US Animation, Vfx And Post Production Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.30 Billion |
| Market Size (2029) | USD 2.20 Billion |
| CAGR (2024 - 2029) | 12.05 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Animation, Vfx And Post Production Market Analysis
The US Animation, Vfx And Post Production Market size is estimated at USD 1.30 billion in 2024, and is expected to reach USD 2.20 billion by 2029, at a CAGR of 12.05% during the forecast period (2024-2029).
- Two primary trends are driving the adoption of animation and VFX solutions. First, some end-user industries, particularly films, are experiencing an upward trend in production budgets. This is mainly due to broader international distribution facilitated by digital theatres. Second, writers and directors are increasingly embracing scripts that require VFX. As a result, production companies are pursuing more ambitious projects that necessitate VFX and streamlined platforms. They have also expanded the genres of content being produced. The market is seeing a surge in 3D-UHD animated movies in theatres and increased application of animation and VFX in television, advertising, and gaming. Additionally, there is growth in outsourcing VFX processes due to cost-effectiveness.
- Virtual reality (VR) and interactivity are poised to revolutionize storytelling. While these technologies aren't fully mainstream yet, their imminent readiness promises to transform how stories are perceived and experienced. Filmmakers will soon have the chance to craft narratives where viewers transition from passive spectators to pivotal participants. Animation, with its diverse applications spanning entertainment, education, design, and gaming, is primarily divided into two categories: 2D traditional animation, which relies on manual artistry, and 3D digital animation, crafted through advanced software tools. On the other hand, visual effects encompass techniques that generate imagery without direct filming, enhancing live footage to create sequences that would be challenging or impossible to capture in real time.
- NVIDIA's Omniverse is pioneering the realm of 3D simulations. Aiming to be the first platform to merge 3D simulation with Google Docs-style collaboration, it leverages NVIDIA RTX technology. This platform seamlessly blends the physical and virtual realms, simulating reality in real time with stunning photorealistic detail. Furthermore, advancements in handheld device panels that support enhanced graphics, high smartphone penetration and better internet bandwidth in developing nations are propelling market growth in online/mobile gaming and multimedia platforms. The surging demand for animation and VFX content, fueled by rapid advancements in augmented and virtual reality technologies, positions animation and VFX as the fastest-growing segments in the global media and entertainment landscape.
- According to the Entertainment Software Association's 2023 survey, 25% of video game players are in the 27 to 42-year-old demographic, while 19% are 59 years and older. In 2023, Americans aged 15 to 19 spent an average of 98.4 minutes daily on gaming or leisurely computer use. The 55 to 64-year-old age group spent the least time gaming, averaging just 17.4 minutes of computer play daily. Video gaming has become famous for players to connect with friends and family.
- The rise of piracy and infringement has significantly harmed animation enterprises and dampened creators' enthusiasm. Consequently, a stringent approach is essential to safeguard intellectual property rights in animation. As the media and entertainment industry has expanded, so too has the piracy of its content. The allure of easily and affordably accessing pirated material fuels this growing issue.
US Animation, Vfx And Post Production Market Trends
Increased Demand for High-Quality Visual Content in the Entertainment Market
- Digital transformation reshapes industries, altering business operations, customer interactions, and value delivery. This shift is especially pronounced in visual content marketplaces, revolutionizing production, distribution, and consumption methods. In the entertainment realm, the rise of streaming platforms has redefined viewer engagement with visual content. Traditional broadcasting has given way to subscription models and personalized recommendations, fostering a more interactive viewing experience. In advertising, the digital shift emphasizes data-driven campaigns targeting specific audiences. Leveraging advanced analytics and machine learning, advertisers can tailor visual content to demographics, boosting engagement and conversion rates.
- The entertainment industry is undergoing rapid transformations, with artificial intelligence (AI) emerging as a significant force in Hollywood. For instance, in September 2024, Lionsgate, one of the industry's leading film studios, forged a pioneering alliance with AI video firm Runway. This collaboration can potentially revolutionize film production, beginning with storyboarding and extending to other facets. Marking a historic first, Lionsgate's partnership with Runway signifies the inaugural major alliance between a film studio and an AI entity. The agreement is straightforward: Lionsgate will provide Runway access to its vast content library, facilitating the training of generative AI models. In exchange, Runway commits to developing a bespoke AI tool tailored to Lionsgate's requirements.
- As audiences increasingly consume content on diverse devices, from mobile phones to large TV screens, the demand for cross-platform animation surges. In response, animators modify their workflows to ensure compatibility across platforms, spanning social media, streaming services, and mobile applications. This evolution necessitates adaptable design strategies, ensuring content scales effortlessly across screen sizes without compromising visual quality. Be it a promotional ad on Instagram or a feature-length animation on Netflix, the capability to produce content for multiple platforms is paramount. For example, mobile devices often require shorter, brisker animations, aligning with viewer habits, whereas television and cinema provide a canvas for broader and more intricate storytelling.
