Ottawa, Dec. 23, 2025 (GLOBE NEWSWIRE) -- According to Precedence Research, the global animation market size is valued at USD 462.32 billion in 2025 and is expected to grow from USD 492.14 billion in 2026 to USD 953.31 billion by 2035. The sector is growing at a solid CAGR of 7.52% from 2025 to 2034. The growth in streaming platforms, technological advancements in animation, and the growing demand for animated content drive the overall growth of the market.
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Animation Market Highlights:
- North America dominated the global animation market in 2025, capturing 33.97% share, driven by strong streaming presence and advanced production ecosystems.
- The 3D animation segment led by product type in 2025 with a commanding 44.16% market share, fueled by rising demand for immersive visuals across gaming, film, and AR/VR.
- Media and entertainment emerged as the largest industry segment, contributing over 29.75% of total animation market revenue in 2025.
- The manufacturing sector is projected to grow at the fastest CAGR from 2026 to 2035, supported by increasing use of animation in product visualization, training, and virtual prototyping.
What is Animation?
The animation market growth is driven by the growing use of streaming services, expansion of advertising, the booming video gaming landscape, increasing investment in animation production, and the rise in popularity of anime.
Animation is the process of creating an illusion of movement in a sequence. The animation consists of two techniques like traditional animation and modern animation. Traditional animation means hand-drawn or manually done animation, and modern animation is animation created using a computer.
Animation helps to create engaging and entertaining content like films, web series, and many more. It simplifies complex concepts and provides a visualization of intricate concepts. It is a cost-effective communication tool and enhances learning experiences. Animations are used in various sectors like advertising, product visualization, entertainment, education, and gaming.
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What are the Types of Animation?
| Animation Type | Tools | Applications | Real-World Examples |
| 2D Animation |
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| 3D Animation |
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| Stop-Motion |
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| Motion Graphics |
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Private Industry Investments for the Animation Industry:
- Streaming Service Production: Streaming platforms like Netflix, Amazon, and Disney+ are investing heavily in producing original animated series and films to attract and retain subscribers.
- Private Equity Buyouts: Private equity firms are acquiring animation studios, especially those in the middle and upper-middle markets, and deploying capital for buyouts to expand their media portfolios.
- Venture Capital in Technology: Venture capital is being invested into startups developing new hardware and software for 3D animation, virtual production, and AI-driven animation tools to enhance content creation and efficiency.
- Corporate Animated Advertising: Companies across various sectors are investing in animated advertisements and explainer videos to create engaging content that captures attention and boosts brand identity.
- Gaming Industry Expansion: The gaming industry is a major investor in animation, using it for immersive and engaging experiences in both story-driven games and explainer videos.
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Key Trends of the Animation Market
- Growth of Streaming Platforms: Streaming services have revolutionized content consumption, creating a significant demand for new and diverse animated content to fill their libraries. This has led to a boom in production, providing opportunities for various animation styles and narratives to reach a wider audience globally.
- Increased Demand for Adult Animated Content: The rise of streaming platforms has opened doors for more adult-oriented animation. This trend caters to a demographic seeking more mature themes, complex storylines, and sophisticated humor in their animated entertainment, expanding the scope and audience of animation beyond traditional children's programming.
- Rise of Virtual Production: Virtual production integrates real-time technology, often borrowed from the gaming industry, into the animation and filmmaking process. This allows for immediate visualization of scenes, more collaborative workflows, and the creation of highly detailed and dynamic environments and effects, potentially streamlining production and pushing creative boundaries.
“Animation is no longer limited to entertainment. Its integration into manufacturing, healthcare training, and digital education is transforming how industries communicate, design, and innovate,” said Shivani Zoting, Principal Consultant at Precedence Research.
Animation Market Opportunity
What is the Opportunity for the Animation Industry?
Growing Expansion of E-Learning Surges Demand for Animation
The growing expansion of e-learning increases demand for animation in creating visually appealing and interactive content. The growing focus on making learning more enjoyable increases the adoption of animation for the development of training materials and online courses. The focus on easy understanding of subjects like engineering, science, and medicine increases demand for animation for creating visual representations.
The increasing demand for e-learning among individuals and organizations fuels the adoption of animation. The focus on flexible learning experiences and enhancing learners' experiences increases the adoption of animation. The increasing demand for diverse learning styles, like kinesthetic and visual learners, requires animation. The growing focus on simplifying concepts increases demand for animation. The growing expansion of e-learning creates an opportunity for animation.
