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India's Animation and VFX segment to reach at $2.2 billion by 2026: report

Aug 21, 2024, 14:07 IST
ANI
Representational imageiStock
India's Animation and VFX segment is expected to surge from USD 1.3 billion in 2023 to USD 2.2 billion by 2026, according to a CII GT report released on Wednesday.
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This will increase the share of the Animation and VFX segment India's Animation and VFX segment to reach at USD 2.2 billion by 2026: reportin the media and entertainment (M&E) industry from 5 per cent to 6 per cent during the same period, the report added which was released by Information and Broadcasting secretary, Sanjay Jaju on Wednesday.

Currently, the AVGC-XR sector accounts for approximately 20 per cent of India's media and entertainment (M&E) industry and is poised for further expansion, as per the CII GT report.

AVGC-XR stands for Animation, Visual Effects, Gaming, Comics, and Extended Reality.

The report further anticipated that the Indian online gaming industry will reach to USD 4.6 billion by 2026, with its contribution to the M&E sector rising from 10 per cent to 13 per cent.

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Currently, the online gaming industry is valued at USD 2.62 billion, as per the report.

The report underscores the sector's potential as a major employment driver. The sector is expected to create of over 160,000 new jobs annually, with a total of 20 lakh new jobs anticipated by 2030.

The report calls for the swift implementation of the National Draft Policy Framework for AVGC-XR.

The report further added that a push in the AVGC-XR sector could accelerate growth, paving the way for a larger, more vibrant creative economy.

India's AVGC sector had an overall market size of USD 2.3 billion in 2019, which was about 0.7 per cent of the global market size.

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The sector is expected to grow 2.2 times over the next four years driven by market forces and constitute about 1.5 per cent of the global AVGC market as per Draft National Policy, AVGC-XR, according to the report.

Further, the CII GT report advocates for enhanced Intellectual Property Rights to retain talent and content and the introduction of clear regulatory definitions within the gaming industry.

The report also calls for enhanced support for AVGC-XR entrepreneurs through Start-Up India and strategic investments in the National Centre of Excellence to foster innovation and global competitiveness.

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