Spotting a gap in the market isn’t about reinventing the wheel — it’s about noticing where others haven’t. These opportunities often hide in plain sight: a frustrating customer experience, a niche no one is serving well, or a product or service that feels outdated. For business leaders, entrepreneurs and investors, the ability to identify these gaps is often what separates steady growth from exponential upside.
What Do We Mean by a ‘Market Gap’?
A market gap is an unmet need, underserved audience, or inefficiency in a sector that presents an opportunity for a new or improved product, service or business model.
It could be as bold as launching an entirely new category — or as simple as delivering something existing, but better, faster, or more conveniently.
Examples might include:
- A lack of local suppliers for a product that’s currently being shipped from abroad
- A professional service priced in a way that excludes SMEs or startups
- A growing audience with changing preferences that aren’t being met
- A product that hasn’t adapted to digital expectations
Why Most Gaps Go Unnoticed
Many markets appear saturated on the surface. But in reality, many providers are operating in the same way, targeting the same customers, with marginally different offerings.
Gaps are overlooked because:
- Most people are solving problems from inside the industry
- Businesses focus on what competitors are doing, not what customers are missing
- Organisations are too focused on operations to notice friction points
Ways to Spot a Gap in the Market
Here are practical methods to identify untapped opportunities:
1. Listen to Customer Complaints
Unmet needs often show up as frustrations. Explore forums, reviews, social media comments, and competitor feedback. What do customers wish existed?
If lots of people are saying, “It’s good, but I wish it did X…” — that’s your signal.
2. Map Out the Customer Journey
Walk through the experience of buying, using, and maintaining a product or service in your target space. Where is the process clunky, slow, expensive or confusing?
Friction = opportunity.
3. Watch for Changing Behaviours
Shifts in technology, regulation, or cultural trends often create market gaps. For example:
- Rise in remote work created demand for asynchronous communication tools
- ESG priorities opened up niches for ethical supply chain consulting
- AI adoption is creating new gaps in training, integration, and oversight
4. Look at Who’s Being Ignored
Gaps often exist in the margins. Are there:
- Demographics not being served (e.g. older consumers, neurodivergent customers)?
- Geographies with no strong local provider?
- Smaller clients priced out of premium services?
5. Analyse Search Data and Trends
Tools like Google Trends, AnswerThePublic, and SEMrush can reveal growing interest or unanswered questions in a space.
If people are searching for something with no good results — that’s a signal of latent demand.
6. Review Competitors’ Blind Spots
Examine what your competitors don’t offer. Do they all focus on the same features, audiences, or pricing structures? What’s missing? What are they overcomplicating?
Innovation often comes from simplifying something that others have made unnecessarily complex.
7. Talk to People on the Ground
Frontline staff, sales teams, support teams, and even customers can offer powerful insight. Ask:
“If you could fix one thing about our industry, what would it be?”
You’ll be surprised how often the answers point straight to a market opportunity.
Real Examples of Market Gaps in Action
- Fintech: Traditional banks overlooked SMEs. Fintechs like Tide and Starling built tools specifically for this audience.
- Fitness: High-end gym chains ignored flexibility. Brands like The Gym Group created no-contract, 24/7 access at scale.
- Legal Services: Expensive hourly rates excluded startups. Subscription-based legal support emerged to meet the need.
