Market Research Report
European Animation & VFX Industry: Strategies, Trends & Opportunities, 2019
|Published by||Digital Vector, Inc.||Product code||818034|
|Published||Content info||349 Pages, 276 Figures, 79 Tables
Delivery time: 1-2 business days
|European Animation & VFX Industry: Strategies, Trends & Opportunities, 2019|
|Published: March 31, 2019||Content info: 349 Pages, 276 Figures, 79 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 & 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 European animation studios have started partnering with global players to produce animation content for Television. These alliances have resulted in content suited for local population. This is particularly seen in countries such as France, UK, Germany and Spain. The European animated feature film industry has still not achieved the popularity and global appeal of their American counterparts. International marketing is a key area for improvement for European animation studios. There are very few European films with trans-national success. This is partly due to the diverse cultural backgrounds. However, this is undergoing change with a small number of local European productions enjoying European and global success.
The total value of European animation industry was US$ 45.6 billion in 2018 and is projected to reach US$ 46.2 billion by 2020. The size of European video gaming industry was US$ 19 billion in 2018 and is projected to reach 21.5 billion by 2020. The total value of global animation industry was US$ 259 billion in 2018 and is projected to reach US$ 270 billion by 2020. 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.
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. 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.