment segment, among other end-user industry vertical segments, possess 60% of the market share. The segment is a primary revenue contributor in the global 3D animation market. It is anticipated to grow at a CAGR of 14% during the forecasted period, 2019–2026 The gaming industry heavily relies on 3D animation software to generate visual effects. Since 2010, close to 90% of games have been produced by a dint of 3D animations. The staggering popularity of MOBA (Multiplayer Online Battle Arena) indicates the changing interests in the gaming market. Presently, MOBA is considered as the most prevalent gaming genre as it provides fast-paced action thrills in first-person shooter games. It offers striking visual effects, substantially attracting gamers toward the genre. The subscriber base for the World of Warcraft game in 2004 reached close to 600,000, following the release of its sequel Warlords of Draenor. The sequel offers high-quality visual graphics and features. Similarly, animated movies are also garnering popularity among the worldwide audience. DreamWorks animation studio generated approximately 11 billion USD in 2014, post the release of their films, the Croods, Shrek, and Kung Fu Panda.
The technology is also used in educational institutions to effectively explain the several scientific concepts to the students. Developers of educational applications and e-learning platforms are increasingly adopting 3D animated videos in their educational curriculum. For instance, SAWBO (Scientific Animations Without Borders) develops scientifically precise and accurate 3D animations for learning purposes.
North America is the largest shareholder of the 3D animation market and is estimated to retain the position. The region is projected to grow at a CAGR of 17.4% in the 3D animation market during the forecast period, 2019–2026 The region’s dominance is attributed to sustainable and firmly established economies, allowing investors to invest in research and development activities. This is increasingly stimulating the expansion of new techniques in 3D rendering and 3D modeling. The region holds 42% of the overall 3D market revenue, where the United States dominates the market as it houses notable multinational studios, such as Fox Studios, Walt Disney, Cartoon Network, and Nickelodeon. These companies predominantly utilize 3D animation techniques in the production process.
Asia Pacific is the fastest-growing region and is projected to flourish with a CAGR of 18.7% during the forecast period, 2019–2026. The Increasing adoption rate of innovative 3D technologies and the retainment of production facilities for western industries are the factors accelerating the regional market growth. Adaptable regulatory systems and vast availability of labor force in the Asia Pacific region encouraged the European and American countries to outsource projects. Developing countries in the region, such as India, China, and Japan, are gaining momentum and executing various measures concerning research and development to support animation studios. Japan’s 3D animation industry is snowballing due to the popularity of cartoon series such as Power Stone, Pokemon, Monster Farm, and Detective Conan. Developing countries cashed in on benefits from the 3D animation market due to the low cost of production.
Europe's 3D animation market is the second dominating region and is expected to grow at a CAGR of 11.2% during the forecast period, 2019–2026. Germany holds the largest market share in the region, with the dominating media and entertainment segment growing with a CAGR of 8.6%. Technological advancements in tandem with the rising preference towards animated and graphics movies are positively influencing Europe’s market growth.
The prevalence of movies with special effects in countries, such as Brazil and Argentina, is driving the global 3D animation software market growth in the Latin American region. Since the past few years, the region has been witnessing drastic technological developments. The Latin American film producers are joining forces with the U.S and several other European countries, propelling the regional market growth.
The notable players in the global 3D animation market are
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