Online Art Sales Surge and Opportunities for Emerging Artists
In 2020, the art market and global economy experienced their first notable drop in transaction volume since 2009, even though revenue and top-lot prices increased. The pandemic led to a rise in online art sales as restrictions prompted investments in digital platforms. Early 2021 preliminary data shows significant volume, but a three-year period is necessary to evaluate trends accurately. The distinct nature of the art market means that digital transactions can only partially replicate the art purchasing experience. Online platforms may lower costs and broaden market segments, with NFTs emerging as a new category. This evolution indicates a shift in value creation from supply-side to demand-side participants, which could advantage emerging artists. A unified investment strategy is essential for market expansion.
Key facts
- 2020 saw the first strong decline in art market transaction volume since 2009.
- Online art transactions experienced the largest year-over-year growth in 2020.
- Pandemic restrictions and investments by galleries and auction houses drove online sales growth.
- Preliminary data for first half of 2021 shows considerable online sales volume.
- Three-year evidence is needed to determine if online growth is temporary or permanent.
- Online art marketplaces could reduce costs and expand market segments.
- NFTs are one segment of online art, but not the only or most important.
- Online sales shift reputation systems from supply-side to demand-side players.
Entities
Institutions
- Artribune
- UBS
- Art Basel
- Statista
- Hiscox
- Art Tactic
- Monti&Taft
Locations
- Italy