China Animation, VFX And Post Production Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 19.56 Billion |
| Market Size (2029) | USD 33.05 Billion |
| CAGR (2024 - 2029) | 11.06 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Animation, VFX And Post Production Market Analysis
The China Animation, VFX And Post Production Market size is estimated at USD 19.56 billion in 2024, and is expected to reach USD 33.05 billion by 2029, growing at a CAGR of 11.06% during the forecast period (2024-2029).
- The Chinese animation, VFX (visual effects), and post-production market has rapidly increased, establishing itself as a pivotal force in entertainment. This growth, fueled by technological innovations, robust government backing, and surging consumer appetite, spans various domains, from film and television to gaming and online streaming. The emergence of local animation studios and partnerships with global entities has cemented China's stature in the worldwide animation and VFX domain. Yet, challenges loom, particularly concerning content originality and intellectual property rights.
- China's technological advancements, especially in artificial intelligence (AI), virtual reality (VR), and 3D animation, have honed its VFX and post-production prowess. These strides empower Chinese studios to vie on the global platform, amplifying the demand for animation and VFX across films, video games, and TV series. Moreover, local studios are embracing cutting-edge software to elevate their creative endeavors.
- The Chinese government has been pivotal in fostering the domestic animation and VFX landscape through subsidies, tax breaks, and other supportive measures. Such initiatives bolster local studios and aim to curtail dependence on foreign content. Also, with national policies championing cultural exports, Chinese animation and VFX are positioned as formidable contenders in global markets, invigorating domestic production.
- The surge of online streaming giants like Tencent Video, iQiyi, and Bilibili has amplified the appetite for premium animation and VFX content. These platforms pour resources into original animated series and films, catering to domestic and global audiences. As consumers increasingly gravitate towards on-demand entertainment, the demand for sophisticated post-production services is rising, driving the market forward.
- China's thriving gaming industry has also boosted the animation and VFX industry. Games boasting top-notch graphics and lifelike effects lean heavily on advanced VFX and post-production. With the e-sports phenomenon gaining traction, developers are channeling more resources into premium visual effects, a trend poised to escalate the demand for VFX services in the nation.
- Although China's animation and VFX realm grapples with challenges surrounding content originality and safeguarding intellectual property (IP), the industry has faced scrutiny over allegations of mirroring foreign content and a perceived shortage of creative evolution. Moreover, weak IP enforcement laws have deterred some global partnerships, potentially curtailing the industry's expansive aspirations.
China Animation, VFX And Post Production Market Trends
Increased Demand for High-quality Visual Content in the Entertainment Market
- China's leading streaming platforms, including iQiyi, Tencent Video, and Youku, have experienced remarkable growth in recent years. As competition heats up, these platforms run substantial investments into premium content, spanning animated series, VFX-centric films, and advanced post-production effects. Driven by audience demand for immersive experiences, these platforms are committed to producing visually captivating content that aligns with global standards, amplifying the need for advanced VFX and animation services.
- In May 2024, Tencent Video, a leading Chinese online video streaming platform, actively pursued partnerships to introduce its lineup of animation productions tailored for teens and young adults to audiences worldwide. Among its current productions is "Honor of Kings" (13×20′), a 3D adventure/fantasy series inspired by the widely popular multiplayer online battle arena (MOBA) game. Additionally, Tencent runs the Cartoon Channel in China, boasting over 200 million viewers and claiming the title of the top platform for teen and young adult animation.
- As the entertainment industry, particularly TV and film, continues to thrive, there has been a notable surge in the production of large-scale films that require intricate visual effects and sophisticated post-production. China's film industry has witnessed exponential growth, churning out high-budget fantasy and sci-fi films that heavily rely on VFX. This escalating appetite for visually intricate storytelling has been a key driver behind the heightened demand for animation and post-production services.
- Across multiple entertainment industries, including films, TV, and gaming, there has been a pronounced shift in content creation toward 3D animation and CGI (computer-generated imagery). China's animation studios have notably enhanced their capabilities, enabling them to produce high-quality content for the domestic and international markets. Also, the use of CGI in diverse content forms, such as short digital segments on platforms like Douyin, underscores the growing demand for advanced post-production technologies.
