Animation and Video Game Market See Remarkable Growth by 2027

The world is evolving, Video Game Market industries are transforming and we’re just adapting to the latest trends. From working from home becoming the new normal to maintaining distance, every year we see new changes and new revolutions. Among these different changes, one thing is constant: technology. As the years are passing, technology is getting dominant by the day.

One such by-product of technology is the animation and video game market. These have been in the news for quite some time now. But, today the trend is only rising to exceptional growth. Today, we can see animation spreading its roots in almost every sector be it entertainment, education, or games.

Similarly, there has been a great rise in demand for video games such as PUBG, Fortnite, GTA, etc. It wouldn’t be an exaggeration if it is claimed that the animation and video game market will see remarkable growth by 2027.

Here’s some deep insight on the market analysis of both the industries explaining the overall growth pattern.

Video Game Market Scenario

Video Game Market

With the rising preference for high definition (HD) content creation, particularly for video marketing, higher resolution, significantly greater pixel counts, and enhanced content quality over ordinary definition are expected to have a positive impact on the growth of the video market.

According to the report of Market Research Future, the video game market size had a value of USD 155.09 billion in 2019 and is likely to rise at a Compound Annual Growth rate (CAGR) of 14.5% from 2020 to 2026. Why’s this happening? Well, the innovation and development in hardware and gaming software are the two chief components encouraging the universal advancement of this market.

Moreover, the increasing options of internet providers combined with the easy availability and accessibility of games online worldwide are likely to drive market growth in the upcoming years. Furthermore, computer game engineers are constantly enhancing and working on the technological barriers regarding the real-time rendering of graphics in the gaming industry. This is also expected to further improve and upgrade the video gaming market.

Apart from this, there has been phenomenal growth in the usage of cloud gaming. The latest advancements in cutting-edge cloud technology give users a real-world feeling. In cloud gaming, the server stores all the games and does the computation work such as game scene delivering, video encoding, etc.

Many established companies like Onlive, G-Cluster, and T5-Labs are providing cloud gaming services as this new trend is tough competition for the typical game market. All of this combined has boosted the game market by an incredible rate.

Moreover, several famous video game firms such as Sega, Ubisoft, and Epic Games are now motivated to partner with Onlive to distribute their games. In addition, the gaming sector is experiencing large-scale action from various firms that are further propelling market development.

Furthermore, the advent of 5G networks and accessibility of unlimited data packages are also key factors paving the way in favor of video games worldwide since the majority of gamers prefer playing games on smartphones.

Animation Market

Animation is the real deal today, showing its dominance in almost all the sectors, precisely media, and entertainment. The increasing utilization of animations in movies, television programs, print media such as newspapers, magazines, advertisements, and Internet media are some of the few factors pushing the demand for animation upwards.

Interestingly, animation is a handy tool as it allows users to create images and visual effects while also being used in several applications such as high-end games, computer graphics, animated movies, web pages, as well as animated study materials. Moreover, many companies take help from animation studio services to build attractive content for their brand. This makes animation an in-demand service.

The animation market has been estimated to experience a positive trend by reaching a value of USD 36.10 billion in 2027 suggested by a research report. Rising at a CAGR of 13.8%, the market is projected to witness a remarkable expansion by 2027. The increasing importance of visual effects technology is likely to back this market growth coupled with the rising demand for 3D visualization and animation movies.

Based on the forecast done from 2020 to 2027, the 3D animation industry is set to undergo major growth across international and regional markets as well.

A major chunk of computer animation companies is functioning across North America, Europe, Asia Pacific, the Middle East, and Africa where North America is taking the lead by adopting advanced 3D animation technology and investing in R&D processes. Meanwhile, Asia Pacific is also expected to show phenomenal growth in the animation market by 2027.

The rising demand for 3D animation and its low cost of production would create profitable growth possibilities in this industry. Thus, the existence of unexplored market opportunities will be a strong growth driver for the animation market all across the world.


By now, we can claim that the animation and video game market is the new generation. The animations are in demand for the various benefits they have to offer to their users. Movies like Tangled, Shrek, animated logos, product animation, motion graphics, etc are all outcomes of animation which shows why its market is growing at an exceptional rate.

Similarly, video games are also a part of animation and are equally rising. Hence, to stay ahead in the race, it is recommended for businesses to invest in this field and incorporate either of them in their operations because both industries are here to stay!

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