In the modern market landscape, firms often struggle to find the appropriate sectors to enter and capitalize. Market attractiveness analyses are what help businesses identify these opportunities better.
Market attractiveness analysis is a strategic tool used to evaluate potential markets based on various factors like market size, growth rate, competition, and overall risk. By examining key factors such as market trends, profitability, and entry barriers, businesses can determine which sectors are most likely to yield high returns.
Nexdigm helps them identify sectors with the highest potential for revenue growth, guiding them toward areas that can deliver up to 2X revenue compared to other sectors.
Key Evaluation Criteria
When identifying sectors with high revenue potential, several critical factors come into play:
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Market Size and Growth
The green energy sector is set to continue its strong upward trajectory through 2026, driven by increased demand and government incentives.
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Competitive Landscape
A sector with low competition or high barriers to entry often promises higher potential returns. For instance, the edge computing market in India, valued at USD 1.6 billion in 2024, is expected to grow significantly, with key players working to establish a strong foothold by 2026.
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Consumer Demand
Shifts in consumer preferences and behavior heavily impact the attractiveness of a sector, particularly in industries like retail, healthcare, and technology.
How Our Analysis Predicts 2X Revenue Potential
Nexdigm’s revenue potential analyzes the predicted returns in relation to investment, going beyond market attractiveness, which gauges a sector’s overall appeal. Highly desirable industries that are unprofitable or have fierce rivalry could not see the expected increase in income.
For example, despite the green energy sector’s large size, its 10-12% CAGR through 2026 gives it the potential to double revenue in the next few years, a characteristic that businesses seeking high returns should prioritize.
Nexdigm’s Detailed Approach Towards Market Attractiveness Analysis for Expansion
Here’s our practical approach to identifying sectors with 2X revenue potential:
- Defining Expansion Goals: Establishing clear objectives for expansion and identifying target markets.
- Collecting Market Data: Using Nexdigm’s specialized resources, we yield data including 2025 market sizes and growth projections through 2026.
- Evaluation of Market Growth: Identification of sectors with robust growth trajectories, such as edge computing or green energy, where growth rates indicate doubling potential.
- Assessing Competitive Intensity: A lower level of competition combined with high entry barriers is ideal for expansion, ensuring quicker revenue gains.
- Analyzing Technological and Consumer Trends: Using our specialised data sets and analyses to keep ahead of market trends like AI, digital transformation, and consumer behavior shifts.
- Using a Scoring Model: We assign weighted scores to each factor (growth, competition, technology) to quantify the attractiveness of sectors and prioritize them.
Nexdigm Case
Nexdigm supported a retail tech firm targeting India’s quick commerce sector, which was valued at USD 3.05 billion in FY 2024 with rapid growth driven by urban smartphone penetration and instant delivery demand. Using Nexdigm’s market expansion analysis, the client refined its city entry strategy, focused on investments in dark‑store infrastructure, and optimized fulfilment models based on competitive benchmarks and future projections. Within 12 months, the firm expanded into five Tier‑I cities, increasing order volumes by over 70% and doubling revenue in targeted segments, demonstrating how data‑backed insights enable execution in high‑growth markets.
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Harsh Mittal
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