Global Animation Market Research Report, 2025-30

Market Dynamic

Market Drivers • Increasing Global Demand for Animated Content: One of the most significant drivers of the global animation industry is the increasing demand for animated content. This demand is driven by a number of factors, including the global proliferation of streaming platforms like Netflix, Disney+, and Amazon Prime, which have embraced animation in a variety of formats, from feature films to TV series and web content. The rise in the consumption of animation has expanded beyond traditional children's entertainment to reach adults, with adult animated series and films gaining widespread popularity. Additionally, animation is often seen as a versatile medium that can tell stories across genres, from action and fantasy to drama and comedy, helping to attract diverse audiences. • Advancements in Technology and Innovation: Another major driver of the animation industry is technological advancements. Innovations in animation techniques, including 3D modeling, CGI (computer-generated imagery), virtual reality (VR), and augmented reality (AR), have opened new possibilities for storytelling and visual effects. Software tools like Autodesk Maya, Blender, and Adobe Animate have made it easier and more cost-effective for animators to create high-quality work. Additionally, the introduction of real-time rendering and motion capture technologies has enabled more dynamic and realistic animations. These technological innovations not only improve the visual quality of animations but also streamline production, reduce costs, and accelerate timelines, allowing for more content to be produced and delivered at a faster rate. Market Challenges • High Production Costs and Time-Intensive Workflows: Despite the advancements in technology, one of the biggest challenges facing the global animation industry is the high production cost and time-intensive workflows. Creating high-quality animation, whether 2D or 3D, requires significant financial investment, especially for feature films and large-scale projects. The complexity of animation production, including storyboarding, voice acting, designing characters and backgrounds, and animating sequences, can take years to complete. This lengthy process, combined with high personnel costs (e.g., animators, visual effects artists, sound designers), can result in significant budgetary constraints. • Talent Shortage and Skill Gaps: The global animation industry is facing a talent shortage, especially as the demand for high-quality content continues to increase. Despite a growing number of animation schools and educational programs, the rapid expansion of the industry has outpaced the availability of skilled professionals. For instance, there is a high demand for experts in areas such as 3D modeling, motion capture, visual effects, and software development, but there is a gap in the number of trained professionals who can fill these roles. Moreover, studios in developed animation hubs, such as the U.S., Canada, Japan, and South Korea, often struggle to retain their best talent due to fierce competition and better financial incentives offered by larger global studios or tech companies. Market Trends • Animation for Adults and Broader Demographics: Traditionally, animation was perceived as a medium primarily for children, but this perception has shifted significantly in recent years. There is a growing trend of animated content being created for adult audiences, with shows like Rick and Morty, BoJack Horseman, and Big Mouth leading the charge. These series tackle more mature themes such as mental health, relationships, politics, and existential questions, often with dark humor and complex storytelling. This trend has attracted a broader and more diverse demographic to animation, including young adults, and has helped to challenge traditional boundaries of the medium. • Push Toward Diverse and Inclusive Storytelling: There is a growing movement in the global animation industry toward diverse and inclusive storytelling. Audiences are increasingly seeking content that reflects a wide range of cultures, experiences, and perspectives. Animated films like Frozen II, Coco, Raya and the Last Dragon, and Spider-Man: Into the Spider-Verse are examples of projects that showcase diverse characters, settings, and narratives. This trend is being driven by both consumer demand and a broader industry push for greater representation. Studios are recognizing that inclusive storytelling not only resonates with a global audience but also brings fresh perspectives and ideas into the creative process.

Key Development

• In September 2021, Toon Boom Animation launched Harmony 21, a significant update featuring feature-quality, 2D animations for video games. The introduction of enhanced control over stylus attributes, such as speed, pressure, and tilt position, facilitates paperless animation, marking a notable advancement in digital animation tools • In March 2021, iPi Soft announced upgrades for iPi Motion Capture and development tools for Unreal Engine, allowing animation streaming, motion transfer to 3D characters, and real-time motion tracking. These improvements offer artists the ability to witness real-time motion within their specific 3D environments and on characters in Unreal Engine, enhancing the animation development process • In February 2020, Smith Micro Software acquired Circle Media, a program for managing connected home devices. This strategic move allowed Smith Micro Software to expand its capabilities in the connected devices market, potentially influencing animation technologies associated with home entertainment systems • In January 2020, AARDMAN ANIMATIONS LTD, in collaboration with Greenpeace, launched a powerful animated film addressing the global ocean crisis. This initiative raised awareness and contributed to AARDMAN ANIMATIONS LTD's revenue growth and strengthened its position in the market by displaying its commitment to impactful storytelling in animation