Global 3D Animation Market by Deployment (On-demand, On-premise), by Technique (Visual Effects, 3D Modeling) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global 3D animation market was valued at USD 16.64 million in 2020. It is expected to grow at a compound annual rate (CAGR of 11.7%) between 2021 and 2028. The growth is expected to be influenced by a greater preference for creating high-definition (HD) content, particularly for video marketing. This is due to its higher resolution and substantially higher number pixels as well as a better content quality than standard-definition content. It is expected that the main market growth driver will be 3D animated videos, which are used to create illustrations of heavy machinery components in the manufacturing sector. Due to increasing adoption of simulation in industrial tool design by OEMs, there has been an increase in demand for 3D animation solutions. The industry's growth is being driven by the increased use of simulator software as well as services in manufacturing, architecture, construction, media, entertainment, defense, and healthcare.

The 3D animation market is seeing a lot of growth due to the promising pace of expansion in the media and entertainment industry. The simulation technology's photorealistic rendering feature is expected to drive the entertainment and media sector demand. The rising popularity of entertainment and media content for children is expected to increase the demand for 3D animated content. The market is also seeing promising growth opportunities due to the growing trend of integrating 2D animation and 3D animation. For example, small-scale digital ads and big-budget commercial videos that include 2D overlays with motion are being integrated with 2D overlays. Designers are increasingly choosing retro motion graphics to add a nostalgic feel to videos. They also like the ability to morph images and logos to provide smooth transitions that allow for smooth and quick transitions.

By leveraging the motion and sight benefits of 3D animation technology, new opportunities are being created in education and academics. Technology allows medical students to study and virtualize the anatomy of human beings. This technology is a great tool for improving their learning. Simulated videos are being used more frequently by medical schools to provide visual knowledge and better understanding of the human anatomy. Medical students can now perform dissections on live animals without harming them. This technology is also changing the medical field. The use of 3D simulations in healthcare has enabled the development of new medicines and treatments.

Market growth has been positively affected by the significant use of Visual Effects (VFX), in many areas, especially the entertainment and gaming sectors. VFX technology will be used more frequently by moviemakers, game developers, animators, and others soon. The market is also expected to benefit from the rise of Virtual Reality (VR), and Artificial Intelligence, (AI). Immersive content is in high demand across a variety of applications such as billboards and scientific visualizations, creative arts, games, and simulations. The market is also being driven by the increasing adoption of 3D mobile apps and 3D mapping technology to assist with navigation.

Many governments worldwide imposed curfews on outdoor activities and imposed strict regulations in the wake of the COVID-19 epidemic. This lockdown resulted in a huge rise in home entertainment, which encouraged media and entertainment companies alike to improve their video content. Media companies can now offer viewers advanced visualization experiences that allow them to shop, learn and even have fun while they work. Market growth is also expected to be driven by the growing adoption of 3D modeling technology in various applications, such as 3D printing, Computer-Aided Design, marketing, scientific, medical imaging, manufacturing and motion pictures.

Technique Insights

In 2020, the 3D modeling technique segment was the most profitable with a revenue share of more than 30.0%. It is expected to continue its dominance in the future. This technique can be used to create digital objects that can be fully animated. It is crucial for special effects and character animation. The development and transformation of 3D modeling software is a common task for many companies. The Modo 13 version was introduced by The Foundry Visionmongers Limited in March 2019. This British visual effects software company developed 3D modeling applications. This version included enhanced rendering, animation and modeling capabilities, as well as native support for GPU rendering using AMD Radeon ProRender.

Motion graphics is expected to see significant growth between 2021 and 2028. This technique is in high demand because it allows animated videos to be made. Motion graphics can be used to digitally track human movements, including facial expressions and lip movements, giving viewers an immersive visual experience.

The segment of visual effects is expected to see the most growth between 2021 and 2028 with a CAGR exceeding 13.0%. This segment is expected to benefit from the significant use of visual effects in multiple applications, including media & entertainment and marketing. Segment growth is expected to be driven by the use of this technique in other areas such as visual analytics and product visualization, system visualization, information visualization, scientific visualization, and scientific visualization. The 3D rendering process will see significant demand in the next seven years. This technique allows you to create animated scenes or pieces in a sequence of individual frames. These frames are then used to create a series of frames, or clips. To keep up with the growing demand, many industry players are engaging in mergers and acquisitions with rendering businesses. Maxon Computers purchased Redshift Technologies, Inc., an outsourcing company, in April 2019 to expand its product and service offerings.

Component Insights

3D animation software accounted for over 50% of the total revenue in 2020. It is expected to continue its dominance during the forecast period. The software's ability to create 3D objects that look real and tangible, and the demand for it in 3D animated movies and other games can explain this growth. Software Development Kits (SDKs), software-based solutions and plug-ins are all included in this segment. Segment growth is expected to be boosted by the widespread deployment of animation software within the gaming industry. The forecast period will also see a rise in demand for simulation technology software from companies working in marketing and advertising to gain competitive advantages.

