A N I MA T I O N A N D G A M I N G I N D U S T R Y

GLOBAL INDUSTRY SNAPSHOT:

According to the NASSCOM study, the global animation business was

estimated to touch US$ 55 billion in 2005 and will grow to US$ 75
billion in 2009 at a CAGR of eight per cent. Animation has found use
in segments such as entertainment (including TV broadcast, fully
animated movies, direct-to-DVD and VFX), e-Education and web
designing, with the entertainment market generating close to 73 per
cent of the overall revenue during 2005.

From a development point of view, the animation sector notched up

a turnover of around US$ 25 billion in 2005, which was expected to
rise to US$ 35 billion by 2009 (at a CAGR of 8.7 per cent during
2005-09).

The gaming industry, on the other hand, comprising the video

console, PC, wireless/mobile and on-line gaming segments, achieved
revenues of around US$ 19 billion in 2005. The sector is expected to
witness exponential growth and achieve a turnover of US$ 36 billion
by 2009 (at a CAGR of 17.3 per cent during 2005-09).

The NASSCOM study indicated that the mobile gaming segment would
grow the fastest, increasing its overall share of the market from 16
per cent in 2005 to 28 per cent in 2009. Console gaming, which was
currently the largest revenue generator, however, would show a
decline and reduction in global market share from 42 per cent in
2005 to 30 per cent in 2009.

Revenues from global gaming development, meanwhile grew to US$

5.8 billion and were expected to touch US$ 11.1 billion by 2009 at a
CAGR of 17.6 per cent.
Source: -http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=11082

INDIAN ANIMATION INDUSTRY SNAPSHOT:

The NASSCOM study on the Indian animation and gaming market indicated the
following:

 The animation development segment achieved revenues of US$ 285 million in

2005 and was expected to grow to US$960 million by 2009.
 The Indian animation development market was dominated by the entertainment
sector, which accounted for a share of 68 per cent.
 Within the entertainment segment, the highest revenue earner was the TV
broadcast industry, with a market share of 64 per cent. While the segment was
expected to increase at a CAGR of 21.2 per cent during 2005-09, its overall market
share was expected to come down to 42 per cent in 2009.
 The fully animated movie market, estimated at US$ 30 million in 2005, was
expected to go up to US$ 180 million by 2009 at a CAGR of 56.5 per cent and
increase its market share from 15 per cent in 2005 to 28 per cent in 2009.
 The size of the VFX market was expected to go up to US$ 95 million by 2009
from US$ 15 million, with the offshore market estimated to double.
 The non-existent direct-to-DVD market in India was expected to go up to US$ 95
million in 2009 and hike its revenue share to 15 per cent in that year.
 e-Education would account for revenues of around US$ 150 million by 2009, up
from US$ 40 million in 2005.
  Web designing, including outsourced visualisation of animation and creation of
movements, would increase its market size from US$ 50 million in 2005 to US$
160 million in 2009.

Source: -http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=11082

INDIAN GAMING INDUSTRY SNAPSHOT:

 The Indian gaming development market touched US$ 30 million in 2005, and
was expected to rise to US$ 300 million by 2009.

 Mobile gaming continued to be the largest segment within the gaming

development market with a share of 53 per cent in 2005. This was expected to
go up to 68 per cent in 2009.

 The PC gaming development market in India was expected to witness a CAGR of

62.6 per cent and go up to US$ 35 million by 2009, while console-based games
development was estimated to account for revenues of 54 million and a market
share of 20 per cent by 2009.

 On-line gaming was the smallest segment within the gaming market and was
expected to witness a decline in overall market share by 2009.

 Mumbai, with its huge entertainment industry and large talent pool, continued to
be the hub of the gaming industry in India.
  Mobile gaming dominated the Indian gaming market and emerged as the largest
revenue earner for the segment and one of its primary drivers at both the
international and domestic levels.

 Mobile gaming content is divided along the following segments: mobile gaming
development for Indian telecom operators and offshore mobile gaming
development by MNCs.

Source: -http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?
id=11082

Key factors for Growth of Indian Market :

The NASSCOM survey identified at least three key factors that were driving the growth
of the Indian animation and gaming industries.

 Cost competitiveness continued to be the major edge for the country, causing
global studios to come to India.

 The study showed that in the case of animation, while the cost of an hour of
development work ranged between US$ 250,000-350,000 in the US, it cost only
around US$ 60,000 when outsourced to India.

 In gaming too, the cost difference was significant. While the cost of porting
games on different devices ranged between US$ 1200-1600 per port in the US, it
cost between US$ 500-1200 per port in India.

 The growing acceptance of India as a robust and reliable destination for

outsourced animation and gaming was also helping the country emerge as a
preferred choice for customers.

 India’s growing reputation in the global gaming realm, based on the availability
of relevant technical skills set and infrastructure, also enabled the country to
climb up the animation and gaming services ladder.
Source: -http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=11082

Market Size of Global & Indian Animation Industry

Globally, the animation industry is expected to grow at a CAGR of

10% to reach USD 100 billion by 2012 from USD 68 billion in 2008.

The Indian animation industry is estimated to grow at a CAGR of

22% to reach USD 1 billion by 2012 which was USD 494 million in
2008.

Source:-http://trak.in/tags/business/2009/08/28/animation-
gaming-industry-in-india-report/

Market Size of Global & Indian Gaming Industry

Globally by 2012, the gaming industry would grow at a CAGR of

10.5% to USD 53.6 billion from USD 21 billion in 2008.

The Indian gaming industry is estimated to grow at a CAGR of 49%

to reach USD 830 million by 2012 which was USD 167 million in
2008.
Source:-http://trak.in/tags/business/2009/08/28/animation-
gaming-industry-in-india-report/

REVENUES FROM ANIMATION & GAMING INDUSTRY - INDIA

Revenue from Animation Industry (in USD Million)

Animation Industry Breakup 2008 2012

Animation Entertainment 107 207
Custom Content Development 256 542
Multimedia / Web Design
VFX 65 174
Animation Education 67 173

Revenue from Gaming Industry (% market Share)

Gaming Industry Breakup 2008 2012

Online Gaming 22% 15%
Mobile Gaming 26% 35%
Console Gaming 39% 39%
PC Gaming 13% 11%

By 2012, the console gaming segment is expected to maintain its lead in market share
at 39% as in 2008, followed by mobile gaming at 35 % which was at 26 % during
2008.

Surprisingly Online gaming and PC gaming market is expected to see a drop with 15%
as compared to 22% during 2008 and PC gaming at 11 % of the market which was
13%.

Source:- http://trak.in/tags/business/2009/08/28/animation-
gaming-industry-in-india-report/