by The animation and VFX industry involves the creation of animated films and visual effects for various mediums like films, television, advertisements, video games and more. Animation services aid in production of animated films, series, cartoons and more. Visual effects enhances films and videos by adding digital imagery, animation and other visual elements which cannot be achieved during live-action filming. There has been rising demand for animation services in children’s content as animated films/series continue to attract young audience globally. VFX plays a vital role in major film productions by helping filmmakers bring imaginative sequences, locations, creatures and events to screen through digital means. Growing investments in high-quality VFX and animation by film/TV production studios coupled with rapid technological advancements are further propelling the industry’s growth.
The global Animation and VFX Market is estimated to be valued at US$ 217.06 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the animation and VFX market is increasing investments in animated films and series across various streaming platforms. Major streaming platforms like Netflix, Amazon Prime and Disney+ have been significantly increasing their original animated content libraries to attract and retain subscribers. With rising popularity of streaming services worldwide, these platforms are commissioning more animated shows/films to cater to increasing demand. Another major trend is growing focus on interactive animation for virtual/augmented reality applications. Companies are increasingly developing interactive animated content for VR/AR headsets using advanced animation technologies like motion capture and real-time rendering. This is expected to open new revenue streams for animation and VFX studios over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants entering the animation and VFX market is moderate due to high initial capital costs required to set up animation and VFX studios.
Bargaining power of buyers: The bargaining power of buyers in the animation and VFX market is high as buyers have a number of established players to choose from.
Bargaining power of suppliers: As specialized skills are required, the bargaining power of suppliers in the market is moderate.
Threat of new substitutes: The threat of substitutes is low in the animation and VFX market as there are limited alternatives.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of many global and regional players.
Key Takeaways
The Global Animation And VFX Market Size is expected to witness high growth over the forecast period. The global Animation and VFX Market is estimated to be valued at US$ 217.06 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030.
North America is expected to hold the largest share of the animation and VFX market during the forecast period. This is attributed to presence of major players and highest adoption of advanced technologies in the region.
Asia Pacific is projected to witness fastest growth in the animation and VFX market due to rising number of outsourcing of animation work to emerging economies in the region such as China and India.
Key players operating in the animation and VFX market are Amgen Inc., Abbvie Inc., GlaxoSmithKline PLC, Pfizer Inc., Novo Nordisk AS, Novartis AG, Johnson & Johnson, Eli Lilly and Company, Bristol-Myers Squibb Company, and F. Hoffmann-La Roche Ltd., among others. The major players are focusing on adopting various organic and inorganic growth strategies such as mergers & acquisitions and new product launches to strengthen their foothold in the market.
