Computer Graphics Market

Computer Graphics Market Outlook (2023 to 2033)

The global computer graphics market is currently valued at USD 208.5 million in 2023, with a projected growth rate of 8.3% throughout the forecast period. By 2033, it is anticipated to reach a significant milestone of USD 464.2 million.

Due to the soaring demand for computer graphics in the entertainment industry, market growth is anticipated to be significantly driven in the long run.

The computer graphics market size is also likely to be proliferated by the surging demand for 3D animations and 3D movies as it is a growing market for computer graphics.

Growth in the graphic software business, entertainment businesses along with the increasing use of smartphones are further expected to generate global market opportunities in the future.

Attributes	Details
Market Size Value in 2023	USD 208.5 million
Market Forecast Value in 2033	USD 464.2 million
Market Growth Rate (2023 to 2033)	8.3%

What are the Growth Prospects of the Computer Graphics Market?

• Growing dependency on computers in various industries creates numerous opportunities for computer graphics players during the assessment period.
• Advances in computer programming and expanding applications for computer graphics serve as a strong foundation for future growth.
• The emergence of 3D printing and augmented reality is expected to revolutionize graphic design in future markets.
• The increasing popularity of 3D printing requires designers to stay updated with industry trends and work at a faster pace to meet demands.
• Both interactive and non-interactive computer graphics have shown consistent growth over the past few years, and this trend is projected to continue in the future.
• The rise of virtual and augmented reality applications opens up new opportunities for computer graphics players to create immersive and interactive experiences.
• The increasing demand for high-quality visual content in sectors such as advertising, e-commerce, and digital media presents a promising market for computer graphics providers.

Can the Adoption of Computer Graphics in the Gaming and Entertainment Industry Catalyze the Market Growth?

• The emergence of 3D computer graphics in recent years has revolutionized the market, transforming the nature of computer graphics and leading to significant changes.
• Various applications in filmmaking have embraced computer graphics, enabling the creation of characters, implementation of special effects, and other innovative uses.
• Technological advancements in computer hardware and systems contribute to the increased demand for computer graphics in the entertainment sector. Particularly for the development of fully functional imagery models.
• The global growth of the internet serves as a key driver for the expansion of the market, as computers are integrated into diverse industries. Such as construction, defense, automotive, oil and gas, aerospace, and packaging.
• The proliferation of data generation and the rise of the Internet of Things (IoT) have created a substantial demand for computer graphics. Fueled by increasing digitization, the advent of smart mobile devices, and the proliferation of computer graphics applications.
• The introduction of 3D printing and advancements in computer programing is anticipated to unlock lucrative market opportunities for industry players during the forecast period.

What are a Few of the Challenges in the Computer Graphics Industry?

• The incorporation of new 3D equipment and programming into existing hardware and software processes can be costly. Posing a potential barrier to the growth of the computer graphics industry.
• There has been a noticeable decline in interest within the market for continuous real-time animations and enhanced videos and graphics. Partly due to the increased membership fees associated with the expansion of the media industry.
• The market has experienced a decline in demand for innovative products offering enhanced visual effects for videos. Mainly due to the growing costs associated with the most advanced technologies.
• Interactive or non-interactive computer graphics lack the ability to comprehend real-world situations and lack intelligence. Limiting their ability to act following the underlying principles of reality.
• The requirement for users to learn graphical software as part of the design process poses an additional hurdle that could impede the growth of the market.

Category-wise Insights

Segment	Component
Sub-segment	Application Software
Value Share	55.5%

Segment	Application
Sub-segment	Computer Graphics for CAD
Value Share	34.3%

How Does Application Software Component Stimulate Market Growth in Computer Graphics?

As per the FMI study, the application software component was predicted to garner a value share of 55.5% on a global level in 2022.

Application software components stimulate market growth in computer graphics through their ability to enhance functionality, provide specialized tools, and cater to diverse industry needs.

By offering a wide range of features and capabilities, application software components enable users to create, edit, and manipulate graphics with greater ease and efficiency. This stimulates market growth by attracting more users and businesses to adopt computer graphics solutions.

Specialized tools within application software components enable professionals in filmmaking, advertising, architecture, and design. To leverage advanced techniques and achieve high-quality results, driving market growth as industries recognize the value of computer graphics.

Overall, the continuous development and innovation of application software components play a vital role in expanding the computer graphics industry and fueling its growth.

What is the Impact of Computer Graphics for CAD on the Market for Computer Graphics?

The impact of computer graphics for computer-aided design (CAD) on the computer graphics industry is substantial, contributing to its value share of 34.3% in 2022.

CAD relies heavily on computer graphics technology to create, visualize, and manipulate complex designs and models in various industries such as architecture, engineering, manufacturing, and construction.

The integration of computer graphics in CAD systems revolutionizes design by enabling efficient and accurate representation of 2D and 3D models. It empowers designers and engineers to visualize concepts, simulate real-world scenarios, and identify issues early, leading to cost reduction, increased productivity, and improved design quality.

The growing demand for CAD software and the increasing adoption of computer graphics for CAD applications directly contribute to the expansion of the computer graphics industry.

As more industries recognize the benefits of computer-aided design and its impact on productivity and innovation, the demand for computer graphics technologies and solutions continues to rise.

Country-wise Insights

Why is North America Anticipated to be at the Forefront of the Computer Graphics Markets?

