In Short:
India’s media and entertainment industry is set to more than double the animation, visual effects, and gaming sector in four years. Currently, the AVGC-XR sector makes up 20% of the industry. With advancements in technology and a focus on quality content, the sector is expected to create over 160,000 jobs annually and gain global recognition. A national strategy is recommended for sustainable growth.
Exciting Times Ahead for India’s Media and Entertainment Landscape
India’s media and entertainment industry is on the brink of an impressive transformation, with projections indicating a remarkable growth—more than doubling the size of its animation, visual effects, and gaming sector over the next four years, according to a latest report.
Current Market Overview
The AVGC-XR sector (which includes animation, visual effects, gaming, comics, and extended reality) currently represents about 20% of India’s media and entertainment (M&E) industry. This insightful data comes from the CII-Grant Thornton knowledge report titled ‘FX & Beyond: Shaping India’s AVGC Landscape,’ unveiled at the CII Summit FX 2024 held on Wednesday.
Projected Growth
Focusing on the animation and VFX segment, we can anticipate a surge from $1.3 billion in 2023 to an impressive $2.2 billion by 2026. This growth is expected to boost its contribution to the M&E industry from 5% to 6%. Meanwhile, the online gaming market, currently valued at $2.62 billion, is predicted to reach a whopping $4.6 billion by 2026, increasing its share in the M&E sector from 10% to 13%.
A Bright Future for AVGC
Back in 2019, India’s AVGC sector had an overall market size of $2.3 billion, accounting for around 0.7% of the global market. Over the next four years, this sector is set to grow an astonishing 2.2 times, capturing approximately 1.5% of the global AVGC market.
Opportunities Galore
The report highlights a wealth of opportunities within the AVGC sector, driven by a rising demand for high-quality content in both entertainment and gaming. India is positioned uniquely to revolutionize content creation and make a mark on the global stage.
Technology as a Catalyst
Advancements in technology—especially with the rise of AI (artificial intelligence), ML (machine learning), and 5G
There’s even better news for job seekers: the sector is projected to generate over 160,000 jobs annually, with an astonishing 2 million new jobs anticipated by 2030. To fully harness this sector’s potential, the report advocates for the **swift implementation** of the National Draft Policy Framework for AVGC-XR. Key recommendations include: The report also calls for the establishment of a National AVGC-XR Mission to guide the sector’s path forward, leveraging India’s cultural heritage to create global appeal and suggesting reductions in import duties on crucial equipment. “India needs to embrace a more virtualized world, offering access to extensive multilocation high-end hubs for large-scale high-tech production. The AVGC policy and the National and State centres of excellence should work together as interconnected pathways leading to significant digital transformation,” said Biren Ghose, chairman of CII AVGC-XR and managing director of Technicolor Asia Pacific. With such transformative potential, the future looks incredibly bright for India’s AVGC sector. Let’s stay tuned for the exciting developments to come!Job Creation on the Horizon
Strategic Recommendations
Roadmap for Success
A Vision for the Future
