3D Animation Market Expected to Reach $72.8 Billion by 2032—Allied Market Research

3D Animation Market

Report Code : A05975

quote The idea of characters, logos, images, and other movie elements morphing is becoming more popular. It is a switchover effect that is used to smoothly change one image or shape into another in movies and animations. It draws the audience's attention and persuades them to stay and watch the effect all the way through by acting as a visual magnet. Furthermore, high-speed internet has led to the widespread adoption of emerging technologies like augmented reality (AR) and virtual reality (VR), which have developed into crucial tools for producing excellent 3D animations. Moreover, due to the large workforce and low expenditure costs, India is gradually becoming an animation and visual effects hot spot, with the added benefit of English-speaking, talented software engineers and a vast pool of artistic talent, and thus all these factors will drive the market growth for the forecast period. quote

Amogh Thulgharia - Research Associate
ICT and Media at Allied Market Research

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According to a new report published by Allied Market Research, titled, “3D Animation Market,By Component (Solution, Service), By Deployment Mode (On-Premise, Cloud), By Technology (3D Modelling, Motion Graphics, 3D Rendering, Visual Effects), By Industry Vertical (Media And Entertainment, Education, Healthcare, Government And Defense, Construction And Manufacturing, Others): Global Opportunity Analysis And Industry Forecast, 2023-2032" The 3d animation market was valued at $19.5 billion in 2022, and is estimated to reach $72.8 billion by 2032, growing at a CAGR of 14.2% from 2023 to 2032.

The process of 3D animation involves moving characters and objects in a 3D environment to provide the appearance of motion. The things are created using 3D models that have been integrated into a digital setting using 3D modeling software. As an alternative, actual objects can be scanned into a computer or an animation tablet to create the blueprints for 3D animated objects. Furthermore, various trends are occurring in the 3D animation industry such as real-time rendering technologies have significantly improved, allowing animators to create high-quality visuals in real-time. This is especially important in the gaming industry, where real-time rendering enhances player experiences and enables more interactive gameplay. VR and AR technologies continue to shape the 3D animation industry. VR experiences provide immersive storytelling opportunities, while AR applications enhance real-world environments with interactive 3D elements. Both VR and AR are being used in gaming, education, marketing, and training. Machine learning and AI are being integrated into 3D animation workflows. AI algorithms can assist animators in tasks like character animation, facial expressions, and lip-syncing, streamlining the production process and reducing manual labor.                                              

Furthermore, the major market players adopted various product launch strategies to increase the competition and offer enhanced services to their customers. For instance, in November 2021, The Foundry Visionmongers applied a product launch strategy and launched Nuke 13.1 solution with a focus on streamlining artist workflows. The most recent version of the Nuke 13 series is 13.1 beta. This new tool offers workflow enhancements and experience enhancements that will enhance artist productivity and accelerate creative processes for individuals and groups. In addition, in August 2022, NVIDIA Corporation launched a new range of tools and features for their Omniverse platform for building and connecting metaverse worlds based on universal scene description (USD). The new expansion offers advanced and enhanced number of AI-powered tools and features that enables increasingly seamless integration with top 3D programs of the day such as PTC Creo, SideFX Houdini, Unity, and products from the Siemens Xcelerator platform. Moreover, in May 2023, Adobe Systems Inc. launched a tool named project sunrise. This tool helps marketing teams to generate fresh variations of images from a 3D model of products such as shoes, kitchen gadgets and furniture. In addition, it helps marketing professionals to come up with images required for web pages and marketing e-mails.  Therefore, such product launch strategies foster 3D animation market growth in the ICT sector. 

On the basis of technology, 3D modelling holds the largest market share of the 3D animation market in the year 2022. This is attributed to the emerging augmented reality (AR) and virtual reality (VR) technologies and increasing demand for special effects in movies, OTT series, YouTube platforms, and video games and to the large presence of key players and technologically advanced capabilities.

On the basis of region, North America dominated the 3D animation market in the year 2022. This is because of high investments in movies to offer unusual visual effects and seamless experience to the audience. Furthermore, increasing demand from video game users to enjoy a high gameplay experience.  

COVID-19 Impact 

The pandemic had a significant impact on 3D animation technology. The increasing demand for Ott content during the pandemic resulted in an increasing demand for Ott platforms like Netflix, Disney+, Amazon Prime, and others.  Furthermore, as people started working on a remote basis, the pandemic accelerated the adoption of digital collaboration tools and cloud-based software, enabling artists and animators to work together seamlessly, regardless of their physical location. In addition, the pandemic accelerated the adoption of virtual production techniques, where physical sets are replaced and augmented with digital environments created through 3D animation. Moreover, some smaller animation studios and freelance animators faced economic challenges due to project cancellations and delays caused by the pandemic-related uncertainties in the economy. Therefore, COVID-19 had an overall balanced impact on the 3D animation market. 

Key findings of the study 

  • By Technology, the 3D modelling segment led the 3D animation market in terms of revenue in 2022.  

  • By Deployment, the on-premise segment led the 3D animation market in terms of revenue in 2022. 

  • By Component, the solution segment led the 3D animation market in terms of revenue in 2022. 

  • By Industry Vertical, the media & entertainment segment led the 3D animation market in terms of revenue in 2022. 

  • By Region, North America generated the highest revenue in 2022.  

The key players profiled in the 3D animation in ICT market analysis are Adobe Systems Inc., Autodesk Inc., Newtek Inc., Pixologic Inc., The Foundry VisionMongers Ltd., Maxon Computer, NVIDIA Corporation, Side FX Software and Zco Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the 3D animation industry.   

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quote 3D Animation Market by Component (Solution, Service), by Deployment Mode (On-Premise, Cloud), by Technology (3D Modelling, Motion Graphics, 3D Rendering, Visual Effects), by Industry Vertical (Media and Entertainment, Education, Healthcare, Government and Defense, Construction and Manufacturing, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032 quote

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