Animation Software Market size was valued at USD 149.37 billion in 2024 and is likely to cross USD 233.61 billion by 2037, expanding at more than 3.5% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of animation software is estimated at USD 153.55 billion. This boost is anticipated by the slated demand for 3D printing, projection mapping, augmented reality (AR), and virtual reality (VR) coupled with reality, and the expansion of brand licensing and merchandising globally. According to a report, the number of AR users has nearly increased to 0.81 billion by 2021, and it is estimated that there will be about 1.4 billion active AR user devices by 2023, while by 2024 this amount is projected to rise to 17.3 billion.
Additionally, the growing usage of animation software across various industry sectors because of its highly graphical data and intricate visual effects provides several advantages, including sharp perception, value-added information for customers, and concept and idea simulation in the form of pictures.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.5% |
Base Year Market Size (2024) |
USD 149.37 billion |
Forecast Year Market Size (2037) |
USD 233.61 billion |
Regional Scope |
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Product Type (3D Animation, Flipbook Animation, Stop Motion, 2D Animation)
In animation software market, 3D animation segment is likely to dominate around 42% share by the end of 2037. The reason behind this lucrative growth is impelled by the surge in demand for photo-realistic animation, which has grown tremendously with the introduction of realistic, useful, and creative images.
Furthermore, the growing popularity of 3D animation software is a result of its highly graphical data and detailed visual effects for a wide range of industry verticals. According to a report, the revenue of the worldwide 3D animation industry is expected to reach over USD 18 billion, up 10.8% from USD 16.2 billion in the previous year. It is predicted that by 2026, the yearly amount will cross USD 27 billion.
As a result, 3D animation software is used by many industry verticals, including media and entertainment, healthcare, building, gaming, architecture, education, and academia, among others, creating the potential for market size expansion.
Verticals (Media & Entertainment, Automotive, Online Education)
The media & entertainment segment is set to garner a notable share shortly. It is likely to remain the second largest segment in the verticals of the animation software market expansion led by the substantial growth in the use of smartphones and mobile internet, which has created a ton of potential for 3D games, animated films, and movies, among other content.
In addition, the large scope and need for locally produced computer-generated imagery and animation content is creating a climate that is conducive to market growth.
Our in-depth analysis of the global market includes the following segments:
Product Type |
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Verticals |
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Solution |
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North American Market Forecast
By 2037, North American region is projected to capture over 47% animation software market share. The landscape growth in the region is expected to grow, credited to the surge in the adoption rate of cutting-edge technologies and the existence of substantial players in North America.
Moreover, the expanding use of motion graphics, motion capture, and virtual reality across a range of industrial verticals has made the United States the dominant region in North America for the market. According to a report, there has been an increase of about 54% in the brand awareness of video marketers.
In addition, there has been a surge for well-established businesses in the graphics and animation fields, along with increasing investments in R&D projects, which will further drive industrial growth, hence influencing the market revenue share.
European Market Analysis
The European region will also encounter a huge influence on the expansion of the expansion of the animation software market during the forecast period and will account for the second position attributed to the growth in domestically produced computer-generated imagery animation material, along with the increasing adoption of cutting-edge digital technology. The growing animation sector is predicted to cause the European region to see rapid growth.
Moreover, countries like India are providing a plethora of prospects for animation vendors because of the strong demand from the media and entertainment industries.
Author Credits: Abhishek Verma
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