AVGC-XR sector

AVGC-XR sector recently saw the government’s approval for the establishment of the National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics, and Extended Reality in Mumbai.

About AVGC-XR sector:

• The AVGC sector (Animation, Visual Effects, Gaming, Comics, and Extended Reality) is poised to become a significant growth driver for India’s Media & Entertainment (M&E) industry.
• Recognized as one of the 12 Champion Service Sectors by the Government, the AVGC sector has the potential to connect India’s rich culture and heritage with a broader global audience.

Potential in the AVGC-XR Sector:

• The global animation and visual effects (VFX) market is estimated at USD 168 billion in 2021 and projected to reach USD 290 billion by 2024, reflecting a CAGR of 10.94% from 2020 to 2026.
• A major driver of this expansion is the rising demand for augmented reality (AR), which necessitates innovative visual effects to enhance user experiences.
• The global gaming market, valued at USD 198.4 billion in 2020, is expected to grow to USD 314.4 billion by 2026, with a CAGR of 9.64% from 2021 to 2026.
• As of 2021, there are approximately 2.7 billion gamers worldwide, with China, Japan, the US, and the UK accounting for 47% of all gamers and 64% of consumer spending in the sector.
• The Asia-Pacific region is set to dominate this market, driven by significant growth potential in countries like India, Japan, China, and South Korea.
• The global comic book market is projected to reach USD 19.5 billion by 2028, up from USD 11.8 billion in 2021, representing a CAGR of 7.1% during the period from 2022 to 2028.
• It is crucial for the emergence of new trends like the metaverse, which necessitates skilled talent and can lead to the creation of approximately 2 million jobs in the sector.
• The sector can leverage Indian epics like the Ramayana and Mahabharata to create engaging online and video games, which would establish India as an AVGC hub.

Formation of the AVGC Promotion Task Force

• It was established following the fiscal year 2022-2023 budget announcement. Its objectives include:
  • Guiding policy formulation and growth strategies for the AVGC sector.
  • Establishing standards for AVGC education.
  • Collaborating with industry and international AVGC institutes.
  • Enhancing the global standing of the Indian AVGC industry.
• Key Recommendations for Integrated Growth:
  • Market Development: Creating access to markets and promoting high-quality content.
  • Skilling and Mentorship: Ensuring comprehensive training and mentorship for emerging professionals.
  • Technology Access: Increasing availability of cutting-edge technologies for creators.
  • Financial Support: Developing financial models to support industry growth.
  • Diversity and Inclusion: Encouraging diverse voices and perspectives within the sector.

Key Features of NCoE:

• NCoE aims to foster the development of homegrown intellectual property inspired by India’s rich cultural and historical heritage, for progress in domestic and international markets.
• It will offer training and educational programs tailored for individuals at all levels, from beginners to experienced professionals, focused on latest advancements in AVGC-XR technologies.
• The initiative comes at a crucial time when India’s gaming and esports industry is experiencing rapid expansion.
• Esports has recently been recognized as a ‘multi-sport event’ by the Indian government, further accelerating its growth.
• The Ministry of Information and Broadcasting would organize the World Audio Visual and Entertainment Summit (WAVES) in 2025, featuring esports tournaments for popular games.
• It would aid increating more career opportunities for the Gen-Z demographic, who are increasingly engaged with AVGC-XR technologies.

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