Generative AI in Animation Market Size, Share, Trends, Industry Analysis Report: By Component (Services, Solutions), By Type, By End-Use, and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) – Market Forecast, 2024 - 2032.
- Published Date:Aug-2024
- Pages: 120
- Format: PDF
- Report ID: PM5018
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
Global generative AI in animation market size was valued at USD 1.32 billion in 2023. The industry is projected to grow from USD 1.66 billion in 2024 to USD 23.60 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 39.3% during the forecast period (2024 - 2032).
Generative AI in animation uses algorithms to create new, dynamic content by learning from existing data, automating processes like character design, movement, and scene generation to enhance creativity and efficiency. The generative AI in animation market is experiencing robust growth driven by the increased demand for realistic animation from the entertainment industry. Generative AI enables animators to achieve lifelike character movements, realistic physics simulations, and detailed environments that enhance audience engagement.
Moreover, this technology reduces production time and also expands creative possibilities by automating complex tasks requiring extensive manual effort, thus boosting generative AI in animation market growth.
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The expansion of AI-powered tools and software in the generative AI in animation market leverages advanced algorithms to enhance creativity, efficiency, and productivity in animation production. These tools, such as Animator, automate and streamline various aspects of the animation workflow, such as character animation, scene generation, and special effects. This leads to innovation by enabling animators to focus more on creative decision-making, ultimately driving the evolution of animation techniques and capabilities.
Generative AI in Animation Market Trends
Rising Content Creation is Driving the Market Growth
The market CAGR for generative AI in animation is increasing due to the growing demand for content creation, particularly on digital and online platforms. This technology enables content creators to produce engaging content in efficient and scalable ways. It includes features for character movement and scene creation, allowing for creativity and personalization.
For instance, in May 2023, Stability AI, a synthetic media startup, launched a tool that utilizes open-source Stable Diffusion generative AI models to generate animations, driving the surge of content creation. The Stable Animation SDK is capable of transforming text prompts into animated videos. It can also incorporate an image or pre-existing video clip to ensure efficient and swift usage by content creators to enhance their creativity.
Rising Advancements in Generative AI in Animation
The generative AI in animation market is experiencing significant growth. The market growth is driven by the rising advancements in the animation processes, enabling the creation of realistic movements and expressions based on input data from existing animation databases. These advancements not only streamline production timelines but also enable animators to explore more imaginative storytelling through AI-generated characters and environments, representing a significant advancement in the field of digital animation and driving the generative AI in animation market revenue.
For instance, in November 2023, Pika Labs introduced Pika 1.0, a generative AI in animation model focused on transforming ideas into videos. This model offers the capability to generate content in various styles and enables users to edit pre-existing video clips by painting over objects, individuals, or entire scenes.
Generative AI in Animation Market Segment Insights
Generative AI in Animation Component Insights
The global generative AI in animation market segmentation, based on component, includes services and solutions. The solutions category dominated the market owing to its ability to integrate with AI technology and animation software to create smooth workflows and streamline production processes. Additionally, providers of these solutions frequently offer customizable options, including character design, scene generation, and rendering tailored to individual requirements.
For instance, in May 2024, ServiceNow demonstrated the use of generative AI service agents with the help of NVIDIA AI Enterprise software. These service avatars are designed for customers and employees to interact with animated generative AI technology, improving employee and customer experiences by making them more engaging and personalized.
Generative AI in Animation End-Use Insights
The global generative AI in animation market segmentation, based on end-use, includes advertising, gaming, movie production, television, and others. The gaming segment dominated the market due to the increased demand for creative and visually appealing gaming content. This led to the integration of generative AI in gaming and drove the utilization of generative AI in animation.
For instance, according to Invest India, the Indian gaming industry is witnessing rapid growth, with the rise of three gaming unicorns: Game 24X7, Dream11, and Mobile Premier League, along with the number of online gamers reaching 500 million by 2025.
Global Generative AI in Animation Market, Segmental Coverage, 2019 - 2032 (USD billion)
Source: Secondary Research, Primary Research, PMR Database and Analyst Review
Generative AI in Animation Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. North America dominated the generative AI in animation market over the forecast period owing to its vast network of well-established animation studios and tech firms. These entities are at the forefront of developing and incorporating AI technologies into their offerings through Over the Top (OTT) platforms and subscription videos on demand to meet consumer needs
According to the International Trade Administration, the online filmed entertainment and streaming sector is now utilizing AI and Machine Learning tools to distribute content more widely. This includes incorporating AR/VR technology, advanced video technologies, and making content easily accessible across various devices. This growth is attributed to the rise of subscription video on demand (SVOD) from $13.5 billion in 2019 to $17.6 billion in 2020 in the North American region.
Global Generative AI in Animation Market, Regional Coverage, 2019 - 2032 (USD billion)
Source: Secondary Research, Primary Research, PMR Database and Analyst Review
Further, the U.S. generative AI in animation market is expected to witness the fastest growth in the North American region over the forecast period. This growth is fueled by the widespread adoption of AI technologies across various industries. Key players are recognizing the transformative potential of AI and are actively seeking innovative animation solutions driven by generative AI.
