Market Research Report
Global Animation & VFX Industry: Strategies, Trends & Opportunities, 2019
|Published by||Digital Vector, Inc.||Product code||817888|
|Published||Content info||582 Pages, 203 Figures, 94 Tables
Delivery time: 1-2 business days
|Global Animation & VFX Industry: Strategies, Trends & Opportunities, 2019|
|Published: March 31, 2019||Content info: 582 Pages, 203 Figures, 94 Tables||
The demand for animation and VFX has expanded with the increase in targeted broadcasting hours by cable and satellite TV, availability of low-cost internet access, penetration of mobile devices along with the growing popularity of streaming video. In addition, the demand for Animation and VFX content to power immersive experiences such as Augmented Reality and Virtual Reality is growing exponentially. The rapid advancement of technology has made animation and VFX available to the masses, and this industry has become one of the fastest growing segments in the global media and entertainment market. We are increasingly seeing more of the global animation and VFX production taking place in a globally distributed mode. Production work is becoming global with tax incentives, regional low labor costs and lower computing costs, which put pressure on companies to reduce costs and set up facilities in tax advantaged or low-cost regions. This is a model which is increasingly being tapped by content producers.
The total value of global animation industry was US$ 259 billion in 2018 and is projected to reach US$ 270 billion by 2020. Most of the segments in the animation industry are growing at the rate of 2% YoY. The spend on special effects as a percent of production cost is about 20%-25%. The traditional form of content viewership is giving way to a sharp increase in streaming video consumption. The size of streaming market for animation content was US$ 2.9 Billion in 2018 and is growing at an annual rate of 8%.
Global consumers are displaying a growing appetite for engaging, high-definition visual experiences. Moviegoers are demanding high quality productions with engaging visual effects and realistic animation and studios are including more animation and VFX shots into films. Consumers are consuming more immersive content across channels such as ultra-high-definition TVs, tablets and smartphones to head mounted devices. Animation and VFX content is being consumed across many channels including Amazon, Hulu and Twitch, YouTube, Twitter and Facebook. With the growing internet penetration and access to multimedia devices, customers are spending more time on streaming digital content. Streaming video is the fastest growing segment distribution channel for animation and is witnessing double digit growth and the same is expected to continue for the next few years. This growth is attributed to the exponential growth in the number of online video viewers throughout the world. Cloud computing is playing a key role in character rendering and modeling processes as cloud-based rendering of animation films is more effective and efficient as it reduces the time and cost compared to traditional rendering.