3D Animation Market (2024 - 2030) Size, Share & Trends Analysis Report By Technique, By Component (Hardware, Software, Services), By Deployment, By Organization Size, By End-use, By Region, And Segment Forecasts

3D Animation Market Size & Trends

The global 3D animation market size was valued at USD 22.67 billion in 2023 and is projected to reach USD 51.03 billion by 2030, growing at a CAGR of 12.3% from 2024 to 2030. There has been a rise in the adaptation of visual effects (VFX) technology in movies and films. The viewers want realistic-looking images and films and want to experience new technologies that provide them with realistic images. Besides movies, there is also a rapid rise in demand for 3D mobile applications and games. Viewers' experience in gaming has led to this rise in demand for 3D technology. The advancement of 3D stereoscopic gaming with the help of 3D animation technology is a driving force of this industry as well.

Emerging 4D and 5D technologies have become a driving force, due to which 3D animation technology is gaining value and recognition in all fields. Another constraint that cannot be ignored is the increase in the usage of 3D mapping tech for navigation and geospatial analysis. A vast market opportunity lies in medical procedures. Printing technology represents an excellent opportunity to help pharmaceutical companies develop precise medicines, allowing faster production of medical plants, and changing the way doctors and surgeons design procedures. The only threat that has to follow would be the threat of piracy.

The flexible and fast motion trend using all three-dimensional space within the frame has resurfaced and is ready for sports lessons. While the Olympics were held in Japan, many manga styles also have come with powerful movements and clever changes to 3D animation. The 2D vector graphic is popular too, varying between short and straightforward characters, adding color - but with a lot of expression either in the way the character moves towards their characters or other characters or facial expressions.

As the world moves forward with the idea of the future, more and more people are clinging to the VR concept and the ability to interact with the feeling of the 3D world, which is very different in their daily lives. A recent rise in demand of consumers for films to look more realistic and appealing has made the public embrace technology in the form of 3D Animation, and even though it is hard to create a movie like that, demand for better animation and technology has constantly been driving it to higher potential market growth in the last decade. The animation makes films look more realistic and authentic, even though it is all computer-generated.

The COVID-19 pandemic had a significant impact on the 3D animation market, bringing both challenges and opportunities. As lockdowns and social distancing measures became widespread, traditional production workflows faced disruptions, leading to delays in project timelines and the closure of physical studios. However, the demand for digital content surged during this period, driven by increased online activities and remote entertainment consumption. Animation studios rapidly adapted to the changing landscape, with a notable rise in the utilization of cloud-based collaboration tools and remote work solutions. The pandemic accelerated trends such as real-time 3D animation for virtual events, gaming, and interactive simulations. Moreover, the immersive nature of 3D animation found new relevance in the augmented reality (AR) and virtual reality (VR) space as people sought engaging experiences while restricted to their homes. On the other hand, economic uncertainties prompted some studios to reevaluate budgets and project scopes. Despite these challenges, the industry showcased resilience and innovation, harnessing technology to navigate the crisis and ultimately contributing to the evolution of the 3D animation market in response to the unique circumstances posed by the global health crisis.

Market Concentration & Characteristics

The 3D animation market growth stage is high, and the pace of the market growth is accelerating. This is primarily attributed to the continuous advancements in technology, software tools, and rendering techniques. The increasing demand for realism and creativity fuels a competitive environment, prompting studios and artists to explore innovative solutions. Besides, the integration of Artificial Intelligence (AI) and Machine Learning (ML) in animation processes further elevates the industry's innovative landscape.

The 3D animation market is also characterized by a high level of merger and acquisition (M&A) activities by the leading market players. Companies seek to leverage complementary strengths, expand their global footprint, and enhance technological capabilities. Key players are keen on acquiring innovative studios or technology firms to stay competitive and meet the growing demands of a diverse audience across various platforms, including film, gaming, and Virtual Reality (VR).

Regulations play a significant role in determining the 3D animation market, influencing both its creative and commercial aspects. Compliance with industry standards ensures the production of high-quality content while safeguarding intellectual property rights. Moreover, regulatory frameworks impact accessibility, copyright issues, and ethical considerations within the industry. Adapting to evolving regulations becomes imperative for industry players to navigate challenges and capitalize on emerging opportunities.

The threat of direct substitutes in the 3D animation market is low, owing to the specialized skills and advanced technology required in this field. High-quality 3D animation necessitates expertise in complex software and artistic creativity, creating a barrier to entry for potential substitutes. Additionally, the unique capabilities of 3D animation in industries such as film, gaming, and VR make it challenging for alternative solutions to replicate its impact.

End-user concentration is a significant factor in the 3D animation market, as a number of industry verticals like entertainment & gaming, and architecture & construction are actively engaging with 3D content. The rising demand for 3D animation tools offering a range of features for modeling, texturing, rigging, animation, and rendering create opportunities for companies that focus on evolving 3D animation solutions for these industries.

Technique Insights

The 3D modeling segment accounted for the largest revenue share of over 30.2% in 2023 and this dominance is anticipated to continue throughout the forecast period. 3D Modeling is the procedure of creating objects in 3D animation software. These objects are created based on previously designed or real-world visions and are used as 3D natural elements made. Animation is about movement, and expressing this movement will require a crippling of objects. The 3D modeling process creates a fully animated digital object, making it an essential function for animation and special 3D effects. With extra dimensions, 3D models can change viewers' views of what they are watching in seconds; also help designers and end-users see space requirements and improve drawing efficiency and accuracy.

The virtual effects (VFX) segment is projected to grow at the fastest CAGR from 2024 to 2030. The visual effect is a process in which images are created or manipulated outside the context of live shooting in film and video production. Integration of live-action video with other live images or CGI features to create realistic images with VFX. Special effects are abbreviated as SPFX, SFX, F / X, or FX easily with deceptive or visual tricks used in theater, video game, drama, film, and television industries to mimic events imagined in the form of a story or the visual world. During the rendering process, already done with a 3D model, rendering, animation, blurring, text message, VFX, and lighting are integrated and rendered with 2D (framed) still images.

Component Insights

The software segment accounted for the largest revenue share of 53.76% in 2023 and this dominance is anticipated to continue throughout the forecast period. This growth may be due to the software's ability to create visuals that appear realistic and tangible, as well as your essential need for 3D animation in movies and games. The section includes Software Development Kits (SDKs), integrated software solutions, and plug-ins. The widespread distribution of animated software in the gaming industry is expected to boost the category's growth. In addition, the deployment of simulation technology software by many companies in the marketing and advertising industry to gain a competitive advantage is expected to drive the need for software in the forecast period.

The hardware segment accounts for a significant revenue share in 2023. 3D animation combines the creation and editing of complex 2D and 3D images, putting many modern computers under pressure. Therefore, there is a need to equip particular hardware to further 3D animation. Furthermore, the increased penetration of technology into the education and training industry is projected to boost the services segment. The segment includes support and care, development and integration, consultation, certification, and product training services. The growing demand for professional game developers, animators, 3D models, and graphic designers is expected to further the segment's growth.

Deployment Insights

The on-premise segment accounted for the largest revenue share of 60.95% in 2023. Location storage depends on the company's data management or infrastructure, which provides greater data security and savings. Because of these benefits, many large businesses are using existing solutions. The combination of AI and 3D animation has made the simulation process easier. The widespread acceptance of VFX in the entertainment industry is expected to boost the 3D animation market growth. The program is preferred to display scenes that can be shot in real places by movie makers, game developers, and animators.

The on-demand segment is expected to record the highest CAGR from 2024 to 2030. This growth may be due to cartoon producers' rapid adoption of cloud technology. Improved cloud delivery features allow the server to process delivery automatically once the user has uploaded their creation. In addition, processes are completed in a short time in the most complex solutions, freeing up storage space. Many companies use cloud delivery technology as they are popular with end-users because of their services and time-saving benefits. However, the required delivery process faces challenges such as data transfer delays, security, and access to software, which technology providers are constantly investing in to overcome.

End-use Insights

The media and entertainment segment accounted for the largest revenue share of 34.53% in 2023 and is expected to maintain its dominance over the forecast period. The reason for significant growth is that most of today's films use 3D and CGI technology. Hollywood is now using 3D technology to create various costumes, props, and objects to make their movies more realistic. 3D modeling in construction provides a realistic view of a completed project by combining all the pieces. Rapid advances in simulation technology allow potential customers to experience a realistic experience and extensive viewing experience.