- Technological advancements have spurred the adoption of visual effects (VFX) in both regional cinemas and blockbuster films. As video games, television, cinema, and marketing increasingly integrate VFX technology, the market is poised for a significant transformation. The rising interest in VFX within the media and entertainment sector and financial experts leveraging VFX strategies for cost-effectiveness are primary drivers of the global VFX market. While VFX has traditionally been the domain of movies, the television industry is now harnessing it to enhance storytelling, artistic vision, and audience communication. With global consumers increasingly demanding immersive, high-definition visual experiences, filmmakers are pushing for high-quality productions featuring realistic animations and captivating visual effects.
- According to Box Office Mojo, in 2023, a total of 504 movies were released in the United States and Canada, up from 456 in the previous year (2022). The growing preference for High-Definition (HD) content, particularly in video marketing due to its superior resolution and quality over standard-definition content, is anticipated to fuel market growth. Additionally, the rising use of 3D animated videos to illustrate elements of heavy machinery in the manufacturing sector is poised to be a significant driver of this market expansion.
Television and OTT is Expected to Hold Significant Share
- The entertainment industry is experiencing a significant shift, with major film releases now premiering on Over-The-Top (OTT) platforms. Consumption patterns are evolving rapidly, leading to a substantial increase in OTT subscriptions. The proliferation of new platforms creates opportunities for filmmakers and content creators. These OTT services are also expanding their offerings by introducing dedicated sections for children's content, featuring extensive libraries of animated shows. The focus on children's content has intensified as platform operators recognize that while adult-oriented programming drives initial subscriptions, content for younger audiences provides the retention factor crucial for long-term success. This trend has gained considerable momentum in recent times.
- The regulatory landscape for Over-The-Top (OTT) services and platforms in the United States remains intricate. It needs to be solved, with no definitive stance taken by the Federal Communications Commission (FCC) or any other governmental entity. OTT services, such as Netflix, deliver content directly to consumers via the Internet, circumventing traditional distribution channels like cable or satellite. Despite the surging popularity of OTT services, a tailored regulatory framework is conspicuously absent. These services operate outside the conventional regulatory purview that governs broadcast and cable television. Historically, the FCC has adopted a largely hands-off stance towards OTT regulation, though there have been discussions and proposals, especially concerning net neutrality and privacy.
- Moreover, content dissemination extends beyond the Internet, encompassing theatre screenings and television broadcasts. The existing legal framework, primarily anchored by the Cinematograph Act 1952, offers limited legislation governing these diverse content categories. Under this act, films intended for theatrical release undergo rigorous scrutiny by the Central Board of Film Certification ('CBFC'). This meticulous examination encompasses a comprehensive analysis of the film, including trailers, dialogues, songs, and lyrics, leading to classifications such as U, U/A, A, or S.
- Regional players partner with international OTT platforms to broaden their reach and seize a larger market share. For example, in April 2023, JioCinema made a significant leap by granting its subscribers access to Warner Bros Discovery (WBD), HBO, and Max Original content. This move comes from a multi-year agreement inked between Warner Bros Discovery and Viacom18 in India, permitting the streaming of HBO, Max Original, and Warner Bros content directly on the JioCinema app.
- Whip Media's 2023 survey revealed that U.S. consumers are most inclined to retain Amazon Prime Video and Hulu as their preferred SVOD services, with 88% of respondents indicating their intent to continue subscriptions. The rising popularity of OTT services can be attributed to diverse genre selections, flexibility, accessibility across devices, widespread internet penetration, and competitive pricing. Additionally, the growing appetite for personalized content has driven a surge in the adoption of OTT devices.
US Animation, Vfx And Post Production Industry Overview
The US Animation, Vfx and Post Production market is semi-consolidated due to the presence of many players. Some of the major players in the market are Walt Disney Animation Studios, Pixar Animation Studios, DreamWorks Animation, Industrial Light & Magic (ILM) and many more. The players are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain a competitive advantage.
Major manufacturers are actively innovating to meet the industry's evolving demands. They swiftly produce high-quality, visually captivating content across diverse sectors. In this line, Animation, VFX, and post-production companies channel investments into research and development (R&D) to push technological boundaries, offering realistic simulations, improved rendering capabilities, and real-time solutions.
