Chinese animation made up 8 percent of the total worldwide in 2016 and is expected to grow.

ASIA–Although the Chinese animation industry began relatively late compared to countries like the U.S. and Japan, the industry has seen steady growth since 2015 and is expected to reach more than $34.11 billion* by 2021, according to Reportlinker’s “Global and China Animation Industry Report 2017-2021.”

In 2016, China’s animation output value reached $19.28 billion, up 15 percent year-on-year, with a global share of roughly 8 percent. The industry is expected to increase another $2.97 billion in 2017 to $22.25 billion.

Comparatively, in 2016 the global animation industry recorded a total output value of nearly $220 billion, of which the U.S. made the greatest contribution and claimed roughly 38 percent of the market share.

Japan also claimed approximately 10 percent of the market share; however, many animation productions (roughly 60 percent) come from Japan.

China is historically a difficult market for global entertainment brands, only allowing release of a select number of international films and TV series every year. Increased creation of in-country content could make this market even harder for studios to penetrate, or on the flip side, it could make the country more open to content exchanges.

For a deeper look at content distribution and the entertainment industry in China, check out the LicenseTV series “Understanding China Part 3: The Media Landscape.”

Other highlights from the China Animation Report include:

*Conversions are based on exchange rates as of Friday, July 28.