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The 3D animation software market is estimated to increase by USD 10.86 billion and grow at a CAGR of 14.27% between 2023 and 2028. The market's growth is propelled by the increasing integration of 3D animation in cinema and its expanding use in television advertisements, alongside the rising adoption of VR animation. Challenges include widespread piracy of software licenses and animated content, accessibility to open-source 3D animation software, and the shortage of skilled personnel. These factors significantly impact the market's trajectory, shaping its growth and presenting obstacles that must be overcome to ensure continuous development and innovation in animation technologies. Addressing these challenges is essential for sustaining progress and fostering a conducive environment for the advancement of 3D animation in various industries.
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The market share growth of the media and entertainment segment will be significant during the forecast period. The segment includes the use of 3D animation for creating cartoon movies like 'Frozen'; visual effects used in computer games like 'Warcraft' and advertisements. The success of multiplayer online battle arena (MOBA) titles indicates a subtle but noticeable transition in the gaming market. MOBA titles have become one of the most popular genres of gaming as they offer similar fast-paced action as first-person shooter games. MOBA titles feature impressive visual effects, resulting in an increase in the demand for 3D rendering and animation software.
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The media and entertainment segment was valued at USD 3.21 billion in 2018. Animated movies are rapidly gaining popularity among the global audience. Realistic creatures, fantastical settings, and imagination come together in familiar ways in animated videos. Furthermore, casting real actors, especially for the voice roles, in fantasy animated movies is simple. The majority of animated movies aim to create a lasting impact on their viewers. Thus, the growing need for animation in the media and entertainment industry is expected to drive the growth of the market during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to vendors is North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America accounted for the largest share of the market in 2022. Most US-based production houses develop in-house animated television series. In addition, the budget for animated movies in the US is quite high when compared with other countries. Thus, end-users prefer to buy licenses for 3D animation software, thus driving the growth of the market in the region.
TV channels like Disney, Viacom, and Cartoon Network, which are based in the US, host animated series and movies for the global audience. Channels like Disney and Cartoon Network drive the demand for 3D animation content in the country. These companies have customized the cartoons that are broadcast on TV channels to gain competitive advantages in the market. They have also launched subsidiary channels like Disney XT and Boomerang to increase their market shares, not only in the US but globally. Nickelodeon, another cartoon channel based in the US, is further increasing the demand for animated content and contributing to the revenue generated from licensing in the market.
The market intersects various sectors, including life science, manufacturing, and architecture. It serves civil engineers, architects, and filmmakers with cutting-edge visual effects (VFX) technology, enabling immersive 3D visualization and gaming experiences. Technological advancements drive innovation, enhancing artificial intelligence (AI) integration, virtual reality (VR) applications, and computer gaming experiences. It also finds extensive use in movies, medical applications, and entertainment & gaming industries, facilitated by rapid technological advancements. With its widespread adoption in design, development, and production processes, 3D animation continues to revolutionize various fields, serving as a versatile tool for visual storytelling and scientific research applications. The market industry spans human and animal anatomy applications, benefiting manufacturing industries and scientific research fields. It employs VFX technology to enhance 3D gaming experiences, utilized by skilled 3D animators and VFX professionals across various domains. Visual effects technology and 3D mapping tech are enhancing medical procedures and 3D stereoscopic gaming, with innovations in 4D and 5D technologies driving advancements in printing technology and services from The Foundry available both on premise and on demand.
The growing use of VR animation is notably driving market growth. 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 high-quality animation. Using virtual reality, animators can create and recreate fanciful environments that mimic visions and come across objects that do not match reality. Animations that are created as a result are unique and appeal to both kids and adults. Virtual reality animation has a wide range of applications and can be used by media outlets and educational programs all around the world.
Virtual reality videos are still finding their way into mainstream cinema. Furthermore, there are various short films being made in the VR format. With the increasing demand for animated movies, many movie makers like Baobab Studios are exploring the possibilities of VR animated movies. Several movie makers are expected to enter VR animation filmmaking, which will further drive the growth of the market during the forecast period.
