An in-depth Study on the Animation Industry - Philippine Institute for ...

Peddie Associates' Meloni said that as audiences beg<strong>in</strong> to accept 3D characters as real,
they are becom<strong>in</strong>g more discern<strong>in</strong>g, forc<strong>in</strong>g developers to push the technology forward.
In addition to improv<strong>in</strong>g workflow, developers said they will cont<strong>in</strong>ue to f<strong>in</strong>d ways to
make the animator's experience more natural and the result<strong>in</strong>g imagery more
believable.
<strong>An</strong>imation houses now have a variety of tools to choose from. Accord<strong>in</strong>g to
K<strong>in</strong>etix's Yates, competition yields more sophisticated features and lower prices.
1.2.5 The 3-D Segment of <strong>An</strong>imation
The fast-grow<strong>in</strong>g 3D segment cont<strong>in</strong>ues to bolster the computer graphics
<strong>in</strong>dustry.
The computer graphics <strong>in</strong>dustry showed an impressive activity <strong>in</strong> 1999.
Revenues for were estimated at $71.7 billion--up from $63.3 billion <strong>in</strong> 1998. This
<strong>in</strong>cluded hardware, software, system, and service revenues from US and non-US
suppliers. Represented applications were multimedia (<strong>in</strong>clud<strong>in</strong>g presentation
applications), CAD/CAM/CAE, graphic arts, art, animation, medical and scientific
visualization, virtual reality, and real-time simulation.
For the overall computer graphics market, Machover Associates expected a
compound annual growth (CAG) of 13% (from $71.7 billion to $133.7 billion) between
1999 and 2004. The 3D segment of those revenues will grow even faster--at a 20%
CAG rate, from $24.9 billion <strong>in</strong> 1999 to $62 billion <strong>in</strong> 2004. At that time, 3D graphics will
represent 46% of the total market, up from about 40% <strong>in</strong> 1998.
Web graphics, which represents vary<strong>in</strong>g portions of each of the aforementioned
application's revenues, is one of the fastest grow<strong>in</strong>g segments of computer graphics. It
was predicted that less than 2% of 1998's worldwide revenues from computer graphics
would come from Internet/Intranet applications. However, 1998 revenues from Web
graphics approached 4%, nearly double the predicted amounts. It was also estimated
that less than 5% of the 2003 worldwide revenues would come from Web applications.
Hence, total Internet/<strong>in</strong>tranet revenues would grow from $4.4 billion <strong>in</strong> 1999, (already
6% of all 1999 computer graphics revenues) to $11.4 billion <strong>in</strong> 2004, to account for
about 8% of all computer graphics revenues. Moreover, the overall CAG for Web
graphics dur<strong>in</strong>g this period is an estimated 21%, which puts the category just beh<strong>in</strong>d 3D
graphic arts at 25% and visualization at 22% as the fastest grow<strong>in</strong>g segment. Fuel<strong>in</strong>g
the growth of graphics on the Web is the proliferation of Internet and <strong>in</strong>tranet users.
Research firm IDC (Fram<strong>in</strong>gham, MA) estimates that by the end of 1999, the US
will have about 70 million Web users, a figure that will <strong>in</strong>crease to 136 million by 2002.
<strong>An</strong>imation also represents a fast-grow<strong>in</strong>g sector of the computer graphics
<strong>in</strong>dustry. A 1998 report by Frost and Sullivan (New York), "US 3D <strong>An</strong>imation Software
Market," stated that the total 3D animation software market <strong>in</strong> 1999 would be $251
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