PUBLISHER: The Business Research Company | PRODUCT CODE: 1847506
PUBLISHER: The Business Research Company | PRODUCT CODE: 1847506
Generative AI in animation refers to the application of artificial intelligence techniques, particularly generative models such as generative adversarial networks (GAN) or variational autoencoders (VAE), to create or assist in the creation of animation content. It facilitates the automatic generation of realistic characters, backgrounds, or entire scenes, thereby streamlining the animation production process and offering innovative creative possibilities.
The primary types of generative AI in animation include transformers, generative adversarial networks, variational autoencoders, among others. Transformers represent a type of neural network architecture utilized in processing sequential data by considering the entire input simultaneously. The various components of generative AI in animation encompass solutions and services, deployed across various applications such as television and over-the-top platforms, films, advertisements, gaming, among others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The generative AI in animation market research report is one of a series of new reports from The Business Research Company that provides generative AI in animation market statistics, including generative AI in animation industry global market size, regional shares, competitors with a generative AI in animation market share, detailed generative AI in animation market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in animation industry. This generative AI in animation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The generative ai in animation market size has grown exponentially in recent years. It will grow from $1.75 billion in 2024 to $2.37 billion in 2025 at a compound annual growth rate (CAGR) of 35.7%. The growth in the historic period can be attributed to the automation of animation processes, realistic animations based on real-world footage, experimentation with different animation styles, increased creative productivity, and widespread adoption and integration.
The generative ai in animation market size is expected to see exponential growth in the next few years. It will grow to $7.45 billion in 2029 at a compound annual growth rate (CAGR) of 33.1%. The growth in the forecast period can be attributed to ethical considerations, cross-platform compatibility, interactivity integration, efficiency improvements, realism enhancement and accessibility enhancement. Major trends in the forecast period include procedural animation, style transfer for animation, enhanced scene generation, AI-driven lip sync and real-time character animation.
The forecast of 33.1% growth over the next five years reflects a modest reduction of 0.7% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. The animation sector's use of Generative AI may suffer due to higher costs of graphical rendering hardware and animation tools that are often imported, raising production budgets for studios and freelancers alike. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The burgeoning gaming industry is poised to drive the expansion of the generative AI in animation market in the foreseeable future. The gaming industry encompasses activities related to the development, production, distribution, and monetization of video games across diverse platforms such as consoles, PCs, and mobile devices. The growth of the gaming industry can be attributed to increased accessibility via mobile platforms and a burgeoning global audience embracing gaming as both entertainment and a competitive pursuit. Generative AI is revolutionizing gaming animation by autonomously crafting lifelike characters and environments, thereby enhancing immersion and reducing development time. Its procedural generation capabilities offer boundless possibilities, shaping dynamic narratives and expansive virtual worlds. For instance, according to the Entertainment Software Association, U.S. consumer spending on video game content, hardware, and accessories totaled $56.6 billion in 2022, with December 2022 alone reaching $7.6 billion, up 2% from the same period in 2021. Therefore, the growing gaming industry is fueling the growth of the generative AI in animation market.
Key players in the generative AI in animation market are doubling down on developing innovative services, such as browser-based generative AI services, to augment their market share. Browser-based generative AI services are transforming the animation industry by equipping animators with advanced tools and techniques to create compelling and visually stunning animations more efficiently and effectively. For example, in March 2024, DeepMotion Inc., a U.S.-based cloud-based deep learning motion intelligence company, unveiled Saymotion, a new browser-based generative AI service and creator platform. Saymotion leverages generative AI technology to effortlessly transform text prompts into intricate 3D animations within minutes. This platform utilizes natural language processing (NLP) to convert text prompts into 3D animations, generating animations in various formats like FBX (Filmbox), GLB (GL Binary), and BVH (Biovision Hierarchy) that are compatible with DCC software and game engines. Users can create detailed animations of human characters by inputting text prompts describing the character, the action, and animation style.
In August 2023, OpenAI Inc., a U.S.-based artificial intelligence research company, acquired Global Illumination Inc. for an undisclosed sum. This acquisition enables OpenAI to enhance its core products by leveraging the talent and expertise in AI design from Global Illumination Inc., positioning OpenAI for continued success in the evolving landscape of artificial intelligence. Global Illumination Inc. is a U.S.-based provider of generative AI solutions for building infrastructure and digital experiences, including AI applications for animation purposes.
Major companies operating in the generative AI in animation market report are Alphabet Inc.; Microsoft Corporation; Meta Platforms Inc.; Amazon Web Services Inc.; Netflix Inc.; NVIDIA Corporation; Adobe Inc.; Autodesk Inc.; Epic Games Inc.; Pixar Inc.; Weta FX; The Cinesite Group; Hugging Face Inc; MAXON Computer GmbH; Synthesia A S; Kinetix; Runway AI Inc; AI21 Labs; Descript Inc; Toon Boom Animation Inc.; Side Effects Software Inc.; Wibbitz Inc; Midjourney Inc; Lumen5 Technologies Ltd; RADiCAL Solutions Inc
North America was the largest region in the generative AI in animation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in animation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the generative AI in animation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The generative AI in animation market includes revenues earned by entities by providing services such as facial animation generation, background and environment generation, motion capture cleanup, storyboard generation, and dialogue generation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Generative AI In Animation Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on generative ai in animation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for generative ai in animation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The generative ai in animation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.