Work of art: Burgeoning online activity and improving economic conditions will likely drive industry revenue growth
The Online Art Sales industry, similar to the broader art market, has enjoyed several years of revenue growth; this can be attributed to a strong economic performance and a shift in consumer preference towards e-commerce. The COVID-19 pandemic, which had the potential to disrupt the industry, prompted a major transition to online sales as in-person galleries and shows closed because of health mandates. However, the Federal Reserve's decision to strategically raise benchmark interest rates multiple times led to a tighter policy; this has impacted budgets, reduced disposable income and caused some volatility within the industry. Nonetheless, industry-wide revenue has been increasing at a CAGR of 11.2% over the past five years, including an estimated 4.6% increase in the current year, and is expected to total $5.4 billion in 2023. In the same year, profit is projected to decrease to 8.9%.
This industry primarily retails or auctions original and limited-edition artwork over the internet. Industry players include online marketplaces, auction houses, art dealers and galleries. Industry operators purchase artwork from artists or individual owners and then sell the artwork to consumers, with little or no further development of the product. This industry also includes platforms that bring buyers and sellers together, for a commission.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Heritage Auctions Inc.
Methodology
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