Market Concentration Analysis

Market Concentration Analysis evaluates the level of competition within an industry by measuring how much market share is held by the largest firms. A highly concentrated market has a few dominant players controlling most of the business, which can impact prices, innovation, and consumer choice. Conversely, a less concentrated market has many competitors, promoting more competition. This analysis helps identify the degree of market power, potential barriers to entry, and competitive dynamics, guiding regulators, businesses, and investors in understanding industry structure and potential risks or opportunities.