The sharp curtailment of household and corporate spending during the recession has resulted in a renewed desire among consumers and businesses to begin increasing spending on the latest graphics software and hardware platforms. We will see the development of traditional segments like CAD/CAM expand as new design approaches in automotive, aerospace, and architecture are adopted. Visualization, a market that has been almost dormant for the past few years, is now poised for significant growth due to the availability of more powerful and less expensive visualization technologies.

The hardware segment of the CG industry has had steady growth, with the exception of gaming PC sales, which dropped by 3.16% over the past year. The largest growth has been in workstations and monitors, with (the already high) mobile graphics segment coming in a strong third.

			2012			2013			2016			12-16 CAGR
CAD/CAM software			$7.52			$7.92			$9.72			7.1%
Modeling and Animation			$0.22			$0.23			$0.27			4.7%
Digital Video			$1.39			$1.50			$1.73			4.8%
Visualization Simulation			$3.23			$3.30			$3.81			4.9%
Imaging			$1.63			$1.61			$1.94			6.3%
TOTAL applications			$13.98			$14.56			$16.98			6.2%
Figure 3: Computer Graphics Software Market

Software programs for making movies, inspired by the thrill of 3D computer games, high-style products, and simulations of products and activities too expensive or too dangerous to test in reality, are exploiting the features of today’s CG rendering technologies. The result will be amazing realism and real-time capabilities in the next generation of films and designs.

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.

We are seeing new opportunities growing out of more mainstream applications for the web and consumer applications. The web is growing as a distribution medium for graphics content, which in turn encourages people to pick up and learn new tools, create content for pleasure, and even look for jobs in the field. What used to be a very closed society of experts is now opening up due to the democratization of CG, fueled by Moore’s law and price-elasticity due to lower software costs.

Given the trends in dropping costs, and the increasing users and usage of CG tools and hardware, we predict that the rate of growth for the CG industry will remain fairly steady for the foreseeable future. Computer graphics is truly a worldwide industry now. JPR will have a press only discussion on this topic at SIGGRAPH in Anaheim California on July 24^th.

About Jon Peddie Research

Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies in a variety of fields including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie's Market Watch is a quarterly report focused on the market activity of PC graphics controllers for notebook and desktop computing.