The Indian animation business is expanding very quickly as more and more animated programs and films are produced. It has drawn interest from audiences throughout the world. Many of India’s works are also distributed internationally. In this Blog, we will share the basic reasons for growth and the market conditions prevailing in the animation sector. Please go through this post carefully until the end.
The main contributing reasons for such a fast growth of animation are that there is an increase in kids broadcast viewership, low-cost internet connections became more widely available, and OTT gained popularity. The animation business has expanded by 24 percent, and by 2024, it is anticipated that the animation and VFX market will be worth Rs 180 billion, according to the FICCI EY March 2022 report.
The report’s main highlights are listed below
According to EY, the animation industry will increase from 30 point 5 percent in 2021 to 39.7 percent in 2022. In 2021, the industry expanded by 24 percent to reach Rupees 30 point 5 billion. Up until 2024, the animation and VFX market is projected to more than triple, hitting Rs 180 billion.
Children’s genre viewing climbed by nearly 30 percent during the epidemic, and co-viewership with parents also rose. Due to the rise in viewers, several new advertisers have joined the mix, including e-learning platforms, online retailers, personal care companies, and FMCG companies like Hershey’s and 99 Pancakes.
Many broadcasters chose to purchase new original local animation IPs and channels that reached regional markets in order to meet the demand for new and varied content in the kids sector. New stations like ETV Bal Bharat started with two new original IPs, Abhimanyu, The Young Yodha, and Chotu Lambu and Robu, to compete in the original IP market. Gubbare from IN10 Media Network also debuted their first IP, Akki Jaanbaaz.
More OTT platforms kept investing in Indian animated IP following the Netflix breakthrough of Mighty Little Bheem from Green Gold Animation. The first and second seasons of The Legend of Hanuman were released on Disney+ Hotstar by Indian studios, including Graphic India, and Green Gold also collaborated with the aha Kids platform for the program Maha Ganesha.
The year saw the purchase of numerous comic book characters who will subsequently appear in animated television shows, movies, or shorts. The Chotu Lambu stories from Diamond Comics were turned into animated series for ETV, and Cosmos-Maya also purchased more intellectual properties from Lotpot Comics’ portfolio.
Live-action production had decreased as a result of the pandemic, and many advertisers shifted to animation content instead, which turned out to be more affordable. For their ads, businesses like Cred, Google Pay, Kissan, 7up, Fevistick, Glance App, and Munch turned to animated material.
There was renewed interest in the area as the demand for animated content grew across platforms, including broadcast and digital channels like OTT, social media, video streaming, etc. NewQuest paid more than $90 million to acquire a controlling stake in Cosmos-Maya. Polygon Pictures, a Japanese animation studio, also debuted its wholly owned subsidiary in Mumbai.
We saw the introduction of fresh revenue streams in 2021, such as NFTs and the metaverse. The GuardianLink blockchain R&D business and Indian animation studio Toonz Media Group have developed Toonz NFTLabs, the first fully integrated NFT design lab in the world. Launched by Graphic India and Guardian Link.io, the Chakraverse limited-edition NFT line Together with their partners, Fantico and Vistas, Paperboat is eager to participate in blockchain and NFT games.
The use of gaming engines by many Indian animation studios, including Charuvi Design Labs and Gamitronics Studios, allowed them to produce their work at a lower cost. Scalable entry of animation into the real and virtual worlds Advertising today uses augmented reality to engage with consumers from their TV screens, OOH billboards, etc., thanks to augmented reality and related developments in the advertising sector.
Additionally, brands are facilitating the trial of goods (such as cosmetics, clothing, automobiles, and similar items) in virtual settings via social and e-commerce apps. Videos with augmented animated material have increased in popularity thanks to smartphones with XR-related capabilities and the tools offered by short video platforms.
Upcoming Trends
In the next two to three years, 50% of Indian studios will transition to real-time/virtual production.
- Metaverse and NFTs will be termed as the new real estate.
- More and more studios will start offering internal training.
- Institutes to open in tier-2 and tier-3 cities to hone the creative talent available there.
What are you thinking now, Hurry up; this is your chance to make a promising career
If you too want to make a bright career in this ever-growing industry, you will have to join a proper animation training institute. We suggest one of the best animation training institutes, the CGEduversity Pune, Maharashtra. The institute is equipped with modern facilities for students. The latest software and highly trained faculty members are always committed to building a bright future for the students.
The institute runs both degree and diploma courses in almost all the important fields of animation and VFX. In addition, short-term certificate courses are also available.