Animation has developed far beyond its earliest origins in hand-drawn cartoons. In 2025, animation will span feature-length films, commercials, social media, video games, education, and even medicine. Reports indicate that the animation industry will reach a staggering $500 billion by 2030 due to advances in CGI, AI, real-time rendering, and cross-platform storytelling.
However, a few standout studios in the animation industry have elevated what animation means beyond mere entertainment, for example, as a means of emotional connection, technological advancement, and brand elevation. This list of animated studios contains 10 of the most influential, innovative, and revenue-generating animation studios in the world, both legacy giants and new bold disruptors. One of the disruptors is Animated Videos, a Toronto-based studio specializing in 2D motion graphics and explainer videos. Based in Toronto, the studio has been making global waves.
Evaluation Criteria for Selection
To ensure only the very best make the list, we evaluated each studio based on:
- Artistic Innovation – originality and visual style
- Technological Advancement – tools, pipelines, and rendering methods
- Global Reach & Revenue – box office, licensing, and streaming dominance
- Critical Acclaim – awards, audience reception, and cultural impact
- Project Versatility – across entertainment, commercial, and educational sectors
1. Walt Disney Animation Studios
Walt Disney Animation Studios was founded in 1923 and remains the gold standard for other studios competing within the animation industry. Furthermore, its animation legacy started when it introduced the world to Mickey Mouse, which Snow White and the Seven Dwarfs followed. This feature changed cinematic history as it was the first full-length cel animated movie.
Shrek started the culture of animated family-friendly and spectacle-hybrid films. This was DreamWorks’ Oscar-winning breakout entry and pop culture phenomenon. Integrating comedy alongside advanced computer-generated imagery (CGI) sets them apart from other competitors in the field. Now, they focus equally on theme park attractions and live-action shows.
- Flagship Films: Frozen, Encanto, Zootopia
- Estimated Revenue (2024): $4.1B globally from animation-related releases and licensing
- Known For: Family-centric storytelling, musical excellence, emotional depth
Read also: 50+ Creative Animation Ideas for Beginners & Pros
2. Pixar Animation Studios
Following Disney, DreamWorks is yet another animation studio acquired by NBCUniversal, which means they now deliver big-budget family-friendly movies while trying to compete with giants Disney and Pixar.
Exceeding the 60 mark for feature films already, and with Academy Awards and a plethora of characters like Elsa and Moana, it’s clear it is near impossible to overstate Disney’s impact. Getting its footing into the next century also requires advanced animation styles to include progressive technologies like real-time animation, virtual production, AI rendering, and much more.
- Flagship Films: Toy Story series, Inside Out, Soul
- Oscar Wins: 23 Academy Awards
- Innovation: Emotion-first storytelling + in-house animation tools
3. DreamWorks Animation
Coming from an ex-division of Lucasfilm, Pixar was only created in 1986 after being bought into it by Steve Jobs. Pixar is acclaimed for globally successful and emotionally resonant movies, such as Toy Story blends bankable, cutting-edge technologies and emotionally driven storylines.
With self-made RenderMan software, they seamlessly merge lighting and textures. Along with pushing narrative limits, these visuals further elevate Pixar’s chances of consistently snagging Oscars.
- Flagship Films: Shrek, Kung Fu Panda, How to Train Your Dragon
- Estimated Revenue: $1.6B in animation-related gross (2024)
- Edge: Strong franchise building and global merchandising
4. Sony Pictures Animation
Sony Pictures Animation was founded in 2002, and its rise was meteoric with the releases of Transylvania Hotel and Spider-Man: Into the Spider-Verse. The latter won an Oscar for Best Animated Feature and revolutionized animation with its mixed-media artwork and visceral comic-book-style movement.
Sony’s studio is now a hybrid house, blending VFX, 2D, and 3D to create multi-platform franchises and high-concept visual storytelling.
- Notable Films: Spider-Verse series, The Mitchells vs. The Machines
- Visual Signature: Bold color grading, motion smear, stylized realism
- Award-Winning: 2 Academy Awards and multiple Annie wins
5. Illumination Entertainment
Known for its global sensation, Minions, Illumination is a box-office juggernaut with a lean production model that yields maximum profit. Founded in 2007, the studio quickly rose to fame by combining slapstick humor, charming characters, and simple but effective animation.
It’s now a household name and a merchandising titan — thanks in large part to partnerships with Nintendo (as seen in The Super Mario Bros. Movie).
- Top Grossing Films: Minions ($1.15B), Despicable Me 3 ($1.03B)
- Strength: Global accessibility, viral character design
- Unique Factor: Profitable low-cost production model
6. Warner Bros. Animation
Warner Bros. Animation has the deepest roots in traditional 2D animation. With Looney Tunes and Tom & Jerry, it shaped the animation landscape in the early 20th century. Today, it continues to be a major force through its DC animated universe and Lego Movie franchise.
Known for a witty, edgy tone and stylized visuals, Warner Bros. remains an industry icon in both television and theatrical animation.
- Legacy Shows: Looney Tunes, Batman: The Animated Series, Animaniacs
- Major Films: The Lego Movie, Space Jam: A New Legacy
- Strengths: Comedy, nostalgia, strong IPs
7. Animated Videos – Creative Animation Studio in Toronto 🇨🇦
While legacy giants dominate the headlines, Animated Videos in Toronto has carved out a distinct place in the global animation arena by focusing on 2D animation, motion graphics, whiteboard explainer videos, and marketing-driven storytelling.