- Tencent, one of the largest game development companies, has invested substantially in its gaming business over the past decade. In 2023, Tencent's online games raked in CNY 179.86 billion (USD 25.63 billion), a modest rise from 2022. This revenue accounted for 26% of the tech company's annual earnings. Games use and employ VFX and animation extensively, and with a demand for better and more immersive gaming visuals, it is expected to drive the market.
The Television and OTT Segment is Expected to Hold a Major Share
- Streaming platforms such as iQiyi, Tencent Video, and Youku have transformed how entertainment content is consumed in China. To maintain the competitive edge, these platforms are churning out vast amounts of original content, which undergoes sophisticated VFX and post-production work to align with consumer expectations. As audiences transition from conventional television to streaming services, there has been a meteoric demand for top-tier animation and VFX in series and films on OTT platforms. This evolution is driving significant growth in the market, underscoring the increasing appetite for visually captivating content.
- In response to this trend, leading Chinese OTT platforms are significantly boosting their investments in original series and films, many of which showcase intricate visual effects and animated sequences. With competition heating up, these platforms are carving out their niche by presenting content enriched with superior VFX and animation. Their investment strategy also encompasses animated shows and films, recognizing their widespread appeal across diverse age demographics. By prioritizing visually stunning content, these platforms enhance their offerings and amplify the demand for post-production services, spanning VFX, animation, and CGI (computer-generated imagery).
- OTT platforms are forging partnerships with animation and VFX studios to deliver state-of-the-art content to their audiences. Such partnerships drive innovation in animation and post-production, allowing the creation of content that utilizes the most advanced visual effects technologies. From series and movies to short-form content, these platforms consistently use detailed animation and VFX to captivate viewers. This collaboration not only enhances the offerings of OTT providers but also drives the expansion of the VFX and post-production market in China.
- For instance, in December 2023, Chinese e-commerce giant Alibaba Group partnered with The Walt Disney Company in a multi-year licensing deal. This collaboration aims to introduce Disney's digital subscription service, DisneyLife, to China through Alibaba's Tmall platform. Priced at USD 125, the Mickey Mouse-shaped device offers a one-year subscription and mandates an Internet connection. Alibaba's Chinese customers will enjoy a comprehensive, family-friendly digital experience through this partnership. Offerings will encompass movies, animated series, and games from Disney and Pixar, alongside e-books, songs, travel services, and insights about Disney's theme parks and resorts.
- In 2023, China's television broadcasting industry, as reported by the National Radio and Television Administration (NRTA), generated approximately CNY 9.66 billion (USD 1.38 billion) from over-the-top (OTT) integration services. Additionally, the country witnessed an average of over 300 million monthly active OTT TV users.
China Animation, VFX And Post Production Industry Overview
The Chinese animation, VFX, and post-production market is experiencing rapid growth driven by the rising demand for high-quality visual content across multiple entertainment platforms, such as television, films, OTT, and gaming. China boasts one of the world's largest animation industries, emphasizing domestic content creation and international project outsourcing. Streaming platforms, notably iQiyi and Tencent Video, have broadened the animation and VFX content audience, leading to increased investments in top-tier production and post-production services. Government-backed policies promoting cultural and creative industries have also significantly bolstered the market.
However, the industry grapples with escalating production costs and fierce competition at home and abroad. Demand for animation and VFX is surging, especially in gaming and advertising. However, the industry contends with talent shortages and the imperative for continual technological upgrades to align with global benchmarks. Despite these challenges, China's stature in the animation and VFX realm remains formidable, buoyed by a robust consumer base and strides in digital infrastructure. The adoption of technologies like AI and VR in production is poised further to amplify the market's growth in the years ahead.
The Chinese animation, VFX, and post-production market is fragmented with the presence of major players like BaseFX and Original Force. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
China Animation, VFX And Post Production Market Leaders
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BaseFX
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Original Force
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China Film Animation
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Lerfilm Inc.
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RedHot VFX Inc.
*Disclaimer: Major Players sorted in no particular order
China Animation, VFX And Post Production Market News
- January 2024: Hong Kong-listed movie producer Alibaba Pictures announced a collaboration with Tokyo's renowned animation studio, Studio Ghibli. This partnership aims to host exhibitions and create animations tailored for the Chinese audience. As part of this strategic alliance, Alibaba Pictures is set to co-develop Studio Ghibli's latest film, "The Boy and the Heron", which has yet to debut in Mainland Chinese theaters.
