Animation Software Market Size, Share and Trends 2024 to 2034

Animation Software Market Size and Forecast 2024 to 2034

The global animation software market size is projected to be worth around USD 205.38 billion by 2034 from USD 146.87 billion in 2024, at a CAGR of 3.41% from 2024 to 2034. The rising adoption of the animation software by the various end-use industries such as healthcare, advertisement and media, education, and others for enhancing their services that drives the growth of the animation software market. 

Animation Software Market Key Takeaways

• North America dominated the animation software market with the highest market share of 38% in 2023.
• Asia Pacific is anticipated to grow at the fastest rate during the forecast period.
• By product, the 3D animation segment contributed the biggest market share of 46% in 2023.
• By product, the 2D animation segment is predicted to grow at a significant CAGR of 3.02% over the forecast period.
• By deployment, the cloud-based segment accounted for the highest market share of 70% in 2023.
• By end-use, the media and entertainment segment held a dominant share of the animation software market in 2023.
• By end-use, the healthcare segment is anticipated to grow with the highest CAGR in the market during the studied years.

U.S. Animation Software Market Size and Growth 2024 to 2034

The U.S. animation software market size was exhibited at USD 20.51 billion in 2023 and is projected to be worth around USD 30.44 billion by 2034, poised to grow at a CAGR of 3.65% from 2024 to 2034.

North America dominated the animation software market in 2023. The growth of the market is attributed to the rising technological advancement and the adoption of emerging technologies like AI, automation, animation, IoT (Internet of Things), and others. The rising availability of big media houses and advertisement agencies is driving the demand for effective animation software to enhance their services and product advertisements. The rising adoption of animation in the gaming industry is boosting the demand for animation software. Additionally, a regional country like the United States has the world’s leading media houses, and the region is more prone to invest in the upcoming or emerging technologies that are driving the growth of the animation software market across the region.

• In February 2024, according to the Entertainment Software Association and Circana, the U.S., the overall consumer spending on video games is $57.2 billion in 2023. These figures include the overall video gaming facilities, including downloadable content/microtransactions (DLC/MTX) and subscription spending across console, physical and digital full-game, cloud, mobile, virtual reality (VR) platforms, and portable.

Asia Pacific is anticipated to grow at the fastest rate during the forecast period. The growth of the market is owing to the rising adoption of the technologies and social media in regional countries like China, India is driving the demand for advanced animation software, and the use of animation software by a number of end-use industries is driving the growth of the animation software market in the region.

Market Overview

Animation software is digitized technology that can be used by a number of end-use industries to enhance its visualization, proficiency, and services that drive the growth of the market. Animation software has rapidly evolved and been used in designing and creating stunning visuals. Basically, it is a computer program that allows for the creation or design of a moving visual image in a realistic manner. Motion graphics, 3D model design, and 2D model design are some of the animation software products. The use animation software is used in different applications such as Animation Movie Production, special effects, video game design, 3D model designing, cartoon service making, motion graphic design, architectural visualization, character automation, e-commerce store animation, and others are driving the growth of the animation software market.

Animation Software Market Growth Factors

• The rising urbanization and modernization across the world and the adoption of digital media in every phase of life, from online shopping to education purposes, drive the demand for animation software and tools for enhancing the visualization of products and services.
• The rising adoption and evaluation of technological advancements in digital platforms such as AI, virtual reality, augmented reality, 3D printing and animation, and projection mapping are collectively driving the growth of the animation software market.
• The rising population and the increasing demand for digitization in the various end-use industries such as healthcare, media, automotive, construction, education, and others for increasing efficiency and reducing cost are positively impacting the market.
• More drives are the increasing investment by the public and private organizations in the growth of digitization and automation in industrial development and the further research and development activities in the innovation and launch of new technologies.
• The rising availability of the major industry leaders across the world and the strengthened collaboration between the industry leaders for the further launch of tools and software are driving the growth of the animation software market.

Animation Software Market Trends

The animation industry is continuously evolving with the advancement in technologies and expressions that design and create attractive visual experiences for the consumer. Here are some examples of animation trends in 2024:

• A Creative Fusion- Mixed 2D and 3D Animation
• AI-Integrated Animations
• Anthropomorphic Characters – Human-Like Animation
• Collage Animation – An Artistic Approach 
• Anti-Gravity and Floating Effects – Defying Physics
• Oddly Satisfying Motion Graphics – Captivating Visuals
• Flat Graphic Animation – Simplistic Design
• Vivid and Bold Colors – Vibrant Aesthetics
• Virtual Reality (VR) – Immersive Experiences
• Alternative Art Animation – Embracing Unconventional Styles
• Augmented Reality (AR) – Blending Reality and Animation
• Claymation – Classic Stop-Motion Techniques 
• Grainy Gradient Textures – Adding Depth
• Seamless Transitions – Smooth Motion
• Isometric Shapes – Geometric Perspectives

How Can AI Impact the Animation Software Market?

AI in animation plays a significant role in the expansion and influence of the efficiency and modernization of animation software. It helps 3D and 2D animation makers simplify and restructure their repetitive work, enhances performance, and creates new opportunities for the evaluation of animation software. AI and machine learning play important animation in several industries, such as film production. AI could help automate editing in animation in post-production in the film industry. AI impacted the 3D and 2D animation aspects, including creativity and work efficiency, animation pipeline, realism, 3D character animation, dynamics, and facial animation.

• In June 2024, DeepMotion, an AI motion-capture specialist, launched SayMotion, the latest browser AI-generative-based service for creating character animation from text prompts.