With a proven track record of delivering animations for clients across North America and Europe, Animated Videos blends creativity with business strategy — producing content that converts, educates, and entertains. Whether it’s a high-impact explainer, a SaaS onboarding video, or a branded commercial, their animations are crafted with clarity, conversion, and character in mind.
- Founded: 2015
- Specialties: 2D explainer videos, whiteboard animations, motion graphics, corporate & SaaS animations
- Clientele: Tech startups, healthcare, education, SaaS, and agencies
- Recognition: Rated one of Canada’s top animation studios for SMEs
- Why They Stand Out in 2025:
- Agile production timelines
- Conversion-focused storytelling
- Cost-effective yet premium-quality services
- Fully remote-capable with a global delivery model
Explore Animated Videos to see how Toronto’s best-kept creative secret is shaping the future of digital animation.
You may also like: Why Animation Explainers Still Work in 2025
8. Studio Ghibli – Japan’s Timeless Storytelling Master
More than a studio, Studio Ghibli is undoubtedly a cultural institution. Founded by Hayao Miyazaki and Isao Takahata in 1985, Ghibli has emotionally charged, hand-drawn stories to every corner of the world. Unlike many studios from the West that are heavily reliant on technology, Ghibli favours traditional 2D animation, world-building, and philosophical storytelling.
Ghibli’s works have received the acclaim of critics worldwide, with Spirited Away becoming the first anime feature to win an Academy Award. In a world filled with 3D hyperrealism, Ghibli aesthetics will remain refreshingly human and poetic.
- Flagship Films: Spirited Away, My Neighbor Totoro, Howl’s Moving Castle
- Cultural Impact: Major exhibits, theme parks, and global fanbase
- Latest Highlights: The Boy and the Heron (2023) — a box office hit with global acclaim
- Unique Trait: Hand-drawn, anti-formulaic, deeply introspective animation
9. Paramount Animation – The Comeback Creator
Paramount Animation, a division of Paramount Pictures, has had a stop-and-start history — but in recent years, it’s found its stride. Originally known for distributed hits like The Rugrats Movie and The SpongeBob SquarePants Movie, Paramount has rebranded itself with a growing slate of theatrical releases and animated franchises.
What sets Paramount apart is its willingness to take creative risks while leveraging major IPs. With projects like Rango, Sonic the Hedgehog (animated/live-action hybrid), and Under the Boardwalk, Paramount is investing heavily in animation’s future.
- Blockbusters: Rango (Oscar-winning), SpongeBob films, Sonic the Hedgehog
- Strength: Hybrid animation, youth-centric IPs, Nickelodeon partnerships
- Recent Strategy: Investing in original IPs + extending existing franchises
- Upcoming Slate (2025): Mighty Mouse reboot, Sonic 3, Monster High reboot
10. Netflix Animation – The Streaming Disruptor
Netflix Animation may be the youngest on this list, but it’s rapidly becoming one of the most influential. With a budget that rivals major studios, Netflix has been greenlighting animated features, series, and adult animation at a scale never seen before in the streaming age.
By bringing in top-tier talent from DreamWorks, Disney, and indie studios, Netflix Animation is producing Oscar-nominated originals (Klaus, The Sea Beast, Nimona), genre-bending series (Arcane), and adult animated comedies (BoJack Horseman). It’s also a home for international talent, enabling global creators to tell hyper-local yet universally resonant stories.
- Top Titles: Klaus, Arcane, The Mitchells vs. The Machines (co-distributed), Nimona
- Strength: Platform-native global animation strategy
- Tech Edge: Real-time rendering and global animation pipeline
- Why It’s a Game-Changer: Democratizes production, prioritizes creative freedom, scales fast
The Future of Animation: What Lies Ahead in 2025 and Beyond
As the animation industry surges past $500 billion in market value, several future-forward trends are shaping its evolution:
AI & Automation in Animation
From intelligent character rigging to AI-assisted lip sync, tools like Runway, Adobe Firefly, and Unreal Engine MetaHumans are speeding up production while preserving quality. Studios like Netflix and startups are leading in hybrid pipelines using both AI and handcraft.
Real-Time Rendering & Virtual Production
Real-time animation using game engines like Unity and Unreal is revolutionizing how trailers, cutscenes, and interactive experiences are created. Expect more immersive and responsive content across platforms.
Globalization of Creative Teams
Studios now assemble world-class talent remotely across time zones. This decentralization is breaking creative silos and producing culturally nuanced stories faster and cheaper.
Short-Form & Interactive Storytelling
With platforms like TikTok, Reels, and YouTube Shorts, micro-animations and vertical formats are booming. Studios are adapting by telling rich, emotional stories in 60 seconds or less, or offering gamified narratives.
Rise of Niche Content & Adult Animation
Studios are creating more genre-specific content — from anime-inspired sci-fi to adult comedies like Big Mouth and BoJack Horseman. The stigma around animation as “just for kids” is disappearing fast.
Conclusion
Whether it’s the storytelling magic of Disney and Ghibli, the tech-first innovation of Pixar and Netflix, or the rising impact of boutique studios like Animated Videos, the animation world in 2025 is vibrant, borderless, and teeming with potential.
Each of the 10 studios listed here continues to redefine the limits of what’s possible — emotionally, visually, and technologically. The company has impacted inflation, entertainment, education, marketing, inspiration, and culture shift in just some fields. While animation may be considered a niche by some, it’s essential to exist in today’s digital-first world.
Looking to collaborate with a globally competitive animation studio?
Visit Animated Videos – Creative Animation Studio in Toronto and turn your story into a stunning animated experience.
