Animation Market Outlook:
Animation Market size was valued at USD 430.01 billion in 2025 and is set to exceed USD 777.38 billion by 2035, expanding at over 6.1% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of animation is estimated at USD 453.62 billion.
AI training for character movements has gained traction in the past few years. Considering the changing landscape of animated films and television works, AI in filmmaking takes center stage. More companies in the space are seeking AI-simulated technologies and reinforcement learning models to create virtual characters with human appearance and language interaction functions. In March 2022, NVIDIA introduced an AI-driven virtual character system capable of providing animators and game developers with a wide set of virtual characters. Several other platforms offer tools to create custom AI avatars, including Deepbrain AI, Synthesia, VEED.IO, and Colossyan Creator.
With new research and advancements, redundant models and algorithms are being replaced by more efficient counterparts, including Recurrent Neural Networks (RNNs), Generative Adversarial Networks (GANs), and deep reinforcement learning. The advent of deep learning and generative adversarial networks (GANs) in 2020, introduced new possibilities for the animation market. OpenAI's GPT-3 model, can create images based on textual descriptions, demonstrating the potential for creating animated facial expressions and body movements. As AI technology continues to improve, its application in the market is estimated likely to emerge as a key trend.
