The growth of animation and the evolution of VFX technologies has altered the storytelling pattern, resulting in a boom in the entertainment business. Despite the economic downturn in the recent past and stop in production in the early months of the pandemic, there has been a healthy competition among the Media and entertainment sector with Animation & VFX offering the content an edge. Animation and visual effects studios have seen a considerable increase in content demand for domestic shows in the recent years with the animation segment alone recoding a growth of 10% in 2020. Despite substantial losses caused as a result of the initial phase of the pandemic, it reached Rs 24.5 billion market size.
India has the world’s second-largest entertainment market. According to Boston Consulting Group (BCG) and the Confederation of Indian Industries (CII) research, the Indian animation and visual effects industry has the potential to grab 20 to 25% of the worldwide AVGC market. With the increased demand for high-quality material in commercials, web series, movies, and OTT, directors and producers are more inclined to use cinematic effects and animation rather than live-action shots. Creators are increasingly integrating VFX and animation effects to make the illusion genuine and integrate fantasy into reality. To maintain the momentum, creators might develop or write content that is rich in fantasy and visual essence. According to one study, this sector can provide 75,000 to 125,000 direct and indirect jobs by 2025 and can be beneficial to the Indian economy. The combination of animation and the VFX business allows enthusiasts and aspiring animators to flex their ideas and extend their wings in order to create a profitable product.
Reason for the Growth of Animation and VFX Industry:
- Booming Market: There has been a tremendous increase in the number of young people interested in using 4G, 5G, and other portable gadgets. Increased usage of visual effects (VFX) in filmmaking and animation. When it comes to a service provider country in the animation industry, India is one of the first possibilities.
- Relevant Opportunities: The OTT, television, and AGV divisions are driving industry expansion, and in this digital era, it is also helping to strengthen technology. Cities such as Mumbai, Chennai, and Bangalore are thriving for animation companies and academies.
- Supporting Policy: They expanded the FDI cap from 74% to 100%. The government issued the National Digital Communications Policy 2018 (NDCP 2018) to encourage the development of low-cost digital communications infrastructure and services.
- Investments: The animation and VFX business has also expanded investment. Domestic revenue contribution is expected to climb to 40% in 2021, with overseas efforts providing roughly 60%.
The entertainment industry, production houses, and content providers are generating stories that rely on special effects and animation to improve and visually influence the content of storytelling. The number of movies published post-covid contains a lot of action and mythical movies, which use a lot of animation and VFX in the development and post-production stages, which is another cause for the country’s industry to grow. Using new technology, the production team can easily use a pre-made environment with some colour changes, lowering production costs. Movie Makers, production companies, and content providers are now developing storylines that heavily rely on special effects and animation. Inception, Avengers, Baahubali, and, of course, Game of Thrones’ Khaleesi’s dragon were all produced in India. Tenet (Oscar winner for VFX), KGF, RRR, and Brahmastra are the latest action techno thrill ride with perplexing visual effects. These are only a few well-known names in the race; there are many more. These examples demonstrate that, while animation and special effects have always been a part of the content creation process, they have now achieved their pinnacle.
In the end, the animation and VFX industry has expanded to new heights with the introduction of newer technologies. Still, a faster growth rate is projected in the next few years. Sophisticated techniques, along with creative expression, have laid a solid foundation for the anticipated expansion. The animation industry is now seeing rapid expansion. India is presently regarded as one of the most desirable locations for supplying animation and content services.
Views expressed are personal.
