DIGITAL ARTWORK MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Digital Artwork Market size was valued at US$ 4 Bn in 2023 and is expected to reach US$ 12.1 Bn by 2030, growing at a compound annual growth rate (CAGR) of 17.1%  from 2023 to 2030. Digital artwork refers to art that is created and presented in digital forms using digital technology. It includes digital paintings, drawings, illustrations, animations, and other genres created on computers or other electronic devices. The growing popularity of digital art among mainstream audiences, advancements in technologies like AI, ML, AR/VR, and the rise of NFTs are key factors driving market growth.

The digital artwork market is segmented by type, medium, distribution channel, end use, price range, artist type, and region. By type, the digital painting segment accounted for the largest share of over 25% in 2023. Digital paintings are gaining significant traction among art collectors due to their unique appeal and accessibility compared to traditional painting mediums. The ability to instantly share and sell digital paintings as prints, or NFTs, is boosting their adoption.

Digital Artwork Market Regional Insights

• North America is expected to be the largest market for digital artwork during the forecast period, accounting for over 38.5% of the market share in 2023. The growth of the market in North America is attributed to the high concentration of renowned museums, art galleries, auction houses, and art fairs in the region, along with a thriving community of digital artists.
• Europe market is expected to be the second-largest market for digital artwork, accounting for over 32.2% of the market share in 2023. The growth of the market in Europe is attributed to the presence of major art hubs like Paris, rising millennial interest in digital art, and growing NFT adoption.
• Asia Pacific market is expected to be the fastest-growing market for digital artwork, with a CAGR of over 16.3% during the forecast period. The growth of the market in Asia Pacific is attributed to the expanding middle-class population with increasing disposable incomes and interest in collecting digital art.

Figure 1. Global Digital Artwork Market Share (%), by Region, 2023

To learn more about this report, Request sample copy

Digital Artwork Market Drivers

• Growing Popularity of Digital Art forms: The popularity of digital art forms such as digital paintings, AI-generated art, 3D models, VR/AR art, and more has been rising rapidly among both creators and consumers. Digitally-created artwork has become mainstream and accepted as a legitimate art medium. The unique creative possibilities, instant shareability, and wider reach offered by digital art platforms are attracting even traditional artists to explore these mediums. Recent years have seen major museums and art galleries hold dedicated exhibitions focused on digital and new media art. Moreover, the ability to sell digital art as NFTs has provided new monetization avenues. This driver is supported by events such as the Whitney Museum of American Art launching an online portal for Net Art in 2018 and Christie’s auctioning its first purely digital NFT artwork in 2020.
• Technological Advancements: Continuous advancements in technologies like artificial intelligence, machine learning, augmented reality, virtual reality, 3D modeling, and blockchain are revolutionizing digital art creation and distribution. AI-based painting tools, for instance, allow even amateurs to create detailed artwork. Similarly, VR enables creating immersive multi-sensory experiences. NFTs and block chain empower digital ownership and trading of art. 5G networks support high-fidelity art streaming and meta verse participation. Such innovations are expanding the creative possibilities for artists and making digital art more appealing. For instance, Obvious' AI-generated portrait sold for US $432,000 at a Christie’s auction, reflecting rising acceptance.
• Growth of Online Art Platforms: The number of specialist online platforms for sharing, selling, and collecting digital art has grown tremendously. Platforms like Deviant Art, Art Station, the Foundation. app, and Super Rare cater to various digital art genres and formats like paintings, photography, VR environments, generative art, and more. They provide an avenue for independent artists to publish their artwork and connect with art curators, galleries, and collectors globally. Social media platforms like Instagram, Tik Tok, and YouTube have also emerged as popular channels for digital artists. Moreover, NFT marketplaces like OpenSea, Rarible, and Nifty Gateway are enabling the trading of digital artworks. These platforms are driving accessibility, distribution, and monetization of digital art.
• Expanding Customer Base and Market: The target customer base and addressable market for digital art has expanded manifold in the past decade. Millennials and Gen Z show greater appreciation for digital art compared to traditional art. Moreover, e-commerce and smartphone penetration in emerging economies has unlocked new geographical markets for digital art. The adoption of virtual interior design and meta verse real estate has opened up the commercial segment. The investor interest in NFTs has created a whole new asset class for monetizing digital artworks. For instance, leading auction house Sotheby's opened Meta verse HQ in the crypto-virtual world Decentraland in 2022, highlighting the reach of virtual digital art.

Digital Artwork Market Opportunities

• Leveraging Augmented Reality: Augmented reality (AR) technology presents immense scope for taking digital art experiences to the next level through integrating them into real-world environments. Artists can create compelling, interactive, and multi-sensory AR art installations viewable via smartphones and AR headsets. Brands can utilize AR digital art for enhanced consumer engagement. For instance, Pepsi created an augmented reality art exhibition in London based on street artist Jen Stark’s work. Luxury brands like Christie’s and Hamburg Atelier have showcased AR digital art galleries. Advancing AR capabilities and decreasing costs will encourage adoption. Pepsi is a well-known carbonated soft drink with a cola flavor, manufactured by PepsiCo. PepsiCo, the company behind Pepsi, offers an unparalleled portfolio of food and beverages, reflecting varied consumer tastes globally.The brand is also known for its various product extensions, such as Pepsi Max and Pepsi Zero Sugar.

• Evolution of Metaverse: Metaverse virtual worlds like Decentraland provide a new platform for showcasing and experiencing digital art and opening new revenue opportunities through virtual real estate. Digital artists can showcase their works in the metaverse galleries and events. Brand collaborations can also help artists gain exposure in metaverse. Moreover, combining the metaverse, VR and AR can result in highly immersive art exhibitions and events. For instance, nonprofit Save Art Space exhibited VR artworks in Decentraland metaverse land in 2021. As metaverse gains traction, it will emerge as a hot new channel for digital art.
• Mainstream Adoption in Art Industry:. Although digital art has recently gained wider recognition, it still represents a small part of the ~$50 million global art However, the market is gradually opening up to embracing digital and NFT artworks. Leading auction houses like Christie’s and Sotheby’s have sold record-breaking digital art NFTs signaling institutional adoption. Established artists like Beeple are entering the NFT space. Galleries are exhibiting digital artworks alongside physical art. Such developments indicate that digital art is on the cusp of mainstream adoption in the art world.
• Geographical Expansion: Many large geographical markets hold massive untapped potential for digital art due to their demographics and growing digital penetration. Developing countries like India, Brazil, Malaysia, and others in Southeast Asia and Latin America have young, tech-savvy populations, rising disposable incomes, increasing smartphone and internet access, and evolving digital art and culture scenes. E-commerce leaders like Flipkart are partnering with digital artists in India. Tapping these high-growth markets early on will be a key opportunity. It will require nuanced strategies tailored to local contexts.

Digital Artwork Market Trends

• Evolution of Social Media for Digital Art: Social media platforms like Instagram, Tik Tok, and YouTube have emerged as immensely popular channels for digital artists to share their portfolio, create time lapse videos documenting their creative process, and directly engage with art lovers. These platforms are making digital art more accessible to mainstream audiences. Many mainstream celebrities like Grimes and Paris Hilton have entered the NFT art space, riding the social media wave. Social platforms themselves are recognizing the appeal of digital art among users. For instance, Instagram added support for displaying NFTs. Instagram is a popular social media platform that allows users to connect with friends, share moments, and explore their interests. It enables users to post photos and videos, share stories, and discover content from accounts and creators around the world. The platform also features interactive elements such as group chats, close friends sharing, and short entertaining videos through Reels.
• Bridging Physical and Digital Art: Artists and galleries are increasingly blending physical and digital mediums and experiences in innovative ways to enjoy the best of both worlds. Some examples include showcasing digital and physical artworks together in hybrid exhibits, incorporating digital projections and displays in physical gallery spaces, and creating physical renditions of digital art through 3D printing or smart frames. Notable examples include Team Lab's immersive digital art experiences in Japan and the Museum of Other Realities, which displays VR art in physical gallery rooms.
• Environmental Sustainability: Environmental sustainability is emerging as an important consideration for digital platforms and infrastructure supporting digital art creation and distribution. Energy-intensive processes like crypto mining have come under scrutiny. In response, marketplaces like Open Sea and Rarible are shifting to more energy-efficient block chains like Tezos. Platforms are also enabling carbon offset NFT purchases. Eco-conscious digital art platforms like Aerial are gaining prominence. These efforts will be crucial for long-term viability as stakeholders become more sustainability-focused.
• Evolution of Digital Ownership Models: While NFTs are currently the dominant way of establishing provenance and ownership for digital artworks, new digital ownership and rights management models are emerging. For instance, Hand, a Malaysian startup, uses AI and encryption to generate digital rights certificates establishing ownership. Similarly, other startups are exploring solutions based on decentralized identity and zero-knowledge proofs. Interoperability across solutions to provide artists with more choices will be important going forward. This space promises to become more nuanced and mature.
• For instance : According to a 2022 survey by the National Endowment for the Arts, 58% of U.S. adults reported feeling overwhelmed by the amount of art available online.

