'Indian animation industry to be worth $2.5 b'

There is huge growth potential for the animation and gaming secto. The product quality is also improving,

According to estimates, the Indian animation and gaming market was valued at around $750 million (Rs 3,430.5 crore) in 2009.

“This (Indian) industry is expected to be worth $2.5 billion by 2013, clocking a compounded annual growth rate (CAGR) of around 35 per cent. The industry is growing in a big way,” said Deloitte Touche Tohmatsu India Private Limited’s Director Sandip Biswas, who recently authored a report on the animation, broadcasting and gaming industry.

Biswas said there is huge growth potential for the animation and gaming sector, especially with increasing demand. The product quality is also improving, he added.

The Indian animation and gaming industry garners major chunk of its revenues from outsourcing, with work outsourced by international production houses and game development companies.

The global animation and gaming industry is expected to be worth around $170 billion (Rs 7.76 lakh crore) by 2013.

 It was valued at about $115 billion (Rs 5.26 lakh crore) last year. Biswas pointed out that India’s outsourcing share of the worldwide market for animation and gaming industry is less than ten per cent. On the other hand, IT and BPO industry accounts for around 51 per cent of the outsourcing market.

High budget

“... As the economy moves out of tough times, animation houses in India would take the initiative to develop the in-pipeline high budget, high quality movies and animation content,” Deloitte said in the report.

Further, regarding the future prospects of animation and gaming sector, Biswas said, “With technology consolidation happening, more information technology offshore companies are likely to enter this market (animation and gaming) in the coming years.”

Comments (+)