Top 3D Animation Market Trends and Growth Opportunities to Watch

 

Overview

3D animation involves producing dynamic, three-dimensional visuals within a digital environment. This imagery is produced with 3D software, enabling animators to generate digital items that appear three-dimensional despite being displayed on a two-dimensional surface. The global 3D animation market is expected to grow from USD 22.56 Billion in 2023 to USD 71.09 Billion by 2033, at a CAGR of 12.16% during the forecast period 2023-2033. The utilization of visual effects (VFX) technology in movies and films has increased. The audience desires authentic-looking visuals and films, seeking out innovative technologies that deliver lifelike imagery.  

 

Competitive Landscape

The 3D animation industry fosters competition between well-established studios and innovative smaller ones. This contest encourages improvements in art techniques, software creation, and narratives, leading to a wider range of top-notch animated content for audiences to enjoy. A few of the main companies active in the 3D animation industry are, Adobe Systems, Autodesk, Corel Corporation, Maxon Computer, Newtek, NVIDIA Corporation, Pixologic, SideFX Software, The Foundry Visionmongers Ltd., Toon Boom Animation are all well-known companies in the technology and animation industry. For instance, In November 2023, SideFX revealed the launch of Houdini 20, which can be downloaded now. Houdini 20 comes with numerous improvements and fresh processes.

 

Government Support and Market Dynamics: The Expanding Reach of 3D Animation in North America and Beyond

The Indian government has acknowledged the potential of the AVGC industry and is actively backing its expansion. Efforts such as the National Centre of Excellence in Animation, Gaming, and Visual Effects, in addition to different incentives and grants, highlight the government's dedication. By implementing the National Digital Communications Policy and the National Education Policy, the government is establishing a strong groundwork for the growth of the AVGC sector. Both startups and established players are receiving financial incentives, tax benefits, and infrastructure support. Furthermore, in 2022, North America region had the highest revenue share at 37.2%. While 3D animation has seen great success in Japan with anime, its impact is much stronger in North America. The presence of a small number of important clients in the US like Fox Studio, Disney, and Nickelodeon, along with the growing adoption of 3D animation technology and rising research and development investments by local industry pioneers, may explain this. Simultaneously, the emergence of major animation studios in the Western region and the increasing development of 3D animated games offer considerable potential for growth in North America. Additionally, the use of 3D animation in the healthcare sector to assist medical students and professionals in receiving medical education is driving market expansion.

 

The report provides a summary of the global top trends and future prospects for the global 3D animation market based on historical data sets (current trends, industry statistics, and emerging trends shaping the 3D animation industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global 3D animation trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions. 

 

Growth Factors and Emerging Trends in the 3D Animation Market

 

1. Rise in Utilization of Visual Effects in Films

Visual effects technology is crucial in a film as it aids in advancing the storyline and developing the characters. It helps a filmmaker efficiently finish the challenging and costly section of the movie. Moreover, animation has become an essential part of the film industry as it aids both filmmakers and viewers. In the film Interstellar from 2014, there are 850 visual effects shots with a resolution of 5600x4000 lines. 150 camera shots were captured using digital projectors, with an additional 700 shots created during post-production. The current global film industry now prioritizes spending more on animation than on the actors. The budget for a movie can vary between USD 20 and 50% for animation, or between USD 40 and over USD 100 million.  

 

1. Rising Customer Requests for Top-Quality Content

Movie makers are requesting top-notch films with lifelike animations and visual effects as customers globally seek immersive, high-quality visual experiences. The quantity of animated movie scenes is on the rise at multiple entertainment companies. Moreover, there has been a significant rise in the need for animation and visual effects content to support immersive technologies such as AR and VR. Individuals consume more video content on platforms other than movie theaters, such as 4K TVs, tablets, and smartphones. The rise in digital video content platforms has led to a higher need for diverse material and various types of animation, requiring its utilization.

 

Opportunities and Future Prospects in the 3D Animation Market

 

Incorporation of VR Technology for Visual Effects

The use of VR technology in animation is rapidly growing in importance. This technology is heavily funded for gaming, advertising, and home entertainment purposes. Animators utilize VR technology to achieve comparable results. As a result of the increasing focus on advanced animals and the development of more engaging virtual worlds, sellers in the 3D animation market are seeing a rise in demand. Virtual reality and visual effects mainly emphasize on crafting a fresh atmosphere that can impress viewers. Real-time graphics, motion capture, real-time facial capture, and camera tracking are some of the techniques employed by studios to improve their virtual production capabilities, which are beneficial for virtual reality as well. Virtual reality is gradually becoming a main focus for many visual effects teams.