In 2020, the hardware segment accounted for a significant revenue share. It includes motion capturing systems and video cards/GPUs as well as workstations and other equipment. The segment is growing due to continuous hardware upgrades and increased use of technology in medical forensics. Technology's rapid penetration into the education and training sector is expected to help the service segment. This segment covers support, maintenance, integration and certification as well as product training services. This segment is expected to grow due to the increased demand for professional gamers, animators and 3D modelers as well as graphic designers.

Information on Deployment

In 2020, the on-premise segment accounted to the largest market share at over 60%. This is because many companies in the VFX/visualization business heavily rely on on-premise solutions. The company's infrastructure is what allows for on-premise storage. This provides greater data security and cost-saving opportunities. Many large companies use on-premise storage solutions due to these advantages.

On-demand is expected to experience the fastest growth between 2021 and 2028 with a CAGR close to 13.0%. This is due to rapid adoption of cloud technology among animation producers. Cloud rendering's advanced features allow for automatic rendering, once the user uploads their creation. On-demand rendering speeds up processes and frees up storage space. Cloud rendering technology is increasingly popular with end-users due to its time-saving and resource-saving advantages. On-demand rendering faces many challenges, including data transfer delays, security and software availability. Technology providers continue to invest in this technology.

End-use insights

Media and entertainment accounted for 35.0% of the total revenue in 2020. It is expected to continue its dominance during the forecast period. This is due to the increasing demand for photorealistic representations in commercial videos and movies. Potential customers can now enjoy a more realistic experience and a better visualization experience thanks to rapid developments in simulation technology.

Due to the rapid development of software and training apps, the education and academics sector is expected to see significant growth. Many educational institutions are planning to integrate simulation technology in their education systems. This will provide students with an advanced learning platform. Scientific Animation Without Borders (SAWBO), an educational program at Michigan State University, intends to use scientifically accurate 3D animation technology in education.

From 2021 to 2028, the manufacturing segment will experience the fastest CAGR at nearly 13.0%. Due to increased adoption of CAD software in architecture, construction, building, designing, and other processes, the construction segment will see significant demand. The simulation technology will be widely used in healthcare, especially in marketing, medical education, and patient communication. Segment growth is driven by the rapid adoption of the technology for learning and training dissections in biology and human anatomy. The government sector will see 3D animation technology grow at an estimated CAGR over 11.5% between 2021 and 2028.

Regional Insights

In 2020, the North American region was responsible for 40% of all revenue. This is due to several key consumers like Fox Studio, Disney and Nickelodeon in America, as well as the widespread adoption and increasing investment in R&D by major players in the region. Simulation technology is expected to see a significant increase in Europe. This is due to the increasing demand for simulation technology in the entertainment and gaming sectors. The regional market is being driven by technological advancements and a preference for animated and graphic content in particular Germany.

Asia Pacific is predicted to experience the fastest CAGR, at nearly 13.0%, over the forecast period. Regional market growth is being driven by the increasing adoption of 3D technologies in many application areas. The market is also benefiting from research conducted in India, Japan, China and China to support animation studios. The deployment of simulation technology in Japan's established anime market has helped the Japanese market capture a large revenue share. The region's skilled workforce is a major driver of market growth.

Market Share Insights & Key Companies

This market is characterized by a fragmented competition landscape and the presence both of regional and global players. Due to increased demand for biomedical devices like respirators, scanners and accessories, ventilators and tubes, the market saw a spike in demand during the COVID-19 epidemic. Fusion Animation, a motion medical animation video manufacturer for the Healthcare and Pharma industries, released a 3D model showing the COVID-19 virus's surface for scientists to study possible cures. To expand their business presence and to survive in a highly competitive environment, key players are entering into partnerships that include other technology providers. In January 2019, Google LLC partnered with Sony Pictures Imageworks to launch OpenCube, a render management system that allowed the company's rendering process to be strengthened.

To gain an advantage over their competition, leading companies invest heavily in R&D to develop innovative technologies and simulation solutions that have distinguishing features. The new paradigm in technological growth is virtual reality and artificial intelligence integrated into 3D simulation. To increase their product offerings, industry participants are engaging in mergers. Adobe Systems Inc., a multi-national computer software company, bought Allegorithmic, a French maker of substance textures tools. This acquisition allowed the company to expand its capabilities and empower visual effects artists, game creators, as well as other users. The following are some of the most prominent players in 3D animation:

• Autodesk, Inc.

• Corel Corporation

• Adobe Systems Incorporated

• NVIDIA Corporation

• Side Effects Software Inc.

• Maxon Computer

Up Market Research published a new report titled “3D Animation Market research report which is segmented by Deployment (On-demand, On-premise), by Technique (Visual Effects, 3D Modeling), By Players/Companies Adobe Systems Incorporated, Autodesk Inc, Side Effects Software Inc, Maxon Computer, NVIDIA Corporation, Corel Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global 3D Animation Market Report Segments:

The market is segmented by Deployment (On-demand, On-premise), by Technique (Visual Effects, 3D Modeling).

3D Animation Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the 3D Animation Market

Overview of the regional outlook of the 3D Animation Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The 3D Animation Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of 3D Animation Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. On-demand

                2. On-premise

                1. Visual Effects

                2. 3D Modeling

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the 3D Animation Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
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• Identifying Appropriate Advertising Appeals

Reasons to Purchase the 3D Animation Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.