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

AI Tools for Animation are software applications that leverage 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 and with greater creative possibilities. Such tools include automated lip-syncing, motion capture, procedural generation, real-time rendering, AI-driven character rigging, and facial animation. The entertainment, gaming, and advertising industries' increasing need for high-quality animations fuels market growth.

The AI Tools for Animation Market is expected to grow with a significant CAGR of 17% during the forecast period (2024-2032). The growing application of AI in educational tools for teaching animation and related skills supports market growth. Additionally, AI tools reduce production time and costs by automating repetitive tasks and improving workflow efficiency. As per WorldMetrics.org, in 2024, It is estimated that AI can potentially cut the cost of animation production by close to 70%. There is a growing emphasis on forming strategic partnerships with technology companies, and content creators can expand market reach and enhance technological offerings. Moreover, companies launch research and development to improve AI capabilities and maintain a competitive edge continuously. For instance, 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.

Based on the type, the market has been divided into 2D animation tools, 3D animation tools, facial animation tools, and others. The 3D Animation Tools held a dominant share of the market in 2023. This is due to enabling 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. 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.

Based on the application, the market is segmented into film and television, gaming, advertising, education, and others. The film and television segment is expected to grow with a significant CAGR in the forecast period (2024-2032). The film and television industry continuously pushes the boundaries of visual effects, requiring advanced AI tools to achieve sophisticated animations and computer-generated imagery (CGI). This demand propels the development and adoption of AI animation tools. Moreover, the rise of virtual production techniques, where AI tools are used for real-time rendering and on-set visualization, transforms the filmmaking process. This advancement makes AI tools indispensable, fostering their growth and integration in the industry.

For a better understanding of the market adoption of AI Tools for Animation, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific is expected to grow with a significant CAGR in the forecast period (2024-2032) owing to the rapid AI and machine learning innovations driving the adoption of advanced animation tools, making production processes more efficient and cost-effective. Countries like China, Japan, and India are leading digital transformation efforts, integrating AI tools in various industries, including media and entertainment. Moreover, companies increasingly invest in AI-driven solutions to enhance creativity, streamline production processes, and meet the rising demand for high-quality animation content across diverse regional platforms. 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.

Some of the major players operating in the market include Adobe, Autodesk Inc., Unity Technologies, Epic Games, Inc., NVIDIA Corporation, Rokoko, Faceware Technologies, Inc., Reallusion Inc., DeepMotion, Sparkol Limited (VideoScribe).