Global Animation Market Nears $1T Valuation by 2035

The global animation market is on track to approach a $1 trillion USD valuation by 2035, underscoring its transition from a niche media-related segment into a pillar of the digital economy.  According to a new industry forecast by Precedence Research, published on Dec 19, the market is expected to grow from $462.32B in 2025 to $953.31B by 2035, expanding at a compound annual growth rate (CAGR) of about 7.52%.

According to the survey, demand for animation is rapidly increasing across streaming platforms, video games, advertising, education, healthcare visualization, and other enterprises, beyond traditional film and television content. While 2D animation is still strong in advertising, mobile content, and anime-driven production pipelines, 3D animation generated the largest revenue share among animation types. 

Due to its expansive use in gaming, AR/VR, and simulation-heavy applications, 3D animation commanded 44.16% of the total market share. By industry, media and entertainment remains the largest contributor, and contributed more than 29.75% of total revenue. Right after the entertainment industry, education is becoming a fast-growing sector, where animated explainers and interactive visual content are being preferred.

What’s Driving the Global Animation Market Growth: Streaming Demand and Capital Investment

The expansion of global streaming platforms is a primary growth engine for animation. Streaming platforms like Netflix have significantly increased budgets for animated originals and franchise extensions, driven by animation’s long shelf life and cross-demographic appeal. 

In 2025, Netflix invested in rising areas like 3D animations and adult animation productions, while facilitating regional animation studios across Asia Pacific, Europe, and Latin America to improve long-term engagement. 

According to Precedence Research’s coverage, industry investment into animation production, tools, and IP development has accelerated as studios increase output to meet requirements. Private equity firms are eying strategic acquisitions of animation studios, whereas venture funding in AI tools, animation hardware, and software startups is increasing due to demand.

Global Animation Market Regional Outlook: North America Leads, Asia-Pacific Accelerates

North America continues to account for the largest share (33.97%) of animation revenue, supported by mature streaming ecosystems, established studios, and strong enterprise adoption. The U.S. animation market alone is valued at $63.32B in 2025, and expected to grow up to $140.31B by 2035.

Asia-Pacific, currently acquiring 24.29% of the market, is projected to be a fast-growing region over the forecast period. Expanding mobile consumption, a young digital-native population, and strong domestic animation and anime pipelines are driving rapid scale. Markets like China, Japan, and South Korea are increasingly expanding their animation productions across South Asia with new production, theatrical releases, and licensing deals.

The European region shows steady growth, capturing 28.68% of the global animation market. The market concentrates around Germany, France, and the U.K., countries with a history of rich animated productions. In Nov 2024, the EU deployed a new strategy to allocate €4M (~$4.7M) over the course of three years for creating a comprehensive report on the animation industry. 

Apart from the main regions, the animation industries in the Middle East and Africa have also begun to shift toward a more locally produced material due to the growing demand for diverse content worldwide. Regions like Egypt, the United Arab Emirates, and South Africa are emerging as key players due to the development of animation studios, pop-culture events, and access to cutting-edge technology.

As the animation market moves toward a $1T valuation, the forecast signals that animation is no longer a supporting format but a strategic asset. The next decade will likely be defined by how effectively studios, platforms, and software providers leverage technology to meet surging cross-sector demand while navigating regional and regulatory complexities.