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Animation Market Report Coverage
| Report Item | Details |
| Growth Rate (2026–2035) | CAGR of 7.52% |
| Market Size in 2025 | USD 462.32 Billion |
| Market Size in 2026 | USD 492.14 Billion |
| Market Size by 2035 | USD 953.31 Billion |
| Largest Region (2025) | North America — approx. 33.97% share |
| Leading Product Type (2025) | 3D Animation — 44.16% share |
| Leading Industry (2025) | Media & Entertainment — over 29.75% revenue share |
| Fastest-Growing Industry (2026–2035) | Manufacturing — projected to grow at the highest CAGR |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
| Segments Covered | By Product Type, and By Industry |
| Key Growth Drivers | • Technological advancements in animation tools • Rapid expansion of media, entertainment, and gaming sectors • Surge in internet penetration and digital platforms • Rising demand for high-quality animated content across industries such as advertising, manufacturing, and education |
| Industry-Wise Market Breakdown (2024) | • Media & Entertainment: ~USD 130.13 Bn • Gaming: ~USD 116.29 Bn • Education: ~USD 81.02 Bn • Retail: ~USD 52.10 Bn • Healthcare: ~USD 35.06 Bn • Manufacturing: ~USD 21.64 Bn |
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Case Study: Netflix’s Strategic Investment in Animated Content Driving Global Animation Market Growth
Background
Netflix has emerged as one of the world’s largest investors in animated content, leveraging animation to strengthen subscriber engagement, expand global reach, and diversify its content portfolio. With audiences spanning children, families, and adults, animation has become a strategic pillar in Netflix’s long-term growth strategy.
Challenge
As competition intensified among Over the Top (OTT) platforms, Netflix faced the challenge of:
- Continuously delivering differentiated and high-quality content
- Appealing to diverse global audiences with varying cultural preferences
- Retaining subscribers amid increasing content saturation
Live-action content alone was insufficient to meet these objectives at scale.
Strategy & Implementation
Netflix significantly increased investment in original animated films and series, focusing on:
- 3D animation for cinematic storytelling and immersive visuals
- Adult animation to attract mature audiences
- Regional animation studios across Asia Pacific, Europe, and Latin America to localize content
- Advanced animation technologies, including AI-assisted workflows and virtual production, to improve efficiency and reduce production timelines
Notable animated titles and franchises were developed exclusively for streaming, ensuring platform differentiation.
Outcome & Impact
- Animated content became one of Netflix’s most-watched content categories globally
- The platform strengthened its presence in high-growth markets such as Asia Pacific and Latin America
- Long-term licensing and merchandising opportunities expanded revenue streams
- Demand for animation services, tools, and talent increased across production ecosystems
Netflix’s success reinforced animation as a core growth engine for streaming platforms.
Market Implications
This case highlights how:
- Streaming platforms are major contributors to the global animation market’s growth trajectory toward USD 953.31 billion by 2035
- 3D animation dominance is fueled by demand for premium, immersive content
- Cross-industry adoption of animation extends beyond entertainment into education, advertising, and manufacturing
Conclusion
Netflix’s animation strategy demonstrates how large-scale investments in animated content can drive audience engagement, global expansion, and sustained revenue growth. As more OTT platforms replicate this approach, animation continues to evolve from a niche creative segment into a critical pillar of the global digital content economy.
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Animation Market Regional Outlook
Why North America Dominates the Animation Market?
North America dominated the Market in 2024. The growing demand for animated content in various forms, like video games, film, and television, helps in the market growth. The strong presence of streaming services, film studios, and television networks increases demand for animation.
The presence of skilled technicians, animators, and artists helps in the production of higher-quality animation. The presence of major animation studios like DreamWorks, Disney, and Pixar drives the overall growth of the market.
North America Animation Market Size (USD Billion), By Countries 2022 to 2025
| Countries | 2,022 | 2,023 | 2,024 | 2,025 |
| U.S. | 52.48 | 55.66 | 59.27 | 63.32 |
| Canada | 44.04 | 46.29 | 48.86 | 51.74 |
| Mexico | 36.61 | 38.21 | 40.05 | 42.10 |
How Big is the U.S. Animation Market Size and Growth?
According to Precedence Research, the U.S. animation market size is estimated at USD 63.32 billion in 2025 and is predicted to increase from USD 67.94 billion in 2026 to USD 140.31 billion by 2035. The market is expected to expand at a notable CAGR of 8.28% from 2026 to 2035.
U.S. Animation Market Trends
The U.S. is a major contributor to the market. The strong history of developing commercially successful animated films and growing consumer demand for animated content on platforms like Disney+, Amazon Prime, Netflix, & Hulu help the market growth. The ongoing technological innovations like virtual reality, a fully computer-animated feature film, & 3D animation, and the strong presence of companies like DreamWorks, Disney, and Pixar support the overall market growth.
