Global Animation and VFX Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Animation and VFX Market are expected to grow at a CAGR of over11. 5% during the forecast period 2021 to 2026. With the ongoing outbreak of COVID-19 worldwide, companies in the industry are taking a toll on post-production activities as the pandemic has disrupted by halting the production stage, which has shown a partially negative effect on the market.

New York, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Animation and VFX Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06177355/?utm_source=GNW


Key Highlights
There are two trends that are primarily driving the adoption of animation and VFX solutions. For some end-user industries, particularly films, there is an upward trend in production value or budgets. This is primarily due to broader international distribution in part to digital theatres. Secondly, writers and directors are more open to embracing scripts requiring VFX. Therefore, production companies are increasingly pursuing more ambitious projects that can only be fulfilled with the use of VFX and streamline platforms. They have also broadened the genres of content being published.
There is a surge in 3D-UHD animated movies in theatres through the application of animation and VFX in TV, advertising, and gaming. There is also a growth in the outsourcing of the VFX processes due to its cost-effectiveness. Thus, the focus on the “kids” genre and the growing popularity of video streaming are anticipated to fuel market demand across the emerging economies.
The creativity levels possessed by modern-day artists require more tools and software to produce awesome animated content mesmerizing the viewers. One such trend is Virtual Reality (VR) that is gaining popularity recently. More animation studies are bringing virtual reality to 3D animation. It has moved 3D animation to the next level. Playing 3D games has now become possible in a virtual environment—all credits to virtual reality mixed with 3D animation.
The integration of new OTT services across the existing subscription-based streaming devices among the emerging economies is expected to drive the applications of the animation & VFX sector. The companies are continuously involved in introducing new services for animation and VFX dedicated to OTT content. For instance, London-based DNEG has launched its new service offering called ReDefine. The service is aimed at filling the gap between East and the West for creative services for film and Over The Top (OTT) content for streaming.
The demand for animation and VFX has expanded with the increase in the emergence of the media sector, gearing up significantly in the sphere of the multimedia ecosystem. Companies such as China-based Base FX are looking for strategic partnerships for investments to survive in the turbulence. In 2020, major Chinese SunacCulture announced a strategic investment in Base FX by taking a majority stake. Base FX has mentioned that the production is down by over 70% against the previous year in China, and there will be no films starting in China for at least the next six months.

Key Market Trends

Media Segment is Gaining Traction Due to Emergence of Online Streaming

Nowadays, consumers are engaging in high-definition visual experiences. Movie-goers are demanding high-quality productions with engaging visual effects and realistic animation and studios, which includes more animation and VFX shots into films. Also, consumers are consuming more immersive content across channels such as ultra-high-definition TVs, tablets, and smartphones to head-mounted devices. Animation, VFX, and games content are being consumed on OTT streaming services such as Netflix, Amazon Prime, and YouTube, Twitter, and Facebook.
The increasing demand for the technology from various industrial verticals due to the expanding use of simulation in the design of industrial tools by OEMs is helping the penetration of 3D animation solutions across the world. The increased deployment of simulation software and solutions in the industries including architecture and construction, manufacturing, media and entertainment, defense, education, and healthcare is fueling the industry’s growth.
Further, cloud computing plays a pivotal role in character rendering, and modeling processes as the cloud-based rendering of animation films are more effective and efficient. It reduces the time and cost compared to traditional rendering, which is expected to fuel the market growth during the forecast period.
The entertainment and media industry has raised high demand for 3D animation with increased adoption in recent years. Besides enhanced 3D animation and visual effects adoption, the industry has been pushing the global market based on other essential factors. VFX has been primarily used in movies, but the current television industry is also adopting it to strengthen the story and artistic vision and communicate the desired idea to the audience due to the growing demand of global consumers for engaging high-definition visual experiences.
Furthermore, The introduction of AI, VR, and AR could boost the global 3D animation market. 3D animators employ artificial intelligence (AI) and natural language processing in conjunction with a cognitive modeling method to enhance and virtualize the animation process to control the simulation and user experience in 3D games. The rapid growth of content streaming worldwide has unlocked the doors for creators to create better content to leap toward the next level on the content graph. The storytelling community, which has always endeavored to produce newer effects, has been pushed new margins from experimenting with new techniques to incorporating relevant cutting-edge technology possible in the media content.

Asia Pacific to Register the Fastest Growth During the Forecast Period

The Asia Pacific is anticipated to witness the highest CAGR, and the region has highly emphasized the formalization of professional services across animation and VFX to support the ever-growing media and entertainment industry. Countries such as New Zealand and Singapore have emerged as a hub for VFX artists, as these countries have an ecosystem for animation and VFX schools that offer advanced education in various streams.
The growth in the consumption of more immersive content across multiple channels such as ultra-high-definition TVs, tablets, and smartphones to head-mounted devices is also propelling the animation and VFX market demand, especially across the China region during the forecast period.
The development of numerous training programs, software, and e-learning platforms employing simulated information and videos in the curriculum of this region is expected to drive considerable growth in the education and academics industry. Many educational institutions intend to integrate simulation technology into their educational systems, providing students with a more advanced learning environment.
The application of simulation technology across the country’s well-established anime business resulted in a considerable revenue share for the Japanese market within the region. Furthermore, the Asia Pacific region’s abundant qualified workforce leads to a low cost of production, propelling regional market expansion.
China is expected to surpass North America as the largest theatrical movie market in the world in the next three years. Also, with the rapidly growing demand for original OTT streaming content in India, driven by mobile broadband usage and lower data charges, the Asia Pacific region is expected to witness the fastest market growth over the forecast period. Further, according to the India Brand Equity Foundation (IBEF), the country’s gaming industry stood at USD 930 million in 2020, and it is anticipated to reach USD 3.8 billion by 2024.

Competitive Landscape

The Animation and VFX market is moderately competitive and consists of a few major players. However, with the advancement in animation technology across professional services, new players are increasing their market presence, thereby expanding their business footprint across the emerging economies. Significant Players include Adobe Inc., Autodesk Inc., Exocortex Technologies Inc., among others.

June 2021 - Autodesk moved to a purely subscription-based model and began to see accelerated subscriber adoption in the Asia-Pacific region. In September 2021, the company announced the strategic investment of iOFFICE + SpaceIQ, which recognized the shared vision to bring together Building Information Modeling and facilities management for more efficient, flexible, and responsive operations and maintenance of buildings and infrastructure.
May 2021 - Adobe introduced innovations with a new major version release of Adobe Campaign to address challenges and the rapidly evolving dynamics in cross-channel marketing. Adobe released Adobe Campaign v8, designed for cross-channel marketers who need the best-in-class cloud solution for cross-channel campaign management with enterprise scale.
July 2020 - Adobe partnered with IBM and Red Hat to advance its customer experience transformation. The partnership is intended to enable companies to deliver more personalized experiences across the customer journey, driving improved engagement, profitability, and loyalty.?

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06177355/?utm_source=GNW

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