Luxury Goods Auction Market 2022 – Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Market Size & Forecast 2030

The global luxury goods auction market size is projected to expand at an exponential compounded annual growth rate over the forecast period of 2022-2030.

Luxury goods are high quality products that are precisely crafted, are highly desired and are available in a few quantities. Items such as jewelry and watches, automobiles, clothing and accessory apparel, cosmetics, wines and spirits etc. make up the luxury goods market. The auction of luxury goods involves the bidding on expensive objects such as on exclusive, rare and vintage products including watches, cars and others and getting them at a fraction of the retail price. Due to this, increasing number of people across the globe are opening ‌their‌ ‌minds‌ and are willing to bid and collect luxury goods.

GROWTH DRIVERS

Factors such as the booming trend of luxury auctions, the proliferating demand and sale of rare watches and exotic cars at auctions, the growing inclination of the affluent class towards bidding on expensive objects for expressing social status, the increasing number of auctions houses dealing in luxury goods across the globe coupled with the escalating accessibility of bidding at auction houses, the rising number of highly wealthy individuals around the world and the surging discretionary spending among the wealthy populace are the primary factors driving the growth of the global luxury goods auction market.

Additionally, the number of young and wealthy Chinese bidders interested in buying luxury goods at auctions has been growing massively at a rate of 300.0% in the last few years and faster than anywhere else in the world. Similarly, the number of online luxury sales to Chinese buyers multiplied over12.0 times in the last year alone. With the most high-profile Chinese luxury consumers adopting the habit of bidding and sharing their experience with their huge social media following, the market is poised for robust expansion during the forecast period of 2022-2030.

Moreover, the increasing number of initiatives by top auction auctions both offline and online such as Sotheby’s Buy Now platform that provides fixed-priced items; the online and offline “luxury week” sale series by Christie’s for potential clients; Worthy.com’s launching of a unique, secure and unbiased online marketplace for the sale of authenticated pre-owned luxury goods that guarantees multiple bids and the best spot market prices is also adding swiftly towards the overall market growth. Apart from this, the marketing teams regular updating of websites and adding features like virtual tours and making use of tools such as Instagram for alerting watch enthusiasts and collectors is also expected to open new doors of opportunities for the growth of the global luxury goods auction market during the forecast period.

Furthermore, other factors such as the surging interest among individuals especially millennials in signing up for luxury bidding , the increasing collaborations of auctions houses with live streaming channels to reach a wider set of audience, the rapid expansion of the leading luxury houses across different regions, the introduction of online only sales to lure the consumers of particular regions by players, the growing trend of luxury resale, the changing buying behavior of consumers post the 2019 pandemic, the increasing efforts by auction houses to target affluent consumers with a host of new products for luxury consumers across the globe, the increasing partnerships of auction houses with online auction specialist eBay and the burgeoning acceptance of cryptocurrency as a payment method by various auction houses are expected to further augment the growth of the market during the forecast period.

However, the increasing concerns among people regarding the authenticity of goods sold in online marketplaces and the increasing cases of adverse selection may hamper the growth of the market up to some extent during the forecast period. Conversely, the increasing number of partnerships such as the partnership of Xianyu with the China Certification & Inspection Group luxury identification center to help prevent sellers from auctioning off counterfeit products are set to curtail the perception among people regarding the authenticity of products sold at online auctions slowly within the next few years and further propel the growth of the market during the forecast period.

LUXURY GOODS AUCTION MARKET SEGMENTATION

By Product

·         Collectibles

·         Handbags & Accessories

·         Watches

·         High-end Furniture

·         Shoes

·         Electronics

·         Cars

·         Bikes

·         Artistic goods

·         Jewelry

·         Gemstones And Precious Metals

·         Wines and Spirits

·         Others

By Mode

·         At-house

·         Online

·         Web-Based

·         Application-Based

By End-User

·         Individual

·         Corporate

·         Faith-based Organizations

·         Sports Organization

·         School & Universities

·         Associations

·         Others

By Region

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

Based on product, the cars segment accounted for the largest share in the global luxury goods auction market in 2021. The segment is anticipated to further retain its dominance in the market over the forecast period. This can be attributed to the growing sales of luxury cars at auctions across the globe.  The handbags & accessories segment also accounted for a significant share in the market in 2021 and is expected to grow robustly during the forecast period. However, the watches segment along the jewelry segment are expected to witness growth at the highest growth rates in the market over the forecast period. This can be owed to the increasing number of high-end watches & jewelry products at auctions and the increasing spending of men in the age group 18 to 34 on watches.

‌Based on mode, the at-house segment held the largest share in the global luxury goods auction market in 2021 and is projected to further continue to lead the market during the forecast period. However, the online segment is expected to witness rapid growth in the market over the forecast period and account for a 50.0% share in the market by the end of the forecast period from 10% in 2021. The major factors behind the growth of the segment include the increasing number of online-only ‌sales‌ ‌of‌ ‌designer ‌handbags, art and jewelry and the surging emphasis of brands on creating more channels and expanding their distributions.  Among all brands, Rolex is the leader in regards to online auction search results for art, antique and collectible across the globe.

REGIONAL OUTLOOK

Geographically, the Asia Pacific region is expected to lead the global luxury goods auction market during the forecast period of 2022-2030. The region is also estimated to witness the highest CAGR in the market over the forecast period. The growth of the market in the region can be majorly attributed to the increasing inclinations of buyers especially from China toward modern styled watches, the growing focus of auction houses on improving the engagement between luxury brands and consumers, the escalating number of online luxury goods sales and Asian luxury bidders, the rapidly surging demand for luxury handbags and sneakers from Hong Kong and Mainland bidders and the growing sneaker and streetwear culture in parts of Asia. Also, the growing affluent class population and the increasing discretionary spending of people in the region are also expected to create significant growth in the market over the period of 2022-2030. India, China and Japan are the leading contributors to the growth of the market in the region.

The North American and the European region hold the second and the third largest market shares in the global luxury goods auction market. This trend is expected to continue over the forecast period on account of the increasing preference of vintage product styles especially watches by many European and U.S customers, the increasing number of online auctions offering rare and collectible watches, the proliferating number of online participants for bidding and the growing number of digital platforms holding auctions for the younger population in the regions. The U.S. in North America and France, Italy and Germany in Europe are the major contributors to the regions.

The Middle East and African region is expected to hold a prominent market share in the global luxury goods auction market throughout the forecast period of 2022-2030. The growth of the market in the region can be attributed to the increasing number of online auctions, the rising interest among the region’s watch collectors, the growing number of auction bidder registrations and the increasing inclination of people towards spending time on their hobbies in the region.  In 2021, a luxury watch by Patek Philippe bought for $1.59 million in Dubai set the record for the most expensive timepiece sold at an auction in the Middle East and for any watch sold online at Christie's.

KEY COMPANIES IN LUXURY GOODS AUCTION MARKET

·         Tateward

·         1stDibs

·         Worthy

·         Ebay

·         Christie’s 

·         Sotheby’s 

·         Bonham’s

·         Phillips

·         China Guardian

·         Chiswick Auctions

·         Fellow’s

·         Wondike

·         Other Players