Market Scope

Market Dynamics

Driver

The increasing use of animation in educational applications

Animation plays a significant role in shaping the future of the education system. The rising digital evaluation in the industries, as well as in the educational industries, is driving the demand for animation to complete and evaluate the syllabus in more effective and attractive ways. The integration of animation in education enhanced novelty and engagement in the classrooms, visualization attention, and temporal representation. Animation could be integrated into teaching in several key channels, such as lectures and tutorials, multilingual support, exam revision, and assessment. Adobe Animate, Blender, Toon Boom Harmony, and Vyond are some of the ideal animation software for educational purposes.

Restraint

Emergence latest technologies

The emergence of new technologies is considered a positive and negative factor in the growth of animation software. The rising research on the innovations of alternative technologies is restraining the growth of the animation software market.

Opportunity

Adoption of animation in the number of industrial usage

The rising implementation of animation in a wide range of industries, from healthcare to e-commerce, is driving the opportunity in the growth of the animation software market. The future of animation is emerging as the blend of live-action animation and storytelling techniques is driving the growth of the market. Additionally, the rising investment in research and development activities in the expanding use of animation software in different applications is a potential opportunity for the market.

Product Insights

The 3D animation segment dominated the animation software market in 2023. 3D animation software is a rapidly evolving and using technology or animation software tool that is used by a number of major industry leaders. 3D animation is the process of designing and moving three-dimensional images in a digital platform. With the use of efficient 3D animation tools, animators can make video games for any other advertisement that can look like they are moving like a real object. The world is evolving at a fast pace, and 3D animation software can be used to make video effects, 3D movies, VFX, motion graphics, and animation videos. Autodesk 3Ds Max, Autodesk Maya, Blender, ZBrush, Cinema 4D, and LightWave 3D are some of the leading 3D animation software.

The 2D animation segment is predicted to witness significant growth in the animation software market over the forecast period. The increasing use of 2D animation software is highly used in cartoons, educational materials, and advertisements. It is the designing of characters and movements in two-dimensional space. It is the traditional technology that is used in the traditional type of cartoons and advertising. There are some types of 2D animation software, such as traditional animation, digital animation, motion graphics, stop motion animation, and cutout animation.

Deployment Insights

The cloud-based segment will gain a significant share of the animation software market over the studied period of 2024 to 2034. The rising demand for scalable and flexible animation software that can be operated from anywhere drives the demand for the cloud-based segment.

In the cloud-based animation software, user control accessibility, backup, and encryption features with better safety and privacy of work. Adobe After Effect, Adobe Animate, Animaker, Powtoon, Adobe Creative Cloud, Vistacreate, Blender, Cinema 4D, Houdini, VideoScribe, Vyond, Animation, And Animatron are some of the cloud-based animation software.

End-Use Insights

The media and entertainment segment held a dominant share of the animation software market in 2023. The increasing adoption of animation software in media and entertainment is due to the rising use of animation software in the making of animation and other creative features in movies and other entertainment options. Animation software has a number of benefits for media and entertainment purposes, including enhanced visual comprehension, simplified and rapid communication, cost efficiency, and enhanced site traffic. Thus, animation is widely used by the media and entertainment industry on various platforms, including print media, television, the Internet, and mobile devices. The animation allows the brands to showcase their products and services through the animation.

• The media and entertainment industry in India is anticipated to reach $100 billion by 2030.
• Online gaming increased by 22% in 2023, reaching INR 220 billion, and is anticipated to reach INR 388 billion by 2026. The animation and VFX segment increased by 6%, reaching IINR 114 billion, and is anticipated to reach INR 185 billion by 2026.

The online consumption of data increased by 30% after the pandemic, and the surge in TV and movies through the internet, also known as the OTT (over-the-top), was the leading factor that determined the growth of the media and entertainment industry.

The healthcare segment is anticipated to grow with the highest CAGR in the animation software market during the studied years. The rising evaluation and technological advancement in the healthcare industry are also contributing to the animation tools and software in the different applications in the healthcare industry, such as medical training, patient education, and visualizing the complex medical process. Animation software can be used in the demonstration of complex surgeries such as brain and heart surgeries, which can be critical in explaining without live examples; animation helps in overcoming these challenges with its visual effects.

Animation Software Market Companies

• MAGIX Software GmbH
• Maxon Computer GmbH
• Vizrt
• NVIDIA Corporation
• Pixar (The Walt Disney Company)
• Adobe Inc.
• Autodesk Inc.
• Blender Foundation
• Alludo (Cascade Parent Limited)
• Corus Entertainment Inc.
• Planetside Software LLC
• SideFX
• The Foundry Visionmongers Ltd.
• Toon Boom Animation Inc.
• Xara GmbH

Recent Developments

• In January 2024, Karnataka, India, launched the final animation gaming that influenced visual effects, gaming, comics, and extended reality (AVGC-XR) industry at the GAFX 2024.
• In May 2024, Sony Group Corporation introduced an academy that will develop talent involved in the creation of anime; it is part of the Japanese electronics and entertainment conglomerate Sony Group Corporation’s annual corporate strategy presentation.
• In March 2024, the College of Arts and Sciences (A&S) collaborated with the University of Cincinnati's College of Design, Architecture, Art, and Planning (DAAP) to introduce an innovative bachelor of fine arts (BFA) program that caters to the emerging field of animation and gaming. 

Segments Covered in the Report

By Product

• 2D Animation
• 3D Animation
• Flipbook Animation
• Stop Motion

By Deployment

• On-premise
• Cloud-based

By End-use

• Media & Entertainment
• Architecture & Construction
• Automotive
• Healthcare & Life Sciences
• Education & Academics
• Government & Defense
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa