information by category (Art shop / Framing shops,
One of the main factors driving the global art market is the increase in spending on artwork by HNWIs. The number of millionaires in the world has increased 170% since 2000. According to a report from Credit Suisse, there are approximately 36 million millionaires in the world. The growing population of these HNWIs is accelerating the demand for high-end art objects. According to UBS and Arts Economics, 35% of US-based HNWIs were active in the art and collectibles market in 2017.
One of the main trends in the market is the growing investment in art as a collector’s asset. Traditional investors invest in standard stocks and bonds, ETFs and mutual funds. Diversifying investments into a different range of assets helps reduce risk and increase the chances of return. Art, as an investment, is gaining popularity in Europe. Since 2016, the European HNWI population has started to invest more in art. In the context of Brexit, HNWIs are inclined to invest in tangible assets that are not dependent on governments. Therefore, instead of investing in stocks or bonds, investors are increasing their spending on art. According to the Deloitte Art & Finance Report in 2016, 73% of wealth managers expect their clients to include art and other collectible assets in their heritage. Investing in art offers a decent return on investment. According to the study of the art market, investment in art achieved a return of 10.6% in 2018. As a result, investment in art as a collector’s asset is growing .
However, the trade war between the United States and China is one of the biggest challenges in the art market that could hamper the growth trend in the years to come. The United States, one of the largest art markets, has established itself as a hub of international trade by increasing import and export activity around the world. The country imports various Chinese works of art, including hand-made paintings, drawings and sculptures. According to Commerce Department data, art and antiques from China accounted for more than $ 280 million in imports. As a result of the trade war between the United States and China, thousands of items were imposed with a 10% import duty. This import duty tax may not affect individual collectors in the United States, but it has affected the scenario of importing Chinese art into art galleries across the United States; resulting in a less profitable import of Chinese works of art.
An art gallery is a place to discover and buy art. The works of art are displayed in art galleries, where there is controlled lighting to present the exhibits. The aesthetic environment of an art gallery engages the audience and attracts potential clients. According to Artsy Gallery, average art galleries made up about 65% of all art galleries in the world in 2018.
According to the UBS and Art Base report, in 2016, art galleries around the world recorded 51% of sales. Globalization and digitization have also had an impact on the art world and the operating model of art galleries. Several small and medium-sized galleries mainly capture the art gallery market, meeting the demand of the middle classes. Art galleries are gaining popularity in emerging countries, notably in Brazil, China, India and Russia. Small art galleries are increasing their online presence and actively participating in prestigious art fairs around the world.
Number-of-Art-Galeries-Worldwide Figure: 1 – Number of art galleries, in the world
Art stores sell art supplies as well as paintings, sculptures, drawings, original prints, photographs, architecture, and other art forms to professional artists as well as hobbyists. Art shops are dominated by various small and medium vendors operating locally. Many art shops also offer their products all over the world; Jackson’s Art Supplies sells over 60,000 art materials in 246 countries. Picture framing stores are picture framing stores that offer bespoke framing services and sell ready-made picture frames and other craft supplies. Executive stores are small businesses that have a concentrated presence in limited geographic locations. According to Gemini Builds It, there were 5,500 frame stores in the United States in 2018, while 35,000 frame stores were in operation in 2008. With the growing number of online frame retailers, frame store owners locals are facing a downturn in business. Therefore, small store owners focus on developing solid marketing plans to improve their business. The tailor-made framing service offered by small traders is gaining momentum in the market. Various art shops offer personalized frames to attract more customers. Artists and buyers alike invest in framing their paintings to make them look like a million dollars.
Appraisers are individuals or a group of individuals responsible for determining the actual market value of the work of art. Appraisers have expertise in different fields ranging from paintings and drawings to clocks and watches, furniture and ceramics, fine and decorative arts, jewelry and housewares. Attendance at art auctions is driving the need for immediate art appraisal, which is driving the demand for appraisers globally. According to ArtTactic, the company had 62 experts in 2018 with more than 1.3 million assessments worth $ 800 million completed. The company has reportedly acquired 500,000 customers. In 2017, Christie’s New York conducted a pre-auction appraisal of Leonardo’s painting titled âSalvator Mundiâ and estimated the painting’s price to be around $ 100 million. Later, at the auction, the painting was sold for 450 million dollars at Louvre Abu Dhabi. With the increasing value of art, the demand for appraisers is also increasing.
An antique dealer, as the name suggests, is a retail store specializing in the sale of antiques. Antique stores carry a variety of items ranging from low end to high end goods. Most antique dealers are small businesses that sell large volumes of less valuable items; however, high-end products attract collectors. Despite the dominance of online platforms, antique stores are still widely preferred because they allow customers to touch and smell items.
The number of art collectors is increasing all over the world. The globalization of the art market has presented enormous opportunities in the art collections market. According to US Trust, baby boomers hold the largest share while millennials are the fastest growing group of art collectors in the world. Millennials collect art because they find monetary value in the art collection and use it to create greater wealth.
Number of art buyers-2018 Number: – 3 Number of art buyers 2018
North America has the largest market share based on art sales. The United States is a leading country in North America as well as in the global art market. According to Art Basel, the United States accounted for 42% of art sales, followed by the United Kingdom and China. At the end of 2017, art sales in the United States increased when the government announced the removal of section 1031 of the tax code effective December 31, 2017.
Global-Art-Market-Share-2017 Figure: 4 – Share of the global art market 2017
Europe holds the largest share for a number of art galleries in the art market; since 2007, the region has recorded the most gallery openings in the world. Most of the art galleries can be found in the UK, Italy, France, Spain and Germany. Art exhibitions are frequently held in Germany and France. The region also holds the largest share of the number of auctions. According to Auction Club, AMMA, the region held over 27% of the global auction market in 2017.
Asia-Pacific has the fastest growing art market, with China accounting for the largest market share. The Chinese economy has snowballed, producing not only many wealthy individuals, but also organizations that actively purchase high-quality Chinese art and antiques. In 2010, Asia held a 24% share of the number of billionaires, which then climbed to 41% in 2017.
Latin American and African countries have experienced impressive improvement in the art market. Recently, the demand for African American art and artists is increasing. Despite the unprecedented interest in African coins, local collectors do not have enough money for the kind of collections that are attracting the global industry. However, the demand for African art is increasing in North America and Europe. According to Artnome, around 90% of African art is found outside the continent.
The main players in the art market are: Art Galleria, ArtBase, ArtBinder, ArtCloud, ArtFundi, Artlogic, Artlook Software, GallerySoft, galerie informatique, Managed Artwork, Masterpiece Manager, My Online Art Gallery, PrimaSoft PC, Primer and Spinnsoft Gallery
Segmentation of the art market
Art shop / Frame shops
All other collectors
The rest of europe
Rest of Asia-Pacific
Rest of LATAM
United Arab Emirates
Rest of the Middle East
Rest of Africa
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