Market Saturation

Market saturation occurs when a product or service has been fully distributed in a market, leaving little or no room for growth. In a saturated market, nearly all potential consumers who would buy the product have already done so, leading to slower sales growth and increased competition. Companies operating in saturated markets may need to innovate, diversify their offerings, or enter new markets to continue growing.

Example

The smartphone market in developed countries is considered saturated, as most consumers already own smartphones, making it difficult for companies to achieve significant sales growth.