Overview
Industry growth driven by young workforce supported by government and changing trends
The South East Asian animation industry is considered young compared to global standards with 57% of companies in the sector being established in the last ten years. The industry’s workforce also falls on the more youthful side of the spectrum with 43% of workers being between the ages of 18 and 25 in 2018. Thanks to this, the South East Asian animation industry is young and promising, while its slow but steady ascension can be attributed to a young workforce that tends to keep up with trends and up-and-coming technology and innovations.
The Singapore government has not been shy with their support for the animation sector, bringing the local industry to a global standard by bringing in processes and know-how and talent as well as creating business linkages. The subsidies allocated have managed to attract leading multinationals, thus creating opportunities for joint ventures and jobs. Furthermore, the government’s strong efforts to improve and advance the country’s technology undoubtedly provides the animation industry with space to grow and push creative boundaries.
With global industry leaders stationed in the country, partnerships between these global heavyweights and local companies have been on the rise. However, rather than targeting the domestic market, most ventures aim to cater to more populated countries in Asia, with Singapore’s current population standing at 5.7 million. The Infocomm Media Development Authority (IMDA), through schemes like the Capability Partnership Programme, has invested in domestic media companies to battle this problem. Funding like this helps local companies gain equity, have a say and assert creative ideas in the regional media industry, instead of remaining as just facilitators.
Singapore’s well-equipped academic sector assists the animation industry by allowing its workforce to adapt and familiarize themselves with the latest technology and equipment. Furthermore, some programmes offered by academic institutions help bridge the gap between theory taught by media schools and real-world requirements and skills needed by the animation industry.
High cost of production and other factors might be holding back the sector
The local animation industry suffers from a high cost of production when compared to other Asian countries like Malaysia, Indonesia and Thailand; this could mean lost opportunities to collaborate with international partners as they may opt for a more cost-effective country.
In addition to this, the animation sector also has to compete with other technological and digitally driven sectors when it comes to recruiting labour. Another challenge faced by the sector is the difficulty to recruit foreign talent due to unfavourable government policies resulting in local businesses finding it hard to scale up.
Key Trends
New technology and innovation push the industry further towards growth
The animation, VFX (visual effects) and games sector has become one of the fastest growing segments in the entertainment and media industry thanks to the accelerated advancement of technology.
Moreover, growing demand for 3D and virtual reality in movies, TV, advertising and gaming has boosted the animation industry even further into the limelight. More and more animation studios are choosing to invest in more 3D or VR-focused projects, making the use of this kind of technology a must if they want to remain competitive.
Streaming platforms and easy accessibility drive demand for more animation content
With the number of internet users increasing each day and the growing ease of accessing over-the-top (OTT) media services, an increased demand for more media content is a given, and this includes animation. Companies are integrating new OTT services across existing subscription streaming devices, and continue to introduce more OTT content involving animation and VFX. Adding to that, not only is animation consumed on platforms like Netflix, Amazon and Hulu but also on YouTube, Facebook and Twitter.
Consumers are spending more time on streaming digital content. In fact, the fastest growing segment distribution channel for animation is streaming video, which is experiencing double-digit growth that is expected to continue over the next few years.
Animation proves to be effective medium to promote businesses
Some 86% of businesses over the years have included some form of animation in their advertising and marketing strategy. In 2018, a survey revealed that 68% of Singaporean internet users watch videos that include animated videos. Many businesses have seen success in using animation to sell their products and reach customers on an emotional level; this could be one of the reasons why 88% of companies in 2018 were happy with their return on investment in animation.
Animation helps explain and simplify products and demonstration, and visually aids the customer in understanding how the product can be used. According to a report published in 2017, viewers understand 95% of a complex topic or product through video and 5% through text. With users collectively spending 250 million hours watching videos daily on only YouTube, it is most likely that companies can access a wider audience through videos. Adding to that, compared to live-action ads, animated ads are more cost-effective, and require less planning and production costs as the animation studio will handle the creative process.
COVID-19 barely impacts industry thanks to remote working
Unlike live-action media, animation does not require actors or as much in-person interaction. Despite brands lowering their budgets, the animation field was barely affected, with studios reporting a 25% increase in demand in service bookings as reported by a 2021 article.
Furthermore, even public health services like the WHO (World Health Organization) and NHS (National Health Service) have been using animated messages to convey COVID-19 safety tips. A few other big brands, like McDonald’s, have chosen to release animated advertisements as well.
Key Statistics
- The global animation market was worth USD 351.58 billion in 2021 and is expected to reach USD 530.19 billion by 2030, with a compound annual growth rate (CAGR) of 5.26%.
- In 2018, the Asian animation industry was valued at USD 52 billion.
- In 2021, Asia Pacific was the fastest growing market in the global animation and VFX industry, as reported by Mordor Intelligence.
- By 2029, the Asia Pacific animation market is expected to reach USD 147,366.50 million.
- The global 3D animation software market was valued at USD 18.26 billion in 2021 and is projected to reach USD 39.4 billion by 2028.
Top Singapore MNCs in Animation
MEDIAMONKS SINGAPORE PTE. LTD.
Repeat company as per the client
CREATIVEDRIVE SINGAPORE PTE. LTD.
Repeat company as per the client
GROWTHOPS PTE. LTD.
Repeat company as per the client
WE ARE SOCIAL PTE. LTD.
Repeat company as per the client
THE WALT DISNEY COMPANY (SOUTHEAST ASIA) PTE. LIMITED
Repeat company as per the client
SPTL HOLDINGS PTE LTD
Repeat company as per the client
TOONZ ENTERTAINMENT PTE LTD
Repeat company as per the client
EDISEN SINGAPORE PTE. LTD.
