Growth and development in the animation industry

Growth and development in the animation industry

Over the past few years, the Animation Industry has seen rapid growth and development in India and overseas. The infographic by Prismart focuses on the growth in the Indian Animation Industry in US billion dollars from 2006 to 2012. Next, it presents statistics on the GDP Percentage Growth from 1980 to 2016. In the third section, it showcases Revenue Generation per year and the estimated increase in the revenue by 2020. The fourth section highlights how India has become a hub for outsourced Animation Production Services. And the last section in the infographic by Prismart shows a graph on the Employment speed in the Animation Industry.

Animation Industry develops and explores different factors of everyday life. The animation is seen to be growing at a rapid pace in countries including Korea, France, Japan, Britain, Germany, China, and Canada. The demand for animation has increased broadcasting hours by cable and satellite TV. The demand for animation in Augmented Reality (AR) and Virtual Reality (VR) has also increased exponentially.

Growth of infrastructure and easy accessibility of technology has made animation available to the masses, and of late, it has been announced as the fastest growing industry. Taking a look at the statistics, we can see how the animation industry has established dominance over industries.

In 2006, the gross income from the Animation Industry was 0.25 US Billion Dollars. And, in the next six years i.e. by 2012, the gross income reached 0.94 US Billion Dollars. The recent Market report states that the size of the Global Animation Industry was 222 billion USD in 2013. The VFX Industry is also emerging fast as a part of film making. India has witnessed a remarkable growth in the Animation Industry especially in the field of post-production. A hike of almost 13% was seen in the year 2013 in Animation. The size of the streaming market for Animation is growing at a rate of 8% from 2017 onwards.

We can categorize the expansion of animation and media industry into four sectors as mentioned below:

1. Increase in Demand: There is a rapid increase in the use of 3G, 4G, and portable devices especially amongst the young population.

2. Digital Media: It is seen that Television and AVG segment leads to growth in the animation industry and in the age of Digital Media, it helps to strengthen technologies as well.

3. Government Policies: The government has also passed the cable television networks amendment act that has digitalized the television networks. In this, the animation opportunities remain on the top.

4. Higher Investment: Animation Industry has also witnessed an increased investment like five private equity investment deals within 6 months.

As shown in the infographic created by Prismart, the Gross Domestic Product (GDP) Growth in the Animation Industry has increased from -0.2% in 1980 to 1.6% in 2016 i.e. over 1.8% increase in the animation industry is seen in last 36 years. Indian Animation and VFX industry grew at 16.4% in 2016 whereas, on the other hand, the animation is seen to grow at a steady rate of 9%. According to an assumption, the GDP growth was expected to increase by 7.5% in 2015-16, and 8% in 2017-18. The investment growth is expected to increase at a rate of 12%.

The third factor is the revenue generation where Indian Animation has gained popularity due to its mythological content. In 2011, the total revenue in Indian Rupees was 31 billion and it increased to 80.4 billion in 2018. And by 2020, the increase is expected to be 113.6 billion. Mythological Characters have brought a substantial increase in the animation industry during the years 2008-2012. Revenue Generation is influenced by multinational studios, cable channels, TV broadcast companies. New sources of revenue are putting an effect on DVD Sales, and Intellectual Property Licensing.

India has become an influential hub for outsourced animation production services. It has developed the domestic market for viewers at an increasing rate. The market size has increased from 400 US Dollars in 2008 to 1000 US dollars in 2012. The reasons for the outsourcing of Multimedia Animation in India include traditional inclination towards creative arts, well-established India’s vast outsourcing industry, world-class animation studios, and efficient English speaking animators. India is also a well-established brand in designing and creating customized animation.

The employment speed in the Animation Industry has also seen a remarkable increase as shown in the infographics by Prismart. The employment in multimedia, art, and animation has increased from 78,000 in the year 2008 to 90,000 in 2012. Also, the employment of the animators is expected to increase by 10% which is certainly faster than the average growth of all occupations.

Growth and development in the animation industry

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