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Which Region is the Fastest-Growing in the Animation Market?
Asia Pacific is experiencing the fastest growth in the market during the forecast period. The presence of a large population and growing demand for entertainment increases the adoption of animation. The increasing adoption of mobile devices and streaming services helps market growth. The presence of skilled animators in countries like Japan, India, China, and South Korea supports the development of animated content.
The growing popularity of K-pop, anime, & K-drama, and strong government support for the animation industry, increase the adoption of animation. The growing availability of streaming services like Amazon Prime and Netflix supports the overall growth of the market.
China Animation Market Trends
China is a key contributor to the market. The strong presence of traditional stories and focus on the development of high-quality content increases demand for animation. The strong government support for the animation sector through cultural development plans & financial incentives helps market growth. The growing domestic streaming platforms like Tencent Video & iQiyi, and the rise in talented creators, drive the market growth.
What are the Reasons for the Growth of the Animation Sector in India?
India is growing in the market. The growing expansion of Over-the-Top platforms and the booming gaming sector increases demand for animation. Technological innovations like cloud-based collaboration, artificial intelligence (AI), & real-time rendering in animation help market growth. The growing incorporation of high-quality animation in Indian films and the strong presence of skilled professionals support the overall market growth.
Animation Market Size (USD Billion), By Region 2022 to 2025
| Region | 2022 | 2023 | 2024 | 2025 |
| North America | 133.14 | 140.17 | 148.18 | 157.16 |
| Europe | 112.82 | 118.44 | 124.85 | 132.04 |
| Asia Pacific | 94.68 | 100.31 | 106.70 | 113.87 |
| LAMEA | 51.91 | 54.05 | 56.50 | 59.26 |
| Total | 392.54 | 412.96 | 436.24 | 462.32 |
Animation Market Segmentation Insights:
By Product Type Insights
How the 3D Animation Segment Dominated the Animation Market?
The 3D animation segment dominated the market in 2024. The growing demand for the creation of special effects, immersive worlds, and characters in the gaming industry increases demand for 3D animation. The focus on creating more engaging and realistic content in various sources helps market growth. The increasing demand for patient education, medical training, and surgical planning in the healthcare sector fuels the adoption of 3D animation.
The growing consumer demand for interactive content like immersive experiences, interactive games, and virtual tours increases demand for 3D animation, driving the overall growth of the market.
The 2D animation segment is steadily growing in the market. The growing demand for content on streaming platforms and the rise in popularity of Japanese anime increase demand for 2D animation. The growing applications like advertising, social media content, marketing, and e-learning increase the use of animation. The cost-effectiveness and greater creative freedom in 2D animation support the overall market growth.
Animation Market Size (USD Billion), By Product Type, 2022 to 2025
| Product Type | 2022 | 2023 | 2024 | 2025 |
| 2D Animation | 123.56 | 130.25 | 137.85 | 146.36 |
| 3D Animation | 172.82 | 182.37 | 193.26 | 205.47 |
| Stop Motion | 60.56 | 63.42 | 66.64 | 70.24 |
| Others | 35.60 | 36.92 | 38.49 | 40.25 |
By Industry Insights
Why the Media & Entertainment Segment Held the Largest Share of the Animation Market.
The media & entertainment segment held the largest revenue share of the market in 2024. The increasing demand for animated movies and series helps the market grow. The growth in binge-watching of short content, feature films, and TV series helps in the development of animation. The strong presence of streaming platforms like YouTube, Netflix, Amazon, and Disney+ helps market growth. The growth in the playing of video games increases demand for animation to offer an immersive experience.
The growing utilization of OTT platforms increases demand for animation. The growing investment in animation by major companies like Sony, Disney, and DreamWorks drives the overall growth of the market.
The manufacturing segment is the fastest-growing in the market during the forecast period. The growing focus on breaking down complex manufacturing processes increases demand for animation. The focus on demonstrating the product maintenance, assembly, and operation increases demand for animated videos.
The need to improve communication between stakeholders, engineers, and designers fuels demand for animation. The demand for streamlining the development & design process and virtual testing in the manufacturing sector supports the overall growth of the market.
Animation Market Size (USD Billion), By Industry, 2022 to 2025
| Industry | 2022 | 2023 | 2024 | 2025 |
| Media and Entertainment | 116.48 | 122.86 | 130.13 | 138.27 |
| Education | 72.78 | 76.63 | 81.02 | 85.94 |
| Retail | 47.18 | 49.48 | 52.10 | 55.03 |
| Healthcare | 31.83 | 33.34 | 35.06 | 36.99 |
| Manufacturing | 19.08 | 20.28 | 21.64 | 23.16 |
| Gaming | 105.19 | 110.37 | 116.29 | 122.92 |
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| Country | Primary Animation Style | Studios Present |
| United States | 3D Animation (CGI) |
|
| China | 3D Computer-Generated Imagery |
|
| Japan | Anime |
|
| India | 3D and 2D Animation |
|
| United Kingdom | Stop-Motion Animation |
|
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Top Companies in the Animation Market & Their Offerings:
- SideFX Develops Houdini, a procedural 3D animation and visual effects software used to create high-quality cinematic results.
- Adobe Offers a suite of creative software for animation, including Animate for 2D vector animations and After Effects for motion graphics and visual effects.
- Smith Micro Software, Inc. Provides animation software, notably Moho (formerly Anime Studio), which is a comprehensive 2D animation tool.
- EIAS3D Develops the Electric Image Animation System (EIAS), a 3D computer graphics package known for its fast renderer and use in architectural visualization and film VFX.
- NewTek, Inc. Was historically known for developing the LightWave 3D software (which originated on the Amiga platform), a 3D modeling, rendering, and animation package used in film and TV production.
- Corel Corporation Offers various graphics and photo editing software, such as Corel Painter and PhotoMirage, which include tools that can be used to generate specific animation effects.
- Autodesk Inc. Is a major provider of 3D animation software, including industry-standard applications like Maya and 3ds Max for high-end modeling, animation, and visual effects.
- Maxon Computer Develops Cinema 4D, a professional 3D modeling, animation, and rendering software popular for motion graphics.
- Broadcast2World, Inc. Specializes in creating animated explainer and marketing videos, including 2D and 3D motion graphics services, for B2B and SaaS companies.
- Animation Sharks Is a company that provides animation services for businesses, though specific details on their unique offering beyond being a general service provider were not available in the search results.
- IdeaRocket Is an animation studio that produces a variety of animated videos, such as 2D character animations and explainers, for clients in different industries.
- Triggerfish Studios Is a prominent animation studio, likely involved in the production of animated films and television shows, as indicated by its listing among major industry players.
- BRAFTON Is a content marketing agency that includes video and animation services as part of its offerings to clients.
- Videocaddy Offers video production and animation services for businesses, focusing on creating various types of animated content.
- WinBizSolutionsIndia Provides a range of IT and business process solutions, which includes offering professional animation services to clients.
Recent Developments in the Animation Industry:
- In June 2025, Android 16 beta launched a shrinking screen animation for Visual Tweaks and Gemini AI. It offers a more tactile and immersive interaction experience. (Source: https://www.businesstoday.in)
- In April 2025, Applause Entertainment launched the ApplaToon animation channel on YouTube for young minds. The original animated series Kiya & Kayaan, based on the popular Amar Chitra Katha Junior Library, kicks off with ApplaToon. (Source: https://www.business-standard.com)
- In August 2023, Ynput launched a free animation and VFX pipeline, Ayon. It is an open-source and can be used by studios of any size. It consists of various applications like 2D animation software, 3D content creation tools, and compositing & editing tools. It has ready-made templates for VFX projects, 2D animation, and 3D animation. (Source: https://www.cgchannel.com)
Segments Covered in the Report
By Product Type
- 2D Animation
- Software
- hardware
- Services
- 3D Animation
- Software
- hardware
- Services
- Stop Motion
- Software
- hardware
- Services
- Other
- Software
- hardware
- Services
By Industry
- Direct
- Education
- Media and Entertainment
- Aerospace and Defense
- Manufacturing
- Automotive
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Rest of North America
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- Western Europe
- Germany
- Italy
- France
- Netherlands
- Spain
- Portugal
- Belgium
- Ireland
- UK
- Iceland
- Switzerland
- Poland
- Rest of Western Europe
- Eastern Europe
- Austria
- Russia & Belarus
- Türkiye
- Albania
- Rest of Eastern Europe
- Western Europe
- Asia Pacific
- China
- Taiwan
- India
- Japan
- Australia and New Zealand,
- ASEAN Countries (Singapore, Malaysia)
- South Korea
- Rest of APAC
- MEA
- GCC Countries
- Saudi Arabia
- United Arab Emirates (UAE)
- Qatar
- Kuwait
- Oman
- Bahrain
- South Africa
- Egypt
- Rest of MEA
- GCC Countries
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