animation and gaming industry

8/8/2019 Animation and Gaming Industry

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ANIMATION AND GAMING INDUST RY

GLOBAL INDUSTRY SNAPSHOT:

Accord ing to the NASSCOM s tudy, t he g loba l an imat ion bus iness wases t imated to touch US$ 55 b i l l i on in 2005 and w i l l g row to US$ 75

b i l l i on in 2009 a t a CAGR of e igh t per c ent . An imat ion has found use

in segments such as en te r ta inment ( inc lud ing TV broadcas t , fu l l y

an imated mov ies , d i rec t - to-DVD and VFX) , e -Educat ion and web

des ign ing, w i th the en te r ta inment marke t genera t ing c lose to 73 p er

cent o f the overa l l revenue dur ing 2005 .

From a deve lopment po in t o f v iew, the an imat ion sec tor notched up

a tu rnover o f a round US$ 25 b i l l i on in 2005 , wh ich was expec ted to

r i se to US$ 35 b i l l i on by 2009 (a t a CAGR of 8 .7 per cent dur ing

2005-09).

The gaming indus t ry , on the other hand, compr is ing the v ideo

conso le , PC , w i re less /mob i le and on- l ine gaming segments , ach ieved

revenues of around US$ 19 b i l l ion in 2005. The sector is expected to

wi tness exponent ia l g rowth and ach ieve a tu rnover o f US$ 36 b i l l i on

by 2009 (at a CAGR of 17.3 per cent dur ing 2005-09).

The NASSCOM s tudy ind ica ted tha t the mob i le gaming segment

wou ld grow the fas tes t , inc reas ing i t s overa l l share o f the marke t

f rom 16 per cent in 2005 to 28 per cent in 2009 . Conso le gaming,

wh ich was cur ren t ly the la rges t revenue genera tor , however , wou ld

show a dec l ine and reduct ion in g loba l marke t share f rom 42 per

cent in 2005 to 30 per cent in 2009.

Revenues f rom g loba l gaming deve lopment , meanwh i le grew to US$

5 .8 b i l l i on and were expec ted to to uch US$ 11 .1 b i l l i on by 2009 a t a

CAGR of 17 .6 per cent .



Source: -http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=11082

INDIAN ANIMATION INDUSTRY SNAPSHOT :

The NASSCOM study on the Indian animation and gaming market indicated the

following:

y The animation development segment achieved revenues of US$ 285 million in

2005 and was expected to grow to US$960 million by 2009.

y The Indian animation development market was dominated by the entertainment

sector, which accounted for a share of 68 per cent.y Within the entertainment segment, the highest revenue earner was the TV

broadcast industry, with a market share of 64 per cent. While the segment was

expected to increase at a CAGR of 21.2 per cent during 2005-09, its overall market

share was expected to come down to 42 per cent in 2009.

y The fully animated movie market, estimated at US$ 30 million in 2005, was

expected to go up to US$ 180 million by 2009 at a CAGR of 56.5 per cent and

increase its market share from 15 per cent in 2005 to 28 per cent in 2009.

y The size of the VFX market was expected to go up to US$ 95 million by 2009 from

US$ 15 million, with the offshore market estimated to double.y The non-existent direct-to-DVD market in India was expected to go up to US$ 95

million in 2009 and hike its revenue share to 15 per cent in that year.

y e-Education would account for revenues of around US$ 150 million by 2009, up

from US$ 40 million in 2005.



y Web designing, including outsourced visualisation of animation and creation of

movements, would increase its market size from US$ 50 million in 2005 to US$

160 million in 2009.


INDIAN GAMING INDUSTRY SNAPSHOT :

y The Indian gaming development market touched US$ 30 million in 2005, and

was expected to rise to US$ 300 million by 2009.

y Mobile gaming continued to be the largest segment within the gaming

development market with a share of 53 per cent in 2005. This was expected to

go up to 68 per cent in 2009.

y The PC gaming development market in India was expected to witness a CAGR of

62.6 per cent and go up to US$ 35 million by 2009, while console-based games

development was estimated to account for revenues of 54 million and a market

share of 20 per cent by 2009.

y On-line gaming was the smallest segment within the gaming market and was

expected to witness a decline in overall market share by 2009.

y Mumbai, with its huge entertainment industry and large talent pool, continued to

be the hub of the gaming industry in India.

y Mobile gaming dominated the Indian gaming market and emerged as the largest

revenue earner for the segment and one of its primary drivers at both the

international and domestic levels.



y Mobile gaming content is divided along the following segments: mobile gaming

development for Indian telecom operators and offshore mobile gaming

development by MNCs.

Source: -

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=11082

Key factors for Growth o f Ind ian Market :

The NASSCOM survey identified at least three key factors that were driving the growthof the Indian animation and gaming industries.

y Cost competitiveness continued to be the major edge for the country, causing

global studios to come to India.y The study showed that in the case of animation, while the cost of an hour of

development work ranged between US$ 250,000-350,000 in the US, it cost only

around US$ 60,000 when outsourced to India.

y In gaming too, the cost difference was significant. While the cost of porting

games on different devices ranged between US$ 1200-1600 per port in the US, it

cost between US$ 500-1200 per port in India.

y The growing acceptance of India as a robust and reliable destination for

outsourced animation and gaming was also helping the country emerge as a

preferred choice for customers.y Indias growing reputation in the global gaming realm, based on the availability

of relevant technical skills set and infrastructure, also enabled the country to

climb up the animation and gaming services ladder.




Market Size of Global & Indian Animation Industry

Globa l ly , the an imat ion indus t ry i s expec ted to grow a t a CAGR of

10% to reach USD 100 b i l l i on by 2012 f rom USD 68 b i l l i on in 2008 .

The Ind ian an imat ion indus t ry i s es t imated to grow a t a CAGR of

22% to reach USD 1 b i l l i on by 2012 wh ich was USD 494 mi l l ion in

2008.

Source:- http://trak. in/tags/business/2009/08/28/animation-

gaming-industry-in-india-report/

Market Size of Global & Indian Gaming Industry

Globa l ly by 2012 , the gaming indus t ry wou ld grow a t a CAGR of 10 .5% to USD 53 .6 b i l l i on f rom USD 21 b i l l i on in 2008 .

The Indian gaming indust ry is est imated to grow at a CAGR of 49%

to reach USD 830 mi l l ion by 2012 wh ich was USD 167 mi l l ion in

2008.



Source:- http://trak. in/tags/business/2009/08/28/animation-


REVENUES FROM ANIMATION & GAMING INDUSTRY - INDIA

Revenue from Animation Industry (in USD Million)

Animation Industry Breakup 2008 2012

Animation Entertainment 107 207

Custom Content Development Multimedia / Web Design

256 542

VFX 65 174

Animation Education 67 173

Revenue from Gaming Industry (% market Share)

Gaming Industry Breakup 2008 2012

Online Gaming 22% 15%

Mobile Gaming 26% 35%

Console Gaming 39% 39%

PC Gaming 13% 11%

By 2012, the console gaming segment is expected to maintain its lead in market shareat 39% as in 2008, followed by mobile gaming at 35 % which was at 26 % during2008.

Surprisingly Online gaming and PC gaming market is expected to see a drop with 15%as compared to 22% during 2008 and PC gaming at 11 % of the market which was13%.

Source:- http ://trak .in/tags/bus iness/2009/08/28/animat ion-


animation and gaming industry

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