White space strategy is part of company’s diversification strategy and helps uncover unmet customer needs. White spaces are typically enabled by shifts in either customer demand or by technological advancements
investment opportunities in our target sectors to 2030.
Sectors offering white space opportunities
White space strategy is part of a diversification strategy, which targets an opportunity that didn’t previously exist, and is enabled by new innovative use cases. Because of this, white space strategies are often driven by a combination of technological breakthroughs and unmet market demands. It is in contrast to other types of Diversification Strategy, where the business builds on top of either existing market or offering. A common example of white space strategies in action are mobile phone applications (apps), which scarcely existed before smartphones. After the emergence of the iPhone, the market ballooned to a figure of more than $100 billion in 10 years. Widespread smartphone use created new unmet desires for inventors. Smartphone apps were able to solve many problems for users, ranging from navigation, to filing taxes from your couch.
White space is the riskiest form of diversification strategy and owe its name to the lack of sizable, established competition. There may be small players who are pioneering the space, but large competition is absent. M&A is a common path for companies looking to enter a new market. By acquiring the most promising pioneer in the space, acquirers can potentially cash in on the new innovation area. But with this comes risks: how to analyse the competencies of the target company operating in a technology area outside the acquirer's scope. For this, see our Technology Scouting section.
Exploring white spaces is also risky for companies operating outside their in-house capabilities and comfort zone. This risk can be reduced, however, by working with external innovation consulting firms who have deep knowledge of the new area. Such firms have access to subject experts and often can make the difference between success and failure, see CamIn’s Expert Consulting Model.
Investment opportunities in diagnostics and therapeutics to 2030
Opportunities in industry energy transition to 2030
The app market value 10 years after the iPhone's launch
White space analysis involves two main steps: analysing possible white spaces to identify areas with high-growth potential and identifying the best path to market entry and expansion. At CamIn, we believe in asking a series of detailed questions to perform a white space analysis. Leaders need to be able to ask a range of questions. These include identifying market demands, such as what demands for new products/services exist or will be emerging in the near future, both in your current market or any new market segments that you plan to enter? Other questions to consider are: which emerging technologies can contribute to addressing consumers demands? And what new products/services could they enable? Leaders must also ask themselves which market segments have the highest growth potential and what products/services have the highest probability of satisfying market demands? The areas where they overlap are the most attractive white spaces.
The acceleration of innovation driven by technology is fuelling growth in white space opportunities. But white spaces need more than just technology alone to succeed. We have selected emerging white space opportunities across 14 sectors. From Industry 4.0 to circular economy, we believe these areas offer the chance to capitalise on demands recently enabled by innovation. They include: Energy transition, Future mobility, Sustainable manufacturing, Smart quality control and monitoring, Sustainable food, Sharing economy, Environmental sustainability, Customer experience, Patient care, Diagnostics and therapeutics, Future of connectivity and Digital services. Want to see white space strategy in action? See our case studies below.
Identifying white space business opportunities involves a systematic approach to uncover untapped areas for innovation and growth:
