Online Auction Market to Grow by USD 3.08 Billion (2024-2028) as Preference Shifts from Conventional to Online Auctions, AI's Impact on Market Trends Report - Technavio

NEW YORK, Oct. 30, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global online auction market  size is estimated to grow by USD 3.08 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  12.36%  during the forecast period. Shift in preference for online auctions from conventional auction model is driving market growth, with a trend towards emergence of AI-based online auctions. However, rise in shill bidding during online auctions  poses a challenge.Key market players include A One Salasar Pvt. Ltd, Auction House UK Ltd., Auction Technology Group Plc, BCL Auction, Biddingo.com, Bonanza Portfolio Ltd., Catawiki BV, eBay Inc., eBid Ltd., eCRATER, Invaluable LLC, John Pye and Sons Ltd., Liquidity Services Inc., SDL Auctions Ltd., Sothebys, UKauctioneers.com, U.S. Auction Online, Webstore.com, Williams and Williams Marketing Services Inc., and Wilsons Auctions Ltd..

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Key Market Trends Fueling Growth

Artificial Intelligence (AI) is revolutionizing the online auction market by streamlining processes and enhancing efficiency. AI platforms employ machine learning and algorithms to deliver valuable insights to bidders, reducing administrative costs through automation of internal operations, customer service inquiries, equipment packaging, and delivery. In March 2018, TradeRev, a KAR Auction Services Inc. Subsidiary, launched H, an AI-driven tool for dealer-to-dealer vehicle auctions, featuring data and predictive analytics capabilities. Voice search technology is also emerging, with Ritchie Bros. Auctioneers testing a voice assistant in March 2019. These AI-based tools, including voice recognition systems, attract more customers and boost growth prospects in the online auction market.

Online auctions have seen a significant popularity due to the digital transformation of e-commerce. Smartphone penetration allows bidders to participate from anywhere, enhancing convenience. Payment options are diverse, including credit cards and e-wallets. Sustainability and affordability are key trends, with sellers offering eco-friendly materials and ethical practices. Collectors seek collectibles like electronics, artistic goods, jewelry, paintings, antique goods, and digital assets. Online platforms cater to younger audiences, offering an enhanced viewing experience through AR and VR technology. Auctioneers ensure security with fraud prevention, anti-money laundering measures, and data collection for personalization. Automation and pricing tools help streamline the process, while AI aids in ethical sourcing and authentication. Accessibility is paramount, requiring reliable internet access for all participants.

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Market Challenges

• Online auctions have gained significant popularity, but the issue of shill bidding remains a concern. Shill bidding is an unlawful practice where a seller or their associates artificially inflate bids in forward auctions or reduce them in reverse auctions. Detecting shill bidding in a large number of online auctions and bidders is challenging. Shill bidding can create a false sense of demand, making buyers pay more than the product's actual value. Genuine bidders may lose trust in the online auction process due to shill bidding. Despite being recognized as a problem, there is no established method to prevent it. Most online auction companies lack the resources to detect shill bidding in real-time. Without formal complaints from bidders, these companies seldom take action against shill bidding. The rise in shill bidding instances may discourage bidders, potentially hindering the growth of the global online auction market.
• Online auctions have gained significant traction in the e-commerce industry, offering collectibles, electronics, artistic goods, jewelry, digital assets, paintings, antique goods, and more to bidders worldwide. However, challenges persist. Payment options must be diverse and secure, accommodating various credit card numbers, home addresses, and phone numbers. Smartphone penetration drives convenience, but digitalization requires ethical sourcing of eco-friendly materials and ethical practices. Affordability is crucial, with accessibility contingent on internet access. Collectability thrives on enhanced viewing experiences, including AR and VR. Auctioneers and sellers must navigate pricing, data collection, automation, and personalization while addressing security concerns, such as fraud prevention and anti-money laundering. Online platforms must cater to younger audiences, offering seamless experiences and addressing privacy concerns. The integration of AI in online auctions streamlines processes, ensuring a transparent and efficient marketplace.

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Segment Overview

This online auction market report extensively covers market segmentation by

1. Product 
• 1.1 Collectibles
• 1.2 Electronics
• 1.3 Artistic goods
• 1.4 Jewelry
• 1.5 Others
2. Platform 
• 2.1 Web-based
• 2.2 Application-based
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Collectibles-  In the dynamic world of Online Auction Markets, the collectibles segment emerged as a significant revenue generator in 2023. The passion for acquiring items with historical value among people drove this segment's growth. Online auctions eliminated geographical limitations, enabling collectors worldwide to participate, broadening the potential buyer and seller base. Detailed information, images, and histories available online boosted transparency, instilling trust and confidence among collectors. With technology's continuous advancement and increasing comfort with online transactions, the collectibles segment's growth is anticipated to accelerate substantially throughout the forecast period.

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Research Analysis

Online auctions have gained significant traction among younger audiences, leveraging the power of the internet to bring fine art, jewels and watches, cars, and various other valuable items to bidders worldwide. The use of Artificial Intelligence (AI) and advanced technology enhances the online auction experience, with fraud prevention and anti-money laundering measures ensuring security. Pricing transparency, data collection, and automation provide personalized and convenient bidding experiences. Security concerns and payment options are addressed through systems, while smartphone penetration and e-commerce growth fuel digital transformation. Sustainability and affordability are also key considerations, with many platforms offering green shipping options and accessible pricing. Collectability and convenience are major drivers for bidders, with enhanced viewing experiences through AR and VR technology adding to the appeal. Auctioneers and bidders alike benefit from the convenience and accessibility of online platforms, making this a dynamic and evolving market.

Market Research Overview

The online auction market is experiencing explosive growth, particularly among younger audiences, as more people turn to the internet for buying and selling fine art, jewels and watches, cars, and various collectibles. Online platforms offer unparalleled convenience, enhanced viewing experiences through AR and VR technology, and accessibility to a global audience. AI plays a crucial role in pricing, fraud prevention, and anti-money laundering efforts. Data collection and automation enable personalization and affordability, while security concerns are addressed through advanced encryption and payment options. Smartphone penetration and e-commerce's digital transformation continue to drive growth, with sustainability and ethical sourcing becoming increasingly important. Collectors and bidders can now buy and sell eco-friendly materials, electronics, artistic goods, jewelry, paintings, antique goods, and even digital assets from the comfort of their homes. However, with this digitalization comes the need for ethical practices, accessibility, and internet access for all. Sellers and auctioneers must navigate the complexities of credit card numbers, home addresses, and phone numbers, while ensuring a seamless and secure transaction process.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Collectibles
• Electronics
• Artistic Goods
• Jewelry
• Others
• Platform
• Web-based
• Application-based
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio