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The animation and gaming market size is forecast to increase by USD 96.39 billion, at a CAGR of 21.44% between 2023 and 2028. The animation and gaming industry is experiencing significant advancements, with increasingly sophisticated visual effects and immersive experiences. The greater penetration and accessibility of broadband Internet have made online gaming a viable medium for marketing and promoting films, allowing audiences to engage with content in new and interactive ways. This convergence of animation, gaming, and the Internet is transforming the entertainment landscape, offering opportunities for innovative storytelling and audience engagement. Online gaming platforms provide a unique space for film studios to reach new audiences and build brand loyalty, while also offering fans a more interactive and immersive experience. The market report provides market size, historical data, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Animation and gaming markets are dynamic industries that offer stimulating experiences through the illusion of motion and digital art. Animation involves designing, drawing, and creating layouts, sequences, and visual effects for various mediums, including movies, television, advertising, teaching, and immersive media experiences. Gaming products, such as console, PC, and mobile games, incorporate animation in the form of computer-generated imagery, motion graphics, stop motion, and hand-drawn animation. The animation industry also includes traditional art forms like hand-drawn animation and motion graphics. The gaming market, fueled by advancements in technology, has seen the rise of simulation games, augmented reality, and virtual reality experiences. Digital content creation is a significant contributor to both markets, providing opportunities for artists, designers, and developers to showcase their creativity and innovation.
Increasing sophistication in animation and gaming is notably driving market growth. The animation and gaming market is experiencing significant growth and innovation, driven by the diverse demands of consumers seeking engaging and sophisticated content. From computer generated imagery in 3D animations and 4K video content to motion graphics, hand drawn animation, and simulation, the market caters to various preferences. Animated content and games offer immersive media experiences for entertainment, escape, and stress relief. Publishers, hardware producers, and digital distribution platforms are investing in high quality content, including console, PC, mobile, augmented reality, and virtual reality games.
Further, advertising, teaching, and live action film industries are also leveraging animation and gaming technologies. Network animation, 2D animation, and computer generated images are used extensively in television. Action, adventure, sports, and other genres continue to dominate the gaming market. With the advent of 5G technology, the market is poised for further growth and innovation. Thus, such factors are driving the growth of the market during the forecast period.
Rising number of Pay TV channels is the key trend in the market. The animation and gaming market is experiencing significant growth due to the advancements in digital content creation and distribution technologies. Piracy concerns have been mitigated with the rise of high-quality, legally available digital content, including computer-generated imagery (CGI), motion graphics, stop motion, hand-drawn animation, simulation, and network animation. Pay TV, which offers subscription-based services through satellite and cable distribution, has lifted the animation and gaming industry by providing a vast selection of channels and immersive media experiences.
Additionally, the emergence of console, PC, mobile, augmented reality, and virtual reality gaming, along with publishing, hardware production, and digital distribution platforms, have expanded the market's reach. Cloud computing and cloud-based solutions, streaming services, user-generated content, 5G technology, high definition television, tablets, smartphones, headgear, and the web have further fueled the growth of this dynamic sector. The animation and gaming market encompasses various genres, such as action, adventure, sports, and educational content, catering to diverse audiences. Thus, such trends will shape the growth of the market during the forecast period.
Shortage of skilled personnel is the major challenge that affects the growth of the market. The animation and gaming market encompasses various forms of digital content creation, including computer-generated imagery (CGI), motion graphics, stop motion, hand drawn animation, and simulation. These mediums are utilized in various industries, such as advertising, teaching, and entertainment, including live action films, television, and immersive media experiences. The market is driven by continuous advancements in technology, with hardware producers and publishers releasing new consoles, PCs, mobile devices, and virtual reality headgear. Digital distribution platforms, cloud computing, and cloud-based solutions, as well as streaming services, facilitate the accessibility of high-quality content.
