The market size for generative AI in animation was estimated at USD 8.9 billion in 2024 and is projected to increase at a compound annual growth rate (CAGR) of 36.1% to reach USD 147.5 billion by 2034.

The growing use of AI-powered technologies to produce realistic, high-quality animations more quickly is drives the animation market's notable expansion. By automating procedures like character development, motion rendering, and visual effects creation, generative AI technologies are revolutionizing the animation production industry. Advances in deep learning, neural networks, and natural language processing are driving this transformation, allowing creative professionals to produce visually stunning and time-efficient results.

The adoption of generative AI is being accelerated by the increased demand for immersive entertainment and the increasing investments in content generation across sectors, including gaming, advertising, and cinema.

Furthermore, the way animated material is produced and seen is changing due to the integration of AI-driven animation tools with virtual production pipelines, augmented reality (AR), and virtual reality (VR) platforms. This offers countless opportunities for creative narrative and design.