Animation Market Report 2026

The animation market size has grown strongly in recent years. It will grow from $420.73 billion in 2025 to $449.78 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to growth of television and film animation, expansion of ott platforms, increasing advertising spend on animated content, adoption of digital animation software, rising popularity of animated films and series.

The animation market size is expected to see strong growth in the next few years. It will grow to $580.11 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing demand for immersive content, growth of metaverse and virtual worlds, rising use of animation in e-learning, advancements in real-time animation tools, expansion of animation applications beyond entertainment. Major trends in the forecast period include ai-assisted animation production, real-time rendering and virtual production, cloud-based collaborative animation workflows, immersive animation for ar, vr, and xr platforms, automation in animation pipelines.

The animation market is poised for growth due to increasing demand in media and entertainment, a broad industry encompassing various forms of content creation, distribution, and consumption aimed at informing, entertaining, and engaging audiences. This rising demand is fueled by shifts in consumer behavior, content diversity, social media influence, and innovative content delivery methods. Animation plays a crucial role in enhancing the media and entertainment industry by providing creative solutions, captivating audiences, and pushing the boundaries of storytelling and visual expression. For example, in January 2024, UK spending on music streaming subscriptions, vinyl, and CDs grew significantly, demonstrating the robust growth of the entertainment market.

Leading companies in the animation sector are leveraging generative artificial intelligence (AI) to develop text-to-3D animation, aiming to streamline the creative process. This technology enables the rapid creation of personalized animations tailored to individual preferences, making animation production faster, more accessible, and cost-effective while expanding creative possibilities for animators and storytellers. For instance, in November 2023, DeepMotion, a US-based animation company, introduced MotionGPT, an AI-powered platform that transforms text inputs into detailed 3D character animations. MotionGPT utilizes advancements in natural language processing and generative AI to automatically generate realistic movements, facial expressions, and body language from textual descriptions.

In October 2024, Toho Co. Ltd., a Japan-based entertainment and film company, acquired GKIDS Inc. for an undisclosed amount. With this acquisition, Toho sought to accelerate its international animation strategy by incorporating a respected North American distributor and producer of award-winning animated films, enhancing global distribution and content reach for animated features, and broadening its presence beyond Japan. GKIDS Inc. is a US-based animation producer and distributor recognized for supporting artist-driven and critically acclaimed animated films.

Major companies operating in the animation market are Sony Corporation, NVIDIA Corporation, Adobe Systems Inc., Autodesk Inc., Trimble Inc., DreamWorks Animation LLC, Walt Disney Animation Studios, Corel, Newtek Inc., MAXON Computer GmbH, Zco Corporation, Image Metrics Inc., Smith Micro Software Inc., Video Caddy, Animaker Inc., SideFX, Aardman Animations Ltd., Triggerfish Studios, Animation Sharks, Bondware Inc., EIAS3D LLC, Blue Sky Studios, Grafton Animation Studios, Pixologic Inc., Exocortex Technologies Inc.

North America was the largest region in the animation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the animation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the animation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The animation market consists of revenues earned by entities by providing services such as architectural visualization, and product visualization. The market value includes the value of related goods sold by the service provider or included within the service offering. The animation market also includes sales of powerful computers, graphics processing units (GPUs), digitizing tablets, and motion capture systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.