“On balance, this year’s data points to something more consequential than a return to growth. It reflects a sector adjusting to new economic realities, refining its models, and strengthening its foundations for the long term,” notes Noah Horowitz in the foreword to the latest Art Basel & UBS Art Market Report (2026), released late last month.

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While positive headline figures point to renewed growth (notably a 4% increase to an estimated $59.6 billion in global art market sales in 2025), rising costs, shifting buyer behaviour, and persistent global uncertainty, all appear to be prompting art businesses to rethink how they operate.

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Perhaps the most immediate catalyst for reassessing ways of working, is mounting cost pressure, with inflation in operating costs “one of the most frequently cited challenges” of the year. Total running expenses rose by an average of 5% in 2025, according to the report, outpacing sales growth and forcing dealers to adopt stricter financial discipline. The sharpest increases were reported in logistics, with packing and shipping costs up 10%, alongside rising art fair fees (9%) and travel and accommodation expenses (6%). 

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Unsurprisingly, this has accelerated a shift toward leaner structures. A growing number of dealers are seemingly moving away from permanent gallery spaces, one of the sector’s largest fixed costs. In 2025, 14% of dealers operated without a physical gallery, while the share working from private offices or homes doubled to 10% with many dealers prioritising flexibility through private sales and appointment-based models, which reduce overheads whilst preserving client relationships.  

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Reshaping of business models does not however equate to decline. While several high-profile galleries shut down or scaled back operations, and the report notes Blum, Venus Over Manhattan, and Rhona Hoffman Gallery, there were high levels of new galleries and other businesses opting to close secondary international locations in a bid to consolidate. As larger firms appear able to absorb rising costs in pursuit of scale and stability, mid-sized businesses look to be more consistently downsizing. 

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Regulation is clearly adding pressure and uncertainty to the already complex operating environment. US tariffs, EU import regulations and uncertainty around differing approaches to AI regulation emerging across jurisdictions, are all increasing administrative burdens and cost, in a sector which has long been dependant on cross-border trade.

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The role of technology is also being recalibrated. Online sales fell to $9.2 billion, their lowest level since 2019, suggesting that the pandemic-era surge in digital transactions served temporary needs, rather than representing a long-term commitment to moving sales away from real life interactions. Instead, technology is being integrated more selectively into hybrid models, supporting client engagement, due diligence and marketing.

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Ultimately, the restructuring of art businesses in 2025 is one defined by adaptation rather than retreat or decline. Streamlining operations, reviewing physical presence, localising markets and shifting sales strategies and automating processes are all signs of an industry experimenting and likely to result in a more resilient and flexible art ecosystem.