Market saturation

Logistic growth is an example for a bounded growth which is limited by saturation: The graph shows an imaginary market with logistic growth. In that example, the blue curve depicts the development of the size of that market. The red curve describes the growth of such a market as the first derivative of the market volume. The yellow curve illustrates the growth weighted by the size of the market. As for logistic growth, the yellow curve shows that even a large market size cannot strengthen growth when approaching saturation. Logistic growth never is negative, but in the saturation area, the growth is as small as before the market took off. (In the example all curves are scaled to cover the range between 0 and 1.)

In economics, market saturation is a situation in which a product has become diffused (distributed) within a market;[1] the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.


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