Growth of major end-use industries such as education, media & entertainment and defense in emerging markets of India, China and Japan is expected to drive 3D animation market growth over the forecast period. Co-production strategies have been adopted by cable channel operators, TV broadcast companies, and multinational studios in order to increase market opportunities. Increasing use of 3D animation software in entertainment industry is expected to be a key market driver. Hybrid animation which is a combination of 2D and 3D animation is a major trend expected to boost market growth over the next six years.
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Media & entertainment is a major market segment; the education sector has significant growth potential as private institutions are increasingly adopting 3D animation for effective and smart learning. However, availability of free and open source software for video gaming, interactive 3D application, 3D printed models, visual effects and creating animated films is expected to hamper 3D animation market growth.

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Recent development in 3D related services and equipment has further boosted product acceptance among the consumers. Emergence of 4D technology and propagating awareness of its potential is expected to spur adoption in the animation industry. Multi-industrial 3D applications, stereoscopic 3D gaming and 3D character merchandise are some factors expected to positively impact the market.

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Key industry participants include Autodesk Inc., Credo Interactive Inc, Strata, Electric Rain Inc., Toon Boom Animation Inc., Newtek Inc., Side Effects Software Inc., Maxon Computer GmbH, Electric Image Inc., and Smith Micro Software, Inc.

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