3D Animation Market to Reach $33.78 Bn, by 2026 at 11.6% CAGR: Allied Market Research

3D Animation Market to Reach $33.78 Bn, by 2026 at 11.6% CAGR: Allied Market Research

PR Newswire

PORTLAND, Oregon, Feb. 25, 2020

Upsurge in use of visual effects in movies, increase in adoption of cloud for animation, and growth in demand for high quality content by consumers propel the growth of the global 3D animation market

PORTLAND, Oregon, Feb. 25, 2020 /PRNewswire/ -- Allied Market Research published a report, titled, "3D Animation Market by Component (Solution and Services), Deployment Mode (On-Premise and Cloud), Technology (3D Modelling, Motion Graphics, 3D Rendering, Visual Effects, and Others), Industry Vertical (Education, Media & Entertainment, Healthcare, Construction & Manufacturing, Retail, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026" According to the report, the global 3D animation industry garnered $14.08 billion in 2019, and is estimated to reach $33.78 billion by 2026, growing at a CAGR of 11.6% from 2019 to 2026.

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Drivers, restraints, and opportunities

Increase in use of visual effects in movies, rise in adoption of cloud for animation, and surge in demand for high quality content by consumers fuel the growth of the global 3D animation market. On the other hand, presence of free & open-source animation software impedes the growth to a certain extent. Nevertheless, integration of virtual reality (VR) technology for visual effects is expected to create lucrative opportunities for the key players in the industry.

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The solution segment to lead the trail by 2026

Based on component, the solution segment contributed to more than two-thirds of the global 3D animation market share in 2018, and is expected to rule the roost by the end of 2026, as animation solutions are cheaper than solutions and are faster to deploy. Simultaneously, the service segment would cite the fastest CAGR of 12.4% from 2019 to 2026. Rise in need of various different services such as managed service and professional services drives the growth of the segment.

The on-premise segment held the largest share in 2018

Based on deployment, the on-premise segment held the major share in 2018, generating nearly three-fifths of the global 3D animation market, owing to the increase in the adoption of these systems due to enhanced security features provided by the on-premise model. At the same time, the cloud segment would showcase the fastest CAGR of 12.6% throughout the forecast period, owing to the different services provided by the cloud.

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North America to rule the roost in terms of revenue

Based on geography, the market across North-America accounted for more than one-third of the global 3D animation market revenue in 2018 and is projected to dominate throughout the study period. This is due to increase in demand for visual effects that involves the integration of live-action footage in Hollywood. On the other hand, the Asia-Pacific region would register the fastest CAGR of 14.1% by 2026. This is attributed to increase in partnership of Chinese companies with international VFX companies is expected to fuel the market growth in this region.

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