3D Animation Market

3D Animation Market Outlook (2024 to 2034)

According to a new research report released by Fact.MR, revenue from the global 3D animation market is projected at US$ 24.11 billion in 2024 and has been forecasted to rise at a noteworthy CAGR of 11.7% to touch US$ 73.13 billion by 2034.

Several industries such as advertising, architecture, education, healthcare, and others have started to use 3D animations widely. For example, 3D animations are used in architecture to aid in visualizing architectural plans, and in healthcare to support surgical simulations and patient education. One of the key factors that are contributing to the expanding 3D animation market size is the widespread use of 3D animations by brands more often in their advertising to provide eye-catching and unforgettable images. 3D animation is becoming an important tool in marketing because it easily explains complicated concepts in a way that is simple to understand.

The need for customizable 3D animations is being driven by the increasing demand from consumers for personalized content, particularly in gaming and interactive media. The growth of user-generated content on social media and the virtual world is a clear example of this trend.

Key Market Growth Drivers

• The quality and productivity of 3D animation production are improving due to the ongoing advancements in rendering techniques, hardware, and software.
• These continuous innovations are positively affecting the 3D animation market growth as the demand is increasing for them from several industries and now producers can generate animations that are more realistic and complicated.
• To produce visually appealing content, the entertainment industry, including television, movies, and video games, heavily depends on 3D animation.
• The requirement for advanced 3D animation is rising due to the increasing popularity of animated films, computer-generated imagery (CGI) in live-action movies, and immersive gaming environments.
• The latest 3D animation market trend is ongoing developments in VR and AR technologies. The need for 3D materials is growing as a result of the rising usage of these technologies in marketing, education, gaming, and training.
• The use of 3D animations is increasing in digital channels such as social media, mobile apps, and streaming services due to growing consumers' interest in this eye-catching content.
• Small companies and independent digital creators are widely utilizing 3D animation as they now easily access it because of the falling prices of these tools and software and the availability of cloud-based rendering services.
• Utilization of 3D animation is also increasing as an educational tool and training program to generate interactive and engaging learning content.
• The education sector is adopting 3D animation because of its capacity to demystify complicated topics and create immersive learning environments.

Report Attribute	Detail
3D Animation Market Size (2024E)	US$ 24.11 Billion
Forecasted Market Value (2034F)	US$ 73.13 Billion
Global Market Growth Rate (2024 to 2034)	11.7% CAGR
North America Market Share (2024E)	33.7%
Hardware Segment Value (2034F)	US$ 35.98 Billion
3D Modeling Segment Value (2034F)	US$ 29.32 Billion
East Asia Market Value (2024E)	US$ 5.84 Billion
Key Companies Profiled	Adobe; The DVI Group; Autodesk Inc.; Spin Creative; Yans Media; Indigo Productions; Corel Corporation; Deep Motion; Corus Entertainment Inc.; NVIDIA Corporation; Trimble Navigation Ltd.; Spaceblock; LOCUS Animation Studios; Newen Studios.

Why is the Utilization of 3D Animation Increasing Globally at a Notable Growth Rate?

“Rising Popularity of Animated Content on Various Digital Platforms”

The market for 3D animation is expanding at a significant growth rate due to the rising popularity of animated content on digital platforms such as social networking, streaming services, and mobile apps. People are looking for existing and visually appealing materials that engage, instruct, and amuse them. This requirement is perfectly satisfied by animated content as it provides complicated information in an aesthetically pleasing and easily understandable manner.

To Make high-quality animation that stands out in the crowded digital world, content creators, brands, and media businesses are heavily investing in 3D animation technology.

What Challenges are Encountered by Providers of 3D Animation Services?

“Complex Process and Requirement for Skilled Professionals for 3D Animations”

The use of 3D animation is becoming extremely hard due to the complex processes and advanced tools required. To produce cartoons of high caliber, animators need to be highly skilled and well-versed in the necessary tools. It takes a lot of time and constant education to stay up to date with industry innovations to learn how to use these complex technologies. As businesses need to fund training programs and make sure their staff members are up to date on the new tools and methods, the constant demand for skill development causes production schedules to stall and operating costs to rise.

Country-wise Insights

North America is estimated to hold 33.7% of the 3D animation market share in 2024. The market is expanding due to the presence of strong entertainment and gaming industries. Also, demand is increasing in Hollywood, with its strong demand for special effects and animated films. East Asia holds a significant portion of the market due to the high demand for 3D animation from the well-established gaming industry.

What is the Current Status of 3D Animation Demand in the United States?

“Popularity of Streaming Services Positively Affecting the Market Expansion”

Attribute	United States
Market Value (2024E)	US$ 9.94 Billion
Growth Rate (2024 to 2034)	12.5% CAGR
Projected Value (2034F)	US$ 19.22 Billion

The high popularity of streaming services such as Netflix, Disney+, and Amazon Prime Video is boosting the demand for 3D animation in the United States. To attract and keep users, these platforms are spending more money on original animated programs and movies. These businesses offer a variety of high-quality animated offerings that generally use advanced 3D animation techniques to create visually appealing and captivating experiences.

