Five major trends driving animation tech industry growth

Animation is an a kind of optical illusion spawned by displaying images of stationary objects in succession. In simply words, it is the movement of illustrations or cartoons composed of a series of images shown one after the other. The term “animation” is derived from the Latin word “Anima,” which implies “soul” and therefore the task of an animator is to give his character a life force.

Apart from films and online broadcasting, Indian television is the major consumer of animated content produced in India. In recent years, advanced techniques, such as computer graphics imagery, have increased the production and consumption of animated films. The solid growth trend can also be likened to the internet’s exponential penetration and the recent Covid-19 pandemic. As the pandemic compelled people to remain at home, the demand for new content skyrocketed, and the animation industry stepped up to produce some high-quality content. In 2021, the animation and VFX industry in India was estimated to be worth approximately 83 billion Indian rupees. Statistics for 2024 show a 29 percent growth rate, with the industry’s valuation totalling 180 billion Indian rupees. Here are five major trends that are propelling the animation tech industry forward:

2D and 3D Mix

2D and 3D mixing, which combines various types of photography, graphics, and animation, is popular today and will continue to shape the animation film industry in the years to come. Since it appeals to a broad spectrum of target filmgoers, this technique is extensively used in animated films, full-length and television animation, as well as television commercials and social media content. Several motion developers merge them, as it generates a signature style and simultaneously increases viewer engagement. This strategy is respectively used in high-budget commercial videos as well as low-budget digital advertisements.

Use of 3D animations

Any animation can benefit from 3D graphics to make it look more pragmatic and believable. The more sophisticated a 3D animation becomes, the more it strives for simple shapes and colours. The 3D fad for 2022 is round shapes with vibrant contrasting colours. The final outcome is not only creativity at its best but is aesthetically pleasing too. It also brings back memories for many since it is highly representative of 2D motion graphic animations.


The concept of morphing characters, logos, pictures, and other items in a film is gathering steam in 2022. It is a switchover effect used in movies and animations to effortlessly transform one image or shape into another. It functions as a visual magnet, capturing our attention and convincing us to stay and watch the effect until it concludes. This method is particularly effective in website animation because it keeps the viewer’s attention on the site and allows them to spend more time browsing the site. Therefore, it also aids in optimization for search engines as Google favours webpages that are so captivating that viewers devote more time interacting than what is customary.

VR Animation

With the onset of high-speed internet, technologies such as AR and VR have gone mainstream and have progressed into important tools for creating high-quality animations. VR allows animators to develop and replicate fantastical spaces that resemble visions, and encounter things that do not correspond to reality. This results in one of its kind of animations that both children and adults enjoy. Virtual Reality animation has a broad scope and can further be used in educational programmes and the media worldwide.


Another marvellous animation effect that has existed since the invention of cartoons and television is anthropomorphism. It entails designing characters that are depicted as non–humans with the character traits of living things. A good illustration is the film “Cars,” which integrates anthropomorphism throughout as it depicts what life could possibly look like if cars were alive. Another remarkable aspect is that the film gives inanimate cars characteristics such as being hurt, thirsty, or hungry.


Given the large workforce and low expenditure costs, India is gradually becoming an animation and visual effects hot spot, with the added benefit of English-speaking, talented software engineers and a vast pool of artistic talent. The New Media wave of animation will therefore fundamentally alter the way content is created, distributed, and monetized. Even VFX and Animation education has experienced unprecedented growth, and India will soon be credited with the establishment of new institutes offering courses to interested candidates in Animation and VFX education.

The article has been written by Praveen Raj Jayachandran, founder, Holocraft

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