However, challenges persist in the form of piracy and the need for skilled professionals. The demand for high-definition television, tablets, and smartphones necessitates the creation of high-quality content in genres such as action, adventure, sports, and network animation. The use of 5G technology and augmented reality further expands the possibilities for the animation and gaming industry. Despite the growth potential, the industry faces issues with retaining skilled professionals due to low salaries, leading to a gap in the market. Content creators and developers are increasingly opting for part-time jobs to supplement their income. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The TV segment is estimated to witness significant growth during the forecast period. The animation and gaming market encompasses the creation and utilization of static images imbued with the illusion of motion through designing, drawing, and sequencing. This art form is employed extensively in various industries, including movies, video games, and the visual technology sector. Animation is a crucial component of digital art, where it brings characters and objects to life in a realistic manner. Traditional art techniques are also integrated into animation, resulting in a harmonious blend of old and new. Visual effects (VFX) are a significant aspect of animation, adding depth and complexity to films and video games. The gaming industry, in particular, has seen a surge in the adoption of 3D gaming and 3D animation technology.
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The TV segment accounted for USD 11.14 billion in 2018. The media and entertainment industry, including movie studios and OTT platforms, are major consumers of animation. HD content and virtual reality technologies have further fueled the demand for animation in video marketing and 3D mobile applications. The healthcare sector, including the medical and life sciences industries, also utilizes animation for educational purposes. Animation is used to explain complex medical procedures and concepts in an easily understandable manner. In addition, animation is used in the transportation industry, such as in the design of boat and ship models, to aid in the planning and execution of projects. The growth of the animation and gaming market is driven by the increasing popularity of animation in various sectors. The use of animation in television, particularly in the production of television series, has seen a significant increase due to the integration of VFX and the growing popularity of video streaming services. Netflix, Amazon Prime Video, Hulu, and other OTT platforms have transformed the way television content is consumed, making it accessible to a global audience. The use of animation in these platforms has led to the creation of popular series such as Game of Thrones, The Walking Dead, Chernobyl, and Stranger Things.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Animation and Gaming market encompasses the creation and utilization of both static images and the illusion of motion through Designing, Drawing, and Layouts. This market includes the development of Gaming products, Visual effects, and Digital art, which can be rooted in Traditional art or leveraging advanced 3D animation technology. The industry spans various sectors such as Movies, Video games, and Visual technology, producing Realistic images for Film and 3D gaming.
Further, the market's reach extends to the Medical industry, Media and Entertainment, OTT platforms, and HD content. The use of Pixels in creating Entertainment and Video marketing content is a significant aspect, along with Virtual reality technologies and 3D mobile applications. Anime, Film, and Video game industries contribute significantly to the market's growth. Additionally, industries like Healthcare, Life sciences, Boats, and Ships are adopting animation and gaming technologies for various applications.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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Animation and gaming markets have witnessed significant growth in recent years, driven by the advancements in visual technology and the increasing demand for immersive entertainment experiences. Unlike static images, animation creates the illusion of motion, providing stimulation and engagement to viewers. Animation and gaming industries encompass various aspects of designing and drawing, from creating characters and objects to designing layouts and sequences for movies, video games, and 3D mobile applications. The animation industry spans across various sectors, such as films, video games, and medical industry, among others. In films, animation is used to bring characters and objects to life, creating realistic images that captivate audiences. In the gaming industry, 3D animation technology is used to create visually stunning and interactive experiences.
Further, the use of animation extends to virtual reality technologies and OTT platforms, offering HD content for subscriptions. Moreover, animation is not limited to digital art but also includes traditional art forms like anime. The gaming market includes video game consoles, PC games, and mobile games, each with its unique visual effects. The use of animation in video marketing and healthcare industries is also on the rise, with applications in medical training and life sciences. Additionally, the use of animation in boats and ships design is becoming increasingly popular for creating realistic visualizations for customers. Overall, animation and gaming markets continue to evolve, offering endless possibilities for creativity and innovation.
Market Scope |
|
Report Coverage |
Details |
Page number |
142 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.44% |
Market growth 2024-2028 |
USD 96.39 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
18.48 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, South Korea, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Activision Blizzard Inc., Adobe Inc., Anibrain, Autodesk Inc., Corus Entertainment Inc., Epic Games Inc., Framestore Ltd., LOSTMARBLE LLC., Microsoft Corp., NetEase Inc., Nintendo Co., Ltd., Reliance Industries Ltd., Sony Group Corp., Technicolor SA, The Foundry Visionmongers Ltd., The Walt Disney Co., TOEI ANIMATION Co. Ltd., Toonz Animation India Pvt. Ltd., and Warner Bros. Entertainment Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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