Global Animation Software Industry

This report analyzes the worldwide markets for Animation Software in US$ Million. The report provides separate comprehensive analytics for the US, Japan, Europe, Asia-Pacific, and Rest of World. Annual estimates and forecasts are provided for the period 2009 through 2017. A lso, a six-year historic analysis is provided for these marketsThe report profiles 34 companies including many key and niche players such as Adobe Systems Incorporated, Autodesk, Inc., Autodesk Media and Entertainment, BIONATICS, Caligari Corporation, Corel Corporation, MAXON Computer GmbH, NewTek, Inc., Smith Micro Software, Inc., Side Effects Software, Inc., STRATA, Toon Boom Animation, Inc., and Xara Group Limited. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

Global Movie Theater Industry

1. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS 1
Study Reliability and Reporting Limitations 1
Disclaimers 2
Data Interpretation & Reporting Level 3
Quantitative Techniques & Analytics 3
Product Definitions and Scope of Study 3

2. MARKET OVERVIEW 4
Animation: A Tried and Tested Genre 4
Worldwide Animation Market (2010): Segments Ranked by Revenue
Contribution 5
Global Animation Industry (2010): Ranked by Area of
Application- TV, Movies, Advertising and Corporate
Applications 5
Major Animation Markets 5
Table 1: Global Distribution of Animation Studios (2010):
Percentage Breakdown by Region- North America, Asia, Europe
and Rest of World (includes corresponding Graph/Chart) 6

Table 2: World Animation Industry (2010): Percentage
Breakdown of Animation Studios by Technological Capabilities-
2D Animation, 3D Animation, Web Animation, Special Effects
and Others (includes corresponding Graph/Chart) 6
Worldwide Demand for Animation Software 6
Improvements in Technology & Infrastructure to Foster Growth 6
Expanding Applications for Animation Software 7
Advanced Off-The-Shelf Software Packages Boost Creativity 7
Current & Future Analysis 8
Future Trends 8

3. ISSUES & TRENDS IN THE ANIMATION INDUSTRY 9
Animation - Unhindered Popularity Across All Ages 9
Outsourcing - A Strategy to Lower Production Costs 9
Table 3: Comparative Analysis of Capabilities of Select
Outsourcing Countries in the Global Animation Market
(includes corresponding Graph/Chart) 10
Export Opportunities in Animation Sector 11
Outsourcing in Gaming Sector 11
Collaborations Across Geographical Boundaries 11
3D Technology - Transforming Movie-Making Business 12
CG Films Offer Fresh Appeal & Commercial Success 12
CG Animation & Television 12
Demand Rises for Superior 3D Character Animation 13
Digital 3D - The Next Generation of 3D? 13
Growing Demand for 3D Stereoscopic Films 13
Short Animated Films - A Medium for Creative Explorations 14
Animation for Next-Generation Games 14
Animation Ads - Spicing Up the Web World 15
Animation Art -Preserving Vintage Animations 15

4. AN INTRODUCTION TO ANIMATION 16
Animation - A Conceptual Definition 16
The History of Animation 16
Production Stages in Animation 17
General Animation Production Process in Television & Feature
Film Productions 17
Stage 1: Conceptualization 17
Stage 2: Pre-Production 17
Stage 3: Production 17
Stage 4: Post-Production 17
Governance of Production Process & Outsourcing 18
Applications of Animation 18
Animation for Films & TV Broadcast 19

5. ANIMATION TECHNIQUES 20
Traditional Animation 20
Cel Animation 20
Key Frames 20
Rotoscoping 21
Full Animation & Limited Animation 21
Stop Motion 21
Types of Stop Motion Animation 21
Computer Animation 22
Steps in Computer Animation Process 22
Process for Generation of Computer Animation 23
Computer Animation Techniques 24
Keyframing 24
Motion Capture 24
Simulation 24
Hardware Equipment for Computer Animation 24
Common Hardware Systems 25
List of Hardware Used in the Creation of Animation Content 26
Types of Computer Animation 26
2D Animation 26
Evolution of 2D Animation Films Industry 26
Major Developments in the 2D Animation Film Market 27
Stages of Traditional 2D Animation Workflow 27
3D Animation 28
Background to 3D Animation 28
3D Animation Methods/Techniques 28
Cel-Shaded Animation or Toon Shading 28
Morph Target Animation 29
Skeletal Animation 29
Motion Capture 29
Crowd Simulation 29
Computer-Generated Imagery (CGI) 29
Future Development Challenges for Computer Animation 30

