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Indian Animation Industry has strong Domestic and Global Opportunity
NASSCOM, Thursday, June 19, 2003
Hyderabad, June 19, 2003: In order to provide impetus to the Indian
Animation industry, NASSCOM, the apex industry association of IT software and
service companies in India is hosting Animation India 2003, in
association with eE@ (alliance of FICCI, TiE and NASSCOM in the
Entertainment sector) and Animation Producers Association of India on
June 20, 2003 in Hyderabad. The daylong conference, which will be inaugurated
by Mr. Chandrababu Naidu, Chief Minister, Andhra Pradesh, will play host to a
large number of international and national animation experts who will discuss
global trends, opportunities and technologies in animation, which the Indian
animation sector can benefit from.
| Total Global
Animation Production |
| ($billion) |
2000 |
2001 |
2002E |
2003F |
| Estimate 1 |
16.0 |
- |
- |
50.0 |
| Estimate 2 |
31.5 |
38.0 |
45 |
- |
| Estimate 3 |
- |
25.0 |
- |
70.0 |
| Total Animation
Production By Indian Producers |
| ($billion) |
2000 |
2001 |
2002E |
2003F |
| Estimate 3 |
- |
0.6 |
- |
1.5 |
|
E: Estimate F: Forecast
Source: Estimate 1: Industry source 'A' , Estimate
2: Pixel, Inc.; Estimate 3: Arthur Anderson
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The global animation production market is set for major growth. NASSCOM
animation study, forecasts that the global animation market will generate
revenues worth US$ 50-70 billion by 2005. The Indian domestic market too is
throwing up revenue generation prospects for ICT solutions providers
specializing in this market. Animation production from Indian producers is
expected to go up from US $ 0.6 billion in 2001 to US $ 1.5 billion by 2005.
Speaking on the eve of Animation India 2003, Mr. Kiran Karnik, President, NASSCOM
said, "The compelling reasons that are shaping the development of the
animation industry in India include demand for animation production services
from overseas animation studios due to India's lower costs of 2-D and 3-D
animation production and technical manpower."
"Animation provides great opportunity for India to capitalize on its two great
competencies namely computer software and entertainment. However, for this
industry, to more than double its size in the next three years, the government
needs to look into the requirement of this sector and support it. The skill
sets and the infrastructure requirements of the industry are very specific,
hence the government and the industry need to work in partnership and take
strategic initiatives to fuel growth in this segment", further added Mr. Karnik.
| Rates of production of
a half hour animated program |
| Countries |
Cost (US$) |
| US and Canada |
$250,000-400,000 |
| Korea and Taiwan |
$110,000-$120,000 |
| Philippines
|
$90,000-100,000 |
| India |
$60,000
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Advantage India
The Indian animation industry also has a good outsourcing opportunity. In Asia
Pacific, India has been emerging as important outsourcing destination due to
its obvious benefits such as large English speaking base, availability of
animation capability with 12 animation studios, presence of a successfully
entertainment industry, heritage of traditional literature to facilitate
content-based partnership and state-of-art computer hardware and software
platforms. Another primary advantage is that the cost of animation production
in India is the lowest compared to other destinations like Canada, Korea,
Taiwan and Philippines.
Opportunity in Domestic Market
The various end user segments of animation that constitute the opportunity
areas for animation producers in India are feature film production, TV
programmes, advertising/ commercials, games, online education, CAD/CAE, and
industry specific applications (architecture, medical, legal/ insurance, etc.).
Recognizing the potential, a number of Indian software players are turning
their attention to animation. Animation studios now dot the country and the
industry is also witnessing the arrival of training houses that are dedicated
to building skilled manpower for this market.
About the event
International and national experts like Joan Vogelesang and Jean Raymond of
Toon Boom Technologies Inc.; Jeff Fino of Wild Brains,; Quentin Staes Polet, of
IBM Asia-Pacific; Paul Cousens of Alias Wavefront; Jean LaChance of Kaydara;
James Rogers of Soft Image; Pawan Kumar of Jadooworks; Biren Ghosh of UTV Toon
India; Vishal Gondal of India games, Tapas Chakravarty of Dataquest and Amit
Khanna, Chairman, eE@ and Chairman, Reliance Entertainment Limited will address
the daylong conference. Some of the key sessions are: Animation-Vision India,
The best of Animation Technology; Business models in Animation; Writing for
Animation and The new frontier- Gaming.
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