Digital Artwork Market Restraints

• Limited Physical Ownership and Experience: For many traditional art collectors and enthusiasts, the lack of physical originals and tangible art experiences associated with digital art remains a key barrier to adoption. The concern around ownership rights and longevity for NFT-based digital art purchases also creates hesitancy. Even as technologies like AR and VR aim to enhance digital art experiences, the physical ownership and intimate viewing of physical artworks remain unmatched. This can constrain the addressable market size, especially among conventional art buyers.
• Counter balance: Encourage artists and galleries to offer hybrid models where digital art purchases come with some form of physical representation or artifact. Utilize block chain technology to create digital tokens that represent ownership or a share of a physical artwork
• Art Fatigue from Over commercialization: As digital art spaces see greater mainstream attention, there is a risk of losing some exclusivity and diluting the space through over commercialization and hype-fueled trends. The proliferation of minor derivative NFT works reminiscent of early Internet art and overly speculative behavior can lead to fatigue and disillusionment. Maintaining curatorial standards, fostering artists focused on the craft, and preventing exploitation will be important to building a healthy long-term market.
• For instance: The pandemic fueled artwork boom of 2020-2021 appears to now be subsiding as people crave less stimulation and a return to more meaningful creation and consumption. Platforms like social media sites, which previously drove huge exposure and subsequent sales for artwork/ now struggle to cut through the noise.
• Counter balance: By focusing on quality over quantity, digital platforms can foster a more discerning and less fatigued collector base. Provide educational content that offers a deeper understanding of digital art, including its history, techniques, and cultural significance.
• Lack of Proper Regulation and Standards: The digital art market currently lacks proper regulation, standards and governance frameworks. NFT fraud through fake identities, stolen art, and wash trading is common due to the anonymous nature of transactions. Copyright management for generative art and metaverse virtual spaces remains ambiguous. There is uncertainty around how traditional regulations apply to these new mediums. Developing effective frameworks, best practices, and oversight mechanisms involving stakeholders will be critical as the market matures. For instance: According to a survey by the United Nations Conference on Trade and Development published in 2022, around 70% of art buyers cited lack of ownership clarity and authentication issues as major barriers for investing in digital art collections.
• Counter balance: establishment of standard protocols for digital art creation and trading is important .Work with legal entities to understand the implications of existing laws on digital art and advocate for new regulations that address specific concerns in the digital art market such as copyright issues, artist royalties, and consumer protection

Analyst view

The digital art market is driven by the rising popularity of digital art forms such as non-fungible tokens (NFTs), digital paintings, computer-generated art, etc. The adoption of block chain technology has enabled the creation and transaction of digital artworks through NFTs leading to huge interest among collectors and investors. The art industry is seeing a massive disruption through the entrance of technology, which has sparked opportunities for new business models. Asia Pacific region is expected to be the fastest-growing market for digital art benefiting from growing tech adoption and a young digital-savvy population in countries like China and India. While block chain-supported platforms make the ownership and transactions of digital assets easier, concerns around the environmental impacts of crypto currencies used in such platforms pose a constraint to the growth. Despite being a relatively nascent sector, the growing interest and exponential increase in transaction volume and prices paid for notable digital artworks point towards strong potential in coming years. However, lack of uniform regulations and non-acceptance from traditional art galleries and critics continue to be restraining factors for mainstreaming of digital and crypto art. The rising popularity of virtual concerts and metaverse environments will boost the demand for digital collectibles and experiences going forward. With increasing investments in digital platforms and marketplaces, consolidation is expected in the currently fragmented digital art industry landscape. While computer-generated or AI art poses an opportunity by vastly increasing the supply and lowering costs.

Recent Developments

New product launches

• In November 2022, DeviantArt launched DeviantArt Protect to safeguard artists' NFT artworks using blockchain-based digital signatures. This protects against unauthorized use and proves ownership and authenticity. DeviantArt is a community-based platform that allows members to publish original art, collaborate with peers, and connect with other social networks to promote their content. It operates in the media & entertainment market segments, generating revenue through display advertisements and paid subscriptions.
• In June 2022, Nifty Gateway partnered with Warner Bros. ,Consumer Products to launch official DC-branded NFT collectibles, allowing fans to own authenticated digital DC artwork. Nifty Gateway is a digital art online auction platform for non-fungible tokens (NFT). The platform is known for emphasizing high-end digital art and curated collections, and regularly offers limited-edition collections through partnerships with top artists. Nifty Gateway offers a custodial option, which means it serves as a third party to keep digital assets secured. The platform generates revenue through transaction fees and has a partnership with the auction house Sotheby's.

• In March 2022, MakersPlace introduced the 'Lazy Minting' feature to allow easy minting of NFTs without requiring cryptocurrency wallets or payment. This enhances accessibility for artists. MakersPlace is a premier market for discovering, collecting, and investing in rare and authentic digital artworks by leading artists and creators. On the other hand, MakerPlace by Michaels is a platform for buying and selling handmade crafts, exploring online art classes, and enjoying how-tos from craft enthusiasts.

Acquisition and partnerships

• In September 2022, OpenSea acquired Dharma Labs and entered the NFT lending market to allow using NFTs as collateral for loans. This unlocks liquidity for NFT owners.
• In August 2022, Rarible partnered with luxury brand Paco Rabanne to launch a brand-owned metaverse and NFT drops of digital fashion items. It expands its presence in the metaverse. Rarible is a multi-chain platform that allows digital artists and creators to issue and sell custom crypto assets that represent ownership in their digital work .  It is a marketplace for non-fungible tokens (NFTs) where users can buy, sell, and create NFTs .Rarible is home to thousands of artists and collectors, creating and exchanging immutable art without using code.  The platform is powered by the RARI token, which is used for trading on OpenSea
• In May 2022, NTWRK collaborated with leading NFT artist Beeple to offer iconic NFTs through live-stream commerce and make digital art more accessible to mainstream audiences.

Figure 2. Global Digital Artwork Market Share (%), by Medium, 2023

To learn more about this report, Request sample copy

Top companies in Digital Artwork Market

• DeviantArt
• Nifty Gateway
• SuperRare
• Foundation
• MakersPlace
• KnownOrigin
• Async Art
• ArtBlocks
• OpenSea
• Rarible
• NTWRK
• ArtStation
• Artsy
• Saatchi Art
• Singulart
• DigitalArt4Climate
• Hic et Nunc
• Showtime
• Verisart
• Artmajeur

Definition: The digital artwork market refers to the market for artworks that are created and displayed through digital technologies and platforms. It encompasses various genres of visual and audio-visual art like digital paintings, drawings, photography, animations, and more, that are made using computers, tablets, smartphones, and other electronic devices. These artworks may incorporate traditional as well as new digitally-enabled techniques and mediums. Popular categories include digital paintings, AI/algorithmic art, pixel art, fractal art, 3D/VR art, generative art, and digital sculptures, photographs, collages, GIFs, and short videos. The market has gained significant traction over the past decade due to the proliferation of creative apps, digital platforms like Deviant Art, and the rise of NFTs allowing monetization of digital art. The market caters to individual artists, galleries, museums, art fairs, auction houses, interior designers, advertisers, gaming firms, social media platforms, and collectors across personal, commercial, and investment segments.

Few other promising reports in Consumer Goods Industry

Soundproof Sealing Strip Market

Die Cut Label Market

Cosmetic Serum Market

Hermetic Storage Bags Market