AI Tools for Animation Market: Current Analysis and Forecast (2024-2032)

Report Description

AI Tools for Animation Market Size & Forecast

The AI Tools for Animation Market was valued at approximately USD 365 million in 2023 and is expected to grow at a substantial CAGR of around 17% during the forecast period (2024-2032) owing to the surge in growth of streaming platforms and online content consumption, which increases the demand for high-quality animated content and the rise of Virtual Reality (VR) and Augmented Reality (AR).

AI Tools for Animation Market Analysis

AI Tools for Animation are software applications that use artificial intelligence and machine learning algorithms to automate and enhance various aspects of the animation process. These tools assist in creating, editing, and refining animations more efficiently by performing tasks such as character rigging, motion capture, facial animation, and real-time rendering. They improve productivity, reduce production costs, and enable new creative possibilities in the animation industry. Key applications include film, television, gaming, virtual production, and interactive media.

The integration of AI tools in animation is likely to attract new players, expand market reach, and enable continuous innovation in AI, and machine learning enhances animation tools, making them more powerful and versatile. On November 13, 2023, AUTODESK UNIVERSITY – Autodesk, Inc. announced Autodesk AI, a technology that unlocks creativity, helps solve problems, and eliminates non-productive work across the industries that design and make the world around us. Available in Autodesk products and native to its Design and Make Platform, Autodesk AI provides intelligent assistance and generative capabilities that allow customers to imagine and explore freely while producing precise, accurate, and innovative results. There is a growing emphasis on forming strategic partnerships with technology companies, and content creators can expand market reach and enhance technological offerings. Companies invest in research and development to continuously improve AI capabilities and maintain a competitive edge.

AI Tools for Animation Market Trends

This section discusses the key market trends influencing the various segments of the AI Tools for Animation Market as identified by our research experts.

3D Animation Tools AI Tools for Animation Transforming Industry

3D Animation Tools enable the creation of highly realistic and high-quality animations. This drives demand as audiences increasingly expect lifelike visual effects and detailed character animations in various media. Also, these tools automate complex tasks such as character rigging, motion capture, and physics simulations, significantly reducing the time and cost of production. This efficiency attracts more studios and creators to adopt AI tools for 3D animation. Moreover, innovation encourages more projects and experimentation, driving market growth. In November 2023, DeepMotion, a maker of AI-powered motion capture technology, redefined the animation landscape with the launch of MotionGPT. This tool leverages the power of generative AI to seamlessly transform text prompts into intricate 3D animations, ushering in a new era of democratization in animation creation.

North America leads the market in 2023.

North America is a significant driver of the AI Tools for Animation Market owing to its robust entertainment industry, technological advancements, and significant investments in innovation. The presence of major animation studios, such as Pixar, DreamWorks, and Disney, creates a substantial demand for advanced animation tools to produce high-quality, cutting-edge content. Additionally, the region’s strong tech ecosystem, centered in hubs like Silicon Valley, fosters the development and integration of AI technologies into animation workflows. The increasing adoption of AI tools by established studios and independent creators enhances production efficiency, reduces costs, and allows for greater creative experimentation. Furthermore, the growing popularity of virtual reality (VR) and augmented reality (AR) in entertainment and other sectors bolsters the demand for real-time animation capabilities provided by AI tools. As North American companies continue to lead in innovation and content creation, the region’s influence on the global AI Tools for Animation Market is expected to remain significant.

AI Tools for Animation Industry Overview

The AI Tools for Animation Market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Adobe, Autodesk Inc., Unity Technologies, Epic Games, Inc., NVIDIA Corporation, Rokoko, Faceware Technologies, Inc., Reallusion Inc., DeepMotion, Sparkol Limited (VideoScribe).

AI Tools for Animation Market News

On July 2, 2024, HCLTech and IBM announced a new collaboration to establish a Generative AI Center of Excellence (CoE) based on the IBM watsonx AI and data platform. The CoE, which is available through HCLTech’s AI and Cloud Native Labs in London and Austin, TX., is designed to help global enterprises build custom AI applications, expand data capabilities, and accelerate responsible AI workflows.

On June 4, 2024, Brompton Technology introduced the latest Tessera V3.5 software features at this year’s InfoComm 2024, bringing significant improvements and functionality for professional workflows in live events, virtual production, broadcast, XR, corporate, and esports markets. Additions include Frame Store, Hidden Markers, and Dark Time Insertion, which complement Tessera’s already industry-leading capabilities. Tessera V3.5 will be available to Brompton users in June.

On May 21, 2024, Autodesk, Inc. announced it had acquired Wonder Dynamics, makers of Wonder Studio, which is a cloud-based 3D animation and VFX solution that combines artificial intelligence (AI) with established tools. Autodesk’s acquisition of Wonder Dynamics allows more creators to add 3D animated characters to their projects and stories while minimizing the learning curve and automating typically complex and time-consuming processes.

On April 16, 2024, Kartoon Studios announced the development of a new proprietary generative AI toolkit and workflow, “GADGET A.I.,” designed to enable the development, production, and post-production of new animated content, as well as revitalize and upgrade the quality and distribution reach of thousands of existing catalog episodes and acquisitions.

On June 30, 2023, Unity revealed two new AI-based products for creators to enhance their real-time 3D (RT3D) content. The two products are Sentis and Muse and are currently available in closed beta. Unity plans to launch them globally later this year. In addition, Unity announced it’s launching a dedicated AI marketplace in the Asset Store that offers several other tools for creators.

AI Tools for Animation Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The Global AI Tools for Animation Market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the AI Tools for Animation Market Analysis (2022-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global AI Tools for Animation Market were the three major steps undertaken to create and analyze the adoption of AI Tools for Animation in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Global AI Tools for Animation Market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the AI Tools for Animation Market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the AI Tools for Animation Market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as type, application, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the AI Tools for Animation Market. Further, we conducted factor analysis using dependent and independent variables such as type, application, and regions of the AI Tools for Animation Market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the AI Tools for Animation Market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Global AI Tools for Animation Market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the AI Tools for Animation market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Global AI Tools for Animation Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the Global AI Tools for Animation Market. Data was split into several segments and sub-segments after studying various parameters and trends in the type, application, and regions of the Global AI Tools for Animation Market.

The main objective of the Global AI Tools for Animation Market Study

The current & future market trends of the Global AI Tools for Animation Market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the AI Tools for Animation Market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of the type, application, and regions.
• Define and analysis of the regulatory framework for the AI Tools for Animation
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the AI Tools for Animation Market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the AI Tools for Animation Market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry.

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