Art held its value as an alternative investment asset in 2022, despite demand from previously heavy buyers in China falling sharply.
In total, the global art market in 2022 was estimated to be worth US$67.8bln, ahead of the US$64.1bln valuation in 2019, a report from UBS Group AG (NYSE:UBS) and Art Basel found.
Sales across the world increased by 3% year-on-year, driven by gains in the high end of the market.
The US market remains the leading country in terms of sales by value, making up a 45% share of the industry.
Stateside, the market reached a record valuation of US$30.2bln, the report added.
Britain reclaimed its place as the second-largest art market in 2022 as it accounted for 18% of global sales by value, replacing China which saw its share drop from 20% to 17%.
The UK art market, which was worth US$11.9bln in 2022, remained below its 2019 valuation of US$12.2bln.
China witnessed a 14% reduction in its art sales last year as the country’s market value shrunk to US$11.2bln – the second lowest level since 2009.
Art dealers experienced a 7% year-on-year growth in their sales, accounting for US$37.2bln of art sold in 2022.
Dealers with turnover of more than US$10mln annually experienced the largest increase in sales, the report highlighted.
Auctions suffered a 2% drop in both public and private sales to total US$31.2bln but revenue remained 11% greater than pre-pandemic levels.
With an easing of Covid restrictions online sales fell by 17% to US$11bln in 2022, whilst the percentage of dealers' sales from art fairs increased from 27% in 2021 to 35% last year.
Looking forward, Paul Donovan at UBS Global Wealth Management said: “2023 will be a year of inflections as we navigate turning points for inflation, interest rates, economic growth, and financial markets all up against a complex global geopolitical backdrop.”