Generative AI in Animation Market Gains Momentum with Growing Adoption in Video Design & Animation, Projected to Grow at 35.7% between 2023-2032

According to, North America leads the market with a 38.2% share, while the Asia-Pacific region is predicted to experience substantial growth due to a surge in start-ups utilizing generative AI in animation for improved operational efficiency and automated processes.

New York, April 03, 2023 (GLOBE NEWSWIRE) -- The global market for generative AI in Animation was valued at USD 0.9 billion in 2022. It is projected to achieve a remarkable CAGR of 35.7% during the period from 2023 to 2032 and is anticipated to reach USD 17.7 billion by 2032. AI can be used for the animation process, such as creating backgrounds, visuals, and environments. AI is mostly used in the animation industry for planning out scenes and camera movements. It can also be used for the stimulation of the facial expression and body. It can be used in image making & video making and can be used for several other applications.

Generative AI In Animation Market By Type

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Key Takeaway:

  • By type, the Transformer segment generated the largest revenue share in 2022.
  • By components, the solution segment has dominated the market, and it is expected to grow at the highest CAGR over the forecast period 2023 to 2032.
  • In 2022, North America dominated the market with the highest revenue share of 38.2%.
  • APAC Region held the second-largest market share in 2022.
  • APAC will grow at a significant rate from 2023-2032.

AI has a major part to play in the animation process, as it has the potential to improve the quality of the animation and increase the speed of the process, which can allow creators to focus more on the creative aspects of the work they are doing. This AI has the ability to change and transform the way companies work. The generative AI in animation can be used for the applications such as generating stories, generating animated images, editing animated images, video generation, etc., which it can do in a short period of time.

Factors affecting the growth of Generative AI In the Animation market?

Several factors can affect the growth of Generative AI In the Animation market. Some of these factors include:

  • The advancement in technologies: The technological advancements in the field of AI are happening very rapidly. The more the AI advances, the more efficiently it can generate content. This is an obvious boost to the growth of generative AI in the animation market.
  • Cost-saving: Generative AI saves labor costs a lot as it does the work of many individuals in less time. Even though the short-term investment, in the beginning, is high, it provides long-term value, which is why many market players prefer this, ultimately helping the market grow.
  • Increased work efficiency: Generative AI in animation not just saves costs but also requires comparatively much less time than human workers. This doesn’t just increase work efficiency but also saves costs in the long term as time is one of the most important things while producing any content.

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Top Trends in Global Generative AI In Animation Market

AI in animation is used to automate a widespread of tasks, from designing the video to adding animations to it. This trend is aiding organizations to increase the work's efficiency and decrease labor costs while relieving workers to focus on higher-value work. It can help design the animation and background that sometimes humans can never imagine.

Market Growth

The market's growth can be seen due to the continuous development of technologies, which will increase the work efficiency and the quality of the content produced. But due to the factors such as the high cost of the software and hardware required to run the AI, it is little challenging adoption of generative AI in animation. On the other hand, the decrease in labor cost boosts the demand for generative AI in animation. These are the factors that are driving the growth of the market.

Regional Analysis

North America accounted for the largest market share in 2022 and is expected to continue it over the forecast period. Favorable government initiatives to encourage the approval of AI in animation across several industries are driving the growth of the market in the region. The regional market for Asia-Pacific is also projected to witness lucrative growth during the forecast period due to an increasing number of start-ups in the region utilizing generative AI in animation to improve operational efficiency and allow procedure automation.

Competitive Landscape

The key major players are focusing on research and development to maintain a competitive advantage in the market. Emerging key players are focused on innovative technologies in the generative AI in animation to increase their market share. Furthermore, increasing the quality of the content produced is also a big focus of these key players, which is expected to drive the market's growth.

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Scope of the Report

Report AttributeDetails
Market Value (2022)USD 0.9 Billion
Market Size (2032)USD 17.7 Billion
CAGR (from 2023 to 2032)35.7%
North America Revenue Share38.2%
APAC Revenue Share30.1%
Historic Period2016 to 2022
Base Year2022
Forecast Year2023 to 2032

Market Drivers

The key driver of generative AI in animation is the ability to create a new visual and unique output. The  AI can obtain a visual for animation purposes that have never been seen before. The increase in the efficiency and productivity of animation is the main factor that is driving the growth of the market. The cost saving can be done with the help of generative AI in animation, as it reduces labor costs and the overall cost of production of the animation content. These are the factors that are driving the growth of the market.

Market Restraints

Although all the tools of generative AI are accessible, the software and hardware required to run the AI are expensive and can restrain the market's growth. Hence, the cost needed to render the output is high, as AI requires a lot of computing power, which is also a significant factor in restraining the market's growth. Therefore, the high setup cost, which is necessary to make AI work, is also restraining the market's growth.

Market Opportunities

Due to continuous technological advancement, generative AI is utilized across different companies and industries. Due to the rising awareness of AI and its ability to save time and money, especially in the animation industry, the market's growth is very noticeable. The increase in the adoption of AI in animation to create visuals that have never been seen before is very significant and required wherever there is a lack of creativity. Furthermore, AI in animation will likely become increasingly integrated with other technologies, such as the Internet of things and cloud computing, which can create new opportunities to drive market growth.

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Report Segmentation of the Generative AI In the Animation Market

Type Insight

Based on the type, the transformer segment holds the largest market share and dominates the growth of the market. The transformer segment is experiencing growth due to the rise in the adoption of generative AI in animation by major key players. The increase in awareness about the benefits of transformer solutions is also helping the growth of the segment.

Components Insight

The solution segment holds the largest market share and is expected to dominate the market's growth during the forecasted period. The growing false activities, overestimation of capabilities, unexpected outcomes, etc., are the factors driving this segment's growth. The service segment is also expected to grow at a significant CAGR during the forecast period.

Application Insight

Based on the application, the television and OTT segment dominated the market in 2022. This is because numerous series, movies, and other types of content are available on OTT nowadays. In addition, many of them take the help of AI in their animations. Therefore, the segment's growth is seen due to this growth in streaming content worldwide.

Recent Development of the Generative AI In the Animation Market

  • Meta introduced make-a-video in September 2022, which is the most developed and latest AI system, which can convert text prompts into video clips that are high quality.
  • Foxconn Industries and Qualcomm Technologies Inc. collaborated to develop and deploy a new AI-based system with high processing speed.

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Market Segmentation

By Type

  • Transformers
  • GANs
  • VAEs
  • Other Types

By Components

  • Solutions
  • Services

By Application

  • Television and OTT
  • Films
  • Advertisements
  • Gaming
  • Other Applications

By Geography

  • North America
    • The US
    • Canada
    • Mexico
  • Western Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Portugal
    • Ireland
    • Austria
    • Switzerland
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • The Czech Republic
    • Greece
    • Rest of Eastern Europe
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia & New Zealand
    • Indonesia
    • Malaysia
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    • Rest of APAC
  • Latin America
    • Brazil
    • Colombia
    • Chile
    • Argentina
    • Costa Rica
    • Rest of Latin America
  • Middle East & Africa
    • Algeria
    • Egypt
    • Israel
    • Kuwait
    • Nigeria
    • Saudi Arabia
    • South Africa
    • Turkey
    • United Arab Emirates
    • Rest of MEA

Key Market Players

  • Stable diffusion
  • PentoPix Ltd.
  • RADiCAL Solutions, Inc.
  • Towards AI
  • Synthesia
  • Other Key Players

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