THE RONCARELLI REPORT on the Computer Animation Industry
 
                                                                        2006
 
The 2006 edition of the Roncarelli Report remains the only source for consistent market information on the global computer animation and visual effects industry, as it has since 1984. The 2006 Edition quantifies the industry to the end of 2006, with commentary into the beginning of 2007.
 
The Report totals 208 pages, and offers 79 graphs, and 18 numerical data tables.
 
We did not publish a 2005 edition of the Roncarelli Report due to the many changes taking place in the global computer animation industry, which made our information gathering processes very difficult. This current 2006 Edition of The Roncarelli Report on the Computer Animation Industry is based on our ongoing monitoring of the global computer animation industry and specific information researched and gathered during the latter third of 2006.
 
Although the global computer animation industry is now mainly 3D image based, we are seeing a resurgence of 2D animation production, which is now almost all computer assisted, to fill the ever increasing demands for lower cost content from the broadcast media, and the growing use of 2D animations for Internet applications. Still, when one refers to, or thinks of computer animation, it is the 3D images and Visual Effects that are so much a part of today’s film and television productions, and digital gaming, that first come to mind. 3D is by far the dominant computer animation production format, accounting for 89.2% of computer animation production dollar values in 2006.
 
Therefore, we continue the pattern of the last two Editions of this Report, and have again focused primarily on the dominant 3D segment of the computer animation industry, with Total Industry and additional 2D Segment analysis provided where they will add to our understanding of industry performance, and its direction.

TABLE of CONTENTS
 
 
 
Note:                1>        Chapter Number & Starting Page
                        1.1>      Start of Section within chapter, as described
                        1.1.1>   Graph or Numerical Table, as described
 
 
             2006 Edition Introductory Notes................................................ Page    viii
 
E>        EXECUTIVE SUMMARY.......................................................... Page   1
E.1        Computer Animation Total Market.................................................. Page    1
E 1.1>   Total Computer Animation Industry Growth Trends & Values........... Page    2
E.1.2>   3D Computer Animation & Value vs Production Minute Trends         Page    4
E.1.3>   C/A Production Dollar Volume Comparison - 3D vs 2D                     Page    5
E.2>      Industry Geographic Distribution                                                        Page    6
E.2.1>   3D Computer Animation Segment Geographic Distribution - 2006       Page    6
E.2.2>   Computer Aniation 3D/2D Segment Geographic Distribution              Page    8
E.3>      Computer Animation Platform / Systems Use                                    Page    8
E.3.1>   Total C/A Platform Preference Trends Ex Blender & Flash - 2006    Page   10
E.3.2>   3D Computer Animation Platform Preference Trends to 2006            Page   11
E.3.3>   Computer Animation Systems-in-Use Platform Share Trends             Page   12
E.3.4>   C/A Systems # Growth vs Industry Production $ Value                     Page   13
E.4>      Computer Animation Use-Category Analysis                                    Page   14
E.4.1>   Computer Animation Use-Category Analysis - 2006                          Page   15
E.5>      The Software Providers                                                                   Page   16
E.6>      The Computer Animation Production Environment                             Page   17
E.6.1>   Computer Animation Company Size Analysis - 2006                          Page   18
E.7>      Industry Forecasts                                                                           Page   19
E.7.1>   3D Computer Animation Production Volume Forecast to 2011           Page   22
E.7.2>   3D C/A Industry Forecast - Dollar Volume Projections to 2011          Page   22
                                                                                                                                                           
1>         TOTAL INDUSTRY OVERVIEW                                               Page   25
1.1>       Changing and Growing                                                                     Page   25
1.2>       Industry Performance & Growth                                                       Page   28
1.2.1>    Computer Animation Industry - Total Growth & Value - 2006            Page   29
1.2.2>    Computer Animation Industry - 3D Segment Growth & Value 2006   Page   30
1.2.3>    3D Computer Animation $ Value & Production Minutes Trends         Page   31
1.2.4>    2D Computer Animation $ Value & Production Minutes Trends         Page   32
1.2.5>    3D & 2D C/A Segment Comparison for Total Industry                      Page   33
1.3>       Industry Growth - Numerical Details                                                Page   34
1.31>     Industry 3D Segment Growth History - By Dollars & Percentages     Page   34
1.3.2>    Industry 2D Segment Growth History - By Dollars & Percentages     Page   35
1.3.3<    Total C/A Industry Growth History - By Dollars & Percentages        Page   35