 

List of Key Companies in the 3D Animation Market

• Adobe
• Autodesk, Inc.
• Corel Corporation
• Corus Entertainment Inc.
• Deep Motion
• Maxon Computer GmbH
• NVIDIA Corporation
• Side Effects Software Inc.
• Spaceblock
• Toon Boom Animation Inc.
• Trimble Navigation Ltd.
• Zco Corporation
• Others

 

Top 5 Key Players Profile in 3D Animation Market

 

1. Adobe

 

Headquarters: San Jose, CA

Founded in 1982, Adobe Inc. is a worldwide pioneer in digital media and marketing solutions with its headquarters in San Jose, California. The company is well-known for its top-of-the-line software products, like Adobe Creative Cloud, which includes popular tools like Photoshop, Illustrator, Premiere Pro, and After Effects. Adobe's suite of software plays a crucial role for creative professionals and businesses globally, allowing them to create, modify, and organize digital content with unmatched accuracy. Besides creative software, Adobe offers digital marketing, analytics, and document management solutions via its Adobe Experience Cloud and Adobe Document Cloud. Adobe remains a prominent figure in the technology industry by prioritizing innovation and user experience, leading advancements in digital creativity and business transformation.

 

2. AUTODESK

 

Headquarters: San Francisco, CA

Autodesk, Inc. is a top supplier of 3D design, engineering, and entertainment software with its headquarters located in San Rafael, California. Established in 1982, the company is well-known for its main product, AutoCAD, a popular software in the fields of architecture, engineering, and construction. Autodesk offers a variety of cutting-edge solutions like Revit for building information modeling, Maya and 3ds Max for 3D animation and modeling, and Fusion 360 for integrated product design in its portfolio. The software developed by the company helps professionals in different fields such as manufacturing, construction, media, and entertainment to visualize, design, and simulate their ideas accurately. Dedicated to pushing technology forward, Autodesk invests continually in cloud-based solutions and AI-powered tools to boost productivity and creativity in digital design and engineering.

 

3. COREL CORPORATION

 

Headquarters: Ottawa, Ontario

Based in Ottawa, Canada, Corel Corporation is a well-known software company famous for its range of graphic design, digital art, and productivity software. Founded in 1985, Corel has had a substantial presence in the software sector with top products like CorelDRAW, a prominent vector graphics editor, and Corel Painter, well-known for its digital painting features. The company's varied range of products includes Corel VideoStudio for editing videos and Corel WordPerfect Office, a complete office suite. Corel is well-known for its dedication to offering powerful, easy-to-use software solutions to creative professionals and businesses. Corel remains a significant player in enhancing digital creativity and productivity by concentrating on innovation and addressing diverse creative and business requirements.

 

4. CORUS ENTERTAINMENT

 

Headquarters: Toronto, Ontario

Corus Entertainment Inc., based in Toronto, Canada, is a well-established media and entertainment company famous for its wide range of television, radio, and digital content. Founded in 1999, Corus runs many well-known TV channels like Global Television Network, HGTV Canada, and Food Network Canada, providing a diverse range of programming from news and entertainment to lifestyle and educational content. The company also prides itself on having a substantial radio footprint with more than 30 stations throughout Canada. Corus is known for its investments in unique content and strategic collaborations that boost its broadcasting and digital media capabilities. Dedicated to providing top-notch and captivating content, Corus Entertainment remains a vital player in shaping the Canadian media scene and expanding its presence on various platforms.

 

5. DEEPMOTION

 

Headquarters: San Mateo, California

Established in 2014 and based in San Francisco, California, DeepMotion is a groundbreaking company that focuses on AI-powered motion capture and animation technology. DeepMotion is recognized for its creative solutions in computer graphics and interactive media, utilizing AI to offer sophisticated motion analysis and real-time animation tools. The main product of the company, the DeepMotion Animate 3D platform, enables users to convert 2D video clips into top-notch 3D animations, making character animation for gaming, virtual reality, and film production more effective and lifelike. DeepMotion seeks to transform how animators and developers approach animation and motion capture by merging advanced machine learning methods with user-friendly interfaces, improving creative processes and digital interactions.

 

Recent Developments

 

• In June 2024, Adobe has made the Adobe Experience Platform AI Assistant widely available to enhance productivity in enterprises.

 

• In December 2023, Spaceblock launched a new line of 3D animation packs utilizing motion capture technology on the Unreal Engine Marketplace. This assortment is ready to revolutionize online gaming and live shows by providing unparalleled realism and ingenuity to users.

 

• In November 2023, DeepMotion introduced MotionGPT, a new tool that uses Generative AI to transform text prompts into intricate 3D animations. MotionGPT simplifies the process of creating animations, expanding access to 3D animation for more creators and industries.

 

• In September 2023, Adobe introduced artificial intelligence and 3D capabilities in Adobe Premiere Pro and Adobe After Effects, along with upgraded storage capabilities in Frame.io. By utilizing these AI-powered functionalities, video editors and motion graphic designers can quickly bring their creative ideas to life by automating tedious tasks.

 

• In August 2023, NVIDIA launched a significant enhancement to its NVIDIA Omniverse platform, unveiling new fundamental applications and services. These enhancements aim to give developers and industrial companies the ability to enhance and refine their 3D pipelines using generative AI, and the OpenUSD framework.

 

About the Spherical Insights & Consulting

Spherical Insights & Consulting is a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.

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