DUBLIN–(BUSINESS WIRE)–The “Latin America Animation, VFX & Video Games Industry: Strategies, Trends & Opportunities (2022-2026)” report has been added to ResearchAndMarkets.com’s offering.
The Latin American Animation, VFX and Video Games industry has the potential to emerge as an engine of growth for the continent.
Several animation studios in Latin America release their content through online channels such as YouTube, which is attracting millions of subscribers both from the continent as well as worldwide. Studios are making new inroads by launching original locally produced content on Netflix. Several local content productions have been nominated for several global awards including the Oscars.
There are dozens of globally renowned animation studios as well as several hundreds of small and medium sized studios producing content tailored to local tastes. Supply of animation talent, which has historically been limited, is emerging with support and intervention of several government and industry initiatives to develop and support the animation through university courses and vocational training courses which provide theoretical and practical hands-on learning on Animation, VFX and Video Games.
Several countries in Latin America have initiated policies to support closer participation between government, industry and academia to catalyze the industry growth. However several countries in the region needs support in the form of training, funding, tax incentives, market reach, access to hardware and software, legal support to protect the content IP. access to global distribution and collaboration networks etc.
Brazil has been a leader in the region and is the largest producer of animated works. This has been driven by the availability of state funding, supply of quality local animation talent and a preference of local audiences for Brazilian animated content. Countries such as Argentina, Chile, Colombia, Mexico and Peru are emerging as the leaders through content productions as well as collaborations.
This includes content for movies, television, games, augmented reality, virtual reality, advertising, web designs and industrial applications such as architecture, engineering, industrial design, healthcare, education, medicine, and the motor industry.
The demand for animation, VFX and video gaming has expanded with the increase in targeted broadcasting hours by cable and satellite TV, availability of low-cost internet access, penetration of mobile devices along with the growing popularity of streaming video.
In addition, the demand for Animation and VFX content to power immersive experiences such as Augmented Reality and Virtual Reality is growing exponentially. The rapid advancement of technology has made animation, VFX & games available to the masses, and this industry has become one of the fastest growing segments in the global media and entertainment market.
We are increasingly seeing more of animation, VFX and games production taking place in a globally distributed mode. Production work is becoming global with countries as well as regions offering tax incentives, subsidies, financial support, regional low labor costs etc. and companies are cutting costs by setting up facilities in such regions.
Cloud computing is playing a key role in character rendering and modeling processes as cloud based rendering of animation films more effective and efficient as it reduces the time and cost compared to traditional rendering.
Emerging Trends in the Animation, VFX & Video Games Industry
The combination of live action and animation will alter the form, as well as the content, of film animation.
Animation is no longer a profession limited to animators with increasing participation from computer professionals, programmers, technicians etc.
The evolution of visual effects (VFX), augmented reality (AR) and virtual reality (VR) technologies is dramatically changing both the creation and consumption of films, videos, games, and more.
Augmented Reality and Virtual Reality adoption will drive the demand for animation content.
Production work is moving around the world – tax incentives, regional low labor costs and subsidies put pressure on existing companies to reduce costs and set up facilities in tax advantaged or low cost regions.
Media consumption habits are changing rapidly, windows for film releases are narrowing, and follow-on markets are shifting from television, cable, DVD and rentals to streaming and digital downloads.
The international film market in several emerging markets is growing quickly and creating new opportunities. Regulations in several countries limit imported animation content without a certain amount of local participation and studios are collaborating with local partners to produce content.
Although 2D animation will survive, it will be largely in the form of hybrid 2D/3D animation. As well as reducing costs, using CGI for backgrounds allows for a more dynamic camera. The training offered to animators are biased in favor of CGI and so artists with traditional 2D skills are becoming harder to find.
The changing viewing habits favour short productions as a form of entertainment. The viewing habits generally favor short-form content that can be turned out quickly and cheaply.
Merchandise is already a major form of revenue generation for animated films and in future it could form a much larger share of revenues.
Artificial Intelligence, machine learning & deep learning are being leveraged to drive hyper-personalization for video games.
Artificial Intelligence and Machine Learning based techniques are being used for in-game analytics, customer acquisition, retention, cross sell, churn, classify player behavior etc.
Micro-segmentation of fans is emerging as eSports leagues and tournament are consolidating various genres, platforms and viewing experiences by careful customer segmentation, targeting and positioning.
In video games, predictive analytics can be used to forecast when a player will stop playing, if a player will convert from a non-paying to a paying user, what types of items players will purchase, classify player behavior, etc.
Cloud Gaming services which are growing at an exponential pace would need the right pricing model to both drive adoption and generate sufficient returns for platforms and publishers.
The availability of low cost micro-payment systems is allowing users to pay for access or download small quantities of digital content and is the key for online games market to grow.
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