Soaring Demand for 3D Animation Spurs Content Creation Market
The value of the global 3D animation market is expected to ramp up from a 2020 figure of $16.64 billion at a compound annual growth rate (CAGR) of 11.7%, driven fast by the rising consumption of entertainment content, video marketing, 3D mapping, and simulation technology, ushered in by the demands of the COVID-19 pandemic.
Monumental rise in demand for high-quality home entertainment
These findings are the work of Grand View Research, which reports that in the wake of government-imposed curfews and other stringent regulations on outdoor activities to curb the spread of the virus, there is a monumental rise in demand for high-quality home entertainment, encouraging content creators and media and entertainment companies to ameliorate their video offerings.
Allied with this is a similarly burgeoning content creation market to service social media, online communications, corporate and industrial messaging, and marketing campaigns, “hoovering” up more and more content—particularly video and audio—and, lately, preferring animation in the process, across many, many platforms.
Consumers are buying considerably more products and services online, and educators and marketers can now spread their messages and tell their stories across the globe via video animation, using ready-made Instagram story templates , for example, and other high-tech tools that are often free and easier than ever to use, without any complex editing skills.
A corresponding report from Allied Market Research puts the global 3D animation market at a value of $33.78 billion by 2026, up from $14.08 billion in 2018.
3D mapping technology delivering opportunities
A major advantage of animated video is that complex information can be conveyed to a target audience in a simple, readily absorbed, and globally understood format. What’s more, the spiraling use of 3D mapping technology for geospatial analysis and navigation is delivering opportunities for market growth.
The Grand View Research report puts the promising pace of expansion of the media and entertainment industry—a key adopter of simulation software—down to the surging trend of integrating 2D and 3D animation. From big-budget commercial videos to small-scale digital advertising on social media platforms, exciting growth opportunities are being identified in the market.
“The growing preference of designers to retro motion graphics for adding a nostalgic effect to videos, along with morphing of images and logos to offer smooth and swift transition is furthering the demand for 3D animation technology," the authors of the report state in a press release.
Photorealistic representation is further contributing to the advancing demand from the media and entertainment industry, while rising consumption of media and entertainment content for children is cited as a major driver of the demand for 3D animated content.
It’s not just the entertainment industry benefiting from the rising demand; augmented behests for 3D technology are emerging from several other industrial verticals owing to the effectiveness of software simulation tools. Simulation software and services by OEMs in manufacturing, architecture, building, education, defense, and healthcare are further fueling sector growth.
The desire for high-definition (HD) content—especially for video marketing—is escalating owing to the higher resolution rendered by the significantly higher number of pixels per square inch. Add the soaring deployment of 3D animated videos used to illustrate various heavy machinery elements in the manufacturing industry, and you have a perfect script for growth.
Market leaders include Grom Social Enterprises, AMC Theatres, Netflix
Market leaders today include Grom Social Enterprises, AMC Theatres, Roku Inc., Liberty Media, and, of course, the ubiquitous Netflix, Inc., which recently announced that revenue in Q3 hit $7.5 billion, a 16% growth year-over-year and an increase from Q2’s reported $7.3 billion in revenue.
Netflix co-CEO Reed Hastings said in a company video presentation that the platform is determined to overtake Disney in creating a “spectacular all-around experience for users… A company like Disney is still ahead of us in some of those dimensions of putting that whole experience together, but boy are we making progress, and it’s so exciting, over the next 3-5 years... closing that gap and hope to pass them on that spectacular all-around experience.”
For its part, Grom Social Enterprises reported that its Top-Draw Animation (TDA) studio in Manila, Philippines, has secured an additional $1.7 million in new business commitments to produce animated series, feature films, specials, and short-form content on behalf of leading global entertainment providers.
TDA's CEO and founder, Wayne Dearing said in a press release, “That Top Draw Animation was able to maintain its high standards and continue to deliver during the pandemic is a remarkable achievement and demonstrated our commitment to serving as a reliable, top shelf producer of animation for our clients."
The largest theatrical exhibitor in the world, AMC Theatres, announced that it is firmly back in business after the pandemic lockdowns, stating that the company broke its previous post-reopening weekend attendance records with approximately 3.2 million movie-goers taking in cinematic fare at AMC's United States and international theatre locations between Thursday, July 8 and Sunday, June 11.
Roku, now reaching far beyond its hardware origins, announced that it has added 30 original series to its channel offering, featuring stars such as Kevin Hart, Anna Kendrick, and Jennifer Lopez. Roku estimates its programming reached households with a total of 70 million viewers in the U.S. in Q, 2021.
"We always believed Roku Originals would perform exceptionally well as free, ad-supported entertainment on The Roku Channel." said Rob Holmes, Roku's Vice President of Programming in a media statement.