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Animation Software Industry Outlook from 2023 to 2033

The global animation software market was worth around US$ 320 billion at the end of 2022. The market is projected to register a 9.9% CAGR and reach US$ 880 billion by 2033. With the growth of online gaming and the development of animations as a tool for teaching kids, the market for animation software is expected to enjoy an increase in demand.

Since animation has become more prevalent in various industries, such as entertainment, advertising, gaming, education, and more, animation software has seen significant growth. Technology advances, the need for high-quality animation, and the rise of digital media have all contributed to the growth of the animation industry over the past few years.

In the healthcare and automotive industries, there is a growing demand for 3D visuals for treating ailments and building products. This is projected to lead to an increase in the demand for animation software.

Growth of the animation software landscape is supported by the following:

  • Adoption of the visual effect technology
  • Apps and games with 3D graphics are becoming increasingly popular on mobile devices
  • Incorporating artificial intelligence into the process
  • Demand for animation in educational sectors is increasing
  • A rise in internet popularity and a trend toward animated films and cartoons
  • The popularity of smartphones and computer graphics is on the rise
  • Increased demand for healthcare devices
  • Diversification of applications
  • Rising disposable incomes and government investments

Animation is incorporating XR (Extended Reality) technologies such as Virtual Reality and Artificial Intelligence into its creative processes. Videos made with animation give the viewer a great deal of artistic freedom and more opportunities to connect with them. As artificial intelligence has made its way into animation, demand for software to produce animation has surged.

With the increasing use of animation across a wide range of industries, the popularity of online video platforms, and the growth of virtual reality and augmented reality, it is expected that the animation software market will continue to grow in the coming years. Increasing advances in artificial intelligence will also contribute to the growth of the animation software market since it has the potential to automate some animation processes and improve their quality and speed.

The use of animation software improves the efficiency of motion graphics creation. Among the several features of the software are many built-in templates that simplify repetitive processes and reduce the amount of time users spend on mundane tasks. The quality of the animation can also be improved with this software. Hence, animation software is in huge demand in the market.

For instance, ViewSonic Corp., a global leader in visual solutions, recently introduced the ColorPro™ VP76 premium monitor series in Sri Lanka. Photographers, designers, video editors, and animators can use this monitor series for creating content. With Precision ColorPro™ technology and an extended ColorPro™ Wheel, these monitors offer precise color accuracy. Sri Lankans can now purchase the monitors from ViewSonic's website or flagship store.

The North American animation software market is expected to experience steady growth in the coming years. There is a growing demand for graphics in the media and entertainment industry, where 2D and 3D technologies play an important role. Animators, software developers, and other professionals in the field are estimated to benefit from continued growth in North America and around the world.

Major key players are increasingly entering into strategic partnerships in the global market. There is a high probability that this trend will continue and boost the market's growth in the near future. For instance, stable diffusion partnered with Krikey to develop an AI tool that converts text into animations. With Krikey, users can generate avatar animations simply by typing phrases like walk, run, jump, and moonwalk.

Data Points Key Statistics
Estimated Base Year Value (2022) US$ 320 million
Expected Market Value (2023) US$ 342.43 million
Anticipated Forecast Value (2033) US$ 880 million
Projected Growth Rate (2023 to 2033) 9.9% CAGR

Nowadays, the growing demand for 3D animation across different industry for games, cartoons, and movies, is expected to boost the demand for animation software. Animation software offers different features such as high-quality 2D-3D animation, highly versatile, customizable, and easy to create customizable animation.

The animation software helps to create motion graphics, high-quality visual effects, and other interactive content. The reliability of such features drives the animation software market growth. The animation software provider engages in acquisitions, capital expenditures, investments, joint ventures, restructurings, and other strategic investments with an objective to acquire new technologies, develop new businesses, and enhance its business competitiveness.

  • For instance, in January 2019, Autodesk, Inc. announced to acquire a preconstruction platform, which is entitled Building Connected to provide access for construction network.

Such acquisitions would create immense business opportunities for robust digital content creation, which would fuel to growth of the animation software market in the coming years.

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Animation Software Market: Drivers and Challenges


The major factor which is driving the animation software market is the increasing use of 3D printing, projection mapping, merging with reality-Augmented Reality (AR) and Virtual Reality (VR), and growth of brand licensing and merchandising throughout the world.

The increasing adoption of animation software due to its highly graphical data and detailed visual effects for various industry verticals. It also offers different benefits such as great sense of perception, provide value-added contents for clients, and simulation of concept and ideas in the form of illustrations, among others.

A mounting number of new animation software and service providers are entering the animation software market, where global tech-giants have already consolidated with the market position. This makes the animation software market a highly competitive market.

Furthermore, smartphone adoption across developing countries and increasing mobile internet penetration has been creating huge opportunities for the animated videos, movies and 3D games, which is set to fuel the animation software market growth.


Less amount of funding and investments, insufficient government support and intellectual property protection, among other factors, are expected to restrict the growth of the animation software market. Moreover, lack of skilled professionals and exposure to content piracy, also hampers the growth of animation software market.

Animation Software Market: Competition Landscape

Some of the prominent players providing animation software are

  • Adobe Inc.
  • NVIDIA Corporation
  • Autodesk, Inc.
  • Pixar, Inc.
  • NewTek, Inc
  • Corel Corporation

These vendors are continuously upgrading their animation solutions, to offer wide range of functionalities in the digital media content creation. Moreover, they also do strategic collaborations with creative and digital media houses/agencies, to expand their customer bases.

Sudip Saha
Sudip Saha

Principal Consultant

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Animation Software Market: Regional overview

By geography, the animation software market has been segmented into North America, Europe, Latin America, East Asia, South Asia & Pacific, and MEA. Among these regions, North America is expected to dominate the global market for animation software due to the growing adoption of motion capture, motion graphics, and VR across different industrial verticals, in this region followed by Europe.

East Asia and South Asia & Pacific are expected to witness double-digit growth, in terms of revenue, in the global animation software market, due to the rising penetration of advanced digital technologies and expanding animation industry. Countries such as India, offers immense opportunities for animation vendors, due to high demand from the media and entertainment sector.

The animation software market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.

The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The animation software market report also maps the qualitative impact of various market factors on market segments and geographies.

The report covers exhaustive analysis on

  • Animation Software Market Segments
  • Animation Software Market Dynamics
  • Animation Software Market Size
  • Supply & Demand
  • Current Trends/Issues/Challenges
  • Competition & Companies Involved in the Market
  • Technology Landscape
  • Value Chain of the Market
  • Animation Software Market Drivers and Restraints

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Regional analysis includes

  • North America (USA, Canada)
  • Latin America (Mexico, Brazil, Rest of Latin America)
  • Europe (Germany, Italy, United Kingdom, Spain, France, Nordic countries, BENELUX, Russia, Rest of Europe)
  • East Asia (China, South Korea, Japan)
  • South Asia & Pacific (India, ASEAN, Australia & New Zealand, Rest of South Asia)
  • Middle East and Africa (GCC Countries, Turkey, South Africa, Rest of MEA)

Animation Software Market: Segmentation

The animation software market has been segmented on the basis of solution, verticals and region.

Basis of Solution:

  • Animation Software
  • Services
    • Integration & Design Services
    • Consulting Services
    • Training & Education Services

Basis of Verticals:

  • Media & Entertainment
  • Automotive
  • Education
  • Others



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Smartphone 3D Camera Market

Published : November 2022


Augmented Reality and Virtual Reality Market

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