The computer graphics industry has been a growth industry since it was established the late 1970s. Weathering the storms of the recession of 2009, the CG industry is back on track and showing new invigorated vitality and potential.
Computer graphics hardware market reached $53 billion in 2010 and should exceed $67 billion in 2011. The market for CG software was worth $13 billion in 2010 (not counting services, maintenance and other related businesses). CG software is expected to grow to $14.8 billion in 2011 as the industry shakes off the remaining effects of the recession and customers start replacing software tools.
The industry has enjoyed 7% growth for the past 5 years
As a result of the pull back due to the recession, more people will be buying computer graphics software programs and we will see the development of traditional segments like CAD/CAM expand as new design approaches in automotive, aerospace, and architecture are brought forth. Visualization, a market that has been almost dormant for the past few years is poised now for great expansion due to exciting and lower cost technologies.
There is considerable opportunity for computer graphics software on several fronts. The tools for making movies is the highest profile market but it represents a very modest proportion of the total market. Design tools, game development, manufacturing, and scientific visualization are much larger markets and there is a great deal of opportunity as these markets adapt to changes in mobile devices, and take advantage of the vast compute power in the cloud. There has been a bubbling up of interest in computer graphics tools for mainstream and hobbyist users. It is still a tiny proportion of the overall market, but this too is an area where JPR is seeing intriguing product development and growth.
Over the course of the next five years, we will see the effects and tools used in filmmaking extend to much larger markets for small production houses, independent filmmakers, and even enthusiast/hobbyists. Game development will shift to accommodate new game platforms including mobile devices. And, most exciting, we expect to see a resurgence for imaging, vector graphics, and desktop publishing as new distribution models enable new business models for the publishing industry.
The demand for programmers, artists, scientists, and designers has picked up again and firms are actively looking for people who can use and exploit these new programs and their associated hardware accelerators. The economic recession has caused a slow down and at this point in 2011, the future is uncertain but given the larger trends in the high tech industry, the recession could look like a small bump in the road by 2014.
Given these trends, we see the rate of growth continuing to grow.