Global animation software market revenue was recorded to be around US$352 Bn in the year 2021 and research anticipates strong growth prospects for the same over the course of next few years.
Widening Application Base Offers a Thrust to Animation Software Market
As the gaming and entertainment industry grows and technological advancements accelerate, the need for animation technology also increases. 3D animation software is used in various fields beyond entertainment and gaming, including architecture, life science, and health care. In addition, animation technologies, such as images and videos, can be used to visualize and study human and animal anatomy. Additionally, animation technology is used in manufacturing since it makes it possible to communicate a concept using illustrations, thus acting as an excellent communication tool. All these above factors will remain responsible for the growth of global animation software market. The growth of the animation software market is negatively affected by unimpeded access to open-source 3D software and piracy. Pirated software leads to revenue losses for the animation industry because it ruins the company's image. The pirated market is thus regarded as a hindrance toward the growth of animation software market.
In addition to visual effects technology being adopted in movies, 3D mobile apps and games demand is increasing. These are the major drivers of the animation software market. The rise in the use of virtual reality and artificial intelligence technologies in medical forensics, combined with the growing use of 3D animation technology, is creating opportunities for the growth of the animation software market. Untapped markets and growing awareness among consumers will be the market's highlights. Animating motion graphics, creating high-quality visual effects, and creating interactive content is possible with animation software. These reliable features drive the animation software market growth.
Motion graphics, high-quality visual effects, and other interactive content can be produced using animation software. The reliability of such features drives animation software market growth. The animation software provider invests in acquisitions, capital expenditures, joint ventures, restructurings, and other strategic investments to acquire new technologies, develop new businesses, and enhance its competitiveness. Autodesk, Inc. announced in January 2019 that it would acquire a preconstruction platform called BuildingConnected to access the construction network.
Animation Software Market: COVID-19 Impact
Several industries, including animation software, have been disrupted by the COVID-19 outbreak. Europe, Asia, and North America have been hit hard by COVID-19, while the Middle East, Africa, and Latin America have also been affected. Also, due to the lockdowns imposed in several countries around the world, digital media consumption is expected to increase substantially. As a result, people are staying at home and procuring OTT services, IPTV subscriptions, etc., to satisfy their entertainment needs. Digital media content creators and publishers will increasingly adopt animation software due to this.
Game and Application Demand for 3D Mobile Devices to Drive Animation Software Market Growth
A growing trend of 3D video games that employ animation software has propelled the market in recent years. For example, according to Wepc, Asia Pacific had gaming revenue of $51.2 billion in 2017, making it the world's largest market. In addition, video games are becoming more cinematic and immersive due to graphics technologies being developed by players such as NVIDIA, AMD Inc, and others. Aside from that, virtualization techniques in gaming are helping animation software to grow. Furthermore, as the gaming market changes, MOBAs (Multiplayer Online Battle Arenas) are becoming more popular. MOBAs are currently considered the most popular genre in first-person shooter games because they provide fast-paced action thrills. The game features striking visual effects, which attract gamers in significant numbers.
3D Animation Technological Advancements Fuel Animation Software Market Expansion
A major opportunity is being created by integrating Artificial Intelligence (AI), and virtual reality (VR) in 3D animation software. There is a wide range of applications for this technology across several industries, including computer gaming, advertising and marketing, fashion and textiles, automotive, geology and science. It allows the creation of large blueprint layouts in which every component is meticulously detailed. 3D animation in the automotive industry offers better visualization and simulation tools for increased understanding. Automotive manufacturing companies can create highly efficient machines using the modelling tools provided by 3D animation software.
Software Piracy-related Concerns to Hamper Animation Software Market Growth
Currently, open-source 3D software, piracy issues, and unrestricted access to 3D animation software negatively affect the market's growth. Consequently, piracy adversely affects the animation sector's revenue, thus, inhibiting its growth. It is expected that the 3D animated movie market will grow in the future, fuelled by the rising interest in 3D animated movies, along with the integration of artificial intelligence and virtual reality into 3D technology. While the market is forecast to grow during the forecast period, government support and low proficiency are expected to hamper its progress. Further, a number of factors are expected to restrict the growth of the animation software market, including a lack of funding and investment, insufficient government support, and inadequate intellectual property protection. In addition, the animation software market is hindered by a lack of skilled professionals and content piracy.
Animation Software Continues to be Sought-after Banking on a Wide Industrial Application Base
In the forecast period, the animation software segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. Traditionally, animation software has been used in entertainment and gaming; however, it is now applied to architecture, life science, and healthcare. Medical animation in form of images, and video tutorials make learning human and animal anatomy much easier. It is an excellent communication medium in manufacturing industries, as it allows the user to portray concepts vividly. Technology rapidly grows because it creates fantastic, realistic, and innovative images. The plans and models of buildings are extensively scrutinized by civil engineers and architects using 3D technology.
Media and Entertainment Categories Dominate Animation Software Market with Increased Mobile and Internet Penetration
In the forecast period, the media and entertainment segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. It has been many years since the primary market for animation software was the media and entertainment sectors. Due to the increasing mobile internet penetration and smartphone growth, the animation software market will see enormous opportunities in 3D games, animated videos, movies, and others. Aside from that, the industry is likely to grow due to the growth of animated international films, especially 3D ones. The market is dominated by regions such as North America and Europe due to a large amount of locally produced computer-generated imagery animation content, resulting in favourable market conditions.
North America Remains Top Revenue Contributor to Animation Software Market, Demand to Witness a Notable Spike in Asia Pacific
Over the forecast period, it is anticipated that North America’s animation software market will account for the largest revenue share. Investing in research and development is possible due to the region’s stable and firmly established economies. As a result, new 3D rendering and modelling techniques are being developed more frequently. Approximately 42% of the overall 3D market revenue is generated in the region, which is dominated by the United States which is home to numerous multinational studios such as Fox Studios, Walt Disney, Cartoon Network, and Nickelodeon. In their production processes, these companies use various 3D animation techniques. Motion capture, motion graphics, and VR are becoming increasingly popular across different vertical industries in North America, which will dominate the global market for animation software.
The Asia Pacific animation software market is projected to experience stable revenue growth throughout the forecast period due to the growing number of advanced digital technologies adopted and the expanding animation industry. A country like India offers immense opportunities for animation vendors due to high media and entertainment industry demand. In addition, regional market growth is accelerated by the increasing adoption of innovative 3D technologies and the retention of production facilities for western industries. As a result of the flexible regulatory systems and the broad availability of labour force in the Asia Pacific region, European and American countries outsourced projects more frequently. There is growing momentum among developing countries in the region, such as India, China, and Japan, to support animation studios with research and development. Power Stone, Pokemon, Monster Farm, and Detective Conan are among the popular cartoon series boosting Japan's 3D animation industry. As a result of low production costs, developing countries benefited from the 3D animation market. The recent rise of 3D video games utilizing animation software has been propelling the market. For example, according to Wepc, APAC became the biggest gaming market in 2017, generating US$51.2 Bn in revenue. Additionally, animation software is growing because of the increasing use of virtualization techniques in gaming as well as the visual technologies used by players such as NVIDIA, AMD Inc and others.
Global Animation Software Market: Competitive Landscape
Educational institutions also use technology to explain several scientific concepts to students effectively. The use of 3D animated videos in educational applications and e-learning platforms. For example, SAWBO (Scientific Animations Without Borders) develops 3D animations that are scientifically accurate and precise. To gain access to the construction network, Autodesk, Inc., acquired BuildingConnected in January 2019 in order to acquire a preconstruction platform. As a result of this acquisition, robust digital construction can be deployed for animation software. It will create a favourable environment for growth in the animation software market. Include Adobe Inc., NVIDIA Corporation, Autodesk, Inc., Pixar, Inc., NewTek, Inc, and Corel Corporation.
Regional Classification of the Global Animation Software Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Animation Software Market
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