What Is a Mature Industry?

A mature industry is one that has passed both the emerging and growth phases of
industry growth. Companies in these industries tend to be larger, older, and more stable.

At the beginning of the industry lifecycle, new products or services find use in the
marketplace. Many businesses may spring up trying to profit from the new product
demand. Over time, failures and consolidations will distill the business to the strongest
as the industry continues to grow. This is the period where the surviving companies are
considered to be mature. Eventually, growth is predicted to slow as new innovative
products or services replace existing industry offerings and begin a new industry
lifecycle.

KEY TAKEAWAYS
 The mature industry phase is a later stage in the industry lifecycle.
 Mature industries tend to have larger, more established, and profitable companies
than younger industries.
 At the start of the mature phase, there can be a shake-out separating successful
from unsuccessful companies.
 In late maturity, companies may begin to consolidate as organic growth slows and
they look for ways to increase their market share and juice their growth.
Understanding a Mature Industry
The maturity phase of the industry lifecycle often begins with a shakeout period, during
which growth slows, focus shifts toward expense reduction, and consolidation occurs.
Some firms achieve economies of scale, hampering the sustainability of smaller
competitors. As maturity is achieved, barriers to entry become higher, and the
competitive landscape becomes more clear.

Market share, cash flow, and profitability become the primary goals of the remaining
mature companies once growth is relatively less important. Price competition becomes
much more relevant as product differentiation declines with consolidation. Examples of
mature industries in the U.S. today include food and agriculture, mining and natural
resources extraction, and financial services.