Global 3D Animation Market Research Report: by Component (Hardware, Software, Services), Technology (3D Modeling, Motion Graphics, 3D Rendering, Visual Effects) End-User (Media and Entertainment, Education, Healthcare, Architecture) and Region (North America, Europe, Asia-Pacific, Rest of the World) - Forecast to 2030

3D Animation Market Overview

The global 3D Animation market is projected to reach USD 42.18 Billion by 2030, at 11.43% of CAGR between 2020 and 2030. in addition to this, 3D animation is the procedure for the development and creation of moving images by applying technological advancements. 3D animation market outlook has changed from the past few years due to improvements in the entertainment and media sectors. 

 In recent times, the 3D animation market can be directly associated with the high adoption of VFX within the global film and entertainment industry. The 3D Animation industry has been witnessing high demand in visualization, gaming, mobile applications, digital marketing, and others in 3D.  Also, there has been an increasing trend in digital marketing which has increased the adoption of 3D animated products at faster rates.

COVID-19 Analysis

COVID-19 has multifaceted impacts on global sectors. Many governments on the global front imposed indefinite periods of lockdowns on both national and regional levels. It has provided an opportunity for the media and entertainment industries for upgrading video quality due to the high demand of high- quality entertainment. 

Besides, simulation technologies have allowed media owners for offering advanced imaginative experiences for shopping, learning, and working.  The pandemic has positively impacted the 3D animation market due to the increased adoption of 3D modelling technologies for printing, CAD, marketing, medical imaging, video games, and others.

Market Dynamics

Drivers

Technology advancement has increased the growth of related products. Movies and entertainment sectors are increasingly adopting visual effect technology which is considered to be the main driver for 3D animation market. Game developers, animators are majorly preferring VFX which provides a simulated virtual world thus, improving experiences for the end-users.  

Additionally, the telecommunication and smartphone industry has grown which further increases the demand for mobile-capable applications and games. Hence, software for smartphones and enhancement in gaming experiences will another driver for 3D animation market growth.

Also, GPS and navigation technologies are improving in the travel and transport sector globally. The general population and travelers are making most of GPS and mapping systems for reaching their destination. The automobile industry has been increasingly adopting 3D mapping and navigation features within the products which will also act as a driving factor for 3D animation market.

Opportunities

The use of big data and the internet of things are on the rise which will provide opportunities for many opportunities for improving services and processes. There has been the emergence of virtual reality and Artificial Intelligence technologies which are estimated to be the catalyst of the future industrial revolution.

Also, the 3D Animation Market can reap opportunities from the advent of 3D stereoscopic gaming.  It is also expected that 3D and 5d technologies will drive the 3D animation market size.

Restraints

Many of the renowned market players like Warner Bros are increasingly adopting 3D modeling, rendering, and visual effects software. However, software piracy has also increased which will restrain the growth of 3D animation market.

Challenges  

The 3D animation industry will face many challenges in developing markets globally owing to the lack of appropriate government support and investments. Since the market lacks proficiency, thus, investment and other related opportunities will be hampered. In the last few years, price sensitivity in the technology and animation market has increased which will result in tough competition within the 3D animation market.

Cumulative Growth Analysis

 In the year 2020, 3D animation software contributed to 50% of the revenue shares and hence its dominance will be retained. 3D Animation market growth will be contributed software capabilities in creating realistic and tangible virtual objects. In the marketing and advertisement field, many companies have been deploying simulation technology software for developing movies and games.  There has been the wide-scale deployment of animation software within the gaming industry which boosts the 3D animation market size.

Value Chain Analysis

 Increasing technological advancement has also given rise to cybercrimes. In this view, advanced technologies like virtual reality augmented reality, big data, and the internet of things require a pool of private and other types of information that is used for optimizing strategies and improving services. Hence, regulations from local and national authorities need to be upgraded for protecting the interest of the users. Developers need to be cautious about increased cybercrimes, thus security and privacy issues need to be embedded within the regulatory framework and organizational policies as well.

Segment Overview

3D animation is used for providing motion for objects that are 3D generated by the utilization of virtual skeletons for highlighting characters, props within series, films, advertisements, and others.  3D animation market size can be categorized into components, deployment, and end-use.

By components- It can be subdivided into software, hardware, and service. In the software segment, 50% of the share was recorded. It includes software development kits, packaged software solutions, and plug-ins. In the hardware segment, companies reaped a high market share in the year 2020.  There has been continuous upgrading within the hardware sector. Also, increasing technological advancement and medical forensics have increased the growth rate within hardware segments. The services segment will also encounter growth with rapid penetration within the education and training sector.

By deployment- This segment is further subdivided into on-premise and cloud.  In this view, the on-premise segment captured 60% of the market share in 2020. The storage in on-premise storage is highly reliant on the infrastructure of the company for managing data, offering efficient data security and cost-saving opportunities.  In addition to this,- demand segment will witness high growth during the forecast period owing to the adoption of cloud technologies by animation developers and organizations. Cloud rendering services helps in automatic processes once the creation is uploaded by the user. It helps in freeing storage spaces while also completing the process in a shorter period.

By end-use- The market will be further classified into media and entertainment, architecture, education & academics, manufacturing, healthcare, life sciences, government, and others. In the year 2020, media and entertainment captured an approximate market share of 35% owing to the growth rate of VFX in movies, commercial content, games, and others.  In the simulation technology, rapid developments have helped the clients in comprehensive visualization experience.  In education and academics, significant growth has been anticipated owing to the rapid development within training, e-learning, and software programs. Manufacturing, architecture, and construction segments will witness substantial growth in CAD adoption software, designing, and building processes. In the government sector, it is estimated that animation technology will expand at a CAGR of 11.5%.  

Regional Analysis

3D animation market share is regionally segmented by North America, South America, Europe, Middle East, and Africa. There has been rapid adoption in 3D gaming, visualization, and mobile application that will lead to a growth path within these regions. The North American market was valued at USD 49917 billion occupying a market share of 42.1 %. During the forecast period, it will capture a market growth of 13.6%. The Asia- Pacific market will encounter the highest growth thus capturing the market share at 32% along with a market valuation of USD 3799 million.  Other regions of the world will also encounter market growth at steady rates.

Competitive Landscape

The market is highly competitive with key players aggressively developing or improving products. They are listed below.

• Autodesk Inc. (US)


• Image Metrics Inc. (US)


• Corel Corporation (Canada)


• Pixologic Inc. (US)


• Foundry Visionmongers Ltd (UK)


• Maxon Computer (Germany)


• Toon Boom Animation Inc. (Canada)


• Side FX (Canada)


• NVIDIA Corporation (US)


• Sony Corporation (Japan)


• Trimble Inc (US)


• Adobe Systems Inc. (US)

Recent Development

Animiz had announced 3D animation makers for beginners. It is an intuitive software that enables users for designing videos and other media content.  In the year 2019, NVIDIA Corporation collaborated with Autodesk for enabling users for editing 3D animation 6K videos easily through laptops. The collaboration has introduced ray tracing through Maya, Autodesk Arnold, and 3Ds max. In the same year, Google LLC had partnered with Sony Pictures for introducing an open-source render manager named Open Cue. Also, Adobe systems Inc. had acquired a French company named Allegorithmic.

Report Overview

This report has included snapshots of the market that are market overview, dynamics, COVID-19 analysis, value chain analysis, segment overview, regional analysis, and recent development.