Animation and games have been identified as two emerging industries in India, with the potential for significant growth rates over the next three years, according to a new study.
Conducted by the National Association of Software and Service Companies (NASSCOM), the study estimates that the country's games industry will grow ten-fold, from US$30 million in 2005 to US$300 million in 2009, at a compound annual growth rate (CAGR) of 78 percent.
According to the report, India's animation market is another growth segment and is expected to reach US$950 million in 2009, growing at a CAGR of 35 percent.
Winning large contracts with global entertainment players such as Walt Disney, Warner Brothers and Sony has helped local animation studios gain traction internationally, NASSCOM said in a release.
"India’s IT expertise and creative skills, combined with the entrepreneurial drive of its companies, make it well-positioned to tap the potential of this growing global industry," Kiran Karnik, president of NASSCOM. "The rapid growth of mobile telephony, increase in personal computers ad the greater use of animation content will fuel the growth of the domestic market too.
"If India focuses on developing the talent pool and leveraging its cost competitiveness, animation and games look like the next promising fields," he added.
The NASSCOM report based its estimates from the feedback and perspective of developers in the market. It also estimates that the global games and animation markets will grow to US$11 billion and US$35 billion, respectively, by 2009.
Should the Indian government decide to beef up its investment in these two market segments, it will join other Asian nations such as Singapore, which last year committed to invest US$590.5 million over 10 years to develop the country's digital media industry.