Due to the presence of several local manufacturing companies in nations like the United States of America and Canada, the North American region of the global market is anticipated to grow at a rapid pace over the projected period when compared to other regions, contributing to the region’s value share of 27.4% in 2022.

The market for computer graphics in the United States of America garnered a value share of 17.2% on a global level in 2022. Owing to the growing presence of key companies, including Walt Disney Animation Studios, Warner Bros Animation, and DreamWorks Animation.

The region serves as a center for vendors who produce computer graphics hardware components and applications software, including Adobe Systems Inc., Autodesk Inc., Siemens PLM Software, Microsoft Corporation, etc. Moreover, the significant growth of the computer graphics market in the region has been attributed to the existence of government programs that support the film entertainment industry in the market.

What are the Growth Prospects of the Market for Computer Graphics in Europe?

As per the FMI study, the market for computer graphics in Europe amassed a value share of 24.3% in 2022 as European industries, including gaming, media and entertainment, architecture, engineering, and manufacturing, are increasingly recognizing the value and potential of computer graphics.

During the forecast period, the computer graphics market in the United Kingdom is expected to grow at a compound annual growth rate of 6.5%. The rising presence of manufacturers of computer hardware components in this region has boosted market growth for computer graphics.

Germany market for computer graphics garnered a value share of 8.2% in 2022 globally on account of its thriving gaming and entertainment industry.

Technological advances in GPUs are expected to boost the growth of the market in the region. In addition, the growth of smart TVs and the surge in demand for video games are driving the growth and expansion of computer graphics in the market.

What is the Level of Competition for Computer Graphics in the Market?

Through strategic partnerships, manufacturers can increase production and meet consumer demand, increasing both their revenues and market share. The introduction of new products and technologies allows end-users to reap the benefits of new technologies. Increasing the company's production capacity is one of the potential benefits of a strategic partnership.

Recent Developments in the Computer Graphics Market:

• A definitive agreement was signed between Qualcomm Incorporated and Qualcomm Technologies, Inc. in January 2021 for Qualcomm Technologies to acquire NUVIA for around USD 1.4 billion including expenses and working capital. In addition to customary closing conditions, the transaction must receive regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. In acquiring NUVIA, Qualcomm Technologies builds on its leadership in Snapdragon-based technology, offering a step-change improvement in CPU performance and power efficiency to meet the demands of the upcoming 5G era.
• In November 2021, Threekit, the leading 3D visual commerce platform for brands, raised USD 35 million in Series B funding from Leaders Fund. Alongside strategic investors Capgemini and ServiceNow and existing investors Salesforce and Shasta Ventures. Through this investment, Threekit can accelerate investments in product platforms, eCommerce integration, global sales organization, and partner network.
• In February 2022, AMD announced that it had acquired Xilinx in an all-stock transaction. As a result of the acquisition, announced on October 27, 2020. The company established itself as the industry's leading high-performance and adaptive computing player, with a substantial scale advantage and the strongest portfolio of leading computing, graphics, and adaptive SoC products. AMD expects the acquisition to be accretive to non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year. By acquiring Xilinx, NXP created the industry's leading high-performance and adaptive computing company by putting together complementary products, customers, and markets.
• In February 2022, AMD announced the launch of next-generation RDNA GPUs later this year. With the implementation of their current products and the launch of their next wave of Zen 4 CPUs and RDNA 3 GPUs, the company is looking forward to another year of significant growth and share gains. The launch date of AMD's RDNA 3 GPU was not provided. However, the products are likely to arrive in the fall, two years after the Radeon 6000 series debuted.
• In March 2022, Intel launched Intel Arc, a new graphics technology that aims to compete with Nvidia and AMD as part of its website, and featured a video previewing the first graphics card in the series that was released in 2022. With the announcement of the first Intel Arc graphics cards in late March 2022, Intel kept its word. Intel's first graphics-enabled laptops bring gaming prowess to ultrabooks, including desktop cards in development.

Key Players

• Advanced Micro Devices (AMD) Inc.
• ARM Ltd.
• Intel Corporation
• Imagination Technologies Limited
• NVIDIA Corporation

Key Segments Covered in the Computer Graphics Market Report

Computer Graphics by Component:

• Computer Graphics Hardware
• Computer Graphics Application software

Computer Graphics by Application:

• Computer Graphics for CAD
• Computer Graphics for Image Processing
• Computer Graphics for Entertainment (3D/Animation/Visual Effects (VFX))
• Computer Graphics for User Interfaces
• Computer Graphics for Other Applications (Education Graphics, etc.)

Computer Graphics by Region:

• North America
• Europe
• Asia Pacific (APAC)
• The Middle East and Africa (MEA)
• South America

Frequently Asked Questions

Who are the Key Consumer of Computer Graphics?

Gaming and entertainment industries are the key consumers.

How Much can the Computer Graphics Market Grow by 2033?

The global market is projecting a significant CAGR of 8.3% by 2033.

What is the Current Valuation of the Computer Graphics Market?

The market is estimated to secure a valuation of USD 208.5 million in 2023.

How Big will the Computer Graphics Market by 2033?

The market is estimated to reach USD 464.2 million by 2033.

Which Component Type Holds Lucrative Opportunities?

The application software segment holds high revenue potential.