The need for 3D animation in the United States market is projected to keep growing as these streaming platforms extend their content portfolio and production capacities, driving additional development and innovation in the market.

Why is South Korea Gaining Attention from 3D Animation Providers?

“Well-Established Gaming Industry Driving Up the Need for Advanced 3D Animation”

Attribute	South Korea
Market Value (2024E)	US$ 641.8 Million
Growth Rate (2024 to 2034)	12.6% CAGR
Projected Value (2034F)	US$ 2.1 Billion

South Korea has one of the most developed and strong gaming industries in the region which is boosting the demand for 3D animation. The need for advanced 3D animation is increasing in game creation because of a strong preference for immersive and visually rich experiences of gamers in South Korea. To satisfy the demands of gamers, domestic and international game companies are investing in advanced 3D animation technologies.

Other than this, the demand for 3D animation is further driven by the growing interest of people in virtual reality (VR) and augmented reality (AR) technology in South Korea. For VR and AR applications to provide engaging and interactive experiences, high-quality 3D animation is necessary.

Category-wise Insights

Based on end user, the market is segmented into media & entertainment, education, healthcare, and architecture. The media & entertainment segment is projected to hold a large portion of the market due to the high requirement for 3D animation. Many projects require a range of actions over extended periods to produce high-quality final deliverables.

Why is Demand for 3D Modeling High Compared to Other Technologies?

“Pivotal Contribution in Making Visual Components and Usefulness in Complex Digital Creations”

Attribute	3D Modeling
Segment Value (2024E)	US$ 8.9 Billion
Growth Rate (2024 to 2034)	12.3% CAGR
Projected Value (2034F)	US$ 29.32 Billion

3D Modeling is high in demand compared to other technologies as it is the first step towards producing complex and lifelike digital objects, environments, and characters. In 3D animation, 3D Modeling is important for creating the visual components that give animated scenes life, unlike other technologies. This provides a high level of realism and immersion which is mostly attained by precisely controlling shape, texture, and proportion in intricate structures.

This drives the demand for 3D modeling relative to other technologies of the 3D animation process, making it crucial across various industries such as entertainment, gaming, architecture, and product design.

Why is the Need for 3D Animation Hardware Components Increasing Continuously?

“Accelerating Requirement for Animation Process and 3D Rendering”

Attribute	Hardware
Segment Value (2024E)	US$ 11.45 Billion
Growth Rate (2024 to 2034)	10.3% CAGR
Projected Value (2034F)	US$ 35.98 Billion

Compared to software and services, the demand for hardware components is high due to the extensive need for 3D rendering and animation processes. It takes a lot of processing power, memory, and graphics capability to create complex 3D models, add textures, simulate physics, and display excellent animations. To manage the growing complexity of projects and shorten rendering times, animators and animation companies are constantly upgrading their hardware as they seek more realistic and detailed outputs.

The demand is higher for hardware than software or other components due to the continuous need for CPUs, GPUs, and significant amounts of RAM.

Competitive Landscape

Key players in the 3D animation industry are focusing on expanding their service portfolio. They include various services for 3D animation projects such as film, television, video games, advertising, and VR/AR applications. Subscription-based pricing structures are becoming more common among software companies. They give a consistent source of income and increase accessibility to advanced animation tools for a wider group of customers, including individual artists and smaller studios.

• MEW is a token based on a cat theme on the Solana blockchain and is the first of its kind in entertainment. In August 2024, this retail product line by memecoin community entered into a partnership with LOCUS Animation Studio. Through this collaboration, MEW's captivating story will be brought to life in a brand-new 3D animated series that will pioneer the unprecedented fusion of cryptocurrencies and popular culture.
• In November 2023, with the release of MotionGPT, DeepMotion, a manufacturer of AI-powered motion capture equipment, hopes to completely transform the animation industry. This application ushers in a new era of democratization in animation creation by smoothly transforming text prompts into complex 3D animations through the power of generative AI.
• In July 2024, Seraphim, a new animation pipeline that promises to blur the line between concept art and production, was introduced by Canada's Mercury Filmworks and France & Canada's Blue Spirit Studios, both of which are a part of TF1 Group's Newen Studios.

Fact.MR provides detailed information about the price points of key providers of 3D animations positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of 3D Animation Market Research

• By Component :

  • Hardware
  • Software
  • Services

• By Technology :

  • 3D Modeling
  • Motion Graphics
  • 3D Rendering
  • Visual Effects

• By End User :

  • Media & Entertainment
  • Education
  • Healthcare
  • Architecture

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa