Art Dealers and Galleries
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,400 art dealers, galleries, and auction houses in the US generate revenue by selling artwork or earning commissions from consignments. With a consignment sale, the dealer earns a commission based on a percentage of the purchase price. Auction houses earn commissions based on the hammer (sale) price. Primary-market dealers develop relationships with promising new artists and help establish a market for their work. Secondary-market dealers specialize in art for resale on behalf of collectors, institutions and estates.
Long Sales Cycle, Slow Moving Inventory
Art dealers and galleries often have significant investments in inventory, with no indications of a quick return.
Vulnerability to the Economy
Demand for art is sensitive to economic conditions, and drops during periods of uncertainty.
Industry size & Structure
The average art dealer operates out of a single location, employs 4 workers, and generates over $2 million annually.
- The art dealer, gallery, and auction industry consists of about 4,400 companies that employ about 18,800 workers and generate about $10 billion annually.
- The industry is concentrated; the top 20 firms account for 49% of sales.
- Large companies, which include the Gagosian Gallery, David Zwirner Gallery, and The Pace Gallery, generally have a limited number of locations (ten or less) and often have international operations. The industry includes auction houses, such as Sotheby's.
- Post-war and contemporary art accounts for 53% of global art trade, according to The Art Market report.
Industry Forecast
Art Dealers and Galleries Industry Growth
Recent Developments
Mar 20, 2025 - Decline in the Global Art Market
- According to the 2024 Artprice Global Art Market Report, the global art auction market experienced a slowdown in 2024, generating $9.9 billion, representing a year-over-year decrease of 33.5%. The decline can be attributed to global tensions that caused wealthy art buyers to be cautious, leading to a drop in high-value sales. Despite the downturn, the global art market’s base is expanding. In 2024, 1.2 million artworks were offered in fine art auction sales worldwide, with 804,350 lots sold - a 5% increase that set a new historic record. The unsold rate was 33% in 2024, returning to its historical average level. In terms of global market share by value, the top markets were the US (39%), the EU (18.5%), and China (18.4%). The contemporary art category accounted for 17% of the worldwide art market.
- According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
- Art-related NFT (nonfungible token) sales have fallen dramatically since 2021, declining from $232 million at auction in 2021 to $9 million in 2024, according to a report in Artprice.com. The volume of art-related NFT sales has increased during the period, from 316 NFTs sold in 2021 to 350 NFTs sold in 2024. The sale of the first art-related NFT at Christie’s for $69.3 million took place in 2021, and many art sellers adopted new strategies to attract NFT buyers in the emerging digital art market. The US is the most active NFT sales country, accounting for 93% of global sales of NFTs in 2024 and an auction total of $8.9 million. According to the report, the art-related NFT market is settling into a sustainable realistic rhythm, with a more stable foundation to build a solid market base.
- The art world is gearing up for a second Donald Trump presidency, after enduring several challenges during his first administration, according to several art publications. During his first administration, Trump called for the elimination of the National Endowment for the Arts in his 2018 and 2021 budgets and targeted the funding for other arts and cultural organizations, according to ART News. Another proposal during Trump’s first administration was to target Chinese art and antiquities with a 25-percent import tariff, according to ArtNet. Modifications to other regulations could also affect the art market. For example, a change made by the Trump administration in the 2018 Tax Cuts and Jobs Act eliminated a tax loophole for art collectors.
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