The World Art Market, from Recovery to Growth

2015.03.02

The World Art Market, from Recovery to Growth
[Trend] Analysis of the Status of the 2013 Art Market:Overseas Edition


Survey Reference Point December 31, 2013
Target Period January 1, 2013–December 31, 2013
Subject The art market from a sales perspective (galleries, auction companies, art fairs)
Content The condition of the world art market, the overseas expansion of Korean art
Method Literature analysis


The “2014 Survey of the Overseas Art Market in 2013” was conducted to gain an understanding of the salability of art pieces and art market trends, carried out by collecting and analyzing statistical data on the world art market by nation, sale channel, period, and genre/medium. Moreover, to gain an understanding of the position of the Korean art market in the world art market, KAMS researchers analyzed the records of successful bids on pieces created by Korean artists at Christie’s Hong Kong auction, and instances of Korean galleries participating in overseas art fairs. Along with the aforementioned sample, the team also collected information on overseasart fairs over the course of a year and prepared a calendar of events to present to Korean art professionalswho might be interested in participating. Of all of the above, we excerpted "KeyTrends in the WorldArt Market" for presentation in TheApro.The reportwas prepared with particular reference to "The TEFAF Art Market Report 2014: The Global Art Market with a Focus on U.S. and China," which draws on data collected from 308,500 dealers, galleries, and auction housesregarding fineart and decorative art, and "Key Trends in the World Auction Market," a study exploring the auction bids on fine artfocus ofmarket researcher Artprice’s 2013art market report.

Key Issues in the 2013 World Art Market

The size of the world art market in 2013 was KRW 68.9 trillion, its highest sales performance since 2007. The main contributor to this heightened performance was the growth of the U.S. art market, the volume of which increased by 25 percent from 2012, and firmly established itself as the center of the world art market. China’s volume grewa modest 2 percentfrom the previous year, but in terms of size is viewed as the most influential art market for the future. With regard tosales among particular genres of art, postwar and contemporary pieces stood out, recording KRW 7.12 trillion (€4.9 billion) in sales and an 11 percentincrease compared to the previous year. Sales in this genre made up 46 percent of total auction transactions in 2013, with the number of pieces sold rising by 6 percent.

Among the distribution channels, online sales showed the most promise for potential development. In 2013 the volume of art sales made through online channels comprised 5 percent of the total art market (KRW 3.63 trillion, €2.5 billion), but yearly growth is predicted to be 25 percent, with sales expected to reach KRW 14.53 trillion (€10billion) by 2020.

The Size of the World Art Market in 2013

For the fiscal year of 2013, the size of the world art market was calculated asKRW 68.90 trillion won (€47.42billion), about KRW 6 trillion more than the previous year. This growth is attributed to the increaseof the U.S. and Chinese market share, with U.S. postwar and contemporary art leading the market. The U.S. recorded sales of KRW 26.18 trillion—KRW 6 trillion more compared to 2012—and a 38 percent share of the market. China trails by a significant margin, with sales of KRW 16.54 trillion, about KRW 1trillion more than the previous year, and auctions making up 65 percent of itstotal market. But whilethe U.S. and China showed progress, the art market in Europe continues to show signs of stagnation or decline. Throughout the entire global art market, the auction market grew by about KRW 2 trillion to take up 47 percent of the total market, similar market to the previous year.

The Size of the World Art Market
KRW 68.90 trillion / €47.42billion

By Nation By Distribution Channel
Region Market Share Total Distribution Channel Market Share Total
U.S. 38% KRW 26.18 trillion
€18.02 billion
Auction 47% KRW 32.69 trillion
€22.5 billion
China 24% KRW 16.54 trillion
€11.38 billion
Europe U.K. 20% KRW 13.78 trillion
€9.48 billion
France 6% KRW 4.13 trillion
€2.85 billion
Switzerland 2% KRW 1.38 trillion
€0.95 billion
Galleries, Dealers, Art Fairs, Online Channels, etc. 53% KRW 36.21 trillion
€24.92 billion
Italy 1% KRW 0.69 trillion
€0.47 billion
Germany 1% KRW 0.69 trillion
€0.47 billion
Austria 1% KRW 0.69 trillion
€0.47 billion
Sweden 1% KRW 0.69 trillion
€0.47 billion
Other 6%  

<Table 1> Art Sales by Nation and Distribution Channel (2013)
(Source: TEFAF Art Market Report 2014)

<Figure1>World Art Market Sales(2003–2013)(Source: TEFAF Art Market Report 2014

<Figure1>World Art Market Sales(2003–2013)(Source: TEFAF Art Market Report 2014)

<Figure2>World Art Market Transactions by Number (2003–2013) (Source:TEFAF Art Market Report 2014

<Figure2>World Art Market Transactions by Number (2003–2013) (Source:TEFAF Art Market Report 2014)

1) The data in <Figures 1, 2>addresses thesales of fineand decorative art through auctions, galleries and other art markets

The Size of the World Auction Market, by Nation, Genre/Medium, and Major Auction Companies

In 2013, the world auction market grew by 13.0 percent from the previous year to KRW 13.15 trillion, taking up 47 percent of the total art market.