6. ANIMATION SOFTWARE MARKET 31
Defining Animation Software 31
Technological Changes Pave Way for Novel Content & Delivery
Methods 31
Major Animation Software 31
List of Software Used for Various Animation Processes 32
Select Software Packages Used in Creation of Animated Content 33
Flash & Director - Widely Used Animation Tools 33
Application Areas for Animation Software 34
Motion Picture/Broadcasting Market 34
Web Page Development 34
Corporate Communication & Training 35
Software for 2D Animation 35
Flash Animation 35
PowerPoint Animation 36
Cost of Animation Software 36
Competitive Landscape 36
Competitive Landscape in the Global Animation Software Market 37
Adobe - Leading the Global Animation Market 37
Autodesk & Softimage - Challenging Adobe’s Dominance 37
Other Market Participants 37
Table 4: Leading Players in the Global Animation Software
Market (2010): Percentage Breakdown of Revenues for Adobe,
Autodesk, NewTek and Others (includes corresponding
Graph/Chart) 37

7. ANIMATION & ENTERTAINMENT INDUSTRY 38
Animation Films Industry - An Overview 38
Animation - A Crowded Marketplace 38
Hollywood Studios Rule the Roost in Animation Market 39
Major Animation Films Released Worldwide (2008-2011) 39
Computer-Generated (CG) Animated Films 40
CG Films Outperform Traditional Animation Films 40
DreamWorks - Leader in CGI Animation 41
DreamWorks Adopts 3D Stereoscopic Technology 41
Disney - The Global Pioneer of Animation 41
Disney’s Computer Animation Production System (CAPS) 42
Disney’s Animation Films Through 2012 42
Major Animation Production Studios - A Brief Overview 43
ADV Films (US) 43
Animation Collective (US) 43
Cyper Media, Inc. (Canada) 43
DreamWorks Animation SKG, Inc. (US) 43
LAIKA/HOUSE (US) 44
Rainmaker Entertainment Inc (Canada) 44
Sony Pictures Entertainment (US) 44
Sony Pictures Imageworks Inc. (US) 45
Twentieth Century Fox Film Corporation (US) 45
Blue Sky Studios, Inc (US) 45
The Walt Disney Company (US) 45
Pixar Animation Studios (US) 46
Warner Bros. Entertainment, Inc (US) 46

8. PRODUCT INNOVATIONS/INTRODUCTIONS 47
Smith Micro Software Introduces Poser® and Poser® Pro 2012
Animation Software 47
Autodesk Introduces Autodesk Maya Software 47
activePDF Unveils activePDF Architect WBE 2010 47
NAVTEQ Launches Enhanced 3D City Models in Europe 47
Tactus Technologies Unveils Protean 48
OC3 Entertainment Launches FaceFX Studio Standalone 48
Luxology Introduces Modo 401 Content Creation Software 48
Maxon Announces Release of CINEMA 4D R12 48
Image Metrics Launches Four New Facial Animation Service Levels 49
Daz 3D Introduces Girl 4 49
Avid Launches 5.2 Version of Avid Deko 3000 49
Autodesk Unveils Autodesk 3ds Max 2010 49
NaturalMotion Launches Morpheme 2.0 with NVIDIA PhysX Technology 50
Dell Unveils Precision M6500 Mobile Workstation 50
Autodesk Unveils Upgraded MotionBuilder 2010 50
Autodesk Introduces Updated Softimage 2010 Software 50
Helex Technology Solutions Unveils Learn Next Software 50
Maxon Launches Cinema 4D Release 11.5 3D Animation Software Suite 51
Kickstand Unveils Upgraded StretchMesh 1.5 51
Smith Micro Software Introduces Poser 8 51
Smith Micro Software Launches Anime Studio Pro 6 51
Electric Rain Introduces Swift 3D v6.0 52
Autodesk Introduces Two New Versions of 3ds Max Software 52
NewTek Introduces LightWave 3D v9.5 53
Autodesk Introduces Toxik 2009 Visual Effects Software 53
Side Effects Software Launches Houdini 9.5 53
Autodesk Unveils Mudbox 2009 Software 54
Autodesk Introduces Animation Academy 2009 54
Immersion Launches New Products for Animation Industry 54
Maxon Computer Introduces Cinema 4D Release 11 55
Autodesk Introduces MotionBuilder 2009 Software 55
Softimage Introduces Softimage, XSI 7 55