For instance, in October 2023, Adobe introduced new AI-powered generative fill and text, drawing, and painting features in Adobe Express during Adobe MAX, which took place in Los Angeles. Adobe Express enables users of all skill levels to create and share exceptional content effortlessly with the addition of AI capabilities to the creativity app.
The Asia-Pacific generative AI in animation market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the rapid growth and adoption of generative AI in animation to meet the rising need for high-quality animation content in various sectors, including media & entertainment, gaming, and advertising. Additionally, with the rise of digital adoption and changing consumption habits, there is an increasing need for customized and captivating animated content.
For instance, according to a report published by EY in April 2023, the Indian media and the entertainment sector is projected to reach a value of INR 734 billion by 2026. The primary drivers of this expansion will be digital, online gaming, and television, which collectively account for 65% of the growth, followed by animation and VFX at 11%, live events at 8%, and films at 8%.
Moreover, China’s generative AI in animation market held a significant market share in 2023, driven by the emergence of digital platforms and streaming services that have opened up new possibilities for content creators to employ generative AI in developing captivating and immersive animation content.
Generative AI in Animation Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the generative AI in animation market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market environment, the generative AI in animation industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global generative AI in animation industry to benefit clients and increase the market sector. In recent years, the generative AI in animation industry has witnessed some technological advancements. Major players in the generative AI in animation market include Adobe, Autodesk Inc., Blue Sky Studios, DreamWorks Animation, Google LLC, Kartoon Studios, Inc., NVIDIA Corporation, Pixar Animation Studios, ServiceNow, and Walt Disney Animation Studios.
Google LLC, a subsidiary of Alphabet Inc., provides search and advertising services on the Internet. The company, Google LLC, operates in two major reportable segments – Google Services and Google Cloud. The Google Services segment comprises a wide range of core products and platforms, including Android, Ads, Hardware, Chrome, Google Drive, Gmail, Google Photos, Google Maps, Google Play, YouTube, and Search. In May 2024, Google LLC unveiled AI-driven functionalities aimed at enhancing search and advertising capabilities for advertisers to produce animated ads from static images. This allows advertisers to integrate brand-specific fonts and colors into their ads, thereby expanding the customization possibilities offered by Google's Performance Max platform.
NVIDIA Corporation is a computer hardware manufacturing company that provides GPU-accelerated computing solutions for AI and deep learning, gaming, self-driving cars, supercomputing, robotics, parallel computing, automotive technology, and professional graphics. In May 2023, NVIDIA Corporation launched a significant Omniverse update featuring the OpenUSD framework and generative AI, which will improve 3D pipelines and speed up industrial digitalization through new applications and services. The platform provides the ability to create modular apps, optimize rendering with NVIDIA RTX GPUs, and access extended-reality developer tools. This empowers developers and businesses to create more extensive simulations and tailor 3D projects.
Key companies in the generative AI in animation market include
- Adobe
- Autodesk Inc.
- Blue Sky Studios
- DreamWorks Animation
- Google LLC
- Kartoon Studios, Inc.
- NVIDIA Corporation
- Pixar Animation Studios
- ServiceNow
- Walt Disney Animation Studios
Generative AI in Animation Industry Developments
- May 2024: Autodesk acquired Wonder Dynamics in order to incorporate its VFX solution and cloud-based 3D animation with AI into existing tools to streamline processes and boost creativity. This acquisition further reinforces Autodesk's strategic objective of leveraging AI to unite teams, data, and processes within the media and entertainment industry.
- April 2024: Kartoon Studios, Inc. introduced an AI toolkit aimed at enhancing the quality of animation and streamlining workflow processes to enhance the overall quality of animated content.
- December 2023: Autodesk Inc.'s animation and 3D modeling software Maya incorporated generative AI tools to revolutionize the creation of textures, HDR images, and materials directly within the platform to enhance the efficiency of scene lighting and look development processes for artists utilizing Maya.
Generative AI in Animation Market Segmentation
Generative AI in Animation Component Outlook
- Services
- Solutions
Generative AI in Animation Type Outlook
- GANs
- Transformers
- VAEs
- Others
Generative AI in Animation End-Use Outlook
- Advertising
- Gaming
- Movie Production
- Television
- Others
Generative AI in Animation Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Generative AI in Animation Report Scope
|
Report Attributes |
Details |
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Market Size Value in 2023 |
USD 1.32 billion |
|
Market Size Value in 2024 |
USD 1.66 billion |
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Revenue Forecast in 2032 |
USD 23.60 billion |
|
CAGR |
39.3% from 2024 – 2032 |
|
Base Year |
2023 |
|
Historical Data |
2019 – 2022 |
|
Forecast Period |
2024 – 2032 |
|
Quantitative Units |
Revenue in USD billion and CAGR from 2024 to 2032 |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
|
|
Regional Scope |
|
|
Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, region, and segmentation. |
FAQ's
The global generative AI in animation market size was valued at USD 1.32 billion in 2023 and is projected to be valued at USD 23.60 billion in 2032
The global market is projected to grow at a CAGR of 39.3% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are Adobe, Autodesk Inc., Blue Sky Studios, DreamWorks Animation, Google LLC, Kartoon Studios, Inc., NVIDIA Corporation, Pixar Animation Studios, ServiceNow, and Walt Disney Animation Studios.
The solutions category dominated the market in 2023
The gaming segment held the largest share of the global market
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