- July 2024: Hollywood's visual effects company, Digital Domain, announced an investment of HKD 200 million (USD 25.6 million), laying the groundwork for a global innovation and research center. Renowned for its visual effects work on blockbuster films like Titanic and The Avengers, Digital Domain has ambitious plans. The company intends to channel its investment by the close of 2029, focusing on advancing AI virtual humans, visual effects, digital assets, and AI-driven visual production. Digital Domain is also eyeing a team of at least 40 experts at the science park. It plans to file five patent applications in Hong Kong, underscoring its commitment to scientific innovation and bolstering intellectual property rights.
China Animation, VFX And Post Production Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.1.1 Rise of Key Economies for Outsourcing as Service Exports increase
4.1.2 Surge in investment for advanced production in regional content
4.1.3 Increased VFX reliance by theatrical releases
4.1.4 Commissioning of Animation Content by Broadcasters
4.1.5 Dedicated Government Support
4.1.6 Expansion of Key Stakeholders to enhance inter-operability by opening dedicated wings for Animation/VFX/Post-Production
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Regulatory Landscape
4.4 Assessment of Impact of macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in the usage of Digital Video Streaming Platforms
5.1.2 Increased Demand for High-Quality Visual Content in the entertainment market
5.2 Market Restraints
5.2.1 Rapid Technological Innovation In VFX and Animation Demands Continuous Update
5.2.2 Lack of Skilled Talent Pool
5.3 Key use cases and case studies
5.4 Key Technological Innovations Noted
5.4.1 Higher focus towards D Animations and Visual Effects
5.4.2 Integration of Hyper-realistic CGI
5.4.3 Adoption of AI, ML, and Extended Reality
5.5 Analysis of Prevalent Business (Revenue) Model
5.6 Breakdown by Type (Qualitative Analysis of Underlying Trends)
5.6.1 Animation
5.6.2 VFX
5.6.3 Post-production Services
6. MARKET SEGMENTATION
6.1 By Animation Platform
6.1.1 Television and OTT
6.1.2 Films
6.1.3 Advertisment
6.1.4 Gaming
6.1.5 Other Animation Platforms
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 BaseFX
7.1.2 Original Force
7.1.3 China Film Animation
7.1.4 Lerfilm Inc.
7.1.5 RedHot VFX Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
China Animation, VFX And Post Production Industry Segmentation
Visual effects (VFX) software is instrumental in crafting a range of visual effects, including special effects, computer-generated imagery (CGI), motion graphics, and compositing. By manipulating images and footage, VFX software enables the creation of new or challenging visuals that cannot be achieved in reality. This software finds applications across diverse industries, including film, television, advertising, video games, and architecture. Animation, on the other hand, is a filmmaking technique that transforms still images into moving visuals. Traditionally, animation involves hand-drawing or painting images on transparent celluloid sheets photographed for film exhibition. Post-production, a crucial phase in filmmaking, video production, audio production, and photography, encompasses all activities after the main photography or recording of individual segments.
The Chinese animation, VFX, and post-production market is segmented by animation platform (television and OTT, films, advertisement, gaming, and other animation platforms). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Animation Platform | |
| Television and OTT | |
| Films | |
| Advertisment | |
| Gaming | |
| Other Animation Platforms |
China Animation, VFX And Post Production Market Research FAQs
How big is the China Animation, VFX And Post Production Market?
The China Animation, VFX And Post Production Market size is expected to reach USD 19.56 billion in 2024 and grow at a CAGR of 11.06% to reach USD 33.05 billion by 2029.
What is the current China Animation, VFX And Post Production Market size?
In 2024, the China Animation, VFX And Post Production Market size is expected to reach USD 19.56 billion.
Who are the key players in China Animation, VFX And Post Production Market?
BaseFX, Original Force, China Film Animation, Lerfilm Inc. and RedHot VFX Inc. are the major companies operating in the China Animation, VFX And Post Production Market.
What years does this China Animation, VFX And Post Production Market cover, and what was the market size in 2023?
In 2023, the China Animation, VFX And Post Production Market size was estimated at USD 17.40 billion. The report covers the China Animation, VFX And Post Production Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Animation, VFX And Post Production Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Animation, VFX And Post Production Industry Report
Statistics for the 2024 China Animation, VFX And Post Production market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Animation, VFX And Post Production analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
