Market Overview
The China Animation and VFX Market reached a size of USD 72.86 Billion in 2025 and is forecasted to grow to USD 124.01 Billion by 2034, at a CAGR of 6.09% during the period 2026-2034. The market growth is propelled by the expansion of OTT streaming platforms, the integration of AI in production workflows, and an increase in large-scale VFX-heavy film productions.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
China Animation and VFX Market Key Takeaways
- The market size reached USD 72.86 Billion in 2025.
- The market is expected to grow at a CAGR of 6.09% from 2026 to 2034.
- The market is projected to reach USD 124.01 Billion by 2034.
- Growth is driven by OTT streaming platforms investing heavily in animated content.
- The accelerated use of artificial intelligence throughout production is transforming workflows.
- Large-scale VFX-intensive fantasy and science-fiction film productions are increasing.
- Technological advancements in real-time rendering, virtual production, and growing international collaborations enhance market share.
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Market Growth Factors
Since the rise in popularity of numerous Chinese OTT streaming platforms such as iQIYI, Tencent Video, and Youku, other newer services continue to increase demand for high-end dedicated animation and VFX services. These platforms are competing for subscribers and viewership through high production value, high budget animated television series and VFX work. For example, Tencent Video announced it partnered with networks to distribute and broadcast animations for pre-teenagers, teenagers, and young adults in 2024, indicating a potential strategy for global growth through market accessibility.
With the advent of AI, animation and VFX production has been transformed in China. AI is being used to render scenes, create facial animations and produce real-time video, which can considerably reduce the project’s costs and time. In February 2024, CGTN launched its first cartoon series, entirely produced with AI technology, marking a new era in high-quality animated content accessible to the public through AI.
The market is also driven by high-budget, big-screen fantasy and sci-fi productions that use VFX, where visual effects are part of the core of the high-budget film. Ne Zha 2 is an expensive example of world-class content using AI-assisted motion capture and state of the art VFX, which sets the bar for higher end animation work and the competitiveness of the Chinese animation industry both domestically and internationally.
Market Segmentation
Animation Platform: Television and OTT platforms lead, driven by massive investment in streaming content, alongside film, advertising, gaming, education/ed-tech, and emerging metaverse and VR experiences. These platforms serve diverse entertainment and educational needs.
Component: The market is segmented into software solutions, hardware equipment, services including outsourcing and post-production work, and cloud rendering platforms. Each component supports different stages of animation and VFX production workflows.
Animation Technique: The key animation techniques include 2D animation, 3D animation, motion graphics, and stop-motion, reflecting the variety of creative approaches utilized in the industry.
End Use Industry: Major end use industries are media and entertainment, video games, advertising agencies, education and training, architecture and real-estate visualization, and healthcare and scientific visualization, indicating broad application of animation and VFX across sectors.
Regional Insights
The report covers six major regions in China: North China, East China, South Central China, Southwest China, Northwest China, and Northeast China. These regions form the core hubs of animation and VFX activities, though the source does not specify dominance or explicit market shares among them.
In summary, the regional spread facilitates widespread industry growth with production hubs in Beijing, Shanghai, Shenzhen, and Hangzhou offering key infrastructural and talent advantages.
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Recent Developments & News
In July 2024, Digital Domain, a prominent Hollywood visual effects company, announced a HKD 204 million (USD 26 million) investment to establish an R&D facility in Hong Kong focusing on AI virtual human technology and AI-powered video production, aiming to recruit over 40 professionals by 2029.
In January 2024, Alibaba Pictures formed a strategic partnership with Tokyo’s Studio Ghibli to co-develop the feature “The Boy and the Heron” tailored for Chinese audiences.
By October 2025, Global Mofy AI Limited participated in iQIYI’s Autumn Showcase, contributing extensive virtual production and VFX services leveraging generative AI and a digital asset library, underscoring the integration of AI in major productions.
Competitive Landscape
The China animation and VFX market shows a fragmented structure with many domestic players alongside international companies establishing local presences. Competition emphasizes technology, talent, production quality, and partnerships with content platforms. Prominent regional hubs include Beijing, Shanghai, Shenzhen, and Hangzhou, concentrating specialized talent and infrastructure. Key strategies involve R&D, talent development, strategic collaborations, and expansion into virtual reality and AI-driven content production.
Key Players
- Digital Domain
- Alibaba Pictures
- Studio Ghibli
- Global Mofy AI Limited
- Mofy VFX
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