9. RECENT INDUSTRY ACTIVITY 56
Sony Pictures Animation Takes Over Motion Pictures Rights for
MUNCLE TROGG 56
Image Metrics Purchases Avatar Creation Services Platform from
Big Stage 56
Viacom Purchases Stake in Rainbow Group 56
IMAGI International Acquires Toon Express Group 56
Nickelodeon Plans 450 Episodes of Animation Program 56
Cartoon Network Buys Animation Film series from ACTF 57
Youku.com to Introduce Miss Puff Web Serial 57
BIG Animation Enters into Joint Venture with Accel Animation 57
Disney Signs Broadcasting Agreement with Creative Power
Entertaining 57
Image Metrics Takes Over FacePro 58
TOONZ Animation India Establishes New Distribution Unit 58
APTECH to Open 150 New Centers 58
Depth Analysis Completes Development of MotionScan Technology 58
Menicon Collaborates with Optimed in Exclusive Distribution
Agreement 58
DQE to Produce 3D Animation TV Series 59
Xsens and Time Domain Enter into Partnership 59
DQ Entertainment to Produce Animated Version of ‘The Jungle Book' 59
Handy Pro Establishes Animation Studio in Jeddah 59
Z-Force Enterprises Forms Joint Venture with Animation
Development Company 59
STUDIOCANAL and UMG Enter into Collaboration 60
Nickelodeon Acquires Rights for Teenage Mutant Ninja Turtles 60
Wild Bunch to Set Up 3D Unit 60
August Media Takes Over Red Kite Animation 60
Disney Channel Secures Exclusive Broadcast Rights for Feluda
from DQ Entertainment 61
Aptech Takes Over MAAC 61
DQ Entertainment to Co-Produce New Peter Pan 3D Animation TV
Series 61
Silverline Animation to Acquire State-of-the-Art Studio 61
Omnilab Media Unveils Oktobor Animation 61
Aniboom Virtual Animation Studio Unveils New Brand 62
Disney Acquires Marvel Entertainment 62
China Digital Animation Acquires Chongqing Dinv Ares Filming
Production 62
FlickerLab Merges with Gonzoft Television Animation 62
Japanese Manga and Anime Companies Acquire Anime-Virtual and
Kaze SAS 63
Toon Boom Signs Acquisition Deal with Cambridge Animation 63
Aniboom, Marvel Entertainment Enter Motion Comic Collaboration 63
China Digital to Co-produce Animation Series in Singapore 63
Autodesk Acquires Softimage 64
Autodesk Acquires Realviz 64
Microsoft Acquires Caligari 64
Autodesk Acquires Assets of 3D Geo 64
Madhouse Enters into a Partnership with Media Corp 65
Lionsgate® and Crest to Form Multi-Picture Partnership for
Animation Films 65
Turner to Establish Animation Film Unit in India 65
Disney to Partner with Japanese Companies for TV Animation 65
DreamWorks to Set Up Animation Studio in India 65
Lucasfilm Animation and Lucasfilm Collaborate with Autodesk 66
Intel Forms an Alliance with DreamWorks Animation 66
Strata Forms Partnership with Away3D for Flash 3D 66
Jam Media Bags BBC Cartoon Contract 66
Plastic Wax to Expand Global Operations 67
Aspera Signs Technology Partnership with Rising Sun Research 67
DQ Entertainment Partners with French Companies to Re-Create
Little Nick 67
Madhouse Inks Animation Contract with Marvel Entertainment 68
TV Asahi Acquires Majority Stake in Shin-ei Animation 68
Triple Play Acquires Stake in Anya Animation 68
DQ Entertainment Enters into a Co-production Agreement with
Moonscoop 69
Yash Raj Films and Disney Ink Agreement to Create Animated Movies 69
Alliance Media Enters into an Agreement with Studio Ghibli 69
Rubicon MGM, and Turner Collaborate for Pink Panther Animation 69
BKN International and Huminah Huminah Enter into Co-Production
Agreement 70
Percept Picture Company to Establish New Subsidiary 70
DQ Entertainment Signs MoU with Think Corp 70
Craft Animations Enters into Partnership with GameCaster 71
BET Networks Enters into Partnership with Marvel Animation 71
Walt Disney to Adapt ‘Toy Story’ Movies into 3D Format 71
ILM Enters Into Animation Feature Business 71
Med Watch Doc Ventures into 3D Animation & Character Development 72

10. FOCUS ON SELECT PLAYERS 73
Adobe Systems Incorporated (US) 73
Autodesk, Inc. (US) 73
Autodesk Media and Entertainment (Canada) 74
BIONATICS (France) 74
Caligari Corporation (US) 74
Corel Corporation (Canada) 75
MAXON Computer GmbH (Germany) 75
NewTek, Inc (US) 76
Smith Micro Software, Inc. (US) 76
Side Effects Software, Inc. (Canada) 76
STRATA (US) 77
Toon Boom Animation, Inc (Canada) 77
Xara Group Limited (UK) 77

11. GLOBAL MARKET PERSPECTIVE 78
Table 5: World Recent Past, Current & Future Market Analysis
for Animation Software by Geographic Region - US, Japan,
Europe, Asia-Pacific, and Rest of World Markets Independently
Analyzed with Annual Revenues in US$ Million for Years 2009
through 2017 (includes corresponding Graph/Chart) 78

Table 6: World Historic Review for Animation Software by
Geographic Region - US, Japan, Europe, Asia-Pacific, and Rest
of World Markets Independently Analyzed with Annual Revenues
in US$ Million for Years 2003 through 2008 (includes
corresponding Graph/Chart) 79

Table 7: World 15-Year Perspective for Animation Software by
Geographic Region - Percentage Breakdown of Revenues for US,
Japan, Europe, Asia-Pacific, and Rest of World Markets for
Years 2003, 2010 & 2017 (includes corresponding Graph/Chart) 80

12. THE UNITED STATES 81
A.Market Analysis 81
Outlook 81
3D Animation Software Market - An Overview 81
Impact of Technological Advancements 81
Competitive Scenario 81
Applications of 3D Animation Software 82
Trends in the Animation Industry 83
Foreign Films Make An Impact on the US Animation Scene 83
American Distribution - A Key Challenge for Foreign Animators 83
Foreign Directors in US Productions - The New Success Mantra 83
Rise in the Number of 3D Animation Flicks to Hit US Screens 84
CGI Animation Films Market 84
Competition Intensifies in CG Animation Films Market 84
Product Innovations/Introductions 85
Recent Industry Activity 90
Key Players 97
B.Market Analytics 101
Table 8: US Recent Past, Current & Future Market Analysis
for Animation Software Independently Analyzed with Annual
Revenues in US$ Million for Years 2009 through 2017
(includes corresponding Graph/Chart) 101

Table 9: US Historic Review for Animation Software
Independently Analyzed with Annual Revenues in US$ Million
for Years 2003 through 2008 (includes corresponding
Graph/Chart) 102

13. JAPAN 103
A.Market Analysis 103
Outlook 103
Japanese Anime - An Introduction 103
An Overview of the Japanese Anime Industry 103
Japanese Animation Makes Impact on Global Markets 103
General Structure of Japan’s Anime Industry 104
Animation Market - Highly Dependent on TV Broadcasting Segment 105
Collaborations - A New Expansion Strategy 106
Flash - The Tool for Independent Anime Artists 106
Animation on the Internet Gains Popularity 106
Character Merchandising - A Major Secondary Business for Animes 107
Major Challenges Facing Japanese Anime Industry 107
Recent Industry Activity 108
B.Market Analytics 111
Table 10: Japanese Recent Past, Current & Future Market
Analysis for Animation Software Independently Analyzed with
Annual Revenues in US$ Million for Years 2009 though2017
(includes corresponding Graph/Chart) 111

Table 11: Japanese Historic Review for Animation Software
Independently Analyzed with Annual Revenues in US$ Million
for Years 2003 through 2008 (includes corresponding
Graph/Chart) 112

14. EUROPE 113
A.Market Analysis 113
Outlook 113
Animation Feature Films in Europe 113
Limited International Success for European Films 113
Studios Seek Co-Production Alliances for TV Content 114
Animation Finds Favor Across All Ages 114
Table 12: European DVD Animation Market (2010): Percentage
Share Breakdown by Country for France, Germany, Italy,
Spain, UK and Others (includes corresponding Graph/Chart) 114
Focus on Select Markets 115
France 115
Germany 115
Russia 115
Spain 115
United Kingdom 116
Product Innovations/Introductions 116
Recent Industry Activity 117
Key Players 119
B.Market Analytics 121
Table 13: European Recent Past, Current & Future Market
Analysis for Animation Software Independently Analyzed with
Annual Revenues in US$ Million for Years 2009 through 2017
(includes corresponding Graph/Chart) 121

Table 14: European Historic Review for Animation Software by
Geographic Region -France, Germany, Italy, UK, Spain,
Russia, and Rest of Europe Markets Independently Analyzed
with Annual Revenues in US$ Million for Years 2003 through
2008 (includes corresponding Graph/Chart) 122

Table 15: European 15-Year Perspective for Animation
Software by Geographic Region - Percentage Breakdown of
Revenues for France, Germany, Italy, UK, Spain, Russia and
Rest of Europe Markets for Years 2003, 2010 & 2017 (includes
corresponding Graph/Chart) 123

15. ASIA-PACIFIC 124
A.Market Analysis 124
Outlook 124
Asia-Pacific Animation Market - An Overview 124
Asian Animation: A Trip Down Memory Lane 124
The Trend Towards Offshoring 125
Creativity Flourishes with Co-Productions 126
Growing Appeal of International Animations 126
Focus Shifts to Development of Original Content 126
Australia 127
Expertise in Production of Children’s TV Program 127
Impediments to the Industry’s Growth 127
China 127
China - A Major Subcontractor for Animation 128
Lack of Global Appeal for Chinese Animations 128
Government Passes Broadcasting Quotas 129
China Bans Live Human-Animation Content 129
India 129
Overview 129
Table 16: Animation Industry in India (2010): Percentage
Breakdown of Revenues by Segment- Custom Content
Development, Animation Entertainment and Visual Effects
(includes corresponding Graph/Chart) 130

Table 17: Indian Animation Industry (2010): Percentage
Breakdown of Revenues by Type of Work- Domestic and
Overseas (includes corresponding Graph/Chart) 130
Analyzing the Strengths & Weaknesses of Indian Animation
Industry 131
Indian Companies Forge Global Alliances 131
A Favored Outsourcing Destination 132
Indian Firms Look to Climb Up the Value Chain 132
Rising Demand from Domestic Market 133
Government Initiatives Critical for Growth of Animation
Industry 133
Animation Studios in India 134
Challenges Facing Indian Animation Industry’s Growth 134
Shortage of Trained Personnel 134
Insufficient Funding 134
Piracy - A Major Threat 135
Strategies for Ensuring Future Growth 135
Need for High-Tech 3D Studios 135
Facilitating Technological Convergence 135
South Korea 135
Strengths of Korean Animation Industry 136
Co-Production Partnerships on the Rise 136
Expanding Expertise & Stronger Media Aids Growth 137
Korean Animation Films - An Overview 137
Key Challenges 137
Malaysia 137
Philippines 138
Developing Content for Global Majors 138
Government Proposes Legislation for Promoting Animation
Industry 139
Thailand 139
Product Introductions/Innovations 140
Recent Industry Activity 140
B.Market Analytics 148
Table 18: Asia-Pacific Recent Past, Current & Future Market
Analysis for Animation Software Independently Analyzed with
Annual Revenues in US$ Million for Years 2009 through 2017
(includes corresponding Graph/Chart) 148

Table 19: Asia-Pacific Historic Review for Animation
Software Independently Analyzed with Annual Revenues in US$
Million for Years 2003 through 2008 (includes corresponding
Graph/Chart) 149

16. REST OF WORLD 150
A.Market Analytics 150
Outlook 150
Animation Industry in Africa 150
Egypt 151
South Africa 151
Recent Industry Activity 152
Key Players 153
B.Market Analytics 155
Table 20: Rest of World Recent Past, Current & Future Market
Analysis for Animation Software Independently Analyzed with
Annual Revenues in US$ Million for Years 2009 through 2017
(includes corresponding Graph/Chart) 155

Table 21: Rest of World Historic Review for Animation
Software Independently Analyzed with Annual Revenues in US$
Million for Years 2003 through 2008 (includes corresponding
Graph/Chart) 156


COMPETITIVE LANDSCAPE

Total Companies Profiled: 34 (including Divisions/Subsidiaries - 46)

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Region/Country Players
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The United States 14
Canada 6
Europe 19
France 3
Germany 6
The United Kingdom 3
Rest of Europe 7
Asia-Pacific (Excluding Japan) 7
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