Animation, VFX and Games Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Application : Global Opportunity Analysis and Industry Forecast, 2024-2032

Key market dynamics 

Key trends in the animation, VFX, and games market include rise in demand for immersive experiences, fueled by advancements in virtual reality (VR) and augmented reality (AR) technologies. In addition, there's a growing focus on mobile gaming and esports, driven by the proliferation of smartphones and online gaming platforms. Moreover, the expanding global audience for digital content and the emergence of new distribution channels contribute to the industry's growth. Opportunities lie in the continued expansion of streaming platforms and the growing market for original content creation. In addition, the integration of AI and machine learning technologies into animation and gaming processes presents new avenues for innovation and efficiency gains for the market during the forecast period. However, the industry also faces restraints such as high production costs and competition from emerging markets. Furthermore, regulatory challenges and concerns over intellectual property rights pose potential obstacles to the market growth. 

Socio-economic impact analysis on Animation, VFX and Games Industry 

The animation, VFX, and games market has a significant socio-economic impact across various dimensions: 

• Job Creation: The industry generates employment opportunities for a diverse range of professionals, including artists, animators, programmers, designers, writers, and marketers. This fosters economic growth and contributes to reducing unemployment rates, particularly in regions with a strong presence of animation and gaming studios. 

• Creative Economy: Animation, VFX, and games contribute to the creative economy by nurturing talent, fostering creativity, and supporting cultural expression. The industry serves as a platform for storytelling, artistic innovation, and cultural exchange, promoting diversity and enriching societies globally. 

• Technological Advancement: The demand for cutting-edge technologies in animation, VFX, and gaming drives innovation and technological advancements. This spurs investment in research and development, leading to the creation of new tools, software, and hardware that benefit not only the industry but also other sectors such as film, advertising, education, and healthcare. 

• Global Trade and Investment: The international nature of the animation, VFX, and gaming industry promotes cross-border trade and investment. Studios collaborate on projects, share resources, and engage in co-productions, contributing to economic globalization and cultural exchange. Additionally, the export of animated films, VFX services, and game titles generates revenue and enhances the trade balance of exporting countries. 

• Tourism and Cultural Influence: Iconic characters, franchises, and gaming events attract tourists and fans, boosting tourism revenues and promoting cultural exchange. Popular gaming conventions, animation festivals, and themed attractions contribute to the vitality of local economies and enhance the cultural appeal of host cities. 

• Education and Skills Development: The demand for skilled professionals in animation, VFX, and gaming drives investments in education and training programs. Institutions offer specialized courses and degrees in digital art, animation, game design, and programming, equipping students with the skills needed to succeed in the industry. This supports human capital development and lifelong learning initiatives. 

• Social Impact and Community Engagement: Animation, VFX, and games have a profound influence on society, shaping attitudes, values, and perceptions. They entertain, educate, and inspire audiences of all ages, fostering social cohesion and community engagement. Moreover, the industry promotes inclusivity and representation, championing diverse voices and narratives. 

In conclusion, the animation, VFX, and games market play a vital role in driving socio-economic development, fostering creativity, innovation, and cultural exchange, and enriching the lives of individuals and communities worldwide. 

Market Segmentation 

The animation, VFX and games market size is segmented on the basis of type, application, and region. On the basis of type, it is categorized into animation & VFX and game & VFX. By application, the market is divided into anime, film, and video game. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

Regional/Country Market Outlook 

In the aanimation, VFX and games market forecast, India is rapidly emerging as a key player, driven by a large pool of skilled talent, cost-effective production capabilities, and rise in demand for animation and gaming content globally. China boasts a booming market fueled by government support, a growing middle class, and surge in domestic consumption of entertainment content. The U.S. remains a dominant force, with Hollywood studios driving innovation and setting global trends in animation and VFX. South Korea is recognized for its strong gaming industry, characterized by a vibrant esports scene and a focus on mobile gaming. Other regions are also witnessing growth, with countries such as Canada, the UK, and Japan making significant contributions to the industry through talent, technology, and creative output. Hence, the global animation, VFX, and games market continue to expand, driven by technological advancements, evolving consumer preferences, and increasing demand for immersive entertainment experiences. For instance, in December 2022, the Indian govermet launchd a “Create in India” campaign to focus on domestic content creation, including financial support from the government. In this initiative, they will train 70, 000 school teachers in the AVGC sector, with classes for middle and high school students, as well as undergraduate courses in animation, visual effects, graphic design, and digital filmmaking, among other specialities. 

Industry Trends 

• In March 2024, Los Angeles real-time VFX studio, Beyond-FX was acquired by Singapore-based video gaming giant, Virtuos, which is looking to expand its portfolio to include real-time VFX, an increasingly sought-after skillset that demands a blend of artistry and technical fitness. 

• In December 2022, India’s government backed a plan to grow the country’s animation, VFX, gaming, and comics industries exponentially over the next eight years and plans to create nearly 2 million jobs during that time.  

• In the Budget 2022-23, the Indian government announced to set up ‘Animation, Visual Effects, Gaming and Comics’ (AVGC) task force to “build domestic capacity to serve Indian markets and global demand. 

• In 2021, the Ministry of Information and Broadcasting in collaboration with IIT Bombay decided to form a Centre of Excellence in gaming and other related areas. 

Competitive Landscape 

The major players operating in the animation, VFX, and games market include, 3ds Max, Motionbuilder, Blender, Clara.Io, Faceshift, Houdini Apprentice, Iclone, Ipi Soft, Makehuman, Maya, Mixamo, Poser, and Terragen. Other players in the animation, VFX, and games market include Smartbody, Boats Animator, Dragonframe, and others. 

Recent Key Strategies and Developments 

• For instance, in February 2024, DNEG launched its new division, DNEG IXP, to lead the new business area. DNEG IXP (Immersive Experiences) delivers super premium content in service of businesses, brands, and game publishers looking to craft breakthrough creative experiences across gaming, concerts and other live events, theme parks, retail, product launches, location-based experiences, and more. 

• For instance, in November 2022, Epic Games launched unreal Engine 5.1 with new and refined features for animation and VFX work.  

• In May 2024, Autodesk acquired Wonder Dynamics, makers of Wonder Studio, which is a cloud-based 3D animation and VFX solution that combines artificial intelligence (AI) with established tools. 

Key Sources Referred

• United Nations Educational, Scientific and Cultural Organization (UNESCO)

• The Animation Guild (TAG)

• International Animation Film Association (ASIFA)

• Visual Effects Society (VES)

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the animation, VFX and games market size segments, current trends, estimations, and dynamics of the animation, VFX and games market analysis from 2024 to 2032 to identify the prevailing animation, VFX, and games market opportunities.
• The animation, VFX, and games market forecast is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the animation, VFX and games market share assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global animation, vfx and games market trends, key players, market segments, application areas, and animation, VFX and games market growth strategies.