<Figure3>Estimated Sales in the FineArt Auction Market (2004–2013) (Source:Artprice.com; Report: The Art Market in 2013)

<Figure3>Estimated Sales in the FineArt Auction Market (2004–2013)
(Source:Artprice.com; Report: The Art Market in 2013)

China recorded KRW 4.49 trillion (US$4.1 billion) in art sales and has been leading the world auction market for four years running, with the U.S. following closely behind with KRW 4.34 trillion (US$4.0 billion). The U.K., Europe’s leading auction market, recorded KRW 2.27 trillion (US$2.08 billion) in sales in 2013, but with the U.S. and China still far ahead, the European auction market remains stagnant.

Ranking Country Sales Market Share
1 China KRW 4.49 trillion (US$4.10billion) 34.1%
2

U.S.

KRW 4.34 trillion (US$4.00billion) 33.0%
3 U.K. KRW 2.27 trillion (US$2.08billion) 17.3%
4 France KRW 0.60 trillion (US$0.55billion) 4.6%
5 Germany KRW 0.23 trillion (US$0.21billion) 1.7%
6 Switzerland KRW 0.17 trillion (US$0.16billion) 1.3%
7 Italy KRW 0.12 trillion (US$0.11billion) 0.9%
8 Austria KRW 0.08 trillion (US$0.07billion) 0.6%
- Other KRW 0.85 trillion (US$0.72billion) 6.5%
  Total KRW 13.15 trillion (US$12.00billion) 100%

<Table 2> Auction Markets by Key NationAccording toSales Figures
(Source: Artprice.com 2013 Art Market Report)

When examining the auction market by genre/medium, the painting categorydisplayedthe greatest amount ofcommercial activity, with KRW 7.25 trillion (55.1 percent of the entire market) in paintings sales, followed by sculpture sales at KRW 1.00 trillion, then prints sales at KRW 0.29 trillion.

Ranking Country Sales Market Share
1 Painting KRW 7.25 trillion (US$6.62billion) 55.1%
2

Sculpture

KRW 1.00 trillion (US$0.91billion) 7.6%
3 Prints KRW 0.29 trillion (US$0.26billion) 2.2%
4 Photography KRW 0.17 trillion (US$0.15billion) 1.3%
5 Drawings and other KRW 4.44 trillion (US$4.06billion) 33.8%
6 Total KRW 13.15 trillion (US$12.0billion) 100%

<Table 3> The Auction Market by Genre/Medium According toSales Figures
(Source: Artprice.com 2013 Art Market Report)

When examining the market shares of the individual auction houses that currently lead the world market, major auction houses Christie’s and Sotheby’s each made up 29.5 percent and 25.8 percent of the total market, respectively.

Multiple Chinese auctions houses were rankedwithin the top 10 recorded a combined market share of 16.5 percent,such as Poly International Auction Co., Ltd.; China Guardian Auctions Co., Ltd.; Beijing Council International Auctions Co., Ltd., DuoYunXuan Auctions Co., Ltd., and Xiling Yinshe Auction Co., Ltd.

Ranking Country Sales Market Share
1 Christie’s KRW 3.88 trillion (US$3.54billion) 29.5%
2 Sotheby’s KRW 3.39 trillion (US$3.10billion) 25.8%
3 Poly International KRW 0.78 trillion (US$0.71billion) 5.9%
4 China Guardian KRW 0.68 trillion (US$0.62billion) 5.2%
5 Beijing Council KRW 0.42 trillion (US$0.38billion) 3.2%
6 Phillips KRW 0.28 trillion (US$0.25billion) 2.1%
7 Bonhams KRW 0.28 trillion (US$0.25billion) 1.6%
8 DuoYunXuan KRW 0.15 trillion (US$0.13billion) 1.1%
9 Xiling Yinshe KRW 0.15 trillion (US$0.13billion) 1.1%
- Other KRW 3.22 trillion (US$2.94billion) 24.5%
  Total KRW 13.15 trillion (US$12.00billion) 100%

<Table 4> The Auction Market by Key Auction House According toSales Figures
(Source: Artprice.com 2013 Art Market Report)

Author

Lee Seul-ki_Researcher
Lee Seul-ki_Researcher
Lee Seul-ki has been a researcher with the overseas art market segment of the Survey of the Condition of the Art Market for Korea Arts Management Service since 2008.