The Animation and VFX market comprises companies that provide animation and visual effects (VFX) services to various industries such as media and entertainment, gaming, and advertising. Animation refers to the optical illusion of motion created by the consecutive display of static images that minimally differ from each other. On the other hand, VFX involves the processes of integrating live-action footage with computer-generated imagery to create realistic special effects for films, television, theme parks, simulators, and video games.
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:
Growing popularity of animation films and series over the past decade has fostered significant growth in the animation and VFX market. Major media companies are increasingly investing in animated feature films and OTT series to cater to the diverse interests of audiences. Animated content is also found to have wider geographic and demographic appeal. This growing demand from media and entertainment producers for animated and VFX-rich content is driving greater outsourcing of animation and visual effects work to specialized service providers globally. As animation studios take on larger volumes of work, they continue to enhance productivity through technological upgrades and facility expansions.
SWOT Analysis
Strength: The Animation and VFX market has strong growth opportunities due to increasing demand for high-quality VFX and animation in the entertainment industry.
Weakness: Producing high-quality animation and VFX requires specialized skills and is a costly process. This makes expansion difficult for smaller players.
Opportunity: Growth in OTT platforms and online video consumption is driving demand for more digital content. This provides opportunities for Animation and VFX companies.
Threats: Intense competition from global Animation and VFX players increases pricing pressures. Copyright issues and piracy also pose threats.
Key Takeaways
The Global Animation And VFX Market Size is expected to witness high growth. Animation content is widely popular with both children and families. The increased number of animation movies, series and shows enhances the growth prospects of this market. 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.
Regional analysis North America currently dominates the Animation and VFX market due to strong technical expertise and availability of advanced animation tools in the region. The US and Canada are major contributors to the North American Animation and VFX market. However, the Asia Pacific region is expected to witness the highest growth during the forecast period due to low production costs and talented workforce in countries like India and China.
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. These major players are focusing on expanding their offerings and capabilities in animation and VFX through mergers, acquisitions and new service launches to strengthen their market position.
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