Online Art Market Size, Share & Trends Analysis Report By Type (Paintings, Photography, Drawings, Prints, Others), By End-user (Foreign Customers, Domestic Customers), By Region, And Segment Forecasts, 2023 - 2030

Online Art Market Size & Trends

The global online art market size was estimated at USD 9.18 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.0% from 2023 to 2030. The market growth can be attributed to the heightened accessibility offered to both buyers and vendors. Online platforms have streamlined the process for art enthusiasts to purchase artworks from online platforms, obviating the necessity of visiting physical galleries or auction houses. This heightened convenience has broadened the potential of art consumers, thereby driving the growth of the market. Digitalization has been a pivotal force behind the market's expansion. The internet has facilitated the creation of online platforms where artists can exhibit their works, and collectors can explore a vast array of art globally. This digital landscape has dismantled geographical constraints, allowing artists and buyers to engage without the limitations of physical proximity. Consequently, the market offers a more diverse range of artistic styles and genres, enticing a larger and more diverse audience.

Technological advancements in the areas of telecommunication and smartphone technology have resulted in the growth of the market. For instance, according to DataReportal, an online reference library, almost 5.19 billion people are using the internet globally, thus offering an opportunity for the art market to sell art online. Furthermore, the launch of 5G services across various geographies offers faster internet speed to customers, enabling them to purchase online art with no geographic boundary limitations. Similarly, the latest smartphones enable the customer to purchase online art directly through their phones.

Furthermore, transparency and information are pivotal in attracting participants to the market. Online platforms typically offer comprehensive artwork information, including artist backgrounds, provenance, and pricing history. This transparency fosters trust among buyers and allows them to make informed decisions, which is crucial in an industry often characterized by opaqueness. Advanced technologies, such as data analytics and machine learning, are increasingly employed to personalize recommendations, enhancing the buying experience and helping buyers discover art that aligns with their tastes.

While the market is poised for growth over the forecast period, it does face certain challenges. One significant challenge is authenticity and provenance verification. Ensuring the authenticity of artworks, particularly in the case of digital art and NFTs, can be complex. Buyers need confidence that they are acquiring genuine pieces, and artists want their work protected from unauthorized reproduction and sale. Furthermore, the market faces issues related to fraud and counterfeit art, with some unscrupulous actors attempting to pass off counterfeit or copied works as genuine, which can erode trust within the market. Establishing and maintaining trust and authenticity in the online art space remains critical for its continued success.

End-user Insights

In terms of end-user, the domestic customer segment dominated the market in 2022 with the largest revenue share of above 67.0%. The domestic customer has a deep cultural connection to artworks from their region, gravitating towards pieces that resonate with their cultural heritage. In addition, their familiarity with the local art scene, including prominent artists and galleries, facilitates informed purchasing decisions. Logistically, buying art domestically is typically more convenient, with lower shipping costs and fewer customs hurdles. Many domestic buyers also prioritize supporting local artists and communities, fostering a sense of pride and connection. Moreover, they often better grasp local market dynamics, enhancing their confidence in purchasing decisions.

The foreign customer segment is anticipated to witness significant growth over the forecast period. Foreign customers are increasingly drawn to purchasing art online as it provides a global marketplace at their fingertips. They value the diverse selection of artworks worldwide, appreciating the opportunity to explore unique and unconventional pieces that may need to be more readily available in their local art scenes. These online art platforms offer transparency and information, which build the trust of foreign customers, helping them make informed decisions about their art acquisitions. Furthermore, the convenience of international shipping options simplifies securely receiving artworks from abroad.

Type Insights

Based on type, the paintings segment dominated the market in 2022 with the largest revenue share of more than 33.0%. The growth of the paintings segment can be attributed to the advancement in the high-resolution images, which enable the buyer to verify the authenticity and the art. Furthermore, paintings often hold significant investment value, attracting art collectors and investors to online marketplaces. The digital realm has also enabled artists to create and sell their paintings with unprecedented ease, contributing to the segment's growth. As online platforms continue to evolve, the paintings segment is likely to remain a key driver of expansion in the market, appealing to both seasoned collectors and newcomers.

The photography segment is anticipated to register the fastest CAGR of 10.3% over the forecast period. The growing digitalization and the ease of online presentation have allowed photographers to showcase their work to a global audience, eliminating geographical constraints. The affordability of photography, both for artists and buyers, makes it an attractive option for emerging talent and new collectors, fostering an inclusive art ecosystem. Furthermore, photography's ability to capture contemporary life and societal changes, coupled with its potential as an investment, further fuels its growth. Online galleries and virtual exhibitions have expanded the reach of photographic art, enhancing its presence and influence in the ever-evolving market.

Regional Insights

North America dominated the market in 2022 with the largest revenue share of over 29.0%. The region's tech-savvy population readily embraces digital platforms for art transactions, fostering the growth of the market across the region. Furthermore, North America's substantial population of high-net-worth individuals and art collectors, coupled with a well-established culture of art collecting, generates a strong demand for online art platforms. Moreover, the region's prestigious art schools, museums, galleries, and supportive infrastructure ensure a thriving ecosystem for artists and collectors.

Asia Pacific is anticipated to register the fastest CAGR of 10.4% over the forecast period. Robust economic growth in countries such as China and India has led to a burgeoning middle class with rising disposable income, expanding the pool of potential art buyers. Moreover, the region's tech-savvy population, characterized by countries such as South Korea and Japan, is increasingly comfortable with online platforms, fostering the digital art market's development. The rich cultural diversity of the Asia-Pacific region, combined with a growing appreciation for art, has created a vibrant and dynamic art ecosystem. This is further supported by an increasing number of art institutions and galleries, nurturing local talent, and attracting international interest.

Key Companies & Market Share Insights

The market for online art can be considered as a highly fragmented market driving the competition in the market. Several key players in the market are involved in strategic initiatives such as partnerships and collaboration with art galleries to increase their product offerings. For instance, in April 2020, Sotheby's, a fine arts company, announced its partnership with various art galleries, including Petzel Gallery, Gavin Brown’s enterprise, Jack Shainman Gallery, Lehmann Maupin, Kasmin Gallery, Luhring Augustine, Sperone Westwater, and Van Doren Waxter. This partnership was aimed at launching a new digital marketplace for selling art online.

The traditional auction houses selling the art offline are involved in launching their online e-commerce platforms to increase sales and revenue. For instance, in August 2023, Phillips, an auction house, announced the launch of the e-commerce platform named Dropshop. As a result of this launch, this auction house will begin selling fine art directly to collectors through its new online platform.

Online Art Market Report Scope

Global Online Art Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global online art market report based on type, end-user, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Paintings

  • Drawings

  • Prints

  • Photography

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Foreign Customers

  • Domestic Customers

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • The Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa