What is "vertical market"

n. (context marketing English) A market made up of similar businesses and customers with particular specialized needs.

A vertical market is a market in which vendors offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs. An example could be software that manages services in hotels - amenities solutions. It is distinguished from a horizontal market, in which vendors offer a broad range of goods and services to a large group of customers with a wide range of needs, such as businesses as a whole, men, women, households, or, in the broadest horizontal market, everyone.

The activities of participants within any given vertical market are typically similar in that they aim at solving the same or similar problems. These markets are typically competitive, because of the overlapping focuses of the products and services that are provided to the customers.

The single defining characteristic of the participants in a vertical market is competition within a well-defined segment.

Horizontal market participants often attempt to meet enough of the different needs of vertical markets to gain a presence in the vertical market. Their similar products/services tend to be less of a fit but also less expensive than specialized, vertical participant solutions.

Vertical market software is software aimed at addressing the needs of any given business within a discernible vertical market.