US Animation, Vfx And Post Production Market Leaders
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Walt Disney Animation Studios
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Pixar Animation Studios
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DreamWorks Animation
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Industrial Light & Magic (ILM)
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Sony Pictures Imageworks
*Disclaimer: Major Players sorted in no particular order
US Animation, Vfx And Post Production Market News
- October 2024: Netflix and Universal Filmed Entertainment Group (UFEG) have announced a renewed licensing agreement. This deal encompasses animated films, including titles from Illumination and DreamWorks Animation (DWA). Starting with the 2027 slate, the agreement will also incorporate U.S. rights to live-action films from both Universal Pictures and Focus Features. Under the terms of the new deal, Netflix retains its exclusive rights to UFEG's animated films. Furthermore, beginning in 2027, Netflix will gain access to live-action films, available no later than eight months post their theatrical release.
- September 2024: Toonz Media Group, a key player in kids and family entertainment, has teamed up with Greyscale Animation to co-produce a new animated series inspired by the celebrated short film Odd Dog. Targeted at preschoolers, the forthcoming series chronicles the touching escapades of Obi, a cat that sees itself as a dog, and Eli, a reserved young boy yearning for a doggy friend. Their encounter brings to life their distinct traits as they journey through a realm brimming with humour, affection, and valuable life lessons
- July 2024: Dream Machine FX, a collective of visual effects houses, has acquired Important Looking Pirates (ILP), the VFX studio behind blockbuster series like Stranger Things, Shogun, and Fallout. This acquisition continues Dream Machine FX's trend of purchasing prominent entities in the industry. Founded in Stockholm, ILP is renowned for its expertise in realistic water simulations, intricate underwater scenes, and crafting lifelike environments and creatures. Their portfolio boasts effects for numerous blockbuster and critically acclaimed titles, including Westworld, The Last of Us, and several entries in the Star Wars franchise.
- May 2024: Story Kitchen and DreamWorks Animation have entered into a strategic partnership, granting Story Kitchen the first-look rights for an animated film. Story Kitchen aims to secure iconic video game intellectual properties (IP) for DreamWorks Animation, targeting adaptations for global animated audiences. Currently, Story Kitchen holds a first-look deal for TV with Amazon. DreamWorks Animation boasts a rich legacy of films set in immersive worlds, aligning seamlessly with Story Kitchen's expertise in adapting video games into feature films and TV series.
US 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 North America
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
5.3 Key use cases and case studies
5.4 Key Technological Innovations Noted
5.4.1 Higher focus towards 3D 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 Walt Disney Animation Studios
7.1.2 Pixar Animation Studios
7.1.3 DreamWorks Animation
7.1.4 Industrial Light & Magic (ILM)
7.1.5 Sony Pictures Imageworks
7.1.6 Framestore
7.1.7 MPC
7.1.8 The Mill
7.1.9 Method Studios
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
US Animation, Vfx And Post Production Industry Segmentation
Animation, VFX, and Post-Production are interconnected disciplines that bring visual storytelling to life. Animation involves creating movement through images drawn by hand, manipulated physically, or generated digitally. VFX focuses on creating imagery that does not exist in real life, enhancing live-action footage with special effects, or generating entirely new worlds. Post-production encompasses all the processes after filming or recording, including editing, colour grading, sound design, VFX integration, and mastering, transforming raw footage into a polished final product.
The study tracks the revenue accrued through the sale of theUS Animation, Vfx And Post Production Market by various players across the United States. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. he report’s scope encompasses market sizing and forecasts for the various market segments.
The animation, VFX, and Post-Production Market is segmented by Animation platforms (television and OTT, Films, Advertising, Gaming Other Animation platforms). The Market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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| By Animation Platform | |
| Television and OTT | |
| Films | |
| Advertisment | |
| Gaming | |
| Other Animation Platforms |
US Animation, Vfx And Post Production Market Research FAQs
How big is the US Animation, Vfx And Post Production Market?
The US Animation, Vfx And Post Production Market size is expected to reach USD 1.30 billion in 2024 and grow at a CAGR of 12.05% to reach USD 2.20 billion by 2029.
What is the current US Animation, Vfx And Post Production Market size?
In 2024, the US Animation, Vfx And Post Production Market size is expected to reach USD 1.30 billion.
Who are the key players in US Animation, Vfx And Post Production Market?
Walt Disney Animation Studios, Pixar Animation Studios, DreamWorks Animation, Industrial Light & Magic (ILM) and Sony Pictures Imageworks are the major companies operating in the US Animation, Vfx And Post Production Market.
What years does this US Animation, Vfx And Post Production Market cover, and what was the market size in 2023?
In 2023, the US Animation, Vfx And Post Production Market size was estimated at USD 1.14 billion. The report covers the US Animation, Vfx And Post Production Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the US Animation, Vfx And Post Production Market size for years: 2024, 2025, 2026, 2027 and 2028.
US Animation, Vfx And Post Production Industry Report
Statistics for the 2024 US Animation, Vfx And Post Production market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Animation, Vfx And Post Production analysis includes a market forecast outlook for 2024 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
