Growth market
A growth market is a market with an above-average growth in market volume . If a market is expected to grow in the coming years, it is also referred to as the future market .
The relevant market segment can be delimited according to products ( economic sector ) or geographical ( economic area ).
A growth market is characterized by currently increasing demand, technical innovations or increasing needs of the target groups. The term was coined by analysts from financial institutions, among others, but is becoming increasingly important for small and medium-sized companies. A scientific example for the application of the term is the term “growth market health” used since the mid-1990s.
Since, according to the Raymond Vernon product life cycle model, this phase is mostly after the start, a particularly high-margin period can be expected.
Further drivers are growing problem areas (e.g. environment , climate , energy ), new technologies , changed framework conditions, changing values, rising or falling incomes, etc.
Entering a growth market is particularly important for companies with a mono-customer or mono-branch structure (e.g. automotive suppliers). This reduces corporate risks and influences the subjective rating according to Basel II.
Risks when entering the market are mitigated through broad consideration of operational competencies and through public grants such as ZIM ( Central Innovation Program for SMEs ) or innovation vouchers from the federal states or as innovation vouchers from various EU countries. The technical and economic risks are mitigated through the use of subsidies.
Individual evidence
- ↑ Christoff Zalpour (Ed.): Springer Lexikon Physiotherapie . 2014, p. 1355 ( limited preview in Google Book search).
- ↑ P. Oberender et al .: Growth market health . 2006 doi : 10.1007 / s00120-006-1143-2 .