2>         GEOGRAPHICAL DISTRIBUTION                                          Page   37
25.1>     Total Market Geographical Distribution                                             Page   37
2.1.1>    Total Market Geographical Distribution - 2004 vs 2006                      Page   38
2.2>       Geographic Analysis - Bt 3D & 2D Production                                 Page   39
2.2.1>    Computer Animation System Geographic Distribution - 3D vs 2D       Page   41
2.2.2>    3D Computer Animation System Geographical Distribution - 2006      Page   42
2.2.3>    2D Computer Animation System Geographical Distribution - 2006      Page   43
2.3>       Geographic Distribution by Platform Type                                         Page   44
2.3.1>    Geographical Distribution Analysis - Windows XP - 2006                   Page   45
2.3.2>    Geographical Distribution Analysis - Macintosh - 2006                       Page   46
2.3.3>    Geographical Distribution Analysis - Unix - 2006                               Page   47
2.3.4>    Geographical Distribution Analysis - Linux - 2006                              Page   48
2.4>       System Geographical Distribution by Type and Platform                    Page   49
2.4.1>    System Geographical Distribution by Platform & Production Type      Page   49
2.4.2>    3D Platform Geographic Distribution Comparison Analysis - 2006      Page   50
2.4.3>    2D Platform Geographic Distribution Comparison Analysis - 2006      Page   51
     
3>         SYSTEMS OVERVIEW                                                               Page   53
3.1>       The Computer Animation Systems - Introduction                               Page   53
3.2>       Total Computer Animation Systems Growth Trends                           Page   55
3.2.1>    Total Computer Animation Systems Sold & Available - 2006              Page   56
3.2.2>    Total C/A Systems Sold/Available to End 2006 - Platform % Share    Page   57
3.2.3>    Total Computer Animation Systems Growth - 2002 to 2006                Page   59
3.2.4>    Total - 3D & 2D - Computer Animation Systems Available - 2006     Page   59
3.2.5>    3D Segment Computer Animation System Growth - to 2006               Page   60
3.2.6>    3D Segment Only Total Computer Animation Systems Available        Page   61
3.2.7>    Total C/A System Growth - Excluding Blender 3D & Flash - 2006     Page   62
3.2.8>    Total C/A Systems Available - Excluding Blender 3D & Flash 2006   Page   62
3.3>       Systems Sold/Available Compared to Systems-In-Use                       Page   63
3.3.1>    Total C/A Systems Available But Not Being Used For Production      Page   66
3.3.2>    Total Systems-in-Use vs Available Systems - 2002 to 2006                Page   67
3.3.3>    Available Computer Animation Systems vs Systems-in-Use               Page   69
3.4>       Computer Animation Systems-In-Use by Platform                             Page   70
3.4.1>    Platform Share and Systems-In-Use Trends - to 2006                        Page   72
3.4.2>    Windows XP Share of All Computer Animation Platforms                 Page   73
3.4.3>    C/A Platform Industry Share Trends Comparison - 2002 to 2006        Page   74
3.4.4>    C/A Systems Units and Share Trends by Platform Type - 2006          Page   75
 
4>         SYSTEMS NUMBERS & VALUES ANALYSIS                         Page   77
4.1>       Production Volume & Dollar Values                                                  Page   77
4.2>       Systems Costs and Production Capability Trends                               Page   79
4.2.1>    Total Market Growth - Production $ Volume vs System #s - 2006      Page   81
4.2.2>    3D Segment Growth - Production $ Volume vs System #s - 2006       Page   82
4.2.3>    Computer Animation System Prices vs System-in-Use Trends Page   Page   84
4.3>       System Costs & Values - Hardware vs Software                              Page   85
4.3.1>    Average Computer Animation System Costs by Platform                   Page   86
4.3.2>    Value of Computer Animation Systems-In-Use - 2006 - US$(000)     Page   87
4.3.3>    C/A Systems Software/Hardware Volume Analysis - 2004                Page 102
4.3.4>    C/A Systems Software/Hardware Volume Analysis - 2006                Page 102
4..4>      Production Dollar Volume Analysis by Platform Type                        Page   89
4.4.1>    Average Annual C/A Production Dollar Value per System                 Page   90
4.4.2>    3D C/A Systems Comparison % Systems-in-Use vs % Production $ Page   91
44.3>     2D C/A Systems Comparison % Systems-in-Use vs % Production $ Page   92
4.5>       Production Volume Analysis by Platform 3D vs 2D                           Page   92
4.5.1>    3D vs 2D C/A Industry Production Volume Trends to 2006               Page   94
4.5.2>    Total C/A Systems-in-Use 3D & 2D - By Platform - 2006                 Page   95
4.5.3>    3D vs 2D Production Dollar Volume by C/A Platform Type - 2006    Page   96
4.5.4>    Average Annual 3D & 2D Production Volumes by Platform Type     Page   97
4.5.5>    Average Annual 3D & 2D Prodn by Platform Ex Blender & Flash     Page   98
4.6>       Systems-In-Use & Production Volumes - Numerical Values              Page   99
4.6.1>    C/A System-In-Use & Production $ values - 2001/2006/2006             Page 103
 
5>         THE SOFTWARE PROVIDERS                                                 Page 105
5.1>       Software Company Analysis Overview                                             Page  105
5.2>       Software Companies Included in Analysis                                         Page  109
5.2.1>    3D Computer Animation Software Company Listings - 2006              Page  109
5.2.2>    2D Computer Animation Software Company Listings - 2006              Page  109
5.3>       Internet & Small Screen / Mobile Software                                       Page  110
5.3.1>    Vuewing Targets - Screen Size Definitions                                       Page  110
5.4>       Software Company Rankings                                                           Page  112
5.4.1>    3D & 2D C/A Software Company Rankings – 2006                          Page  113
5.5>       3D Computer Animation Software Segment Analysis                        Page  114
5.5.1>   3D C/A Software Segment - Tier 1 & Tier 2 Co Listings 2006        Page 114
5.5.2>   3D C/A Software Segments Basic Size Comparisons - 2006           Page 115
5.5.3>   3D C/A Software Segment Systems Available vs In-Use - 2006     Page 116
5.5.4>   3D C/A Software Prodn Unit # Comparison by Platform 2006        Page 117
5.5.5>   3D C/A Software Prodn $ Comparison by Platform - 2006            Page 118
5.5.6>   3D C/A System Cost Comparisons by Platform - 2006                   Page 119
5.5.7>   Total C/A Ind vs 3D Segment Geog Dist Comparison – 2006         Page 120
 
6>         THE PRODUCTION ENVIRONMENT                                     Page 123
6.1>       The Computer Animation Production Environment                             Page 123
6.2>       C/A Production Company Size & Volume Distribution                       Page 128
6.2.1>    C/A Production Company Size Definitions by US $ Volume               Page 129
6.2.2>    C/A Production Company $ Volume Market Share Analysis - 2006    Page 131
6.3>       More New C/A Production Company Start-Ups                                Page 132
6.4>       The New market Segment - Animation For Small Screens                 Page 133
6.5>       Internet Based Animation                                                                Page 134
6.6>       The C/A Offshore Production Industry                                             Page 135
6.7>       The People Component in Computer Animation Production                Page 137
6.7.1>    C/A School Graduates vs New C/A Job Availabilities - 2006              Page 141
6.8>       Computer Animation Production Salary Levels                                  Page 142

6.8.1>    Average Computer Animation Salary Levels - USA - 2006                Page 143
6.8.2>    Computer Animator Salary Ranges by Job Level - USA - 2006          Page 144
6.8.3>    Technical Director Salary Ranges by Job Level - USA - 2006            Page 145
6.8.4>    International Computer Animation Salary Comparisons - 2006            Page 147
 
7>         USE-CATEGORY ANALYSIS                                                    Page 149
7.1>       Use-Category Analysis Overview                                                    Page 149
7.1.1>    Entertainment - description                                                               Page 151
7.1.2>    Corporate & Industrial Communications - description                         Page 151
7.1.3>    Advertising - description                                                                  Page 152
7.1.4>    Broadcast - description                                                                    Page 152
7.1.5>    Film & Video Production - description                                              Page 152
7.1.6>    Virtual Reality, Rides, Location Based Entertainment - description      Page 153
7.1.7>    Games - description                                                                         Page 153
7.1.8>    Internet and Personal Communicator Use - description                      Page 154
7.1.9>    Architectural - description                                                                Page 154
7.1.10>  Design & Engineering - description                                                   Page 155
7.1.11>  Educational - description                                                                  Page 155
7.1.12>  Corporate Communications - description                                           Page 155
7.1.13>  Scientific - description                                                                      Page 155
7.1.14>  Medical - description                                                                       Page 156
7.1.15>  Legal/Insurance - description                                                           Page 156
7.1.16>  Personal & Business Use - description                                             Page 156
7.2.>      Total Market Broad-Scale Use Analysis and Trends                          Page 157
7.2.1>    Total Industry Broad-Scale Computer Animation Use Trends             Page 158
7.2.2>    3D Industry Segment Broad-Scale Computer Animation Use Trends Page 159
7.2.3>    2D Industry Segment Broad-Scale Computer Animation Use Trends Page 160
7.3>       Use-Category Analysis - Total Industry                                             Page 160
7.3.1>    Total Industry Use-Category Trends Analysis - % Share to 2006       Page 162
7.3.2>    Total Industry Use-Category Analysis - Ex Blender 3D & Flash        Page 163
7.3.3>    3D Ind Segment Use-Category Trends Analysis - % Share to 2006    Page 164
7.3.4>    Total Industry Use-Category Analysis - % Share & $ Volume           Page 165
7.3.5>    Use-Category Dollar Value Comparison - 20046 vs 2004                    Page 168
7.3.6>    Total C/A Industry 3D vs 2D Production by Use-Category - 2006      Page 169
7.3.7>    3D vs 2D Production Dollar Values by Use-Category - 2006             Page 170
7.3.8>    Total Systems-in-Use 3D vs 2D Platform Distribution by Uses           Page 171
 
8>         INDUSTRY FORECASTS                                                           Page 173
8.1>       The Overall Outlook for the Future                                                   Page 173
8.2>       Total Industry Production Volume Forecasts                                     Page 179
8.2.1>    Computer Animation Total Prod Dollar Volume Forecast - to 2011     Page 180
8.2.2>    3D Computer Animation Prodn Dollar Volume Forecast - to 2011      Page 181
8.2.3>    C/A 3D Prodn $ Volume & Minutes Trend Line Forecast - to 2011    Page 182
8.2.4>    2D Computer Animation Prodn Dollar Volume Forecast - to 2011      Page 183
8.2 5>    Industry Forecast Dollar Volume Projections - to Year 2011              Page 184
8.3>       Changes in Geographic Distribution                                                  Page 185

8.3.1>    C/A Production Geographic Distribution Trends & Projection             Page 186
8.4>       Computer Animation Systems-in-Use Forecast                                  Page 186
8.4.1>    Computer Animation Systems-in-Use Forecast - to 2011                    Page 187
8.4.2>    Projected 3D Computer Animation System-in-Use Units to 2011)       Page 188
8.5>       Use-Category Forecasts                                                                  Page 188
8.5.1>    3D Computer Animation Broad-Scale Use Forecast - to 2010            Page 190
8.5.2>    Computer Animation Use-Category Forecasts - to 2010                     Page 191
8.5.3>    Computer Animation Use-Category Dollar Value Forecast - 2010      Page 193
8.6>       Forecast Summary                                                                          Page 194

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