Repeat company as per the client
MEDIAPRO ASIA PTE. LTD.
Repeat company as per the client
HIVENTY ASIA CORP. PTE. LTD.
Repeat company as per the client
Top Singapore Large Local Enterprises in Animation
MM2 ENTERTAINMENT PTE. LTD.
Repeat company as per the client
VIVIDTHREE HOLDINGS LTD.
Repeat company as per the client
WHACKED OUT MEDIA PTE. LTD.
Repeat company as per the client
VHQ POST (S) PTE LTD
Repeat company as per the client
Top Singapore SMEs in Animation
SPARKY ANIMATION PTE. LTD.
Sparky Animation, which was incorporated in Singapore in 2006, specializes in animation production and content development, and is reputed for its co-production, work-for-hire and creation of original intellectual property. Sparky Animation specializes in delivering outsourced animation projects, and is also involved in the business of programme distribution and licensing and merchandising of media property. Some of its productions include TV series such asDinosaur Train, The Winds of Change, Bill and Tony, Ruff-Ruff Tweet and Dave, and Doc McStuffins. The company produces high quality shows within a short production time and at competitive rates through the use of its proprietary technology and pipeline management systems.
AUDAX VISUALS PTE. LTD.
Repeat company as per the client
BIG 3 MEDIA PTE. LTD.
Repeat company as per the client
FEWSTONES PTE. LTD.
Fewstones is headquartered in Singapore. The company, which was incorporated in 2011, focuses on corporate video production. It offers clients high quality videos that are suited for their individual budgets. Fewstones produces various types of videos including 2D, 3D, personalized videos, live action videos, live streaming and corporate photography. The company offers corporate videos, production videos, explainer videos, TVCs, e-learning videos, event coverage videos and whiteboard videos. In addition, Fewstones' production services include video marketing, conceptualization, scripting, storyboarding, voiceover, translation and more. It also trains teams on in-house video shoots at the request of clients.
CRAVEFX PRIVATE LIMITED
CraveFX was incorporated in 2013. The company is headquartered in Singapore and specializes in 2D and 3D animation, motion graphics, augmented reality, virtual reality, interactive video and visual effects. CraveFX also produces broadcasts, explainers, shows and social content. It has produced various projects for its clients and these include a photo treasure hunt filter for Shake Shak’s New Garden, The Hope Train for childhood cancer awareness and fundraising, and 22 Stories Land of Nights. CraveFX received recognition for the Best Innovation at the 2016 OCBC Emerging Enterprise Awards.
INFINIX SOLUTION PTE. LTD.
Infinix Solution was established in 2017. Headquartered in Singapore, the company creates explainer videos in a variety of different styles for individuals as well as for companies. Infinix Solution creates videos for startups, internal training, and brand videos for its various clients at affordable rates. The different video styles that the company produces include whiteboard animation, 2D explainer videos, 2D contemporary explainer videos and topography explainer videos. Infinix Solution produces videos that are according to unique customer needs to ensure its customers are completely satisfied.
TINY ISLAND PRODUCTIONS (PTE. LTD.)
Repeat company as per the client
THE DOODLE PEOPLE LLP
The Doodle People was incorporated in 2014. The company is headquartered in Singapore and offers services in augmented reality, virtual reality, animation, game development and interactive experience. Its featured projects include Gamestar + Family Feud, Masak Masak AR App, Get Your Sheep Together, and HDB Bangkok Showcase. Since its inception, The Doodle People has championed the arts through various projects such as the DOTS Project, and ART X TECH LAB 2021 – Architects of Realities. Its Metaverse displays various showcases developed to demonstrate a variety of immersive experiences in the virtual world – these include USC x Meta Eduverse, KINetic and Cloud House.
MOTIONSAUCE PTE. LTD.
Repeat company as per the client
SUPERPIXEL PTE. LTD.
Superpixel is headquartered in Singapore and also operates a studio in Indonesia. The company, which was incorporated in 2016, creates various types of videos as requested by its clients. Its services include product launches, brand videos, event promos, interactive content, infographics and explainers, corporate videos, broadcast designs and 3D visualizations. Superpixel offers its services through many different mediums and platforms. It operates a blog to educate its viewers on various topics related to animation, design and more. In addition, it works with numerous international brands like Coca-Cola and Estée Lauder.Some of its projects include Mandai Range Buddies, and Mandai Pedro Mission.
Top Singapore Fastest-Growing Companies in Animation Sector
HIVENTY ASIA CORP. PTE. LTD.
Repeat company as per the client
MEDIAMONKS SINGAPORE PTE. LTD.
Repeat company as per the client
WE ARE SOCIAL PTE. LTD.
Repeat company as per the client
CREATIVEDRIVE SINGAPORE PTE. LTD.
Repeat company as per the client
SPARKY ANIMATION PTE. LTD.
Sparky Animation, which was incorporated in Singapore in 2006, specializes in animation production and content development, and is reputed for its co-production, work-for-hire and creation of original intellectual property. Sparky Animation specializes in delivering outsourced animation projects, and is also involved in the business of programme distribution and licensing and merchandising of media property. Some of its productions include TV series such asDinosaur Train, The Winds of Change, Bill and Tony, Ruff-Ruff Tweet and Dave, and Doc McStuffins. The company produces high quality shows within a short production time and at competitive rates through the use of its proprietary technology and pipeline management systems.
WHACKED OUT MEDIA PTE. LTD.
Repeat company as per the client