Online Art Market Surges by 587% Over the Last Decade: Hiscox Report
The online art market has experienced a significant growth of 587% in the last decade, according to Hiscox’s Online Art Report 2023. The COVID-19 pandemic has spurred intense activity in this sector, with an increase of 280% from 2019 to mid-2021. However, in 2023, although the market stabilized with a growth of 6%, inflation and the economic crisis led a third of buyers to plan to spend less. Additionally, a decline was observed in the intention to purchase Non-Fungible Tokens (NFTs), going from 27% in 2022 to 12% in 2023.
The Evolution of the Online Art Market
The report highlights the key developments in the online art market during the last decade: the decrease of middlemen in 2013, the market taking off in 2014 with sales of approximately $1.57 billion, the triple-digit growth of online auctions and marketplaces in 2015, and the growing importance of Instagram as an exhibition platform in 2016. In 2017, third-party sales channels gained popularity, and in 2018 concern for cybercrime increased. Trust in online platforms fell from 96% in 2018 to 77% in 2019, but the pandemic in 2020 led online art platforms to be the main sales channel. The rise of cryptocurrencies and blockchain technology characterized the years 2021 and 2022, and in 2023 a return to a new normal is observed with a more stable industry.
The Future of Art Logistics and the Metaverse
While online art sales continue to grow, the art logistics market in the USA is expected to continue its growth until 2028 at a Compound Annual Growth Rate (CAGR) of 5.4%, making up a $1.1 trillion industry by 2028. The transportation segment is the largest of all sectors, with a CAGR of over 6% and a steadily rising demand for shipping services across the US. The fast development of e-commerce and online platforms specializing in art object sales is also expected to contribute to the expansion of the art shipping industry.
Furthermore, the Metaverse market is gaining importance with projections indicating that it could reach $800 billion by 2024 and $1.5 trillion by 2030. Companies like All Universe aim to create a diversified Metaverse ecosystem, providing investment opportunities and profitability for its citizens.
Notable Events in the Art Market
The art market veered into correction in 2023, with the sale of Gerald Fineberg’s art collection at Christie’s on May 17 being a significant moment. The landmark 1968 Breuer building, home of the Whitney Museum of American Art, sold to Sotheby’s for over 100 million. A Christie’s jewelry auction turned into a major public relations nightmare after the Nazi roots of the fortune used to assemble the collection were revealed.
Looking ahead, Jean-Michel Basquiat’s work will be on exhibit at Brooklyn Museum of Art in New York on February 10, 2024. His work, which has been offered at auction multiple times, continues to draw attention in the art world, with realized prices ranging from $900 to $110,487,500.
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