Explore how the global art market demonstrated resilience and growth in 2022, driven by high-value artworks and the thriving Post-War and Contemporary Art sector, despite facing significant global challenges.
The global art market has always been a fascinating barometer of economic and cultural trends. Despite the significant hurdles presented by 2022, including geopolitical tensions, inflation, and ongoing pandemic impacts, the market displayed remarkable resilience. This year saw a modest yet significant growth, driven by high-value art sales and the enduring appeal of contemporary works. Let’s dive into the details and understand what fueled this steady performance.
In 2022, the global art market's total annual transaction volume reached $26.8 billion, reflecting a 2% increase compared to the previous year (Figure 1). While this growth pales compared to the staggering 49% increase in 2021, it remains a testament to the market’s resilience. The market faced multiple challenges, including the Russia-Ukraine war, inflationary pressures, the lingering impacts of COVID-19, supply chain disruptions, and fluctuations in cryptocurrency markets.
However, as transaction activities gradually normalized worldwide, several regions experienced significant sales surges, contributing to the overall market recovery. This recovery underscores the art market's ability to adapt and thrive even amid global uncertainties.
Figure 1: Annual transaction volumes from 2016 to 2022.
High-value artworks were the main driving force behind the art market’s growth in 2022. Despite a decline in sales across most price segments compared to the previous year, the ultra-high price segment saw a 12% increase. This follows an already significant surge in the previous year. The post-pandemic art market structure has become more robust, with high-net-worth collectors expanding their wealth and purchasing power, thus driving strong sales in the high-end market.
Since 2019, global ultra-high net worth wealth has increased by more than a third. These wealthy individuals are increasingly focusing their purchases on high-end art, favoring well-known artists and works perceived as less risky and more likely to retain value. Masterpieces are seen as hedges against inflation and as alternative methods of value storage, making them attractive investments in uncertain times.
The "Post-War and Contemporary Art" sector continued to dominate the auction market in 2022, with total sales reaching $7.8 billion. This sector alone accounted for 54% of global auction sales. The transaction volume of contemporary art has doubled compared to 20 years ago, partly due to the rising number of artists entering the market.
In recent years, many young artists have seen their works appear in the secondary market early in their careers, frequently setting auction records and even crossing the million-dollar price threshold. This trend has sparked widespread interest and discussion, further solidifying the market’s robust nature.
Several factors hindered more substantial growth in 2022. The Russia-Ukraine war created geopolitical instability that affected global markets. Inflationary pressures impacted discretionary spending, and the ongoing effects of the COVID-19 pandemic continued to disrupt supply chains. Additionally, the volatility in cryptocurrency markets added to the uncertainty, influencing art transactions indirectly.
Despite these challenges, the market’s modest growth indicates a resilient and adaptable industry. The high-end segment, in particular, demonstrated significant strength, buoyed by the purchasing power of ultra-high net worth individuals.
Your cart is currently empty.
Start Shopping