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Who owns the copyright to children's book illustrations?

This is something you should discuss with your illustrator before the project starts, not after it has finished.

Copyright and usage rights are not necessarily the same thing. All illustrators are different regarding copyright and usage. I'm a simple soul and when you pay me you own it all... forever!

Piranha.jpg
An illustrator might retain copyright while giving the author permission to use the artwork in particular ways. Another illustrator might offer a licence covering specific uses. Others, including myself, may agree to transfer ownership of the rights as part of the project.
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There isn't one arrangement that is automatically right for every author.
The important thing is that you know exactly what you're buying.
Can you use the illustrations in the printed book?
Can you use them on your website?
Can you use them for advertising?
Can you create merchandise?
Can you sell the book internationally?
Can you adapt the characters in future?
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These are all things worth establishing in writing.
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I work on a work-for-hire basis, so my picture-book package transfers the worldwide rights in the artwork to the client in perpetuity. That's a deliberate part of the service I offer, because I know many independent authors want complete ownership of their book.

This is a style I developed working in the animation and game industry used to iterate character designs. I use this when the project needs a touch of the 3 dimensional. Many a rolling hill in the background.

This is the style that I have been developing and improving since I was 16 years old. I’m working in a maximum of two planes wherever possible. Things in the background are only added when essential to the story. They are often drawn on the same horizon line as the main focal character and adjusted in size to create depth. This is how comics were done originally and is my favourite way to work. 

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