The healthcare segment is anticipated for a significant CAGR from 2024 to 2030. The healthcare industry uses a wide range of sophisticated equipment and equipment in patient care, such as scanners, respirators, ventilators, blood purifiers, etc. Marketing all such tools becomes much easier with the 3D animation of machines. 3D animation works in almost impossible cases to explain in manuals. Soldiers can use 3D animation to train themselves in a variety of situations. The military can use it to enhance training, reskill soldiers, and defend our country. Soldiers can also use it for military purposes, and the government can also use it to train soldiers and train new students. Animation has many benefits, but 3D animation is better used for protection.

The manufacturing segment is expected to record the highest CAGR from 2024 to 2030. Industrial animation is the animation catering to an industrial machine or product and its specific method or range of motion. Its purpose is to define the operation of a product/equipment/ industrial components. The manufacturing industry and process industry all the processes such as oil and gas, chemicals, chemicals, packaging, and some others - use 3D animation to present and record equipment and methods. They explain concepts, simplifying the maintenance procedures and training of its operators. 3D animation and explanatory videos work better at showing all the chemical elements than the hard-to-understand manuals. When looking at 3D animation process images, the concepts are easy to understand. With 3D walkthrough animation as an example, it is possible to look at what is happening inside the plant or how the process works - fluid flows in rows.

Regional Insights

The North America region accounted for the largest revenue share of 36.9% in 2023. Despite the significant success of 3D animation in the form of anime in the country of Japan, the emergence of animation technology is far more potent than in the North America region. This could be attributed to the existence of a few key customers in the United States, such as Fox Studio, Disney, and Nickelodeon, as well as the widespread use of 3D animation technology and increasing R&D expenditure by regional industry leaders. At the same time, the formation of significant animation studios in the west and growing 3D animated game development promises substantial growth for the North America region. Moreover, the deployment of 3D animation in the healthcare industry to support medical students and practitioners in getting medical training is propelling the market growth.

The Asia Pacific region is expected to record the highest CAGR from 2024 to 2030. The region witnessing the fastest growth would be because the market receives increased investments from Japan, China, and South Korea, which remains a promising technology for the future. Europe is expected to see a dramatic increase in the use of simulation technology. This growth could be due to the growing demand for technology in the sports and entertainment sectors. The continued development of technology and the increasing popularity of cartoon content and graphics, especially in Germany, are driving the regional market.

Recent Developments:

• In November 2023, DeepMotion launched MotionGPT, an innovative tool leveraging Generative AI to convert text prompts into detailed 3D animations. MotionGPT streamlines animation creation, making 3D animation accessible to a broader range of creators and industries.

• In December 2023, Spaceblock introduced an innovative series of 3D animation packs based on motion capture technology, on the Unreal Engine Marketplace. This collection is poised to transform virtual gaming and live performances by delivering unmatched realism and creativity to users.

• In September 2023, Adobe launched AI and 3D features in both Adobe Premiere Pro and Adobe After Effects, accompanied by enhanced storage capacities within Frame.io. These AI-driven features automate laborious tasks, enabling video editors and motion designers to realize their creative vision swiftly.

• In August 2023, NVIDIA introduced a major upgrade to its NVIDIA Omniverse platform, introducing new foundational applications and services. These additions are designed to empower developers and industrial enterprises in optimizing and improving their 3D pipelines with generative AI, and OpenUSD framework.

• In August 2023, Pixar (The Walt Disney Company), Adobe, Apple Inc., Autodesk, Inc., and NVIDIA Corporation, in collaboration with the Joint Development Foundation (JDF), a member of the Linux Foundation, jointly announced the establishment of the Alliance for OpenUSD (AOUSD). This initiative aims to standardize the 3D ecosystem and enhance the capabilities of Open Universal Scene Description (OpenUSD).

3D Animation Market Report Scope

Global 3D Animation Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global 3D animation market report based on technique, component, deployment, end-use, and region.        

• Technique Outlook (Revenue, USD Million, 2018 - 2030)

  • 3D Modeling

  • Motion Graphics

  • 3D Rendering

  • Visual Effects (VFX)

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Services

    • Consulting

    • Support & Maintenance

    • Integration & Deployment

    • Education & Training

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

• On-Premise

• On-Demand

• Organization Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Small and Medium-sized Enterprises (SMEs)

  • Large Enterprises

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Entertainment & Gaming

  • Architecture & Construction

  • Education & Academics

  • Manufacturing

    • Automotive

    • Electronics

    • Others

  • Healthcare & Life Sciences

  • Government & Defense

  • Aerospace

  • Advertising and Marketing

  • Others   

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa