The Indian animation industry worth Rs 2,325 crore last year is expected to mark a compound annual growth rate of 23 per cent and reach Rs 4,375 crore by 2013.
At the same time, the gaming market is estimated at Rs 900 crore in 2010 will grow with CAGR of 53 per cent to touch Rs 2,125 crore, according to a recent study by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and consulting firm Delloite.
- The custom content development and education segment comprising 64% of the animation industry is also expected to see momentum largely due to corporate e-learning programmes and grow at 11 per cent per annum. The animation visual effects (VFX) involve special effects development mainly used in movies and advertisement productions.
- The animation entertainment sector (comprising 20% of the animation industry and developing content for television, films or DVD) is highly fragmented and most skill sets are primarily involved in labour-intensive production and post-production activities. There is a need to upscale these capabilities across a wider section by focusing on owning the intellectual property.
The above growth numbers are attributed to rising number of TV channels, greater accessibility to internet, proliferation of mobile devices that leads to popularity of video and gaming content.
Given that the cost of developing games in the country is half of what it costs in the United States, this allows tremendous opportunities for outsourcing game development and services to India – especially console, PC and online gaming.