Animation Software Market Poised to Experience Major Growth

According to a new report from TechNavio, the Global Animation and Design Software Market is growing at a CAGR of 15.09 percent from 2014-2018, as the software is snapped up by companies across the board to create everything from blockbuster films to educational material.

3D Driving Market Growth, Edging Out 2D

In 2013, the 3D animation software segment accounted for an 87.16 percent market share, which is expected to increase to 90.04 percent by 2018. The 2D segment is just clinging on to a 12.84 percent market share, which will dwindle to 9.96 percent by 2018.

Fragmented Market Leaving Room for Big Players to Grow

The market is a fragmented one, marked by the presence of many well diversified global vendors. Several local and regional vendors have started to emerge, but these smaller players are finding it increasingly difficult to compete with international vendors in terms of quality, durability, reliability, and technological innovations in their software.

“The competitive environment in the market is expected to intensify with an increased number of mergers and acquisitions, as well as technological innovations, and we expect larger vendors to grow inorganically by acquiring small, local players,” say senior TechNavio analysts.

While market projections are certainly on the positive side, over the next four years, key vendors like Adobe Systems, Autodesk, Side Effects Software, and Toon Boom Animation will have to weather some volatility in the Global Animation and Design Software Market.

TechNavio has taken a look at key factors set to impact the growing market through to 2018.

Driver: Increased Adoption of Animation Software by Other End-users

Traditionally, the entertainment industry was by far the biggest end-user of animation and design software, with the need for 2D and 3D animation in movies, cartoons, and games being the primary growth driver. However, other end-users such as online educational providers, web designers, and visualization providers are increasingly adopting animation software, in order to provide value-added content for clients.

Consequently, there has been a growing need for animation and design software for application-specific purposes, and many software providers have started to develop software for specific end-users based on their needs, which is encouraging growth in this sphere.

Challenge: Software Piracy

The major challenge for the Global Animation and Design Software market is piracy, which can significantly impact vendors’ sales. On top of the potential revenue loss from pirated versions of software, glitches and other issues encountered in pirated content can potentially harm the software developer’s brand name, leading to more losses down the road.

Trend: Demand from Individuals

A major trend that will drive the Global Animation and Design Software Market in the future is the increased need for animation from individuals, not just organizations.

The animation industry has evolved, which has inspired many individuals to take up animation as a hobby. Software vendors have already identified this trend and are creating basic animation software for individual users with special features.

As the industry has opened up to a more general population, software vendors are able to offer simple, tailored animation software to individual users to increase their revenue and locate an alternative revenue stream to help them stand above the competition.

For more information on animation, design, and other software markets, visit www.TechNavio.com.