The increasing use of 3D animation in marketing is the primary trend in the market. Marketing can benefit from 3D animation as well. This method might be used by a marketer, for instance, to showcase all the qualities of the product as it would actually be seen. The appearance of the final product can be perceived more clearly by audiences. Using lessons or demos, 3D animation can also be used by brands to highlight their products.
Simply put, 3D animation may be utilized to produce more engaging material. An engaging video advertisement using 3D animation technology can hold viewers' attention in a world where audience attention spans are decreasing. Thus, the increasing use of 3D animation in marketing is a growing trend that is expected to drive the growth of the market during the forecast period.
The availability of open-source 3D animation software is the major challenge in the market. Most SMEs are cost-sensitive and cannot afford expensive commercial software. However, open-source 3D animation software products, such as Blender, True Space, 3D Canvas, and Google SketchUp 7, provide advantages like cost-efficiency, availability, and user-friendliness to such enterprises. Everyone can use and alter open-source software since it is available for everyone to use.
Companies may rebrand and reposition themselves in front of the public thanks to the introduction of this amazing software. Furthermore, this open-source software program can be downloaded, installed, modified, and even used without incurring any costs. Thus, the growing popularity of these software products can become a major challenge for the growth of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Zco - The company offers 3D animation software for technical artists, content creators, and industry professionals who want to utilize high-fidelity renders from inside these virtual worlds. The company is involved in custom software development, which are used by different animation enthusiasts around the globe.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Architectural Rendering Software Market: Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Singapore, Germany, UK - Size and Forecast
Animation And Gaming Market: Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, South Korea, UK - Size and Forecast
3D Motion Capture System Market: Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, UK, Germany - Size and Forecast
The 3D Animation Software Market is thriving with the increasing demand for 3D mobile applications, architecture, and artificial intelligence (AI). It caters to diverse sectors, including automotive designers, computer gaming, and the entertainment industry. Industries like fashion and textile, geology, and health research centers benefit from its high-definition (HD) video technology and photo-realistic tools. With applications in navigation, movie production, and structural engineering, it fosters technological advancements and creativity. The market serves professionals in animation, film production, and medical visualization, offering flexibility and proficiency in surgical planning and patient education. Rapid technological advancements drive innovation in computer graphics software, benefiting various industry verticals and independent filmmakers despite potential issues like hardware requirements and training needs for medical professionals.
Moreover, the market caters to a wide range of industries and sectors, including the entertainment sector, geology and science, and healthcare. With features like high-definition (HD) video technology and photo-realistic tools, it enables professionals to create stunning visual effects and virtual reality experiences. From 3D modeling and visualization to animation packages and motion graphics, the software serves various applications in the entertainment & gaming industry, media field, and healthcare sector. It supports game developers, independent filmmakers, and medical professionals in their projects, offering advanced control, dedicated graphics cards, and efficient processors. With both professional and standard versions available, it meets the diverse needs of users across industries, driving innovation and productivity in 3D animation and visualization. The Healthcare life sciences and government defense sectors are leveraging machine learning and virtual effects to advance both short term and long term goals, while the education academics field is embracing online learning and e-learning to enhance digital content and video conferencing capabilities. In the media entertainment industry, particularly the film industry, innovations in the software segment and hardware segment are critical, with the on premise segment and on demand segment offering diverse solutions for architectural construction and merger and acquisition activities.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.27% |
Market growth 2024-2028 |
USD 10.86 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.65 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 49% |
Key countries |
US, Japan, China, South Korea, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adobe Inc., Autodesk Inc., AutoDesSys Inc., Blender, Corel Corp., EIAS3D LLC, MAGIX Software GmbH, Nemetschek SE, NewTek Inc., NUKEYGARA, NVIDIA Corp., Roper Technologies Inc., Side Effects Software Inc., Smith Micro Software Inc., Strata, tarakos GmbH, Toon Boom Animation Inc., Trimble Inc., Wondershare Technology Co. Ltd., and Zco |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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