3D Animation Market Report 2025

The 3D animation market size has grown strongly in recent years. It will grow from $24.33 billion in 2024 to $26.63 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to growing demand in entertainment industry, expanding applications in healthcare and education, globalization of animation studios, cost efficiency in production, diversification of application areas.

The 3D animation market size is expected to see rapid growth in the next few years. It will grow to $44.44 billion in 2029 at a compound annual growth rate (CAGR) of 13.7%. The growth in the forecast period can be attributed to emergence of real-time 3D animation, expanding use cases in simulation and training, increasing adoption in e-learning and virtual events. Major trends in the forecast period include immersive technologies integration, real-time rendering advancements, cloud-based animation services, AI and machine learning integration.

The increasing use of visual effects technology in films, as well as in the media and entertainment industry worldwide, is fueling market growth. Visual effects (VFX) and 3D animation in filmmaking involve creating or altering any on-screen imagery that does not physically exist. Filmmakers utilize visual effects to create locations, objects, creatures, and even people that are challenging or impossible to capture in a live-action setting. For instance, in January 2024, Omnicore Agency, a US-based healthcare digital marketing firm, reported that YouTube's revenue rose to $29.24 billion in 2022, up from $28.84 billion in 2021. Thus, the rising adoption of visual effects technology in movies is anticipated to drive the growth of the 3D animation market in the near future.

The expanding gaming industry is expected to further boost the growth of the 3D animation market. This industry encompasses the creation, production, distribution, and use of interactive digital entertainment across multiple platforms and technologies. The gaming sector heavily relies on 3D animation to deliver immersive, visually rich gaming experiences that deeply engage players. For example, in November 2023, the Gambling Commission, a UK-based government agency, reported that the total gross gaming yield (GGY) for gaming machines in Great Britain was $3.11 billion (£2.4 billion) from April 2022 to March 2023, marking a 23% increase from the previous year (April 2021 to March 2022). Therefore, the growth of the gaming industry is driving expansion in the 3D animation market.

The advancement of the animation market is being significantly driven by the increasing adoption of cloud technology among content creators in this field. Cloud services offer animation industry professionals access to scalable and on-demand computing resources. Leveraging cloud-based animation services is both uncomplicated and efficient, providing substantial computational power. An illustrative example of this is ESDIP Animation Studio's choice of SimpleCloud for its virtual desktop solution, facilitating remote collaboration on projects that necessitate robust parallel processing. This platform also enables artists from diverse geographical locations to collaborate seamlessly on animation projects, such as the creation of the film Blue & Malone Impossible Cases.

Leading companies in the 3D animation market are concentrating on developing advanced solutions, such as generative AI platforms, to satisfy the growing demand for more efficient and realistic animation experiences. An AI platform is a comprehensive software environment that offers tools and services for creating, deploying, and managing artificial intelligence applications. It enables users to utilize machine learning, natural language processing, and data analytics to tackle complex problems and automate processes. For example, in November 2023, DeepMotion Inc., a US-based company, launched SayMotion (formerly known as MotionGPT). DeepMotion's SayMotion is an innovative generative AI tool that transforms text prompts into detailed 3D animations, making animation accessible to a broader range of creators without the need for specialized hardware or expertise. This platform enables users to specify motions, blend various animations, and seamlessly bring their narratives to life.

In July 2023, Chaos, a Bulgaria-based software company, acquired AXYZ Design S.R.L. for an undisclosed amount. This acquisition aims to enhance Chaos' ecosystem of real-time visualization tools and photorealistic rendering capabilities by integrating AXYZ Design's innovative 3D/4D animation software. This strategic move reinforces Chaos' position in architectural visualization, allowing designers to incorporate dynamic human characters for more immersive presentations. AXYZ Design S.R.L. is an Italy-based company that specializes in providing 3D people animation solutions for architectural visualization rendering, VR, and AR.

Major companies operating in the 3D animation market include NVIDIA Corporation, Adobe Inc., Autodesk Inc., Trimble Inc., Unity Technologies SF, Lucasfilm Ltd. LLC, DNEG Ltd., Animal Logic Pty Ltd., Method Studios LLC, Weta Digital Limited, Laika LLC, Sony Corporation, Chaos Group, Smith Micro Software Inc., NewTek Inc. SideFX Software Inc., Reallusion Inc., Toon Boom Animation Inc., Maxon Computer Inc., Pixologic Inc., The Foundry Visionmongers Limited, Foundry Nuke Limited, Moving Picture Company Limited, Framestore Limited, Epic Games Inc., Crystal CG International Limited.

North America was the largest region by market share in the 3D animation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the 3d animation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 3d animation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

3D animation encompasses the spatial arrangement of objects and characters in three-dimensional space, skillfully manipulating them to generate the perception of movement. Computer animation, a form of two-dimensional visual content, leverages three-dimensional computer graphics within a digital framework, highlighting depth and dimensionality. Tangible objects from the physical world can be scanned and employed as models for developing 3D animated content. The versatile applications of 3D animation extend across diverse industries such as gaming and healthcare, while also playing a significant role in presentations and marketing initiatives across all sectors.

The primary categories of 3D animation include 3D modeling, motion graphics, 3D rendering, and visual effects. 3D modeling involves the utilization of specialized software to construct a mathematical, coordinate-based representation of an object's surfaces in three dimensions. This is achieved by manipulating edges, vertices, and polygons within a simulated three-dimensional environment. The deployment of 3D animation can occur either on-premise or in the cloud, offering a range of services such as consulting, support and maintenance, integration and deployment, as well as education and training. These services cater to various industries, including media and entertainment, architecture and construction, education and academics, manufacturing, healthcare and life sciences, government and defense, among others.

The 3D animation market research report is one of a series of new reports that provides 3D animation market statistics, including 3D animation industry global market size, regional shares, competitors with a 3D animation market share, detailed 3D animation market segments, market trends and opportunities, and any further data you may need to thrive in the 3D animation industry. This 3D animation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The 3D animation market includes revenues earned by entities by providing 3D video and film, interactive 3D, virtual reality 3D, inverse kinematics, fluid simulation, 3D skeletal animation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

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