The surge in online sales has markedly invigorated the lower echelons of the art market, potentially sounding the death knell for traditional showroom auctions, according to the chief executive of Artprice, a leading market analysis firm, which unveiled its annual report this month.
Artprice reported a decline in the number of high-profile auctions in 2023 compared to the preceding year, resulting in an overall turnover reduction of 14%, settling at $14.9 billion. Nevertheless, the aggregate number of transactions reached a historic peak at 763,000, notably witnessing a substantial surge at the lower end of the spectrum, where 423,000 art sales occurred for amounts less than $1,000.
Emphasizing the noteworthy transformation, Artprice CEO Thierry Ehrmann conveyed that the shift is predominantly towards the online domain, propelled by a burgeoning demographic of new buyers, whose average age has decreased from 63 to 41 over the past two decades. Ehrmann contended that even conventional auction houses, which were historically apprehensive about embracing digital platforms, are now actively engaging in online competition.
Ehrmann asserted, "Showroom auctions are destined for obsolescence," underlining the inevitability of their disappearance. As the art market gains momentum in Asia with the easing of pandemic-related restrictions, high-end sales have observed an upswing in China and Hong Kong, while Western countries experienced a decrease in major auctions.
The United States retained its leadership position in the market with sales totaling $5.2 billion, albeit reflecting a 28% decline due to the absence of significant private collection sales seen in recent years. China closely followed with $4.9 billion in sales, and Britain, continuing its post-Brexit downturn, registered $1.8 billion in sales, marking a 15% reduction.
India exhibited notable growth, with sales surging by 76% to reach a record $152 million. The renowned artist Amrita Sher-Gil (1913-1941) holds the record for a single painting, as her work "The Story Teller" fetched $7.4 million.
Artprice underscored the increasing recognition of women artists, featuring Japan's Yayoi Kusama among the top 10 most valuable artists for the second consecutive year, with sales totaling $189.7 million. Notable prices were also achieved for artists such as Joan Mitchell ($112.6 million), Georgia O'Keeffe ($56.2 million), and Louise Bourgeois ($50.2 million). The transactions for women artists doubled in the past five years and tripled in the past decade.
In terms of revenue generation, perennial favorites Pablo Picasso and Jean-Michel Basquiat led the way, with China's Chang Dai-chien (1899-1983) securing the third position.
While the NFT (Non-Fungible Token) bubble, which burst in 2022, showed signs of stabilization in the subsequent year, its presence extended into traditional institutions like the Pompidou Centre in Paris and the Museum of Modern Art in New York. Major auction houses Sotheby's and Christie's organized substantial sales of digital art, with Canada's Dmitri Cherniak emerging as the most valuable digital artist of the year, amassing sales worth $7.9 million.
In broader categorization, modern art (artists born between 1860 and 1919) retained its dominance, constituting 41% of the market turnover, followed by post-war art (1920-1944) at 25%, and contemporary art (after 1945) at 17%.
