Market Growth and Scale
The China animation and VFX market reached USD 72.86 billion in 2025 and is projected to grow to USD 124.01 billion by 2034, with a steady CAGR of 6.09%.
This expansion is fueled by streaming platforms like Tencent Video, Bilibili, and iQIYI, which are investing heavily in premium animated content.
The rise of AI-powered production tools and large-scale VFX integration is making animation faster, cheaper, and more visually stunning.
Breakthrough Titles and Cultural Impact
In 2025, series like A Record of a Mortal’s Journey to Immortality: Storm in the Outer Sea achieved over 1 billion legitimate views, proving the massive domestic appetite for high-quality animation.
Fantasy titles such as Xian Ni scored 9.6 on Douban, showing critical acclaim alongside commercial success.
These hits highlight how Chinese animation is evolving beyond children’s entertainment into complex narratives for young adults and global audiences.
Key Trends Shaping the Future
Tech-driven storytelling: Advances in CGI, motion capture, and AI are pushing production quality to rival Hollywood and Japan.
Streaming dominance: Platforms are becoming the primary distribution channels, with concurrent viewership numbers exceeding 400,000 per episode.
Sustainability focus: Post-pandemic, the industry is aligning with cultural and creative sustainability goals, ensuring long-term growth while balancing tradition and innovation.
Global ambitions: Chinese studios are increasingly targeting international markets, aiming to export stories rooted in Chinese mythology and modern themes.
Why the World Should Watch
Cultural richness: Chinese animation blends ancient folklore with futuristic sci-fi, offering unique storytelling perspectives.
Economic power: With the world’s largest domestic market, China can fund ambitious projects that rival global competitors.
Creative diversity: From fantasy epics to slice-of-life dramas, animation in China is diversifying rapidly.
Final Thoughts
The future of Chinese animation is bright, bold, and global. With massive investments, technological breakthroughs, and a growing fanbase, China is poised to become a world leader in animation, shaping not just domestic entertainment but the global cultural landscape.